Anti-red tape law still on hold

The relief promised by the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (Republic Act 1102) to people who do business with government offices may suffer additional delay.

Shortly after the law took effect in June, a panel composed of representatives of major frontline government offices drafted its implementing rules and regulations (IRR), which is a prerequisite for the law’s implementation, to meet its Oct. 22 deadline.

Although the Department of Trade and Industry, the panel’s lead agency, was able to submit on time the proposed IRR to the Office of the President, it was not released because the body authorized to issue it, the Anti-Red Tape Authority (ARTA), has not been organized.

The ARTA shall consist of a Director General (who shall be appointed by the President and is coterminous with his tenure) and three Deputy Director Generals who should be civil service eligible and career officials.

To date, President Duterte has not appointed any of the ARTA officials.

According to Trade Secretary Ramon Lopez, the President wants a retired general to head the ARTA because he thinks a bastonero (or taskmaster) is needed to accomplish its assigned tasks.

If that plan pushes through, the ARTA will be added to the number of government offices headed by former military and police officials, the latest of whom is retired Army chief Rolando Bautista who recently assumed the helm of the Department of Social Welfare and Development.

There is no question the President can appoint anybody he wants to head the offices in the executive department as long as he or she meets the minimum eligibility requirements for the position.

Bear in mind, however, the ARTA is not simply a government agency created to address a minor or insignificant aspect of governance.

It is responsible for simplifying and streamlining the processes of doing business with the government, e.g., issuance of business permits and licenses, with the view to, among others, reducing government operational costs, stimulating commercial activities, and making the country attractive to foreign investments.

The 2018 World Bank’s Doing Business Report ranked the Philippines 113th among 190 economies, which is a significant drop from its 99th ranking in 2017.

In contrast, our Asean neighbors rank much higher, i.e., Malaysia, 24th; Thailand, 26th; Vietnam, 68th; and Indonesia, 72nd.

These figures partly explain why these countries are able to draw billions of dollars worth of investments to their shores that create thousands of job opportunities for their citizens and, in the process, help develop their economies.

The task that awaits the future head of the ARTA is not confined to seeing to it the timeframes laid down by the law for government offices to act on applications for official documents or services are complied with.

That’s the easy part of the job.

More than the enforcement aspect, he should have the competence to formulate, coordinate and implement, among others, the automation of official processes, creation of one-stop business programs, and provisioning for electronic (or digital) transactions by the public.

Thus, it is essential the person who will be responsible for making the Philippines business-friendly in accordance with international standards has hands-on experience or expertise on efficient business management, and attuned to modern business processes and facilities.

This is not to denigrate the managerial capacity of retired generals, but it is doubtful if their military or police training and experience meet the qualifications that ARTA officials should have to be able to accomplish the objectives of the law.

What’s more, the environment the ARTA officials would have to deal with is completely different from the regimented or “obey first before you complain” culture of military and police organizations.

Learning on the job may unnecessarily delay the accomplishment of the law’s objective.

With the country’s abundance of talent in business management, the war against red tape in government is too important to be left to the generals.

Read more...