Simpler: The future of governance
Simpler. Faster. No hassle.
That is the kind of governance that can better provide for our people’s needs, especially during a time of crisis such as the current COVID-19 pandemic. Now is a good time to review, simplify and change the culture and nature of the bureaucracy.
The Philippines was ushered into the digital era in 2001 with the e-commerce (electronic commerce) law. The information technology was revolutionary in ways unimaginable to those that came before us, a positive disruption to our way of doing business, upending the conventional way of transacting. We, along with Singapore, Taiwan and Japan, were the first to take the new path to digitalization.
E-commerce law
Republic Act No. 8792, the e-commerce law of the Philippines, provided the framework for the legal recognition of digital documents, signatures and contracts. It encouraged government agencies to establish online addresses, portals and allow transactions to facilitate delivery of public services. The law created a system of penalties against hacking and other forms of electronic fraud.
Our Senate committee on trade and commerce, through my legislative team at that time—lawyers Sofronio Larcia, Angelo Buenviaje Jr. and Carmelita La’o, and lead person Suharni Samanodi—and Committee Secretary Joey Tunac, with assistance from lawyer Rudy Quimbo, chief of staff of the late Sen. Juan Flavier, sought people who knew what to do, whom to work with and who appreciated the urgency of the law to keep abreast of technological advances.
We held marathon discussions with Foreign Affairs Secretary Roberto “Bobby” Romulo, Information and Communications Technology Commissioner Ramon “Ike” Señeres and former Customs Deputy Commissioner Alexander Arevalo and Paul Brown of the US Embassy. We also consulted private sector technology experts Dr. David Paraiso, Dr. Emmanuel Lallana, Janette Toral and Gamaliel Pascual, as well as people from the National Computer Center (now Department of Information and Communications Technology).As legislators, our job of drafting laws responsive to the existing and emerging needs was greatly eased by the willingness of the executive branch to collaborate with us. During the administration of President Fidel V. Ramos in the mid-’90s, we in the Senate were given access and encouraged to interact with his Cabinet through Ledac, or Legislative-Executive Development Advisory Council.
This created a strong, effective relationship between the President’s Cabinet members and lawmakers, Congress.
Ledac and many other new approaches were much appreciated by us freshmen senators. We observed how leadership and the right people could attain many good programs for the people. We found FVR’s Cabinet first class as they interacted with us. They also appreciated the grassroots feedback from our end.
Looking back, President Ramon Magsaysay during his presidency, 1954-57, was also greatly helped by the scholarly and insightful researches done by Dr. Jose Abueva, who became president of the University of the Philippines. The studies provided the president a different perspective on national issues and problems.
Basic needs
Through all the different administrations, I am struck by the thought that the Filipinos’ fundamental and basic needs had remained almost the same since after World War 2—peace and security, hunger, farmers’ low incomes, unemployment and the pursuit of quality education, social justice and human rights. These social and economic issues have been barely solved.
There was a small book I read a few years ago, “Simpler: The Future of Government,” by Cass R. Sunstein, dubbed America’s “regulatory czar” under President Barack Obama. The legal scholar was drafted by America’s 44th president to simplify the bureaucracy. Sunstein believed making the government simpler made it smarter and work better. It is fascinating how such an approach and action improved the bureaucracy and made it more responsive to the people’s needs.
I remember during President Joseph “Erap” Estrada’s administration, he authorized his then secretary of finance, Jose “Titoy” Pardo, to simplify the Bureau of Custom’s procedure for the release of cargo. His practical approach, including doing away with many administrative requirements, cut down the time for the release of imports from days to a few hours.
Titoy knew the problem quite well. He said, “During my presidency of the PCCI (Philippine Chamber of Commerce and Industry) in 1992, I was focused on an advocacy that could shore up the competitiveness of the Philippine industry. [When] the call for public service, first at DTI (Department of Trade and Industry) and later at DOF (Department of Finance), the opportunity [presented itself] to directly address the need to produce more from less, or simply, to think productivity.
“A recurring clamor from industry leaders was to debureaucratize imports and ensure their smooth and on-time flow to production areas. From here came an incisive reform to create a special ‘green’ lane at the Bureau of Customs. The premise was based on the statistical fact that most major importers would remain faithful to the principles of honesty and integrity, with only a few daring to try to beat the system. It was a welcome reform, as the supply chain functioned with higher levels of efficiency and productivity. One example of how speed and trust in principles worked to everyone’s advantage! Simplè lang at hindi dapat pinahihirap ang madali (things were made simple and easy).”
In writing this article, I hope to jump-start discussions of issues and shorten the talk. Action and resolution have been the mantra of engineers and management people.
When we look at our yearly national budget, now at P4.1 trillion, the allocations are 75 percent for personal services, 20 percent for maintenance and other operating expenses, and 5 percent for capital outlay.
Shortchanged
It would be helpful to remind our leaders how our taxpayers feel shortchanged at not enjoying a better life they have long aspired for and know they deserve. The National Economic and Development Authority, Department of Budget and Management and Congress, which have good and formidable staff members, should study how other equally situated countries like Malaysia, Indonesia, Vietnam and Thailand, even Singapore, allocate their respective yearly budgets, and how effectively. Singapore, of course, is always a model for many of us.
It is also time to review the e-commerce law. After almost two decades since it was passed, so much has changed. Now we have to look at the larger issues of internet connection, mobility, bandwidth, digital transactions and sharing economy. Offering more opportunities, e-commerce has become more complex. We should look at two particular issues specifically.
Make the most of opportunities offered by the internet economy and provide more jobs to Filipinos. A 2019 study by Google and Temasek found that in the Association of Southeast Asian Nations (Asean) region, the internet economy was experiencing exponential growth. Total gross merchandise value (GMV) had reached $100 billion, and was projected to reach $300 billion in 2025. The internet economy in Asean was expected to continue to grow at 10-30 percent from 2019 to 2025.
The Philippines had the lowest GMV in 2019 at $7 billion, lower than Malaysia ($11 billion), Vietnam ($12 billion), Singapore ($12 billion), Thailand ($16 billion) and Indonesia ($40 billion), despite the Philippines’ having 76 million active internet users and a high internet penetration rate (71 percent, against the global average of 54 percent), and Filipinos spending longer hours a day on the internet (10 hours against the global average of 6 hours and 42 minutes).
Competitive environment
Create a more competitive e-commerce environment. The existing law must be updated and provide the legal framework for businesses doing transactions online and to cover mobile, digital platforms and similar electronic channels used in trade and finance. Consumer protection should be strengthened.I have always believed the less paperwork, the faster and more efficiently the bureaucracy will perform. Continuous improvements in the bureaucracy and the reallocation of more taxpayers’ money for basic needs will make the Filipino grateful, happier and more hopeful for a better life and a good future.
Sunstein said “governments can be much better, and do much better, if they make people’s lives easier and get rid of unnecessary complexity.” He stressed: “[I]n the future, governments, whatever their size, have to get simpler.” INQMagsaysay is a former representative and senator of the Republic of the Philippines.
