Good governance


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Good governance

  1. 1. 07 Good Governance and the Rule of Law Good Governance and the Rule of Law 205
  2. 2. Good Governance and the Rule of Law Good governance sets the normative standards of development. It fosters participation, ensures transparency, demands accountability, promotes efficiency, and upholds the rule of law in economic, political and administrative institutions and processes. It is a hallmark of political maturity but also a requisite for growth and poverty reduction, for there are irreducible minimum levels of governance needed for large-scale investment to occur and for social programs to be supported. A cornerstone of good governance is adherence to the rule of law, that is, the impersonal and impartial application of stable and predictable laws, statutes, rules, and regulations, without regard for social status or political considerations. This chapter assesses the quality of governance in the country and identifies key governance challenges that constrain development. It then lays down corresponding strategies to achieve good governance anchored on the rule of law, and provide an enabling environment for national development. Assessment and credibility of the nation’s institutions. Challenges But they are not enough. The country’s recent history has been Efforts until now have at best plagued by questions of legitimacy, created “islands of good governance”1 accountability, and allegations of grand in certain sectors, some national corruption. The 1986 EDSA revolution agencies, and LGUs. But these have established a framework of constitutional failed to translate into improvements democracy and civil rights, but deep social in the country’s overall state of and political divisions have persisted governance, nor have any significantEfforts until now have at alongside problems of inefficiency and social impact.These “islands”are easilybest created “islands of corruption in government. The failure to swamped by high tides of impunitygood governance” in certain address governance issues has given rise in and venality. The overall miserablesectors, some national recent years to marked political instability, state of governance in the countryagencies, and some local bordering on threats to constitutional was attested by different measures.government units. But these government, and a deepening cynicism The country’s percentile rank in thehave failed to translate into and mistrust of formal political six dimensions of governance in theimprovements in the country’s institutions. Political instability and Worldwide Governance Indicatorsoverall state of governance, widespread corruption have also had (WGI) until 2009 remainednor have any significant social serious repercussions on the investment mostly within the lower half. Theimpact. climate. The successful and credible worst performance was in political transfer of power in 2010 through the stability, as the conduct and results prescribed constitutional processes and a of previous national elections were renewed public concern for government sharply contested amid allegations accountability and transparency are of corruption. The result was an important first steps in restoring the alienation of the people from their 1 A phrase used by a former World Bank country director in an article of September 5, 2007.206 Philippine Development Plan 2011-2016
  3. 3. Figure 7.1. Philippines: Worldwide Governance IndicatorsSource: World Bank ( and an open invitation inefficient government bureaucracy asto several extra-constitutional the top two most problematic factorsattempts to seize power. for doing business in the Philippines. The country’s corruption problemThe country also failed to hurdle is again highlighted in the 2010major indicators under the Corruption Perception Index where theMillennium Challenge Corporation Philippines ranked below 75 percent of(MCC), which relies on the WGI all the countries surveyed (134th outfor measuring policy improvements of 178 countries)4 and last among thein three dimensions of governance.2 ASEAN-6.The country’s standing fromThis picture is repeated in the Global all these measures signals the need forCompetitiveness Index (GCI), more substantial actions to strengthenwhere the country was ranked 87th governance in the country. This onlyin 2009-2010 and 85th in 2010- shows that good governance cannot2011.3 Even though the country’s be achieved partially or piecemeal,competitiveness slightly improved but must be attained decisively andfrom last year, the country continues lag behind most SoutheastAsian neighbors. The Global Political instability, corruption, and weakCompetitiveness Index Report for rule of law have had severe negative2010-2011 listed corruption and effects on investment,5 which partly2 The MCC is a bilateral grant program of the US. Eligibility criteria include 17 different governance measures,among which, however, the “control of corruption” is the only “hard” or strictly binding condition. When thePhilippines transited from the low-income to lower-middle-income category in 2010, it fell below the thresholdof the corruption indicator appropriate for the new peer group, with a 26th percentile ranking.3 The Global Competitiveness Report 2010-2011 (World Economic Forum)4 The Corruption Perception Index is a composite Report prepared by Transparency International whichmeasures the perceived level of public sector corruption in 178 countries and territories based on 13 expert andbusiness surveys.5 Philippines: Critical Development Constraints (ADB) Good Governance and the Rule of Law 207
  4. 4. Cumbersome government explains the country’s low rate of capital Public Service Deliveryprocedures slow down the formation. Public investment is stymieddelivery of public service and when corruption in revenue-collection The delivery of public services mustincrease transaction costs. The efforts deprives the government of needed be prompt and adequate to citizens’same arduous government funds. Overpricing and funds-diversion in needs. Cumbersome governmentprocesses also provide the spending distort priorities and wastes public procedures slow down the delivery ofvenues for corruption, given resources. But even private investment public service and increase transactionthe natural tendency to avoid is affected; first, by the uncertainty of costs. The same arduous governmentthe bureaucratic red tape. administrations whose legitimacy is processes also provide the venues for questioned, and second, by the prospect and corruption, given the natural tendency reality of biased rules and extortive practices, to avoid the bureaucratic red tape. The which raise the costs of doing business Anti-Red Tape Act (ARTA) of 2007 and discourage new business entrants already requires national departments, and contract-bidders from providing real agencies, and LGUs to set up their competition. In the end, the resulting respective service standards known poor growth and fiscal inability to support as Citizen’s Charters (CCs), to social programs severely impair poverty- simplify procedures, and to facilitate reduction programs. Corruption and lack transactions. As of August 30, 2010, of transparency are major constraints to the 74 percent of agencies (4,253 of achievement of the MDGs.6 To say that 5,716) nationwide had complied with corruption and poor governance abet and the drafting and promulgation of worsen poverty is no exaggeration. Kung CCs. As a means to develop citizens’ walang corrupt, walang mahirap. awareness of their rights vis-à-vis government and encouraging citizens’Figure 7.2. CES Occupancy criticisms when aggrieved, this is one step towards cutting red tape and reducing corruption. However, This is unlikely to be sufficient. Impersonal online services can reduce the face-to-face transactions that typically provide the occasion for extortion and corruption, and some agencies have provided such services. These include the Land Transportation Office (LTO), the Securities and Exchange Commission (SEC), the Bureau of Internal Revenue (BIR), and the Government Service Insurance System (GSIS). The government has also selected 120 LGUs to become “Sparkplugs for Governance and Economic Development” by, among others, streamlining their business permit and licensing system to reduce opportunities for bribery and otherSource: CESB forms of corruption.7 These reforms need to be harmonized and well- 6 Philippine Progress Report on the Millennium Development Goals 2010 7 Philippines’ Policy Improvement Process Plan of Action 2010208 Philippine Development Plan 2011-2016
