The Philippines must treat standards as a core part of its economic strategy if it wants to achieve upper middle-income status, according to a new report by the World Bank.

In its World Development Report 2025: Standards for Development, the multilateral lender said stronger and more strategic use of standards can improve investment efficiency, boost exports, and support technology adoption—key drivers of long-term growth.

“Standards are now foundational economic infrastructure,” the report noted, placing them on par with traditional enablers such as roads and ports.

Presenting the findings at a policy dialogue in Mandaluyong City, Philip Grinsted urged the Philippines to adopt an “adapt, align, author” approach to standards. This means first tailoring international benchmarks to local conditions, then aligning with global systems, and eventually helping shape and create new standards.

Grinsted cautioned against immediately adopting the strictest global benchmarks, noting that standards must match local capacity. He said a tiered system—where standards vary in stringency—can help firms gradually upgrade while minimizing risks.

As industries mature, aligning with international standards can ease market entry, reduce duplication, and improve global competitiveness. Over time, the country should also take a more active role in influencing and writing standards to reflect national priorities.

The report also emphasized that standards should be embedded in broader industrial policy rather than imposed in isolation. Creating the right conditions for firms to improve quality, through better infrastructure, skills, and market incentives – is seen as critical to driving adoption.

Global demand for standards has surged in recent decades. More than half of the 20,000 standards issued by the International Organization for Standardization over the past 70 years have been developed since 2000, with over 7,000 released in 2024 alone.

The report pointed to Japan as a model, highlighting how it transformed from a producer of low-quality goods after World War II into a global benchmark for manufacturing excellence through sustained focus on quality systems and standards.

Grinsted also encouraged greater participation by developing countries in international standard-setting bodies such as the ISO and the International Electrotechnical Commission, noting that limited resources often constrain involvement. He added that virtual participation now offers a practical way to engage without high travel costs.