Last month President Duterte enacted Republic Act 11032 or the Ease of Doing Business Act, which he said would address the failure of the Anti-Red Tape Act of 2007. A report over the weekend should indicate where the red tape has been heaviest.
Records of the Office of the Ombudsman show that in 2017, local government units topped the list of agencies facing the highest number of graft complaints at 3,189 cases – a 12 percent increase from the 2,799 in the previous year. The Philippine National Police ranked second to the LGUs with 939 complaints, although this was lower than the 1,022 filed against PNP officials and employees in 2016.
LGUs have also been the subjects of complaints from investors who say local government requirements are among the biggest roadblocks to ease of doing business in this country. Barangay rules and, in several areas particularly in Metro Manila, subdivision homeowner requirements add to the red tape and redundant fees imposed arbitrarily.
The hindrances to business are reflected in the country’s low ranking in international studies on competitiveness. This weakness in turn impacts on the country’s ability to attract foreign direct investment. Among the five founding members of the Association of Southeast Asian Nations, the Philippines has the lowest level of FDI.
Those investments are needed to generate jobs. It’s a reflection of the country’s inability to provide decent employment to its people that an estimated 10 million Filipinos are working overseas. A number of them are exposed to physical and sexual abuse or at risk of injury or death in zones of armed conflict.
Red tape is designed into processes so government employees can demand grease money for “facilitation.” The Ease of Doing Business Act specifies periods for completing various types of business transactions. Electronic signatures and a policy of zero-contact with bureaucrats are being promoted.
Those who benefit from the status quo are certain to design ways of skirting the new law, just as they did with the Anti-Red Tape Act. Short of subjecting such crooks to Oplan Double Barrel, President Duterte must apply his trademark toughness in ensuring that even LGUs will cooperate in making the new law work.