Procedures for Opening a Business

This web file contains a new report on the business environment in the Philippines. It contains a detailed list of the procedures needed to start a business in each of the major cities in the Philippines. For example, page 54 lists out the procedures to be taken for registering a business in Pasig City. It only takes 22 procedures before an entrepreneur can start a business there. The fewest number of procedures for a city is 17. I guess the government is saying, if you don't have enough stamina, you may as well save your money and don't bother with starting a business. After starting a business, you will need even more stamina as each month you, or your staff, must make numerous filings and payments to satisfy the government's demand.

This other web site, also by the World Bank, gives an overall picture of doing business in the Philippines, including tables that show a comparison with the performance in other countries. It also includes a list of analytical studies done on the subject, as well as a list of all the local legislation that is relevant to doing business in the Philippines. The latest study on the list attempts to explain why the growth rate of the Philippines is so low. It speculates that one reason is that the public sector does not have enough money to invest, and the other is that the private sector does not need to invest in order to become profitable. While I can see how the second factor is valid, I think the first may be too kind to the authorities. Rather than lack of resources, I think the public sector has a lot of resources but simply squanders them away.