Bad Governance versus Good Governance

BAD GOVERNANCE VERSUS GOOD GOVERNANCE

Bad governance is:

Weak Rule of Law

PH GOV’T SHOULD HONOR ITS CONTRACTS

Philippine Daily Inquirer

04:00 AM December 18, 2019

We believe we live in a country where law should prevail.

lf the government has entered into contracts based on public bidding, it should honor such commitments. lf international arbitration was provided in said contracts, and duly accepted, it should naturally prevail, so be it.

...The Philippine government cannot accept an arbitration case when it suits it, like The Hague for the Spratlys, and reject it when it does not (the Singapore/utility rates).

W-A MIAILHE DE BURGH

Escolta, Manila

INHOSPITABLE CLIMATE

Philippine Daily Inquirer / 04:08 AM February 17, 2020

The Bangko Sentral ng Pilipinas report last week that foreign investments in the Philippines fell by nearly 30 percent in the first 11 months of 2019 came as no surprise to many economists.

In fact, inflows from foreign investors have been weak for many years now. The latest regional data from the 2019 Asean Investment Report placed the Philippines in fifth spot, with the bulk of the rising foreign investments in the region being cornered by Singapore, followed by Indonesia, Vietnam, and Thailand.

There are many reasons — some beyond the government’s control — for the rather anemic interest of foreigners to invest here. Geographically, the Philippines is an archipelago considered as a small market by big multinationals, unlike other Asean neighbors that are connected by land to one another to create a homogeneous market.

Structurally, the Philippines has laws that bar the entry of foreign investors in so-called industries imbued with national interest, although some of these industries such as telecommunications should have been opened to 100-percent foreign ownership a long time ago. The country’s chief economist, Socioeconomic Planning Secretary Ernesto Pernia, has described the Philippines as the most restrictive country in the region insofar as foreign investments are concerned, and this is why he is pressing Congress to pass bills seeking to amend the Foreign Investment Act, the Retail Trade Act, and the Public Service Act.

But recent developments have also created a quite inhospitable climate for foreign investors.

First is the administration’s move to trim down the number of tax perks given to investors. The rationale to weed out industries that do not deserve incentives makes sense. But in the protracted debate that has followed, many foreign businesses are feeling reluctant to come in, given the uncertainty on what incentives will remain or which sectors will continue to get the perks.

This uncertainty is manifested in the steep slump in investment pledges received by the Philippine Economic Zone Authority in the past two years: 16 percent last year to P117.5 billion, and 41 percent in 2018 to P140 billion.

More worrisome for investors has been the apparent bias of the Duterte administration against big business, as it seemingly targets those that it perceives were allies of the previous regime or unsupportive of the present administration.

In the process, the sanctity of contracts has been disregarded, as in the case of the two concessionaires of the Metropolitan Waterworks and Sewerage System. The government has unilaterally decided to draw up new contracts for Manila Water Co. Inc. and Maynilad Water Services Inc. to remove what it claims were onerous provisions in the old contracts drawn up by previous administrations.

Businessmen who are among the most respected in the country have also been pilloried in public by no less than President Duterte, who has repeatedly ranted against them, called them names and accused them of economic crimes. A major casualty has been the Ayala family, which was recently forced to cede majority interest in Manila Water to ports and casino tycoon Enrique K. Razon Jr., considered an ally of the present administration.

Another looming casualty is the Lopez family’s ABS-CBN television network. Mr. Duterte had on several occasions publicly vowed to block the renewal of the company’s franchise, which will lapse at the end of next month. Congress has not moved on the renewal despite several bills having been filed years back.

The investing public’s dismay in all this has been mirrored in the sharp decline of the stock prices of listed companies targeted by the Duterte administration: Manila Water, ABS-CBN, Metro Pacific Investments Corp. (controlling owner of Maynilad) and, much earlier, Philweb of businessman Roberto Ongpin.

The administration cannot simply blame the external environment for the dismal performance of the Philippines in attracting foreign investors. There are far more serious concerns it can address to lure foreign capital to our shores.

Failing in this, even local capital may soon go elsewhere and be counted as foreign investments in countries where businessmen feel the governments are more hospitable and reasonable, and can be trusted to keep their word.

Low levels of Government Effectiveness, Regulatory Quality, and Control of Corruption

A real competition that urges competitors to provide quality service is a competition that is FAIR TO ALL. It isn’t competition when you amputate a competitor for endorsed players to easily come in. This administration has really let loose all the crooks. #SaveAngkas

Kristoffer Psion

@indiohistorian

Philippine Daily Inquirer (December 24, 2019)

Good governance is:

Improved Levels of Government Effectiveness, Regulatory Quality, and Control of Corruption

ALL THE RIGHT MOVES

Philippine Daily Inquirer / 04:07 AM December 22, 2019

In a public service environment, indeed a culture, riven by corruption and inefficiency, people are all too willing to hail anyone who stands out from the rest, who displays a modicum of hard work and honesty, and who appears to be self-effacing as well.