  5. 5. established, however, for significant The integrity of the civil service has beenresults to be achieved. Moreover, in the perennially undermined by appointments“Ease of Doing Business” index, the based on political accommodation ratherPhilippines remained in the bottom than on merit and fitness, a phenomenonfifth of the economies surveyed (rank that is partly an offshoot of the president’s148 out of 183 economies surveyed).8 vast powers of appointment and discretion. This is true across the boardVarious initiatives have also been but particularly in third-level positionsundertaken to provide a more and in the appointment of teachers,competitive compensation system police, and treasurers. The eligibilityin the government to improve the requirement is only weakly enforced ineconomic wellbeing of civil servants the career executive service, in which 47and raise their morale, with a view percent of the occupied positions are heldto better service provision. The pay by noneligible individuals.of government personnel coveredby the Compensation and Position Local governments confront rising publicClassification under RA 6758, as expectations regarding the delivery ofamended, was adjusted in 2007 and services. Despite almost two decades2008 through an additional 10 percent of implementation of the 1991 Localincrease in basic monthly salaries. Government Code (LGC), however, local governments still face various challengesTo rationalize the Government in the exercise of their devolved serviceCompensation and Position delivery functions. Foremost amongClassification System, a Joint these is the raising of sufficient fundsResolution of Congress was passed for local development. A majority of thein 2009 increasing the salaries of local governments still lack the ability orgovernment workers by an average of the will to raise adequate local revenues.50 percent over four years. Increases in LGUs have become unduly dependentcompensation were implemented to on Internal Revenue Allotment (IRA)continually uplift the living standards transfers from the national governmentand welfare of government employees. and have failed to manage their financialThe new pay package aims to attract resources effectively and sustainably. Thesemore qualified and upright people persistent issues are a significant hurdleto work for government, address the in the realization of the goals of localcompensation gap between the public autonomy and devolution through goodand private sectors, and encourage local governance and effective servicequalified incumbents to stay longer delivery. Owing to loopholes in thein public service. It puts a premium LGC, as well as the lack of capacities ofon positions with more complex local governments in assuming devolvedand difficult tasks and greater functions, national government agenciesresponsibilities. It also eliminates (NGAs) continue to deliver certainthe overlapping of salaries between services despite the transfer of theseconsecutive salary grades. Meanwhile, services to the local governments. Thethis effort is always threatened and confused and overlapping performanceundermined by legislation seeking of functions compromises the lines ofto provide higher pay for specific accountability for local services.agencies.8 Doing Business 2011 (IFC and WB); The “Ease of Doing Business” index measures business regulation relevantto the life of a domestic small to medium-sized firm: starting a business; dealing with construction permits;employing workers; registering property; getting credit; protecting investors; paying taxes; trading across borders;enforcing contracts; and closing a business. The Philippine ranking is based on the experience of firms dealingwith Manila City Government on three dimensions – starting a business, dealing with construction permits, andregistering property. The 2011 edition refers to the period June 2009 to May 2010. Good Governance and the Rule of Law 209
  6. 6. The size and scope of the bureaucracy Integrity has expanded through time and has led to overlaps and redundancies in The law assigns the Office of the functions and operations of departments/ Ombudsman (OMB) a pivotal role agencies. The executive branch pursued a in ensuring integrity and deterring rationalization program in 2004, but this corruption in the public sector. The remains uncompleted. As of December 31, threat of prosecution and conviction 2010, 177 (82%) of the 216 departments/ of public wrong-doers is a potent agencies, other executive offices (OEOs) sanction against corruption. This will and GOCCs have submitted their not be regarded as a credible threat Rationalization Plans (RPs) to the DBM, without a reliable and effective OMB of which 85 have been approved. The that demonstrates credible leadership abolition of 15,485 regular, contractual, and publicly measurable success in a or casual positions has resulted in savings sustained anticorruption effort. in Personal Services (PS) amounting to PhP2.39 billion annually, while on the The OMB has far spearheaded the other hand incentives and terminal-leave National Anticorruption Plan of benefits paid to those retiring or separated Action (NACPA), the collective from government service amounted to response of different sectors to the PhP1.396 billion. problem of corruption, integrating and strengthening the anticorruption As long as staffing in some agencies is initiatives and commitments of the excessive and redundant, and the quality OMB itself,other constitutional bodies, of existing personnel is poor, there will be the three branches of government, political resistance and public cynicism LGUs, civil society, the business sector, about across-the-board attempts to non-government professional groups, improve the pay and morale of the civil and the foreign donor community. service. On the other hand, RPs need Its five programme components to consider the real needs of front-line consist of: (a) public policy advocacy; agencies especially in promoting the rule (b) convergence development and of law. While a “scrap and build” policy management; (c) performance is sensible for addressing the internal measurement and management; (d) structure, it cannot address the emerging knowledge management and capacity- personnel resource gaps to respond to building; and (e) resource mobilization. increasing population and demand for The NACPA is implemented through higher-quality service delivery. the Multi-Sectoral Anticorruption Council (MSACC), a multisectoral mechanism chaired by the OMB.9 Table 7.1. Status of Submission and Evaluation of Rationalization Plans: as of 31 December 2010 No. of No. of RPs No. of RPs No. of No. of RPs Not Organizations Approved Returned for RPs Being Yet Submitted Revision Evaluated Departments/Agencies 134 47 7 71 9 OEOs 25 17 3 4 1 GOCCs 57 21 0 17 19 Total 216 85 10 92 29 Source: DBM 9 These include, among others, the Concerned Citizens of Abra for Good Government, Inc., the Northern Luzon Coalition for Good Governance, the Evelio B. Javier Foundation, Inc., Moral Recovery Officers Foundation, Inc., the Federation of Filipino Chinese Chamber of Commerce and Industry, and the Employers’ Confederation of the Philippines.210 Philippine Development Plan 2011-2016
