Project Repeal: The Philippine Red Tape Challenge Championing Regulatory Excellence Towards Global Competitiveness Presented by: Ariel F. Faraon Project Manager
Project Manager of Project Repeal: The Philippine Red Tape Challenge, a breakthrough initiative of the Department of Trade and Industry (DTI) and the National Competitiveness Council (NCC) aimed at reforming the country s regulatory management system to improve ease of doing business in the country.
Global Competitiveness Report Card REPORT 2010/2011 2015/2016 GOAL (Top 3rd) CHANGE 4 to 6 yrs 1.Doing Business Report (IFC)* 148/183 99/189 63 49 2. Economic Freedom Index (HF)* 115/179 70/178 59 45 3. Corruption Perceptions Index (TI) 134/178 95/175 58 39 4. Global Competitiveness Index (WEF) 85/139 57/138 47 28 5. Global Enabling Trade Index (WEF) 92/125 64/138 46 28 6. Travel and Tourism Report (WEF) 94/139 74/141 46 20 7. WIPO- Global Innovation Index (WIPO)* 91/125 74/128 47 17 8. Global Information Technology Report (WEF)* 86/138 77/139 46 9 9. E-Government Index (UN)* 78/184 71/193 64 7 10. Fragile States Index (FFP) * ** 50/177 54/178 118 4 11. Global Gender Gap Report (WEF)* 9/142 7/145 47 2 12. World Competitiveness Report (IMD)* 41/59 42/60 20 1 13. Logistics Performance Index (WB)* 44/155 71/160 53 27 *with 2016 Results, **reverse ranking (1 as worst) REACHED THE TOP THIRD LATEST PERFORMANCE UPGRADE *with 2016 Results, **reverse ranking (1 as worst) DOWNGRADE
Global Competitiveness Report Card REPORT 2016 2015 2014 2013 2012 2011 2010 1. Doing Business Report 99/190 103/189 95/189 108/189 138/18 5 2. Economic Freedom Index 70/178 76/178 89/178 97/177 107/17 9 3. Corruption Perceptions Index - 95/168 85/175 94/177 105/17 6 4. Global Competitiveness Report CHANGE 4/5 YEARS HOW TO READ THE REPORT CARD The Change column shows the movement in the ranking over the past 5 years. The ASEAN Rank column shows the position of the Philippines relative to other ASEAN economies for the most recent year available. The IFC Ease of Doing Business Report is named one year in advance of the actual release date (The Doing Business 2017 Report was released in October 2016).. ASEAN RANK The Fragile States Index (formerly known as the Failed States Index) is reverse-ranked with the 178th nation considered as very sustainable. Reached the Top 3 rd of World Rankings Latest Performance RELEASE DATE SOURCE 136/18 International Finance 148/183 49 6 of 10 Oct 16 63 3 Corporation 115/17-45 5 of 9 Jan 16 Heritage Foundation 59 9 129/18 134/178 39 3 of 9 Dec 16 Transparency International 58 3 57/138 47/140 52/144 59/148 65/144 75/142 85/139 28 5 OF 9 Sep 16 World Economic Forum 47 5. Global Enabling Trade Index - n/a 64/138 n/a 72/132 n/a *92/125 28 6 of 10 Mar 16 World Economic Forum 46 6. Travel and Tourism Report n/a 74/141 n/a 82/140 n/a 94/139 n/a 20 5 of 7 Mar 17 World Economic Forum 46 7. Global Innovation Index 74/128 83/141 100/143 90/142 95/141 91/125-17 5 of 8 Jul 16 World Intellectual Property Organization 8. Global Information 77/139 76/143 78/148 86/144 86/142 86/138-9 5 of 9 Apr 16 World Economic Forum 48 Technology Report 9. E-Government Index 71/193 -- 95/193 -- 88/191 -- 78/184 7 3 of 10 Jun 16 United Nations 64 10. Fragile States Index 54/178 48/178 52/178 59/178 56/177 50/177-4 8 of 10 Jun 16 Fund for Peace 118 11. Global Gender Gap Report* 7/145 7/145 9/142 5/136 8/135 8/135 9/142 1 1 of 9 Oct 16 World Economic Forum 47 12. World Competitiveness International Institute for 42/60 41/60 42/60 38/60 43/59 41/59-1 4 of 5 May 16 20 Yearbook Management Development 13. Logistics Performance Index 71/160 n/a 57/160 n/a 52/155 n/a 44/155 27 6 of 9 Mar 16 World Bank 53 TOP 1/3 47
Ease of Doing Business Rankings INDICATORS (2016-2017) 2017 REPORT (190 economies) OVER-ALL RANKING 99 103 4 1. Starting a Business 171 165 6 2. Dealing w/ Construction Permits 85 99 14 3. Getting Electricity 22 19 3 4. Registering Property 112 112 -- 5. Getting Credit 118 109 9 6. Protecting Investors 137 155 18 7. Paying Taxes 115 126 11 8. Trading Across Borders 95 95 -- 9. Enforcing Contracts 136 140 4 10. Resolving Insolvency 56 53 3 UPGRADE DOWNGRADE Source: Published DB reports (2016-2017) 2016 REPORT (189 economies) Change 2016-2017
UPGRADES PHILIPPINE RANKINGS (2011-2017) +71 +32 +10 +97 Dealing with Construction Permits From 156 to 85 Getting Electricity Getting Credit From 54 to 22 From 128 to 118 +9 Paying Taxes From 124 to 115 Resolving Insolvency From 153 to 56
DOWNGRADES PHILIPPINE RANKINGS (2011-2017) Starting a Business Registering Property Protecting Minority Investors Trading Across Borders Enforcing Contracts -15-10 -5-34 -18 From 156 From 102 to 171 to 112 From 132 to 137 From 61 to 95 From 118 to 136
Ease of Doing Business Rankings PHILIPPINES AND ASEAN : 2016-2017 ASEAN 2017 REPORT (190 economies) 2016 REPORT (189 economies) Change 2016-2017 1 Singapore 2 1 1 2 Malaysia 23 18 5 3 Thailand 46 49 3 4 Vietnam 82 90 8 5 Brunei Darussalam 72 84 12 6 Indonesia 91 109 18 7 Philippines 99 103 4 8 Cambodia 131 127 4 9 Lao PDR 139 134 5 10 Myanmar 170 167 3 UPGRADE DOWNGRADE Source: Published DB reports (2016-2017)
Complex regulations and unharmonized regulatory framework Outdated, overlapping and/or contradictory laws and regulations
