New SWS surveys

SWS began reporting on two new surveys this week. Last Wednesday was the opening presentation of the 2016 Survey of Enterprises on Corruption, given in cooperation with the National Competitiveness Council.  In coming weeks, there will be presentations in Metro Angeles, Cavite-Laguna-Batangas, Metro Iloilo, Metro Davao, and Cagayan de Oro-Iligan, the six other areas, in addition to Metro Manila, where a total of 950 business managers were interviewed last Feb. 2-May 6.

Last Thursday, our media partner BusinessWorld published the initial public satisfaction rating of President Duterte, based on the Third Quarter Social Weather Survey, done last Sept. 24-27 on a national sample of 1,200 adults. The presidential rating will be followed by many more reports about the quality of life and governance, from now until the end of the year.

A normal-looking honeymoon. To me, President Duterte’s Very Good (VG) initial rating of net +64 (76 percent satisfied, 11 percent dissatisfied, correctly rounded), is only normal. It is not unusual, since Presidents Cory Aquino, Fidel Ramos, Joseph Estrada, and Noynoy Aquino (P-Noy) also obtained VGs (from +50 to +69) initially. A few points difference from his net rating is immaterial.

The one with an unusual initial rating was Gloria Arroyo, who got only Moderate ratings (from +10 to +29) both after succeeding Estrada on account of People Power II in 2001 and after winning her own election in 2004.

The proper way to compare presidents is to use all the available data over time. Cory Aquino stayed VG until March 1987, a year after becoming president. Ramos stayed VG for two years. Estrada was VG for only a year. P-Noy averaged VG for three-and-a-half years.

Fighting corruption improved under P-Noy. The 2016 Survey of Enterprises on Corruption is the 13th in a series since 2000 (funds were not available in 2010-11). From 2012 onward, there was a marked improvement in fighting corruption, although the newest survey of 2016 shows some backsliding.

Some highlights:

35 percent had personal knowledge of a corrupt transaction with government in their line of business in the last three months.  The percentage was 32-38 percent under P-Noy, superior to the 37-44 under Arroyo.

The percentage saying that most companies in their sector give bribes to win public sector contracts was 39-42 under P-Noy, versus 45-57 under Arroyo, and 55 under Estrada.

Ratings of agencies’ sincerity in fighting corruption:

Very Good: SEC

Good: DTI, DOLE, Office of the President, DOH, CSC, DepED, SSS, Supreme Court, and Ombudsman

Moderate: COA, DSWD, Sandiganbayan, GSIS, DOJ, Local Governments, Comelec, and AFP

Neutral: DOF, PCGG, DENR, DILG, and DA

Poor: DBM, PNP, DPWH, DTC, and BIR

Bad: LTO

Very Bad: BOC

The percentage solicited for a bribe by anyone in government was 44-50 percent under P-Noy, versus 60-71 under Arroyo.

The percentage saying most/almost all companies in their line of business give bribes to win private sector contracts was 23-27 under P-Noy versus 22-30 under Arroyo.

The percent saying that corrupt executives in their own sector of business are often punished was 55-60 under P-Noy, versus 45-54 under Arroyo.

Business practices are poor: only 48 percent demand receipts for their payments; only 43 percent give full employee benefits; only 34 percent pay correct wages; only 33 percent issue receipts; only 21 percent keep one set of books; and only 19 percent pay taxes honestly.

Satisfaction with the national government’s promotion of a good business climate was 59-70 percent under P-Noy, versus 35-53 under Arroyo.

The percentage with good/excellent expectations for business in the next 2 years was 72-76 under P-Noy, versus 28-61 under Arroyo, and 17 under Estrada.

SWS thanks the Australian Embassy, Asia Foundation, USAID, the Integrity for Investments Initiative and the National Competitiveness Council for their support.  We are eager to continue surveying enterprise managers.

Contact [email protected].