Deconstructing the Philippines for the Knowledge Era: The Role of the ICT Sector

Abstract

Philippine productivity has deteriorated absolutely over the past four decades and relative to those of its regional competitors in the global economy. A comparative study of other reasons behind the decline in Philippine competitiveness over the last decade vis-à-vis the larger global market suggests a key catalytic role of information and communications technology (ICT). Data used are from the annual global survey conducted by the Institute for International Development in Management (Switzerland), in which AIM’s W. Sycip Policy Center is a partner institute.

Given their potential contribution to production and productivity in the aggregate services sector (whose share in gross domestic product has been increasing), a few niche markets in the ICT areas are analyzed. The paper finally discusses key international policy issues in the knowledge era where the Philippines can define a more pivotal role, such as those related to the creation of technology-driven human talent intermediation systems for the new economy. In part, it is inspired by the brain flow which the Philippines has contributed to many corners of the world economy, but which it can further harness in the information age using both codified and tacit knowledge.