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Monday, November 12, 2007

 

SPECIAL REPORT: Global competitiveness

Villar cites conquerors of red tape

By Efren L. Danao, Senior Reporter
 
Senate President Manuel Villar cited Sunday government agencies that have been adopting “out-of-the-box” thinking to reduce red tape, which is choking the country’s business competitiveness.

Villar singled out the Philippine Rice Research Institute in the Science City of Muñoz, Nueva Ecija, for initiating 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.

Villar also commended the Leyte office of the Department of Trade and Industry for reducing the usual 17-step processing of business permits and licensing in Ormoc City to just five steps.

He urged other government agencies to think “out of the box” to implement relevant laws on competitiveness and bureaucratic reforms and to instill a business-friendly environment following the country’s poor showing in the World Bank Global Competitiveness—Doing Business Survey 2008.

The survey ranked the Philippines 133rd of 178 economies. It also noted that registering a business in the Philippines requires 15 procedures that take up 15 to 58 days to process.

He said bureaucratic reforms to allow shorter transaction processing should now be implemented in agencies like the Department of Trade and Industry, the Securities and Exchange Commission, the Bureaus of Customs and of Internal Revenue.

Villar has authored Resolution 166 urging various executive departments to adopt mechanisms to implement relevant laws on competitiveness and bureaucratic reforms.

The measure is pending in a committee. The Senate, meanwhile, has approved on third and final reading the measure seeking to promote entrepreneurship by strengthening the development and assistance programs to micro-, small- and medium-scale enterprises.

Those enterprises comprise 99.6 percent of all registered firms in the country, employ 69.9 percent of the entire work force, and contribute 32 percent to the economy.

The approved bill, a consolidation of measures filed by Sens. Loren Legarda, Mar Roxas, Bong Revilla, Jinggoy Estrada and Villar, gives emphasis to the development of agriculture-rural-based enterprises. It seeks to facilitate their access to sources of funds and assures them a fair share of government contracts and related incentives and preferences.

Another key provision of the measure complements and supplements financing programs for such enterprises by doing away with stringent and burdensome collateral requirements that small entrepreneurs usually find extremely difficult to comply with.

   

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