US state dep’t report: RP losing edge in English

**explorer** · August 10th, 2007 01:58 AM

US state dep’t report: RP losing edge in English

August 09, 2007
Updated 03:52:39 (Mla time)
Cynthia Balana
Inquirer

MANILA, Philippines -- English language proficiency, while still better than in other Southeast Asian nations, is declining in the Philippines, according to a US state department report.

In its “2007 Investment Climate Statement—The Philippines,” the US Department of State said the Philippines needed to restore the comparative advantages it once enjoyed to attract more investments and support higher growth.

The report said high levels of corruption, efforts to reform the judicial system, weak but improving protection of intellectual property rights, slow pace of energy sector privatization, need for further fiscal reforms to boost depressed spending levels for infrastructure and social services, and political uncertainties were dampening investor interest.

“Investment Climate Statements,” prepared by the US Department of State’s Bureau of Economic and Business Affairs annually, provide a thorough description of the overseas environments in which US investors must operate.

The statements cover general characteristics, such as openness to and treatment of foreign investment, details of procedures for licensing, and similar administrative matters.

The statements are updated each year as Chapter 7 in the Country Commercial Guides, a series issued by the US Department of Commerce.

Lack of transparency

On the Philippines, the report said regulatory inconsistency and lack of transparency persisted in many sectors while the regulatory authority remained weak or ambiguous.

“Foreign business representatives often cite corruption as a serious impediment to investment. Commercial disputes are often difficult to resolve quickly or satisfactorily in the understaffed and complex judicial system,” the report said.

In addition, the Philippines has not adequately addressed other key issues like inadequate public infrastructure and potential electric power shortfalls, it said.

Sanctity of contracts

Questions over the general sanctity of contracts in the Philippines have clouded the investment climate, according to the report.

“Investment disputes are infrequent, but when they occur it can take years for parties to reach settlement. Several disputes have concerned water rights, both for use in manufacturing and in power generation,” it also said.

Trade infrastructure, including Bureau of Customs operations, inter-island shipping and port facilities outside of Manila, urgently needs attention, according to the report.

It said infrastructure spending remained subject to corrupt practices in allocation, procurement, contracting, and implementation, with a significant portion of the budget wasted.

Also, a number of Philippine government actions in recent years have raised questions about the sanctity of contracts and clouded the investment climate, the report said.

Recent high-profile cases include the government-initiated review of contracts with power producers, and court decisions voiding allegedly tainted build-operate-transfer agreements and challenging the extent of foreign participation in mining.

The report said that government fiscal conditions, helped recently by new revenue legislation, seemed nonetheless to be improving and that the general economic outlook for 2007 was cautiously optimistic.

Due to persistent fiscal constraints stemming from the country’s high level of debt and persistent tax leakage, the country has consistently under-invested in infrastructure important to both domestic and foreign investors, such as roads and railroads, utilities, healthcare and education, the report said.

High cost of electricity

Foreign investors cite relatively high energy costs in the Philippines compared with neighboring countries, and the potential for power shortages in the midterm, as areas of concern.

On the brighter side, the report lauded the Philippines for taking these challenges seriously, saying the government is liberalizing the power sector through the sale of assets and is supporting alternative energy sources to reduce dependence on imported fuels.

Despite these problems, many foreign investors maintain long-term commitments to the Philippine market and have prospered, the report noted.

“The Philippines is often receptive to suggestions and criticisms from the private sector,” it said.

“Philippine observers will watch closely the government’s ability to sustain revenue expansion and boost capital expenditures after years of extremely tight budgets,” the report said.

**oldblue** · August 10th, 2007 02:47 AM

ibalik na kasi ang English Media.

**CVT** · August 10th, 2007 07:27 AM

It's not totally about our English. The report states a lot of, IMO, valid issues currently pervading in our country. We should all act to curb these issues. The government should lead the way in all of these actions, through legislation and fair, consistent and expeditious execution of the law.

3404:surfing:

**uls** · August 10th, 2007 04:59 PM

Yung walang respect sa sanctity of contracts... that's what foreign businessmen are afraid of.

There are a number of projects here where foreign investors got burned...

how? the govt just voided the contracts... like NAIA 3

-----

re our english language proficiency... i got 2 words for that -- keys me

**flakez** · August 10th, 2007 07:20 PM

pano ba naman wala ka ng mapanood na english sa local channels. dati kahit cartoons english. ngayon tinatranslate na rin sa tagalog.

**gearhead** · August 10th, 2007 08:28 PM

a question. what language are we most comfortable with when communicating in this forum? at work?

**Jun aka Pekto** · August 10th, 2007 11:19 PM

Originally Posted by gearhead

a question. what language are we most comfortable with when communicating in this forum? at work?

It's English for me because I think in English. Once in a while, I'll post in Tagalog. But, it's like Spanish. it doesn't stick. I have to be very deliberate with each word.

If my wife ever decides to drop by here, she'd probably post in Waray.

Just wondering though. Which country(ies) is the Philippines losing the edge to? India? HK?

**niky** · August 11th, 2007 02:10 PM

It's the wishy washy way we approach Education here... first, it's English-English-English... then, oh dear... kids aren't using Tagalog! Introduce more Tagalog... then try to put Science and Math in Tagalog (let me tell you, that worked wonderfully... not!), then back to English.

We've lost the fundamentals in English. Our media popularizes "barokism"... with its pidgin mix of English and Tagalog... we're producing a culture that can't speak in one language or the other...

We're not losing an edge to India... for call center work, the US still prefers Filipinos, because our accent isn't as incredibly thick as the Indians... but the Chinese and Koreans are kicking our butts... sending their students here to learn English. They recognize that English is the language of commerce and industry. Our country foolishly looks upon it as an "imperialist imposition" by the Americans. Crass sentimentality and ultra-leftist patriotism may just yet ruin our economy... :hysterical:

When the government finally, in its glacial way, shifts course and targets better English proficiency in classrooms, it'll be too late... we won't have our lead over the Chinese/Korean/ASEAN competition, anymore.

**uls** · August 11th, 2007 03:10 PM

Originally Posted by niky

It's the wishy washy way we approach Education here... first, it's English-English-English... then, oh dear... kids aren't using Tagalog! Introduce more Tagalog... then try to put Science and Math in Tagalog (let me tell you, that worked wonderfully... not!), then back to English.

We've lost the fundamentals in English. Our media popularizes "barokism"... with its pidgin mix of English and Tagalog... we're producing a culture that can't speak in one language or the other...

We're not losing an edge to India... for call center work, the US still prefers Filipinos, because our accent isn't as incredibly thick as the Indians... but the Chinese and Koreans are kicking our butts... sending their students here to learn English. They recognize that English is the language of commerce and industry. Our country foolishly looks upon it as an "imperialist imposition" by the Americans. Crass sentimentality and ultra-leftist patriotism may just yet ruin our economy... :hysterical:

When the government finally, in its glacial way, shifts course and targets better English proficiency in classrooms, it'll be too late... we won't have our lead over the Chinese/Korean/ASEAN competition, anymore.

The govt just doesnt realize how far we are being left behind.

It's not only about speaking English. It's also about reading and comprehending English. It's also about thinking in English.

But our govt's education system is just trying to maintain literacy.

**Isuzoom** · August 11th, 2007 09:47 PM

Who are you saying that we filipino cannot speak very good english, we are first honor in asia, call center is very good business here in manila and every cities many call center growing and filipino are good talkers in answering every questions from the states. No Prende!!!