President Rodrigo Duterte’s directive to local government units is clear and unmistakable. They should promote investments in their respective areas and ease the environment of doing business in the Philippines.
Mr. Duterte, in his State of the Nation Address in July, wants to reduce the period of processing business permits to just three days. “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,” Duterte said in his speech.
LGUs should view Mr. Duterte’s directive as marching orders from a superior, who has time and again fired officials for ineptness and perceived corruption. It should serve as a fear factor and a warning on LGUs that they should get their act together, cut the red tape and eliminate a major source of corruption in their level.
President Duterte’s order is long overdue. He signed on May 28, 2018 Republic Act 11032, or the Ease of Doing Business and Efficient Delivery of Government Services Act of 2018, that seeks to make the process of establishing and running a business in the country more efficient and easier. The law amended the Anti-Red Tape Act of 2007.
Many businessmen and entrepreneurs, however, have complained of the tedious process in getting a simple permit from LGUs. It is no surprise then that the Philippines ranked 124th out the 190 economies in the World Bank’s latest Ease of Doing Business report.
The Department of Finance and the Department of the Interior and Local Government recently issued a joint circular providing the guidelines in setting reasonable rates for regulatory fees and other service charges as part of government’s efforts to improve the ease of doing business in the country.
The circular seeks to ensure that LGU fees do not unduly burden the public and are imposed only to help local governments recover the costs of services they render while making them more business-friendly.
Local executives, meanwhile, must demonstrate their resolve in simplifying the procedures in opening a business in their community and view the greater good. They should discard their parochial view and start acting like a statesman.
