EDITORIAL - Frustrated

The start of the year is also the season for renewing business licenses and permits, paying real estate taxes and other fees. Discounts are typically given for early payments before the end of the year. The annual ritual will test whether President Duterte’s directive for cutting red tape has trickled down to the lowest levels of government, including barangay units.

Last June, in the World Bank Group’s latest international survey on ease of doing business, the Philippines ranked 99th out of 190 economies. Never mind perennial achiever Singapore, which ranked second only to New Zealand. For the rest of Southeast Asia, the Philippines was rated lower than even Vietnam, which ranked 82nd, with Malaysia placing 23rd, Thailand 46th, Brunei 72nd and Indonesia 91st.

The former conflict zones of Rwanda and Kosovo ranked 56th and 60th, respectively. Zambia was ahead of the Philippines at 98th.

A reminder of the work to be done was issued over the weekend by the Management Association of the Philippines, whose head noted that the country is good at inviting and then frustrating foreign investors. Among the reasons MAP cited for this observation were restrictions imposed on foreign investors, difficulties in opening and operating a business as well as persistent corruption.

The group cited the commitment of the Duterte administration to relax constitutional restrictions on foreign investments. MAP also lauded the efforts of the National Competitiveness Council to overhaul the regulatory environment by moving to repeal redundant, burdensome and outdated business rules and regulations.

President Duterte, who has often said he wants all ordinary public transactions with the government to be completed within no more than three working days, can give the competitiveness effort the full support of his administration. He can also lean harder on his political allies to ensure that local government units all the way down to the barangays fully understand his objective of cutting red tape and eliminating corruption. Government must be a facilitator rather than a hindrance to business.