Confidence builder. That’s how leaders of the country’s most influential business groups—Philippine Chamber of Commerce and Industry (PCCI), Philippine Exporters Confederation (Philexport), and the Federation of Philippine Industries (FPI)—described President Duterte’s threat of cracking the whip on slow-moving local officials. The President earlier said the country is losing much from making it difficult for aspiring businessmen to set up shop because of red tape in the issuance of permits.
In his fourth State of the Nation Address on Monday, the President directed all mayors to cut down the processing period of business permits: “I am directing you publicly. All clearances, permits emanating from your office that would also need your approval, must be out, at the very least in three days.”
PCCI Chairman Emeritus Francis Chua said he is convinced the President is dead serious about putting a stop to corruption in government, as well as making life easier for those engaged in business activities.
Philexport President Sergio Ortiz-Luis Jr. said the President’s directive that business permits and other government licenses be issued within three days sends a strong signal to lazy or corrupt bureaucrats that it is time to shape up. He said the snail-paced movement of the bureaucracy is a heavy burden to the export sector, which is now caught in the crossfire of the US-China trade war.
FPI Chairman Jesus Arranza said the constant delays in the issuance of business permits and other licenses reflect the level of corruption in government agencies, both in the national and local levels. By forcing slow moving government offices to hurry up, he said the Chief Executive is doing businessmen a big favor. Arranza, however, appealed to the President to take a closer look at corruption at the barangay, which is also tasked with the issuance of various permits. “The culture of patronage and corruption is very strong at the barangay level,” he said, adding that public spaces, such as sidewalks, are often used as private parking lots or occupied by vendors under the protection of barangay officials.
The World Bank’s latest Ease of Doing Business report ranked the Philippines at 124th out of 190 economies. The government contested this, claiming that the World Bank failed to include new reforms in the tally. Specifically, the Ease of Doing Business and Efficient Government Service Delivery Act, a significant piece of legislation to improve service delivery and fight corruption that the President signed in May 2018.
Under the Ease of Doing Business Act, simple transactions of business entities with government should be processed within three days, seven days for more substantial transactions, and 20 days for highly technical transactions. However, in his Sona, the President admitted the need for improvement, as he reminded all mayors to streamline their process of approving or rejecting permits. “I am directing also DILG Secretary Eduardo [Año] to see to it that this is honored,” Duterte said.
The President’s efforts to make doing business easier for entrepreneurs by cutting red tape in government is definitely in the right direction. The business community hopes for more comprehensive socioeconomic reforms in the last three years of the Duterte administration to spur faster, sustainable and more inclusive economic growth. We hope that all mayors and other concerned government officials will do their part by heeding the call of the President.