Created by World Bank, the Ease of Doing Business (EoDB) Index provides rankings that show better regulations for businesses and stronger protections of property rights. It covers 10 sub-indicators:
- Starting a business
- Dealing with construction permits
- Getting electricity
- Registering property
- Getting credit
- Protecting investors
- Paying taxes
- Trading across borders
- Enforcing contracts
- Resolving insolvency
Aside from this, the Index calculates a distance to frontier (DTF) score. Using a scale of 100 where 100 is the highest, the DTF score helps assess the absolute level of regulatory performance over time. It measures the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005.
Although this is not an indicator under the Results Matrix of Chapter 5, this is still being monitored to determine efforts on ease of doing business.
Philippine Performance for the Past Few Years
|No. of Countries||189||190|
|Distance to Frontier||59.92||58.09||57.75||58.32||58.74|
|Starting a business||170||161||165||171||173|
|Dealing with construction permits||99||124||99||82||101|
|Protecting minority investors||128||154||155||137||146|
|Trading across borders||42||65||140||95||99|
The Philippines declined by 14 spots this year, the biggest drop since 2012. The most significant drop is found in getting credit (-24 places), dealing with construction permits (-19 places) and enforcing contract (-13 places). Only paying taxes saw an increase, driven by the country’s move to file taxes online. Although other reforms have been rolled out, these may not have been significantly felt by businesses yet. Further, the World Bank said that companies here still face significant regulatory challenges, leaving room for further improvements, especially in the areas of starting a business (from 68.86 to a score of 68.88), enforcing contracts (45.96 score unchanged at 45.96), and protecting minority investors (score unchanged at 40). t is expected that the implementation of the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (RA 11032) will further increase our rankings.
Philippine vs. ASEAN Performance for the Current Year
|Country||2018 Overall Ranking*||2018 Distance to Frontier||2017 Overall Ranking||Change in Ranking
(2018 vs. 2017)
* 190 countries
The Philippines is outpaced by our ASEAN neighbors, especially Thailand (+20 places), Brunei (+16 places) and Indonesia (+19 places). Looking at the DTF score, the country’s 58.74 is below the regional average of 65.59. The country also posted the biggest decline (-14 places) vs. the rest of its ASEAN counterparts.