The role of government in the 21st century

Having listened to previous SONAs from past presidents over the years, President Aquino’s third State of the Nation Address (SONA) has reminded me of the evolving nature of government. It had a positive tone because of the good news he enumerated but beyond that what struck me was the common thread in SONAs of the constant challenge for governments to maintain their relevance in a world that is becoming more integrated by the day and where challenges to governance have evolved as a result.

National and local governments of today face a range of major trends and challenges as a result of rapid technological innovation and the increasing integration of individual economies with each other. We live in a hyperconnected world. These developments impact on the role of governments in various ways. A profound change in the make-up of their economy and their integration with world markets has placed a premium on competitiveness as the glue that holds all government policies together.

The Philippines has changed from an agriculture and import substituting driven economy to one that is now predominantly services oriented. The astonishing revolution in information and communications has changed the way people do business and interact including between those who govern and who they govern.

When the President spoke of the people as his bosses, he was acknowledging as much this present day reality literally. Such is the speed and accuracy of feedback of public opinion. The competition for finite resources and the demand for better quality of life have increased pressure for pursuing sustainable development policies. The debate over the RH Bill and the Mining Act reflects this tension. The changing nature of national security threats which today range from international terrorism, pandemics and natural disasters require rapid response and coordination with other governments. At the same time, governments are facing long-term, structural fiscal imbalances resulting in pressure on their ability to meet these challenges. 

Responding to this evolution require that government must have the institutional capacity to plan more strategically, identify issues and react quickly, and focus on achieving results. However, in many cases, governments are still trying to do business in ways that are based on conditions, priorities, and approaches that existed decades ago and that may not be well suited to addressing 21st century challenges. And here I am not talking only of computerizing certain government services but rather of transforming the entire governance structure.

Private companies also face the same challenges because business and market conditions likewise evolve. To successfully respond to these challenges, they go through a process of re-evaluating their mission and vision to determine if they are still relevant, as surely they would have evolved over time. Once they have established the validity of their reason for being, they then would look at whether their current business processes, organizational structures, and management strategies are appropriate and optimal in fulfilling that mission and realizing their vision. Business firms do not have the luxury of time. If they do not respond in a timely manner, then their very existence will be in jeopardy.

There is no reason why governments should not take the same approach to make them more responsive to 21st century conditions. While there has been a conscious effort in the Philippines to do so, we lag behind economies like Singapore and Taiwan in the effort to bring government agencies up to present day conditions and challenges. Many government agencies in the Philippines operate under outdated premises and cumbersome modes of delivering public services. To be fair, developing these capabilities would require the requisite legal mandate and space for them to operate in a manner that is appropriate to the changing environment. And they have to develop the leadership and management capabilities to transform their cultures and operations.

The President I believe understands the evolving nature of governance and I think that perhaps it is time that our government undertakes a comprehensive review of how it is currently stacked up to meet these evolving governance challenges. It is with this in mind that the Carlos P. Romulo Foundation is organizing a regional conference on the role of government in the 21st Century that will address the following issues:

1. Modern economies of today are often seen as part of a network of global supply chains which somehow suggest compatibility of systems for that chain to work efficiently and therefore for that economy to remain part of that network. How should governments transform their mindset, services, infrastructure, legal framework, operations, and workforce to keep pace with rapid changes in technology and profound changes in their economic structure?

2. Many of the responses to these challenges cut across multiple policies and programs being implemented by many agencies. In the Philippines, we have been witness to many instances where the three branches of government – the Executive, the Legislative, and the Judiciary seem to be working at cross-purposes. What kind of enabling environment – given current cultural and ideological settings – can government develop to break down organizational silos that hamper effectiveness and efficiency? How can the different branches of government – including co-equal branches – have a more strategic, cross-cutting focus on policy and budget decisions to address goals that cut across conventional silos?

3. Many governments in the region are increasingly outsourcing traditional public services with the private sector – both for-profit and non-profit – either because of resource limitations or for cost efficiency. The challenge is to maintain the proper balance between efficiency, effectiveness and equity. How can governments establish the metrics for such criteria and to determine on that basis which areas of public service to outsource?

4. Accurate and extensive data – which are broadly accessible to many different sectors of society and therefore so would their inputs – are at the heart of framing problems and issues, making good decisions and arriving at effective solutions supported by a wide segment of society to complex issues including sustainable development, enhancing competitiveness, ensuring security and allocating scarce public resources. How can governments develop and afford this capability for creating such a database and enhancing interaction among stakeholders?

5. In a highly globalized world, very few issues are local anymore. Governments must now find ways to respond collectively to collective action problems such as the global financial crisis, pandemics, energy security, nuclear non-proliferation and climate change among others. What kind of legal framework and organizational structure nationally and locally is needed so that government can readily and effectively participate in such international collective action?

The conference will draw on local and international thought leaders and practitioners to develop answers and best practices that hopefully will provide food for thought for policy makers, business leaders, academe and the media over this increasingly critical issue.