Villar presses government to solve perennial
red tape to improve country's competitiveness

Senate President Manny Villar called on all government agencies to be bold and put in place unconventional and creative mechanisms to solve the red tape syndrome, which is badly affecting the competitiveness of the country.

Villar made this recommendation in the light of the Philippines' 133rd ranking out of 178 economies in the World Bank Global Competitiveness-Doing Business Survey 2008, which was released recently.

"We must resort to daring and 'out of the box' initiatives in order to implement relevant laws on competitiveness and bureaucratic reforms to instill a business-friendly environment following the country's poor showing in this international survey," Villar said.

"Our competitiveness is wanting. The Philippines is at stand still and a slow reformer. Most of the reforms needed are not legislative in nature and would require simple creativity and political will," he added.

Villar cited an example in the area of registering a business where under the present system, it requires 15 procedures that take up 15 to 58 days processing.

"I understand also that most government transactions would require three to five signatures to accomplish. It was reported before the as much as 40 signatures are needed in a Bureau of Custom ordinary transaction," Villar pointed out.

The Nacionalista Party President called on relevant agencies such as the Department of Trade and Industry, the Stock Exchange Commission, the Bureau of Customs, the Bureau of Internal Revenue, among others to implement measures that will allow shorter transaction processing.

Villar also cited government agencies that have been adopting 'out of the box' mechanisms such at the Philippine Rice Research Institute, which has initiated the Farmers' Text Center.

"Under this system, rice farmers with crop problems are given access to scientists and experts' advice, comments and recommendations through SMS," he said.

The Senate president also commended the DTI-Leyte Office for successfully reducing the usual 17-step processing of business permits and licensing in Ormoc City to five steps.

Based on the survey, the Philippines failed to make itself a better place for businesses, slipping eight notches lower, to 133rd from its 126th ranking in 2006. The poor ranking is despite the high-profile attempt of government to address problems affecting the country's competitiveness.

It also shows that the Philippines is lagging behind other Asian markets, including Bangladesh (107th), India (120th) and Indonesia (123rd) in competitiveness and pursuing reforms.

Proposed resolution 166 filed by Villar recommends to the various executive departments the adoption of honest and 'out of the box' mechanisms to implement the relevant laws on competitiveness and bureaucratic reforms.