This Policy Note focuses on the recent experience of the ports and shipping sectors, discusses the current state of competition and identifies the major legal and regulatory barriers that constrain foreign direct investment in the two sectors. While both sectors had episodes of liberalization, deregulation and privatization in the last two decades, shipping costs have remained high and investments inadequate due to lack of regulatory independence and weak competition. The 2010 Doing Business Survey shows that the Philippines has the highest cost of importing and exporting among its ASEAN and East Asian neighbors. Based on the competitiveness ranking of the World Economic Forum on the quality of port infrastructure, the Philippines ranked 112th out of 133 countries surveyed indicating the lack of competitiveness of Philippine ports.
What fashioned economic nationalism in the Philippines was an inward-oriented economic approach that became wedded to the postwar nationalist struggle. Its beneficiary, the industrial class, flaunted protectionism as an articulated ideology with universal aims. Nationalism was not only held up as the ransom of a sheltered, inward-looking economy, it was also appropriated as the instrument for its legitimation. An unresponsiveness to openness was the logical outcome of this nationalist mystification.
In the intelligence community, there is what is called the intelligence cycle consisting of direction, collection, processing, analysis, dissemination and feedback. The most fundamental problem of Philippine land administration is that it does not possess all the information needed to completely delineate property rights of the government and private persons in the country. It is the most fundamental problem since the other policy objects cannot be achieved without resolving this one first. It represents a failure of intelligence which can be traced to the very beginning of the intelligence cycle – direction and collection.