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Newsmakers

Anti-red tape & the ease of doing business

MIKE ABOUT TOWN - Mike Toledo - The Philippine Star
Anti-red tape & the ease of doing business
The author
STAR/ File

Ease of Doing Business (EODB) has been defined as “the level of simplicity and efficiency with which businesses can operate within an economy.” It encompasses various aspects, including the economic landscape, finance and legal framework.

In the Philippines, we have Republic Act No. 11032 (RA11032), otherwise known as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, which amends Republic Act No. 9485 (RA9485) or the “Anti-Red Tape Act of 2007.”

(From left) Assistant Ombudsman Mico Clavano, Ombudsman Jesus Crispin Remulla, ARTA’s director general, Secretary Ernesto V. Perez, and Undersecretary Gene Abot

Where, previously, anti-red tape dealt more with streamlining the bureaucracy and making it more efficient, EODB was seen to be more encompassing, more inclusive of not just the public sector but the private sector as well.

The World Bank itself has established the EODB Index where “higher rankings” (a lower numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights. A ranking of “1” means that a country is the most business-friendly, which was New Zealand in 2023.

The author with Atty. Connie Chiu of Aboitiz Group and ARTA director general, Secretary Ernesto V. Perez

Back in 2023, the Philippines was ranked 95 out of 190 economies in the ease of doing business index by the World Bank.

The Philippines’ overall score was 78.8 out of 100, which is higher than the regional average of 71.9 and above the global average.

he Manila Hotel president and former senator Joey Lina Jr.

The World Bank did not publish a “Doing Business” report for 2024, as the series was discontinued. However, in the World Bank’s new Business Ready (B-READY) report, the Philippines ranked among the bottom 20 percent of economies in the “Business Entry” category and 70.7 in Regulatory Framework and 50.8 in Public Services.

The Philippines’ goal is to reach the top 20 percent of countries assessed by the World Bank’s B-READY report by 2026.

In Nov. 14, 2022, President Ferdinand “Bongbong” Marcos Jr. appointed Ilonggo CPA-lawyer Ernesto Perez to be the director general of the Anti-Red Tape Authority (ARTA), the government agency created by RA11032 to promote the government’s programs and initiatives for economic growth by having a streamlined and digitalized Philippine bureaucracy for effective, efficient, and inclusive service delivery.

ARTA recently held its third annual Ease of Doing Business Convention from Nov. 4-6 at the Manila Hotel. The event focused on leveraging efficiency, accountability, and digitalization to improve public services and the country’s business climate.

The convention had the theme “LEAD with EODB: Leveraging Efficiency, Accountability, and Digitalization for Ease of Doing Business.”

Its main goals included promoting better business practices, reinforcing reforms under the Ease of Doing Business Law, and encouraging a collaborative approach to reduce bureaucratic red tape. The event gathered various stakeholders, such as government officials, diplomatic representatives, and business leaders.

Highlights of the convention included discussions on digital transformation and the official launch of ARTA’s electronic Complaints Management System (eCMS) to streamline public complaints. The convention also recognized partners for their contributions to improving the business environment. Panel discussions featured insights from leaders like Ombudsman Jesus Crispin C. Remulla on the connection between reducing red tape and combating corruption.

I had the honor to close the convention by underscoring the role of streamlined government processes in advancing national development. I made a compelling case of highlighting key areas where red tape reduction makes a difference.

I praised ARTA’s efforts to transform bureaucratic systems, recognizing the agency’s leadership in promoting a government that is “clean, just, highly efficient, technology-enabled and people-centered.” I emphasized that the fight against red tape is not just a government challenge but a whole-of-society endeavor — involving business, civil society, and citizens themselves.

“Open government is not just the job of government,” I mentioned. “It is a shared effort.”

A particular focus was given to how digitalization and process-reengineering can reduce delays, enhance transparency, and boost investor confidence. Simplifying procedures is key to unlocking growth across sectors.

I urged private-sector entities to partner actively with government reform programs, stating that streamlined regulation benefits both public service delivery and business competitiveness.

My remarks arrived at a time when the Philippine government was actively pushing to enhance ease-of-doing-business and reduce bureaucratic bottlenecks.

While the rhetoric is promising, I acknowledged the hurdles: entrenched systems, legacy regulations, data silos, and change-management constraints. I stressed that technology alone isn’t enough — it must be coupled with cultural shifts, leadership commitment, and stakeholder engagement.

I then appealed to all attendees to view the anti-red-tape agenda not as a compliance burden but as an opportunity — for better service, stronger institutions and a more competitive Philippines.

I challenged the audience: “If we reduce one day in processing, one form less, one delay avoided, we’re moving closer to the future our people deserve.”

The EODB Convention is a significant event in ARTA’s ongoing efforts to foster a more competitive and business-friendly Philippines, in line with the “Bagong Pilipinas” national agenda. With Secretary Nes at the helm, trust that this agenda will not be far off in the horizon. *

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