Pasig City Mayor Vico Sotto is being hailed these days as an exemplar of good governance, a city mayor who upholds transparency by reporting to his constituents the accomplishments of his office and the priorities he has set out for his term.

…A recent accomplishment was saving Pasig over P150 million from July to November this year through what Sotto called “honest to goodness” public bidding for its goods and services.

This was made possible by Sotto’s order that all “Approved Budget of Contracts (ABC)” be reduced by a minimum of 10 percent, which he then buttressed by opening the bidding process to the public through social media, and making sure correct procedures were followed.

The bidders then became more competitive and consequently submitted lower bids, according to Sotto, eventually making possible savings of P1.8 million or 25 percent for the improvement of a barangay hall after the city gained a winning bid of P5.5 million, lower than the ABC of P7.38 million.

Likewise, the winning bid for requirements of the city’s engineering department was at over P212,000, lower than the ABC of P571,680, saving the city over P359,980 or 63 percent.

These savings, said Sotto, would be plowed back to the city’s coffers to be used on other priority areas, such as health services.

…“The key is finding the right balance: move too slowly and nothing will happen; move too fast, and the people may not be ready for it.”

He appears to be making all the right moves so far. While the people of Pasig may eventually become a “city on a hill,” as it were, an example of what good, no-nonsense governance can do courtesy of a maverick chief executive—the way Naga City was under the late Jesse Robredo (not incidentally, Sotto’s idol and inspiration for a public servant) — other local government units and their leaders across the country may want to take a look at the fresh blast of politics bringing transparency, accountability and no-frills decency to the running of a complex, rapidly modernizing community much like their own, and learn from it.

Improved Government Effectiveness and Regulatory Quality

“Government effectiveness captures perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government's commitment to such policies.”

“Regulatory quality captures perceptions of the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development.”

CONGRESS PRIORITY: ECONOMIC, TAX REFORMS

By: Dindo Manhit - @inquirerdotnet

04:03 AM December 27, 2019

The big challenge is for legislators to refocus priorities on economic reforms rather than on populist bills. These key measures can help attract more investments and stimulate economic growth. We need to prioritize the passage of economic reforms to improve market competition and simplify regulation to boost trade and investments. As Finance Secretary Carlos Dominguez III stressed during the budget hearings in the Senate, the passage of the remaining tax reform packages and the three key economic reform bills are crucial in helping secure an “A”credit rating for the Philippines.

For 2020 onward, our legislators should put tax and economic reform measures at the top of their legislative priorities. These are essential to creating a vibrant economic and investment climate that would boost business and consumer confidence, create jobs and promote inclusive development.

Stronger Rule of Law

Professionalization and depoliticization of the Armed Forces is basically improved rule of law whereby those responsible for abuses and excesses are called to account even up to the highest levels of government.

Additional aspects of good governance are also entailed with respect to the Armed Forces, such as bolstering Voice and Accountability or improving Control of Corruption.

MARTIAL LAW AND INSTITUTIONAL ACCOUNTABILITY

By: Jesse Angelo L. Altez - @inquirerdotnet

Philippine Daily Inquirer / 05:03 AM January 02, 2020

Last Dec. 10, presidential spokesperson Salvador Panelo announced that martial law in Mindanao will not be extended.

…The AFP is a dynamic institution that has constantly evolved with the times. Though there are episodes of backsliding along the way (read: Arroyo generals and the “pabaon” scandal), the institution, through various reform initiatives, has worked hard to redeem itself, professionalize its ways, and move away from the Armed Forces of the Marcos regime characterized by abuse and excess.

Various policies have been introduced to modernize the institution: the AFP Modernization Act of 1995, the Revised AFP Modernization Act of 2012, and more recently, the AFP Transformation Roadmap, a reform initiative that aims to transform the Armed Forces into a strong and credible institution built on good governance.

Still, the AFP continues to be haunted by the ghost of a dark past: It was used by a civilian commander in chief to inflict harm on the people the soldiers were mandated to protect.

Hence, if the institution wants to become a truly world-class armed forces, it must, while looking forward, also look back and acknowledge what made the excesses in the first martial rule possible, so it can put up mechanisms of accountability and assure the people that those responsible for abuses and excesses will truly be made to account for their actions.

It is only then that the Filipino people can look forward to an AFP that will be a source of national pride.

Odds and Ends — Blog of Gonzalinho da Costa

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Bad Governance versus Good Governance

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