  7. 7. Priority NACPA programmes Index”, the Philippines ranked 134and projects include enhancing out of 178 countries in 2010. Investorsthe framework of legislation and have pointed to corruption as the mostlocal policies against corruption, problematic factor for doing business.11the adoption and customization of In the 2008 Global Integrity Report, the Investors have pointedthe APEC Code of Conduct for Philippines received a moderate overall to corruption as the mostBusiness, an integrity development ranking, gaining a score of 71 points in problematic factor for doingreview of LGUs, capacity-building its Integrity Indicator Scorecard, only business in the Philippines.on UNCAC-compliant investigative four points better than its 2007 standing.techniques, anticorruption planning Its lowest scores were in “Elections”workshops for professional groups, (59), “Civil Society, Public Informationincluding accountants and engineers, and Media” (68), and “Governmentand the establishment of the Centre Accountability” (70).12for Asian Integrity, an anticorruptionlearning center. A massive rethinking and renewal of effort by all agencies involved in the fightSuch important efforts against corruption is clearly needed if anynotwithstanding, the bureaucracy’s real progress is to be made in this aspect.vulnerability to corruption appears onlyto have increased. The Commission on Rule of LawAudit (COA) in 2009 noted a “risingincidence of irregular, illegal, wasteful Justice is no less important a public goodand anomalous disbursements of huge than basic education and primary healthamounts of public funds and disposal care.The framework of the rule of law servesof public property that it reinstituted as the foundation for a democratic society.the selective preaudit on government Its effect on economic performance, socialtransactions”.10 Public clamor has also development and integrity infrastructurebeen loud and insistent for a speedy of the country is pervasive. Otherwiseresolution and closure in a growing stated, the rule of law is a cornerstone tonumber of highly-visible cases of the improvement of public health, thegrand corruption involving high- safeguarding of citizens’ participation, oflevel politicians and bureaucrats. This security and of the fight against poverty13public sentiment has had political and (World Justice Project). According to theelectoral repercussions and cannot be World Justice Project Rule of Law Indexignored. 2010, however, the Philippines ranked last or close to the bottom among sevenThe deterioration is also evident in indexed Asian countries. The countrycross-country comparisons. Of six ranked last in such factors such as “ordergovernance dimensions in the WGI, and security”, “fundamental rights”, andthe country’s score in “control of “effective criminal justice”; it was secondcorruption” has consistently been to the last in the “absence of corruption”,the second lowest, next only to “clear, publicized and stable laws”,political instability. In Transparency “regulatory enforcement”, and “access toInternational’s “Corruption Perception civil justice”.1410 COA Circular No. 2009-00211 Global Competitiveness Report 2010-2011 (World Economic Forum)12 The Global Integrity Report is a tool for understanding governance and anti-corruption mechanisms at thenational level. It is generated by local researchers and journalists. The scorecard contains various points thatextensively measure the effectiveness of local policies and implementations.13 World Justice Project Rule of Law Index 201014 Even the Philippines’ best score in “open government”, which is fifth of seven, was unremarkable and belowexpectations of one of the oldest democracies in the region. Good Governance and the Rule of Law 211
  8. 8. The weak rule of law and an In an attempt to reduce the load of unresponsive justice system hinder the courts, the Alternative Dispute economic development. Delays in Resolution (ADR) Act (RA 9285) resolving corruption cases, the high was passed in 2004. However, there cost of litigation, and the long and is a need to continuously encourage arduous legal process have resulted and actively promote the use of ADR in the diminution of public trust and for it to live up to its promise as “an confidence in government and the important means to achieve speedy justice system. Another factor affecting and efficient resolution of disputes”.16 investors’ confidence pertains to disputes arising from unmet contractual Citizens’ Participation obligations and the proper enforcement of property rights, including those of Citizens’ participation has been one of foreigners.15 Major reasons for the lack the strengths of Philippine governance. of responsiveness of the justice system Partnerships between government and include its fragmentation, the presence CSOs facilitate the promotion of good of archaic laws and rules, and low governance. The OMB collaborates funding support. with the Concerned Citizens of Abra for Good Governance and Government The first order of business must be Watch for anticorruption efforts in to address resource constraints. High government procurement and project vacancy rates persist in law enforcement, monitoring; and with the Society prosecution, public defense despite of Jesus for the conduct of integrity efforts to increase compensation. seminars. The government also partners Low salaries coupled with unrealistic with CSOs in promoting transparency,The government also partners qualification standards result in funded accountability and public participation inwith CSOs in promoting but unfilled positions. There is frequently the preparation, authorization, executiontransparency, accountability no recourse but to hire casual and and monitoring of the national budget.and public participation in the contractual employees who cannot be These efforts must be sustained and, inpreparation, authorization, held accountable and do not benefit some cases, deepened. It is also notedexecution and monitoring of from the continuous training programs that while citizens’ participation in localthe national budget. These which are required and essential. Huge development councils and special bodiesefforts must be sustained and, case backlogs and high case loads is mandated, CSOs claim that most ofin some cases, deepened. are direct consequences. Moreover these are either inoperative or nominal.17 facilities for justice-sector agencies and the courts are dispersed, inadequately While the country is famous for the large staffed and supplied, and beset at times number of CSOs that could, in principle, by cumbersome rules. Reforms in play a leading role in anticorruption organization and logistics chains are efforts, such organizations themselves needed to strengthen the support to are heterogeneous and face various regional or local offices, agencies, and hindrances that affect and challenge courts, where the first line of defence is their development effectiveness. drawn. “Internal challenges include capacity- building, shortage of funds for CSOs’ 15 The country, for instance, has been in the US “watch list” of countries that inadequately protect intellectual property rights, a fact that has potential implications for the continued favorable treatment of Philippine exports to the US under the Generalized System of Preferences (Arangkada Philippines 2010: A Business Perspective, Joint Foreign Chamber of the Philippines, published by The American Chamber of Commerce of the Philippines, December 2010). 16 Section 2, RA 9285 17 Citizens’ Roadmap for Poverty Reduction and Achieving the MDGs, 2010 (CODE-NGO, FDC and UNDP)212 Philippine Development Plan 2011-2016
