IN this day and age of technological leaps and innovations, the ease of doing business in the Philippines should be greatly benefiting from this. Aside from the speed in processing documents (it should be a matter of a few minutes if not seconds by now), it eliminates unnecessary expenses “for facilitating the expediting of document processing” (fixers, in short), especially among government agencies.
However, the way things are turning out, it seems that bureaucracy has been institutionalized in technology. Things fall very short, owing to several factors:
1. The inclination for redundancy — For checks released in tranches, documents have to be submitted in order to claim the first check. These documents should be recorded, digitized and compiled under the client’s account (computers, scanners, printers and other office equipment, have been existing for decades now). This is where it gets annoying: for the release of the second check, the same documents have to be submitted again! Let me guess — the third check will require the same. Again. This disservice to the client is enough to discourage him/her from transacting with that agency, having to spend more on transport and photocopying. If the agency discards and throws away the copies, then we add environmental impact to the equation. And it encourages corruption. Some establishments even require the physical ID card instead of the photo in my notes phone app. And take note, some institutions don’t accept the national ID because there is no signature.
2. The inclination to make the client go to several buildings, branches and locations to comply with agency requirements. Common sense alone will tell you that the solution to this old-school bureaucracy is to establish clearing desks within the main office which the client is dealing with. Establish one-stop shops for business registration and licensing to reduce the time and hassle associated with starting a business. Better still, consolidating these processes into a single platform will minimize delays and confusion.
3. Insufficient equipment, corresponding supplies and technical people to design and establish business processing systems are vital to ease of doing business. In licensing for example, implementing digital systems for registration, assessment, taxes and compliance will be a boon, not a bane. A robust online system will reduce bureaucratic red tape, making it easier for businesses to comply with regulations. However, we still don’t have the infrastructure to do such things, starting off with spotty Wi-Fi connections. I am afraid that even Vietnam has a better ease of doing business than us.
4. Tedious regulatory framework — The only way to improve this is to regularly review and simplify business regulations. Streamlining the regulatory framework will make it more accessible, especially for small and medium enterprises (SMEs).
5. Poor infrastructure — With the national debt running in the trillions, it will be wise for the government to invest in robust infrastructure, such as better transportation networks and reliable internet access. Good infrastructure facilitates domestic and international trade, making it easier for businesses to operate efficiently. These being investments, maybe the Maharlika Fund can be put to good use here?
6. High power costs discourage foreign investments. Encourage the use of renewable energy to ensure stable and affordable electricity supply, crucial for operational continuity in businesses. Today’s concept of low investment and faster returns on investment have become just a short-term endeavor.
7. Shortage of capital, whether startups or existing — Enhance financial support for businesses, especially SMEs, by partnering with banks and financial institutions to offer affordable loans and credit options (please avoid redundancy in documentation).
8. More incentives — Provide tax breaks and incentives to businesses that comply with environmental standards, technology upgrades, or investment in research and development. Encourage innovation and more inventions that have commercial promise and that will benefit the majority of Filipinos. Encourage entrepreneurship through government-sponsored programs that offer guidance, mentoring and support to new business owners. Promote innovation also by investing in research and development centers, and offering grants to businesses focusing on technological advancement.
9. Mediocre employees — Implement workforce training programs to ensure a skilled labor force capable of meeting industry demands. From franchises to new businesses, strong public-private partnerships can ensure that training programs are aligned with current market needs.
10. Legal framework issues — Enhance the efficiency of the legal system in resolving business disputes. Establishing commercial courts or alternative dispute resolution mechanisms can speed up legal processes and resolve things faster and more efficiently. Strengthen laws and enforcement related to intellectual property rights to protect businesses’ innovations and creations.
11. Adopt newer technology — Today’s technology may be a dinosaur next year. Encourage businesses to adopt new technologies to increase efficiency and competitiveness. This can be supported through incentives or subsidies.
12. Corruption — The first step of corruption starts with this question: “May kilala ka ba sa (name your agency)?” Implement strict anti-corruption measures to ensure transparency and accountability within government processes impacting businesses. Enforcement is the key.
13. Expert consultations — Undertake regular dialogue with business communities to understand their challenges and collaborate on crafting policies conducive to business growth can only result in positive developments. The humility to accept and realize that one is not an expert on everything increases the chances of success.
I think the above comments can enable the Philippines to create a more business-friendly environment, attract both domestic and foreign investments, and foster sustained economic development. Designing these strategies to local conditions and continuously reviewing them will ensure they remain effective in improving ease of doing business.