LGUs to speed up business licensing

BUSINESS BITS
Art Tibaldo

BAGUIO CITY -- Alarming reports on the Philippines’ rank in global competitiveness as presented by officials of the Local Government Academy to over 60 training participants from government and private sectors of Regions 1, 2 and Cordillera was not a likely starter for a three day training in this cool mountain city.

The recent workshop on “Upscaling business permit licensing system reforms in 2010” by the departments of Interior and Local Government and Trade and Industry briefed participants on the country’s status in the world economic forum global competitiveness index ranking for 2009-2010 where Philippines ranked 87th out of 133 countries, 14th among 18 Asian and last among the ASEAN-6.

Timothy T. Moiket, team leader of the LGA resource speakers told the participants despite the national government’s efforts such as organization of the National Competitiveness Council, the country ranks 43rd out of 57 countries in the International Institute of Management Development’s global competitiveness ranking for 2009 and last among the five ASEAN members.

Moiket added the country placed 139th out of 180 countries in Transparency International’s Corruption Perception Index (CPI) rankings in 2009 and the 144th among 183 countries in the International Finance Corporation’s (IFC) business 2010 report.

The Philippine’s ranking in global competitiveness survey has always been at the lowest third among countries and there is urgent need to speed up processing of business applications and renewals, he said.

Aside from being the last among the ASEAN-6 member countries, the Philippines also ranks poorest in starting and closing a business at 155th and 153rd respectively.

During his State of the Nation Address, President Benigno Aquino III expressed hope government agencies can find ways to implement reforms that will make business start-ups easier consistent with streamlining processes that his administration has started.

The LGA resource speakers noted these data had consistently identified the high cost of doing business in the Philippines as a constraint to competitiveness of the country and it can be interpreted in the number of days or literally cost in terms of fees and charges spent by a businessman or investor to start a business.

To address these issues and concerns, a covenant and commitment to implement standard business registration procedure for new business and comply with the provisions of the Anti-Red Tape Law was forged in Feb. 18 of this year involving National Capital Region cities, the DILG and DTI.

The covenant sought to address repetitious and cumbersome process of business permit licensing and eliminate lots of signatories and long queues, shorten inspections and totally illuminate irregularities and bribery in the bureaucracy.

The covenant further urged LGUs to empower more business permit licensing officers, set-up one-stop shops, adapt unified and single business permit application forms, business registration process, one-time assessment at the BPLO of related fees and charges including fire, and implement one-time payment system at the treasurer’s office.

All government offices are required to implement the Anti-Red Tape Act by observing the 10 days maximum business permit processing time and create a joint coordination inspection team following the standardization of business registration and permit process or SBRP.

DTI assistant regional director Carmelita C. Usman who also heads the National Economic Research and Business Assistance Center in the Cordillera said during an interview this program can reduce person to person interface, time, cost, number of steps and procedures required to start a business and number of forms to fill out to register which is a very important consideration to Cordillerans.

In the government’s bid to increase investments and improve governance, Usman cited need to address issues relating to transaction costs and flows.