  9. 9. continuous operation and sustainability the absence of political parties that exactof programs, ensuring priority and accountability from individual politiciansreach of sectors most in need. There is based on principled party platforms; (c)also a need for lifestyle check as well as the weakness and subservience of thedrawing lessons on the best practices bureaucracy relative to the political class; (d) The problems of lack ofwhere other CSOs can learn from. the unprecedented power and discretion of accountability and corruptionExternal challenges include: (a) conflicts the executive branch that encourages both in governance are ultimatelyof policies and laws with actual practice; patronage politics and grand corruption; traceable to the country’s(b) weak human rights protection and and (e) the corruption of elections through historically evolved politicalculture of impunity; (c) intervention patronage and money politics. As the processes and traditions.of some local government units in President stated in his Social Contract, itCSO affairs; and (d) the threatening would appear that the country “has no visionpresence of military that deters people’s of governance beyond political survival andparticipation to their own programs and self-enrichment”, which is why the countryCSO initiatives.”18 is in “need of transformational change”.Although citizens have a legal right of But while constitutional changes to instituteaccess to communication, there is no crucial political and economic reforms mayestablished legal route for citizens to be in order, it is inadvisable to do so in anpetition to obtain government records. atmosphere of public mistrust and suspicionThe actual practice of many citizens that such changes will be self-serving to thetestifies to the highly uneven willingness incumbents. As the government performsor preparedness of government offices to creditably, the matter of constitutionalprovide information as well as the poor reform may be taken up. Even short ofquality of the information provided, if at constitutional change, however, importantall. This is also seen from the country’s reforms should be put in place by statute. Alow score for the 2008 Global Integrity first priority must be to restore and maintainReport under the category of Civil the record of peaceful, efficient, and credibleSociety, Public Information and Media popular elections, which already happenedcategory, which even dropped one point in 2010. Legislation to encourage thefrom the 2007 score of 69. The proposed formation of stable political parties andFreedom of Information Act is an organizations may also be considered,important step towards addressing this including campaign-finance reformsproblem. and stricter minimum formal numerical and reportorial requirements for politicalPolitical Processes and accreditation. Reforms in the disbursementSystems of discretionary funds of both Congress and the executive can help weaken the culture ofVarious scholars and other impartial patronage. A reform of the internal revenueobservers19 have long observed that the allotment (IRA) scheme which is currentlyproblems of lack of accountability and a very passive and automatic mechanism,corruption in governance are ultimately to elicit greater local revenue effort amongtraceable to the country’s historically local governments will also help reduceevolved political processes and traditions. fiscal mendicancy among local leaders, andThese include: (a) the dominance of make them more accountable to their ownelite interests – both local and national constituents instead.– in politics and political contests; (b)18 Report of the Philippine Open Forum on CSO Development Effectiveness, August 201019 For a recent example of such an assessment, see “Philippines Country Report” (2009) Gütersloh: BertelsmannStiftung. See also B. Anderson (1988) “Cacique Democracy in the Philippines”, New Left Review 3-31; P. Hutchcroft(1995) Booty capitalism. Ateneo de Manila Press; and E. de Dios (2007) “Local Politics, Local Economy”, in A.Balisacan and H. Hill. The Dynamics of Regional Development. Edward Elgar. Good Governance and the Rule of Law 213
  10. 10. Gender Roles in Governance Women continue to be burdened by Structures the debilitating impact of poverty and the lingering economic crisis and out- The fact that women remain politically migration among women remains marginalized is both an indicator of their high, with many in service and failure to advance as well as a reason domestic occupations. The challenge for it (UNDP 2000). For the ability to remains for government to ensure claim entitlements and exercise rights is that statutory mandates relating to itself based on gender roles and relations gender and development concerns are of unequal power. Women’s “gendered observed and implemented efficiently interests” (for example health needs, the and effectively by all concerned raising of children, and the prevention of sectors. domestic violence) cannot be interpreted generically as the community or nation’s This assessment of governance and “common good” but as issues arising the rule of law easily yields a wide- from the specific inequality of power ranging and disparate set of issues between men and women (Sever 2005).20 and concerns. How these challenges These needs and deprivations cannot be are to be met and addressed requires a addressed therefore without redressing governance framework and a plan of gender inequality itself. action for the rule of law. The Philippines has made some progress in reducing gender inequality, particularly Strategic Framework with the passage of RA 7192 or the Women In response to these challenges, in Nation Building Act of 1992, which set this Plan aims to promote effective forth the indispensable role of women and honest governance to create an in all aspects of national development enabling environment for citizens and asserted the fundamental equality of and the private sector to reach their women and men. With the enactment of full potential. Effective and honest the Magna Carta of Women (RA 9710) in governance will be promoted and August 2009, the gender and development practised through the following four (GAD) budget became a key institutional strategies: mechanism to mainstream gender and promote women’s human rights, and 1. Ensure high-quality, efficient, eliminate gender discrimination. The transparent, accountable, financially same law requires monitoring and and physically accessible and evaluation of GAD programs through nondiscriminatory delivery of public annual audit by COA. service; Major progress has been slow, however, 2. Curb both bureaucratic and as seen in more recent international political corruption; gender assessments. The Gender Development Index in the 2009 Human 3. Strengthen the rule of law; and Development Report of the UNDP and the Country Gender Assessment 4. Enhance citizens’ access to of the ADB in 2008 showed similar information and participation in findings that the Philippines’ workforce governance. continues to be dominated by males, despite increasing numbers of women The delivery of public goods having higher educational attainment. and services essential to citizens’ 20 The Gender, Poverty, Governance Nexus: Key issues and current debates, Charlie Sever, BRIDGE, September 2005214 Philippine Development Plan 2011-2016
