DFA closure of foreign posts

I am in total agreement with the recommendation of Foreign Secretary Del Rosario. We do not need 94 foreign posts. Moreover, del Rosario’s plan to give performance objectives to ambassadors related to volume of trade, investment and tourism is noteworthy. The Secretary told me: “if my ambassadors don’t meet objectives then I will have to ship them home”. That is music to my ears. I remember the words of a very senior diplomat lecturing me: “I am a diplomat, not a merchant”. That was in the 1990’s when world diplomacy was changing their perceptions regarding economic diplomacy. The diplomat was emotionally reacting to President Fidel V. Ramos’ order that DFA must focus on economic diplomacy. One word of caution regarding closures, there will be strong pressure to retain posts from some members of the legislature. I tried it too in 1994 but some were not closed due to legislators’ personal or ideological reasons. For the record, one consulate in California was closed despite the fact that a relative of President Ramos was in charge.

It is equally noteworthy that one legislator, Senator Frank Drilon, is on the same page as the Secretary: “......it is to our national interest that we rationalize our presence abroad because of our situation, economically, and the need for consular services to overseas Filipinos”. I have read his other statements in the press. Clearly, this is one Senator who understands the nature of diplomacy vis-à-vis our national interest. 

ICT

Regarding my favorite subject, ICT and e-Government, I look forward to learning more about the recently announced DOST plan to acquire a broadband network for P900 million. With the recent inclusion of President Aquino by President Obama in the steering committee of OPEN Government, it is important that the Philippines finalize and articulate their ICT plans which is key to the objective of transparency. I understand that Senators Arroyo and Angara have voiced concerns about the implementation of the network. Presumably, DOST will reach some accord with them in the near future. May I suggest that this is ideal for a PPP project? Moreover, the President should take the lead in this endeavor. The foreign investors have always commented that their concern is governance in the Philippines. It would seem they prefer to invest in China and Vietnam. The effective use of ICT, particularly e-Government will be concrete proof of transparency which foreign corporations will consider positively. On the issue of transparency, I understand our President is getting good marks abroad during his many trips, which is extremely important despite carping of others. The impression is “his heart is in the right place”.

One other point regarding the organization and implementation of a broadband system, both Filipinos and foreign investors will be reassured of incorruptible transparency if the system is managed by an independent government agency which transcends the politics of one administration succeeded by another. DFA passports are currently being partially processed by the BSP. Assuming the central bank charter allows it, DOST may consider a joint venture with them and a reputable ICT organization.This constitutional body can hire staff and provide competitive salaries.

Department of Health

Health Secretary Ona should be commended for his efforts to use IT in DOH governance. One instance is the implementation of eDPMS (Electronic Drug Price Monitoring System) as required by the Cheaper Medicines Law. This is another manifestation of the Aquino Administration’s desire for greater transparency in governance. Overall, there is a level of agreement about the need for a monitoring mechanism to keep medicine prices transparent – but the biggest concern of the pharmaceutical companies is lack of data privacy and security guarantees in the eDPMS system – with the concomitant implication on possible anti-trust issues given the amount of data sitting in a database at the DOH, and with no clear appropriate technology safety nets in place. The DOH is now in dialogue with them to thresh out these issues. Personally, I am concerned about its successful electronic implementation. Can all parties transmit the required data by computer on a monthly basis, in particular the small drug stores? Has the system design been developed and the appropriate data base software selected by a third party solutions provider or is this internally developed at DOH? Has this been Beta tested? Are redundancies in place given the amount of data DOH plans to collect? What exactly is DOH going to do with this amount of data and do they have the capacity to analyze this data? Again, I see this as another potential PPP which should undergo some rigorous planning and development since investors’ data is at risk. I have had discussions with Secretary Ona and Undersecretary Ted Herbosa about the potential of other PPP projects. The Secretary is very receptive and will have it studied further. I understand that a joint study by DOH and the private sector is about to complete their study on the use of ICT in DOH. In sum, the Secretary of Health and his team are on the right track. By the way, for disclosure purposes, I am the chairman of the Zuellig Family Foundation and former chairman of Zuellig Pharma’s holding company. 

Forum on West Philippine Sea (South China Sea)

The Forum will take place on Oct. 16-17. This is a “by invitation only” event hosted by the Carlos P. Romulo Foundation in collaboration with the Institute of Southeast Asian Studies of Singapore and with the gracious cooperation of the Chinese Embassy. For information, contact [email protected]. The Romulo Foundation would like to express its gratitude to the following sponsors: The Zuellig family, San Miguel Corp., The Philippine STAR, Philex Petroleum Corp., Planters Development Bank, Aboitiz Foundation, Air Asia, Alsons Consolidated Resources, Ayala Corp., Banco de Oro, Century Properties, CLSA Exchange Capital, Megaworld Corp., Oriental Petroleum and Minerals Corp., PHINMA Foundation, Concepcion Industries and six other sponsors who wish to remain anonymous.