Relatively open with a number of policies limiting both domestic & foreign competition Regulations were borne as reactionary measures rather than instruments based on coherent government strategy
Low utilization of and access to modern and innovative technologies Substantial tariff and nontariff barriers in several key industries, mostly in agriculture
Reforms to ensure competitiveness and promote ease of doing business will be mandatory. Reacting to these needs, the restrictions on the economy will be needed to make more investments to come and to develop laborintensive industries such as manufacturing, agriculture and tourism shall be pursued. State of the Nation Address (SONA) 2016
Governance Issues that Tempered the Impact of Reforms Process Structure System Source: ADB
Regulatory Excellence in MPAC 2025
Regulatory Excellence in MPAC 2025 Harmonization of mutually recognized standards, conformance, and technical regulations for products in key sectors Strategic Objectives 1 2 Reduce number of trade-distorting nontariff measures (NTMs) across ASEAN member states
Regulatory Excellence in MPAC 2025 Complete harmonization of standards, mutual recognition, and technical regulations in three prioritized product groupings Key Initiatives 1 2 Increase transparency and strengthen evaluation to reduce trade-distorting nontariff measures (NTMs)
Approaches to Regulatory Excellence: DTI Perspective Embed regulatory quality principles in the regulatory management system Eliminate inconsistency in individual approaches Deliver predictable regulatory outcomes
Our Strategy
Project Repeal
Expected Outcomes Reduced cost of compliance for people and businesses; savings for the economy, measured in PhP Millions annually
Objectives Crowdsource Proposals Establish Repeal System Cut Regulatory Cost
Inspiration
Scope Amendment Consolidation Delisting Repeal Addition, deletion and/or change of certain provisions of a rule or regulation Integration of multiple, similar regulations into one legal document. Removal of invalid rules and regulations from an agency s website and roster of active issuances. Full elimination of a rule/issuance because it has been deemed no longer necessary.
Process Consultation & Crowd-sourcing Stocktaking of Existing Regulations Self- Assessment Policy Analysis Administrative Simplification Regulatory Mapping Identification & Assessment of Options Deciding Which Option to Take Post Implementation Monitoring & Review Public Reporting Implementation of the Chosen Option
Approaches Whole of government approach to regulatory reform aimed at cutting red tapes affecting ease of doing business and the delivery of social services; Employ a horizontal approach (inter-agency) to upgrade quality of existing regulations; Developmental, stakeholder focused and evidence based approach to regulatory decision making
Updates STOCKTAKE Total As of June 13, 2016 17,388 Enrolled for 1 st Repeal Day (3,777) Balance for Review 13,611 Additional Submissions 16,514 As of October 31, 2016 30,125
Updates Amendment of the 2009 Implementing Rules and Regulations of Republic Act 9184; Omnibus Rules and Regulations Governing Travel Taxes; Simplification of the process of securing Alien Employment Permits Consolidation of Rules and Regulations on the Change of Office Address of Corporations
Updates Review, repeal and/or amendments of laws and regulations to improve trade of goods in the Philippines (import and export processes) Finalization of List of Policy Imperatives for Inclusion to the National Logistics Master Plan; Repeal and/or Amendments of CAOs and CMOs in accordance with the Customs Modernization and Tariff Act; Further Review of the IRR of RA 9184;
Updates Inventory and ongoing assessment of laws and regulations imposing non-tariff measures; Repeal and/or amendment of rules and regulations governing the operations of private ports; Repeal and/or amendment of rules and regulations governing cargo handling in ports; Amendment of product standards Repeal of JMC No. 1, s. 2010 and issuance of DTI- DILG and DICT JMC No. 1, s. 2016
Updates Partnership with the Senate Committee on Trade, Commerce and Entrepreneurship and its counterpart in the House of Representatives - Passage of the Ease of Doing Business Bill (incl. Relevant amendment to the Local Government Code) and National Competitiveness Bill - Comprehensive Amendment of Republic Act No. 9485 - Passage of the Bill Creating the Government Efficiency Office to establish and institutionalize efficient and effective regulatory management system - Amendment of the Corporation Code of the Philippines
Updates From 8 agencies participating in June 2016, it has increased to 75 agencies participating as of October 31, 2016 Partnership with United Kingdom s Regulations Delivery Office in the Development of the Philippines Regulatory Cost Model Establishing partnerships with the Civil Service Commission, Philippine Institute for Development Studies, UP Diliman, ADMU, DLSU, PUP and PSPA Second Repeal Day on December 8, 2016 at Philippine International Convention Center
We NEED YOU... Submit your proposals to: project.repeal@competitive.org.ph a.faraon@competitive.org.ph
Thank you. F O L L O W U S on your favorite social media accounts! @DTI.Philippines @DTIPhilippines @DTI.Philippines