  11. 11. development will be enhanced in terms obligations shall be pursued to enhanceof physical and economic accessibility, the business and investment climate.availability, acceptability, quality andsafety, and without discrimination. Citizens’ access to information andThis will be done by: (a) integrating participation in governance will beservices according to the needs of enhanced by creating space for free, active,the citizens; (b) professionalizing voluntary and genuine participationthe bureaucracy as duty-bearers; in policy making, decision making(c) enhancing the transparency and development planning. Towardsof government transactions; (d) this end, efforts will be focused on: (a)making government focus on its pursuing the passage of the Freedomcore functions; (e) standardizing the of Information Bill; (b) ensuring openquality of public service delivery; (f ) and transparent search process in thedevising a common measurement selection of appointees in independenttool and methodology to solicit bodies; (c) promoting and implementingcitizens’ feedback; and (g) improving multisectoral NACPA programmesthe financial management system in and projects; and (d) ensuring budgetgovernment. transparency.Corruption will be curbed to ensure There will be an accessible andthat resources are effectively and transparent mechanism for redress andefficiently used for priority public accountability, including fair, prompt andgoods and services. To achieve this, the immediate investigation of violation ofgovernment will: (a) intensify efforts right to equal access to public service andto detect and prevent corruption; (b) equal access to justice.resolve pending corruption cases withdispatch; (c) adopt a comprehensive Ensure High-Quality,anticorruption program; (d) enhance Effective, Efficient,the legal and policy framework for Transparent, Accountable,corruption prevention; (e) strengthenintegrity mechanisms and control Economically andstructures; (f ) enhance partnership Physically Accessible andstructures and mechanisms and Nondiscriminatory Deliveryinternational linkages; and (g) of Public Serviceconduct anticorruption advocacycampaigns. 1. Improve Public Services Access and Delivery through ConnectedThe rule of law shall be reinforced Governmentto ensure the impartial protection Citizens and their needs shall be theof rights and enforcement of focus of government, particularly theobligations. Policies will be delivery of public services and the public’sinstituted to curb or discourage other transactions with governmentinfluence-peddling. Disputes must (e.g., applications for birth certificates,be impartially resolved based on facts passports, police clearances, and tax-and existing laws, free from influence filing).or pressure. The strict and impartialenforcement of laws, rules and public Agencies need to overcome bureaucraticpolicies will safeguard the rights turfing and fragmentation to deliverof the citizens and will ensure that public services more efficiently, quickly,public interest will be upheld at all and flexibly. Efforts must go beyond thetimes. A swift and efficient system past desultory and sporadic efforts atof resolving cases involving issues “one-stop shops” for certain transactionsof property rights and contractual and must give way to a systematic Good Governance and the Rule of Law 215
  12. 12. horizontal integration of related services government should devise a more based on a studied assessments of the comprehensive, programmatic flow of citizens’ needs. and integrated HRD program to raise the level of professionalism, Government services should cluster competence, commitment around the business life-cycle (from start to service, and integrity of up to closing of business) and the life- government personnel. This cycle of citizens (from birth to death), and medium-term strategy should establish corresponding single-window include an Induction Program service channels. at entry level, Workplace Basics for the rank and file, Functional Government processes should be Competency Development reviewed, coordinated, and simplified for specialists, Supervisory in order to reduce processing time and Development for supervisors, to make it easier for citizens to transact Executive Development and with government. To achieve this, Strategic Management for career government should use information and executives, Governance and communications technology (ICT) to Public Leadership for senior the fullest, to facilitate electronic access officials. To ensure progression to public services. Virtual single-windows and full coverage, a ladderized can be provided via the Internet by HRD program should be interconnecting online public services of established with certification and government. Such virtual coordination links to promotion. A percentage must be underpinned, however, by real of the government budget should coordination, information-sharing, and ideally be set aside for the purpose. cross-checking among various agencies This HRD program may be of government as citizens complete their implemented through the Civil transactions. Service Academy. Human-rights education shall also be integrated This should lead to the elimination of in the HRD program at all levels. redundant and repetitive information requirements in government forms, b) Pursue the passage of the Career among others. Executive System (CES) bill. The CES bill seeks to strengthen 2. Professionalize the Bureaucracy to professionalism in the executive become Duty-Bearers and managerial levels and in Competence, professionalism, and highly specialized and technical integrity in the civil service can be raised positions in the government. It if appointments are depoliticized, and a identifies career and noncareer purposive, program-based and integrated positions and provides transparent professional development for career performance-based promotions executives and personnel is implemented. and appointments, balancing the This is in line with the vision of public exercise of presidential appointing service values, and thrust of the power with the preservation of Philippine government, as captured in meritocracy in the civil service. the phrase “Gawing lingkod-bayani ang Its aim is a unified bureaucracy bawat kawani.” in which the first, second and third levels are under the Civil a) Formulate a Strategic and Integrated Service Commission as the central HRD Program for the Philippine personnel agency. bureaucracy from entry to exit from government service (based on Competency Needs Assessment).The216 Philippine Development Plan 2011-2016
  13. 13. c) Align individual performance force, forensics and medico-legal, with organizational performance. legal services, and social work services. Organizational and individual performance goals must be 3. Enhance the Transparency of aligned. Employees should Government-to-Business and appreciate the significance of their Government-to-Citizen Transactions contribution to their organization’s a) Enforce full compliance with the performance before they find provisions of the Anti-Red Tape Act satisfaction in what they do. Thus, including the formulation, adoption and the linkage and government- effective implementation of Citizen’s wide implementation of the Charters in all government agencies Organizational Performance and LGUs. In line with the Anti- Indicators Framework (OPIF) and Red Tape Act (ARTA) of 2007 (RA the Performance Management 9485), all government entities with System (PMS) need to be frontline services shall have developed pursued. This seeks to align the their Citizen’s Charter which serve programs, projects and activities as a service charter or pledge that of the departments or agencies describes the step-by-step procedure with the desired objectives or for availing of a particular service, and goals of the government, and the the guaranteed performance level that individual performance goals with the public may expect for that service. the organization’s strategic vision Information such as procedures and goals. This will also ensure to avail of the service, responsible organizational effectiveness person/office, processing time, by cascading institutional documentary requirements, applicable