Palace blames Arroyo for lower economic freedom rankings

Malacañang on Thursday blamed the Arroyo administration for the Philippines’ slide in the global rankings on economic freedom, saying it was based on the the country’s performance when former President Gloria Macapagal-Arroyo was still in power. In the 2011 Annual Economic Freedom of the World Report, the Philippines slipped in global rankings to 89th from 76th in a pool of 141 countries. The report rates the Philippines’ economic freedom at 6.5 out of 10 — the lowest rating the country has received since 1990. “For the record, the 2011 report was based on 2009 figures, during the incumbency of the Arroyo administration," presidential spokesperson Edwin Lacierda said. The rankings come from an index published in the Economic Freedom of the World Report, which “measures the degree to which the policies and institutions of countries are supportive of economic freedom," according to the website of the Economic Freedom Network that published the report online. The Economic Freedom of the World Annual Report defines economic freedom as follows: “Individuals have economic freedom when property they acquire without the use of force, fraud, or theft is protected from physical invasions by others and they are free to use, exchange, or give their property as long as their actions do not violate the identical rights of others." Measuring economic freedom The index measures degrees of economic freedom in five broad areas, according to the website:

• Size of government: expenditurs, taxes, and enterprises
• Legal structure and security of property rights
• Access to sound money
• Freedom to trade internationally
• Regulation of credit, labor, and business.

“The Aquino administration has taken steps, among others, to streamline the bureaucracy, level the business playing field, improve the business registration system, and institute zero-based budgeting," Lacierda said. He added that these efforts “show our commitment to improve the business and economic climate in the country." “We can reasonably expect that when the efforts of the Aquino administration are factored into their next report, the Philippines will rank higher," Lacierda said. Earlier this month, however, business leaders and analysts noted that widespread corruption, not only in the government but also in the business sector, continues to hinder the economy’s growth. — With a report by Paterno Esmaquel II/VS, GMA News