THE Philippines is the cheapest country to live among 55 economies despite soaring prices of fuel, food and other basic commodities, a survey by a Swiss-based think tank said. However, despite the low cost of living in the Philippines and the relatively high gross domestic product (GDP) rate, the Filipinos' purchasing power remains low, according to the Institute of Management Development World Competitiveness Yearbook. The Philippines actually jumped over Russia, Italy, Colombia and Greece in the World Competitiveness Index (WCI), rising from 45th to 40th spot. “It's a rather good jump,” political economy professor Federico Macaranas said Wednesday. In terms of economic performance, the Philippines moved to 42th from 45th spot, for government efficiency to 41st from 47th, business efficiency to 31st from 39th and infrastructure to 48th from 51st. “It shows that the collaboration of the private and public sector in order to improve the country's competitiveness is working,” said Ruy Moreno, National Competitiveness Council (NCC) director. Moreno said the results will help bring more investments into the Philippines. “That is a natural effect,” he said. “In addition to foreign investments, the increased competitiveness will help domestic entrepreneurs in conducting their businesses.” Moreno said for instance, the results showed that it is easier to do business in the Philippines now as red tape in business registration was reduced. He said the Philippines is on track to meet its target of being in the top one third by 2010. The IMD World Competitiveness Yearbook is the most reputable and comprehensive report on the competitiveness of nations published since 1989. It judges competitiveness of 55 economies, based on 331 criteria. Macaranas credited the Philippines' lift in the economic-performance index to the gross domestic product, the growth rate of which was the Philippines' highest in 31 years. The Philippines was ahead of all 55 countries in terms of economic performance because it offers the cheapest prices in the world, the WCI data shows. Cost of living index was also low, the second-lowest among 55 countries. __