accountabilities to the various fees or charges, and procedures for levels of the organization’s filing complaints are reflected in the hierarchy, and have a performance CC. Despite the September 2009 management linked to rewards deadline set by ARTA, more than a and incentives, among others. thousand entities, particularly local governments, still have to comply with The PMS of the government the law. ARTA mandates the review institutions shall be reviewed and reengineering of frontline services and reformulated to establish to cut red tape and enhance efficiency, clear performance objectives transparency, and accountability in the and standards and to promote a delivery of public services. It requires culture where the performance the formulation and publication of and contribution of the employees CCs and the establishment of Public are recognized and rewarded Assistance Desks to receive feedback accurately and fairly. The Balanced and handle complaints from the Scorecard is one PMS platform or transacting public. In order to remain approach that has been proven to responsive to the need of citizens, create an effective alignment. agencies must continually improve their systems and standards throughd) Pursue the effective implementation the publication and implementation of the Magna Carta of Women, of Citizens’ Charters, Citizens particularly the targeting of 50 Feedback Surveys, and Transactions percent of women in third level Reengineering. positions. All concerned agencies of government should ensure b) Create a single website/portal for that there shall be an incremental government information. To facilitate increase in the recruitment and access to government information and training of women in the police services, a common website/portal Good Governance and the Rule of Law 217
  14. 14. should be established where citizens of law-abiding citizens and can obtain vital information and organizations against potential services from different government abuses of government’s police agencies. This portal should also serve and intelligence-gathering as a channel for citizens to report powers (already partly affirmed incidents or provide feedback on the through the writ of amparo). A performance of government agencies, future law must stipulate how including complaints against erring these aims are to be achieved officials and employees. maximally while recognizing the state’s legitimate right to reserve LGUs must develop and expand information affecting national the e-governance services available security. on their websites, from providing general information to discharging 4. Focus Government Efforts on routine transactions, and encourage its Vital Functions and Eliminate transparency by making information Redundancies, and Overlaps in Functions and Operations on budgets and procurement available. A common basic template a) Complete the implementation of the should be followed by all LGUs Rationalization Program (RP). The so that a minimum set of common completion of the implementation information and services is provided of the RP, as mandated under on their portals. EO 366, s. 2004, will be pursued to: focus efforts on government’s The government will set up a vital/core functions and priority communication plan. Through programs and projects, and faster communications technology, channel resources to these core bureaucracies must be able to public services; and improve adopt and evolve into listening and service delivery by cutting red tape communicating organizations. Press through systems and organizational officers and official spokespersons will improvements, and elimination be adequately equipped to counter of redundancies and overlaps in negative or malicious information functions and operations. In and to constructively engage media transforming the Executive partners. A simple yet comprehensive Branch, government offices need communication plan is a cornerstone to complete a strategic review of of getting the message of governance their respective operations and across. organization and implement their RP upon approval of the DBM. c) Pursue the passage of a Freedom of Information Act. A law on freedom b) Institute zero-based budgeting of information is a cornerstone (ZBB) in program evaluation. of transparent and accountable To attain the administration’s governance. Its intent is to provide commitment to lift the nation the citizenry, especially media, with from poverty, instituting ZBB access to information pertaining to approach to program evaluation is all transactions and communications vital. The ZBB approach involves that are of legitimate public interest. the review of ongoing major Its existence should encourage programs and projects by different probity and prudence in all national offices in order to: (a) establish the and local government negotiations continued relevance of program relating to loans, treaties, service objectives given the current contracts, and similar transactions. It developments; (b) assess whether also seeks to protect the civil rights or not the program objectives218 Philippine Development Plan 2011-2016
  15. 15. are being achieved; (c) ascertain GQMP. In the pursuit of this program, alternative or more effective and the ISO 9001:2008 QMS shall be efficient ways of achieving the adopted in the delivery of priority objectives; and (d) guide decision- government services. makers on whether or not the resources for the programs should b) Refine the Government Quality continue at its present level, or be Management Systems Standards increased, reduced or discontinued. (GQMSS) to become consistent with ISO 9001:2008 QMS for the use of the Under this initiative, government different departments and agencies of shall terminate or cut back on the Executive Branch. The GQMSS programs that have been inefficient consistent with ISO 9001:2008 or ineffective in delivering QMS shall likewise be refined outcomes, or withhold funding for the use of different Executive for others pending reforms in Branch departments and agencies. implementation and procurement. QMS processes shall be installed More importantly, it allows the in certain critical government-to- expansion of the implementation business, government-to-citizens, of the well-performing programs LGU-to-business, LGU-to-citizen, that address critical gaps. and government-to-government transactions.c) Review the extent of devolution of services to LGUs. The extent c) Activate Quality Class category of the of power devolution as well PQA for the Public Sector. The PQA as the transfer of assets and for the Public Sector (mandated per resources to local governments RA 9013) provides a framework for from national government public service excellence. Global agencies in consonance with benchmarks on public service the Local Government Code excellence like Canada, Singapore, shall be reviewed. The review and even Malaysia, succeeded in must yield appropriate policy building a culture of service excellence recommendations to eliminate through the wide-scale adoption of confusing or unnecessary overlaps business excellence models such as in the service-delivery functions the PQA. The PQA Quality Class across levels of government. will encourage self-assessment vis-a- vis the PQA performance excellence5. Enhance and Standardize the framework and promote improvementQuality of Public Service Delivery of processes to achieve excellence into become Consistent with the public service delivery. This will boostInternational Organization forStandardization (ISO) Quality the country’s competitiveness.Management System (QMS) 6. Citizen-Centered Governmenta) Adopt the ISO 9001:2008 The bottom line for government is the QMS in the delivery of priority welfare and satisfaction of its citizens. government services. Government Government shall devise a common processes, systems, and operations measuring tool and methodology to solicit shall be made consistent with feedback from the citizens and determine the ISO QMS through the their requirements. A National Citizen continual institutionalization Satisfaction Index (NCIS) should be of the Government Quality developed that will serve as common Management Program (GQMP) measuring tool of efficiency, effectiveness, in all departments and agencies of accessibility, integrity, transparency and government, spearheaded by the Good Governance and the Rule of Law 219
