Global rankings and national competitiveness


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The Philippines received mixed results in two recent global rankings, both critical to the country’s global competitiveness. While the country saw a decline in its talent ranking, it made significant strides in cybersecurity. Though seemingly contradictory, these rankings are critical to the Philippines’ global competitiveness and economic development.


The International Institute for Management (IMD)’s World Talent Ranking is an annual report that evaluates countries’ capacity to develop, attract, and retain talent. This year, the Philippines was again positioned lower than many had expected. The country’s ranking has been downward in the last five years. 2022 is an exception because it moved up three places compared to its 2021 result. This year's drop can be mainly attributed to factors like the low investment in the education sector and the high student-teacher ratio.


On the other hand, the recently released 5th edition of the International Telecommunications Union’s Global Cybersecurity Index shows that the Philippines has significantly improved its ranking. It has moved up eight notches to Tier Two out of the five tiers of the index. This improvement is a testament to the country’s commitment, especially that of the government, to enhancing its cybersecurity infrastructure.


While the Philippine results in the talent rankings can be disheartening, particularly for a nation striving for economic growth and global competitiveness, it is essential to contextualize this performance and recognize the broader landscape of opportunity. Rather than succumbing to discouragement, stakeholders in the Philippines can galvanize action toward improvement in several key areas.


The World Talent Ranking has highlighted the areas we need to improve for the past five years. If we analyze the past reports in-depth, they all discuss the same thing. But the needle seems to have moved backward.


We are seeing some rays of hope, however. Two critical positions in the country’s education agencies are now manned by personalities who understand the sector's challenges. Secretary Sonny Angara of the Department of Education and Director-General Kiko Benitez of TESDA are two well-respected former legislators who have been very progressive in trying to find ways to address the sector's problems. Many Filipinos today believe that their appointment to these key education roles would be the start of a game-changing transformation badly needed by the sector. They both need everyone’s support and patience.


Another positive development for us is the recent launch of the Philippine Skills Framework. Our country now joins more advanced countries such as the United Kingdom, Australia, Singapore, and many others, which have adopted and adapted the Skills Framework for the Information Age (SFIA) to suit their national needs. Singapore also provided much-needed support to the Philippines while working on its skills framework. 


The Philippine Skills Framework (PSF) today covers the information technology sector, specifically software development and cybersecurity, analytics and artificial intelligence, BPO, healthcare information management, and skills required by the numerous global in-house centers operating in the country. We also have frameworks developed for the needs of digital creatives, such as animation and game development. The skills framework for the supply chain and logistics sector was the first to be developed.


Although funded by the Department of Information and Communications Technology and the Department of Trade and Industry, the industry organizations worked on the development of the PSF. They have turned over the PSF to CHED, TESDA, DepED, and schools to guide them in crafting policy reforms intended to prepare the Philippine workforce for the jobs of the future. Now that the industries have come up with their job specifications, everyone is hoping that we finally have the answer to the age-old job-skills mismatch. 


The improved ranking of the Philippines in the ITU Global Cybersecurity Index (GCI) fifth edition signifies several significant developments and opportunities for the country. This indicates that the government is making strides to strengthen its cybersecurity framework. This is vital for attracting foreign investment and fostering trust among international partners, as a robust cybersecurity posture is increasingly seen as a prerequisite for business operations in the digital age.


It also reflects a growing recognition of the importance of cybersecurity among government, businesses, and the public. This heightened awareness can ultimately contribute to a more secure digital environment. It shows that the Philippines is better prepared for cyber threats and incidents. This resilience is crucial for protecting sensitive data and maintaining the integrity of digital services, which is essential for public confidence and national security.
Both rankings offer opportunities for growth and improvement. By addressing the challenges and building on the strengths identified in these rankings, the Philippines can pave the way for a prosperous and secure future.

The author is an executive member of the National Innovation Council, lead convener of the Alliance for Technology Innovators for the Nation (ATIN), vice president of the Analytics and AI Association of the Philippines, and vice president of UP System Information Technology Foundation. ([email protected])