  16. 16. accountability of government agencies in recommendations will be provided the delivery of public services. to ensure that LGU needs are met and there is no reversal of 7. Improve the Financial Management decentralization. System in Government a) Develop a Government Integrated Efforts to enhance the capacities Financial Management Information of LGUs shall be intensified to System (GIFMIS). A vital reform improve their ability to deliver initiative is the strengthening of public services. The capacity the public financial management needs of LGUs shall be identified (PFM) system. PFM is a system of and appropriate interventions rules, procedures and practices for provided. Knowledge management government to manage its public activities, including the sharing of finances. PFM includes not only good practices in local governance, sound budgeting but also management shall be undertaken to enhance of public debt, assets, and revenues, information-sharing among fiscal relations between levels of localities and help improve LGU government or between government performance. and public enterprises, and a system of public reporting on the public c) Enhance LGU accountability sector’s financial operations. mechanisms. Improved accountability of local officials A major undertaking will be the induces responsible leadership development and installation of a and ensures that efficient and GIFMIS, an application that shall responsive services are delivered. automate routine financial operations In promoting local government and reporting of the national accountability, the following government, particularly financial strategies shall be undertaken: planning and budgeting, treasury, and accounting functions. The • Implementation of systems GIFMIS will link budget preparation to determine performance and execution to accounting, of LGUs in terms of their cash management, reporting, and state of local governance and auditing. Once installed, it will compliance with policies; enable the government to implement improved systems for public financial • Public disclosure of LGU management. performance; and b) Empower LGUs and promote public • Institution of performance- accountability. Policy reforms based LGU incentives or to advance local autonomy and awards. decentralization shall be pursued. Service delivery functions have been Curb Corruption Decisively vested in LGUs on the premise that they would respond better to diverse A comprehensive and integrated and changing local conditions, and Anticorruption Framework and thus more effectively meet the needs Program will be an essential part of the of their constituents. Emerging administration’s commitment to fight issues and needs of LGUs related corruption. This framework shall be to their devolved service delivery the anchor of the strategic objectives functions shall be continuously identified in this section and provide identified. Proposed legislation shall focus and direction in achieving the likewise be reviewed and appropriate vision that the administration has220 Philippine Development Plan 2011-2016
  17. 17. committed for its people. It will The legal and policy frameworkcontain key result packages with the for corruption prevention will becorresponding set of anticorruption enhanced through compliance withprojects and implementation the United Nations Conventionmechanisms to ensure success. As a against Corruption (UNCAC)starting point, a comprehensive and and other international standards.integrated anticorruption program Anticorruption advocacy campaignswill be established for the prosecution will be conducted through theof corrupt officials, beginning rollout of an integrated integrity andwith case build-up all the way up anticorruption promotion conviction, including ancillary This will also include monitoring inremedies (i.e., freezing of assets) and the implementation of anticorruptionrecovery of property. Corrupt officials programs, projects and activities;shall be prosecuted and dismissed,with the highest priority accorded to c) Strengthen information-exchangehigh-profile cases. among all government agencies to prevent corruption and private-public sector1. Intensify Corruption Prevention collusion. Data possessed by revenue a) Honestly reassess the progress, agencies, line agencies involved in priorities, and capacities of the contracting (e.g., DPWH, DOTC), main anticorruption agencies. All local governments (residences and government agencies involved business permits), and the AMLAC, in anticorruption efforts, can be potentially assembled and beginning with the Office of the mined to build anticorruption Ombudsman, need to reexamine cases based on lifestyle-checks and whether their track records match possibly fraudulent tax returns. The public expectations and the scale availability of such information of the problem of corruption. serves as a powerful deterrent against Shortfalls and inadequacies in corruption involving collusion personnel and strategies must be between private persons and public urgently addressed if any further officials; progress is to be made. The results of such reassessments should be d) Support private sector initiatives to made public in the interest of police its own ranks and discourage transparency; corrupt relations with government agencies in revenue collection andb) Strictly enforce and observe procurement. The Compliance and anticorruption laws and policies. Integrity Programs for Business These include the Anti- (CIPB) are an initiative of the Joint Graft and Corrupt Practices Foreign Chambers of the Philippines Act; the Anti-Red Tape Act; to ensure the pledge of their members National Guidelines on Internal not to bribe public officials, to report Control System (NGICS); corruption, and to embed standard the Procurement law (RA corporate practice. The private sector 9184); mandatory provisions of has also committed to intensify UNCAC; the Code of Conduct its efforts to improve corporate and Ethical Standards for Public governance through training of Officials and Employees (RA directors and requiring compliance 6713); and the Anti-Money with higher standards of corporate Laundering Act (AMLA). governance; Good Governance and the Rule of Law 221
  18. 18. e) Implement fundamental reforms in large service-organizations such public procurement and in budget as the military and the police; releases to close off opportunities for corruption and to promote transparency, • Prevent the conversion of competition, and cost-effectiveness MOOE and CO outlays by through the following measures: standardizing and disclosing MOOE and CO requirements • Roll out an enhanced Philippine including those of military Government Electronic Procurement camps and other facilities; System (PhilGEPS) in order to minimize discretion and intervention • Conduct technical visits to in procurement. The new PhilGEPS validate the budgetary status of features shall include: (a) a virtual programs, projects and activities; store; (b) an expanded supplier registry; (c) an electronic payment f ) Invite the participation and facility; (d) a facility for electronic scrutiny of CSOs and individual bid submissions to the virtual store; citizens with respect to government and (e) annual procurement plans; performance through institutional means and through the provision • Expand the use of the PhilGEPS of information. This will cover the E-Bidding system to improve following measures: the efficiency and transparency of government agencies’ procurement • Expand the pool of CSOs that activities, government contracts, serve as observers in the bids and other procurement related and awards committees (BACs) electronic transactions, thereby of various agencies to ensure reducing spending on print media civil society representation; advertisements; • Invite the regular participation • Review the guidelines for blacklisting of citizen groups in the unscrupulous contractors and budget-preparation process suppliers. The Government for the evaluation of existing Procurement Policy Board (GPPB) government programs and for shall streamline procedures and them to provide inputs to ZBB; strengthen policies to facilitate and the collection and presentation of evidence of bid-rigging, overpricing, • Make available to the public and underprovision against corrupt the accountability reports of all contractors and suppliers for agencies, including the DND blacklisting; and the AFP, on the DBM website. • Create an independent body to review appeals filed by bidders. An g) Empower citizens to directly independent body, composed of and confidentially report either procurement and legal experts shall exemplary performance or corrupt be formed by the GPPB to review practices of employees through and resolve protests and appeals filed dedicated portals, such as the DOF’s by participating bidders; Pera ng Bayan website (http://, which also • Prevent the diversion of unspent entertains information regarding funds from vacated positions by tax evaders and smugglers. releasing PS allotments only for filled positions, with special attention to222 Philippine Development Plan 2011-2016
  19. 19. 2. Speedy Resolution of Corruption d) Amend the COA Charter to provideCases, with Special Cases of Grand for the recovery of illegally-disbursedCorruption public funds. The COA Charter21Laws and rules provide reglementary amendments must solve the problemperiods to be observed in the filing of issuance of writ of executionand prosecution of corruption cases. of decisions rendered final andThe strict observance of these rules executory by the Supreme Court inwill highly contribute to the speedy cases on notice of disallowances forresolution of corruption cases and illegal or irregular disbursements orserve as a deterrent and a proof of notice of charge for under collectionthe government’s sincerity in its or underassessment of revenuescommitment to fight corruption. applying to natural or juridical persons. Under the Constitution,a) Review policies and procedures on COA decisions are directly speedy disposition of cases. Courts appealable to the Supreme Court. are required to submit their However, the COA Charter, Rules decisions within 90-calendar of Procedures and other issuances do days from the time the case was not contain any provision on how to submitted for resolution. This execute these decisions and collect period excludes litigation proper COA disallowances and charges where delays are common. Thus, from private persons or entities. it is suggested that a review of Alternatively, Supreme Court existing laws and rules be done to rules of procedures in execution of address the problem; judgments on COA appealed cases may be reviewed;b) Strictly implement the reglementary period provided for by laws and e) Nationwide implementation of the rules for the immediate resolution of case tracking monitoring system. All administrative and corruption cases. justice sector agencies should be After the policies and procedures interconnected through the National on the speedy disposition of cases Justice Information System; has been reviewed and improved, strict compliance with the periods f ) Pursue the enactment of a Whistleblower set forth by laws and rules must Protection Law. A credible means to be ensured; protect key informants is urgent, particularly when the impartiality ofc) Pursue corruption cases resolutely judicial and law enforcement agents based on principle and to set a public is in question; and example. Especially in well- known cases of grand corruption, g) Pursue the enactment of a law on the government shall use all campaign finance reform regulating instrumentalities to ensure campaign contributions. There that solid evidence is gathered, should be a law limiting campaign prepared, and preserved so that contributions. Unregulated cases are not compromised but campaign funds often results in the rather pursued in accordance corrupting influence of campaign with the full force of the law. As contributors to an elected candidate. a result, this may serve as serious Our election laws impose limits on deterrents to future grafters; the amount and type of campaign21 P.D. No. 1445, “Government Auditing Code of the Philippines.” Good Governance and the Rule of Law 223
  20. 20. expenditures, and candidates are b) Institute a public reporting required to report all contributions mechanism on adherence to but there is nothing that regulates anticorruption policies. This the excess contribution. will be achieved by creating an independent joint NG and NGO 3. Adopt a Comprehensive Committee with appropriate Anticorruption Program human capital and financial The tedious process of getting a final support; and resolution is a major obstacle to people filing complaints against corruption. A c) Execute memoranda of agreement single window for filing and monitoring for partnerships in transparency and corruption cases, lodged in a credible accountability in LGUs. Parties to agency, will encourage people to file these memoranda should include complaints against erring officials and LGUs themselves, national employees, and eventually help curtail government agencies and CSOs. corruption. This will also promote the seamless coordination of investigation, 6. Enhance Partnership Structures prosecution and other bodies in the and Mechanisms and International expeditious resolution of corruption cases. Linkages a) Expand CSO and private sector a) Review rules of procedure on participation in the Multi-Sectoral administrative/civil/criminal actions Anticorruption Council (MSACC); on corruption-related cases. Due to the relatively low conviction rate in b) Strengthen interagency coordination; corruption cases, existing procedures and should be reviewed and evaluated to determine the need for further c) Comply with international and refinements in the procedures regional commitments (e.g., applicable to corruption-related cases UNCAC, ADB-OECD and make them more effective; and Anticorruption Initiative for Asia and the Pacific, APEC b) Review policies and procedures on case Anticorruption Plan of Action). monitoring and records management. Existing policies and procedures 7. Conduct anticorruption advocacy for monitoring of cases and records campaigns management should be reviewed a) Roll-out an integrated promotion and, if necessary, revised to adapt to program for integrity and against the present condition. Monitoring of anticorruption; cases from filing up to the execution of decisions/judgments is important b) Enhance values formation and moral to verify if justice has been fully recovery for all government officials served. and employees in close collaboration with CSOs; and 4. Enhance the Legal and Policy Framework for Corruption Prevention c) Wage a massive educational Comply with the UNCAC on corruption campaign on the law, rules, prevention and other international and regulations relating to good standards. governance. 5. Strengthen Integrity Mechanisms and Control Structures a) Expand the Integrity Development Review;224 Philippine Development Plan 2011-2016