Championing regulatory excellence_toward (1)

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Project Repeal: The
Philippine Red Tape
Challenge
Championing Regulatory
Excellence Towards Global
Competitiveness
Presented by:
Ariel F. Faraon
Project Manager

Project Manager of Project Repeal: The Philippine Red Tape Challenge, a
breakthrough initiative of the Department of Trade and Industry (DTI) and
the National Competitiveness Council (NCC) aimed at reforming the
country’s regulatory management system to improve ease of doing
business in the country.

Project Repeal: Championing Regulatory Excellence towards Global Competitiveness
Ariel F. Faraon, Project Manager

Global Competitiveness Report Card
REPORT 2010/2011 2015/2016
GOAL
(Top 3rd)
CHANGE
4 to 6 yrs
1.Doing Business Report (IFC)* 148/183 99/189 63 ↑ 49
2. Economic Freedom Index (HF)* 115/179 70/178 59 ↑ 45
3. Corruption Perceptions Index (TI) 134/178 95/175 58 ↑ 39
4. Global Competitiveness Index (WEF) 85/139 57/138 47 ↑ 28
5. Global Enabling Trade Index (WEF) 92/125 64/138 46 ↑ 28
6. Travel and Tourism Report (WEF) 94/139 74/141 46 ↑ 20
7. WIPO- Global Innovation Index (WIPO)* 91/125 74/128 47 ↑ 17
8. Global Information Technology Report (WEF)* 86/138 77/139 46 ↑ 9
9. E-Government Index (UN)* 78/184 71/193 64 ↑ 7
10. Fragile States Index (FFP) * ’ ** 50/177 54/178 118 ↑ 4
11. Global Gender Gap Report (WEF)* 9/142 7/145 47 ↑ 2
12. World Competitiveness Report (IMD)* 41/59 42/60 20 ↓ 1
13. Logistics Performance Index (WB)* 44/155 71/160 53 ↓ 27
*with 2016 Results, **reverse ranking (1 as worst)
REACHED THE TOP THIRD LATEST PERFORMANCE
*with 2016 Results, **reverse ranking (1 as worst)
UPGRADE DOWNGRADE

Global Competitiveness Report Card
HOW TO READ THE REPORT CARD
The Change column shows the movement in the ranking over the past 5 years.
The ASEAN Rank column shows the position of the Philippines relative to other ASEAN economies for the most recent year available.
The IFC Ease of Doing Business Report is named one year in advance of the actual release date (The Doing Business 2017 Report was released in October 2016)..
The Fragile States Index (formerly known as the Failed States Index) is reverse-ranked with the 178th nation considered as very sustainable.
Reached the Top 3rd of World Rankings Latest Performance
REPORT 2016 2015 2014 2013 2012 2011 2010
CHANGE
4/5 YEARS
ASEAN
RANK
RELEASE
DATE
SOURCE
TOP
1/3
1. Doing Business Report 99/190 103/189 95/189 108/189
138/18
5
136/18
3
148/183 ↑ 49 6 of 10 Oct ’16
International Finance
Corporation
63
2. Economic Freedom Index 70/178 76/178 89/178 97/177
107/17
9
115/17
9
- ↑ 45 5 of 9 Jan ’16 Heritage Foundation 59
3. Corruption Perceptions Index - 95/168 85/175 94/177
105/17
6
129/18
3
134/178 ↑ 39 3 of 9 Dec ’16 Transparency International 58
4. Global Competitiveness
Report
57/138 47/140 52/144 59/148 65/144 75/142 85/139 ↑ 28 5 OF 9 Sep ’16 World Economic Forum 47
5. Global Enabling Trade Index - n/a 64/138 n/a 72/132 n/a *92/125 ↑ 28 6 of 10 Mar ’16 World Economic Forum 46
6. Travel and Tourism Report n/a 74/141 n/a 82/140 n/a 94/139 n/a ↑ 20 5 of 7 Mar ’17 World Economic Forum 46
7. Global Innovation Index 74/128 83/141 100/143 90/142 95/141 91/125 - ↑ 17 5 of 8 Jul ’16
World Intellectual Property
Organization
47
8. Global Information
Technology Report
77/139 76/143 78/148 86/144 86/142 86/138 - ↑ 9 5 of 9 Apr ’16 World Economic Forum 48
9. E-Government Index 71/193 -- 95/193 -- 88/191 -- 78/184 ↑ 7 3 of 10 Jun ’16 United Nations 64
10. Fragile States Index 54/178 48/178 52/178 59/178 56/177 50/177 - ↑ 4 8 of 10 Jun ’16 Fund for Peace 118
11. Global Gender Gap Report* 7/145 7/145 9/142 5/136 8/135 8/135 9/142 ↑ 1 1 of 9 Oct ’16 World Economic Forum 47
12. World Competitiveness
Yearbook
42/60 41/60 42/60 38/60 43/59 41/59 - ↓ 1 4 of 5 May ’16
International Institute for
Management Development
20
13. Logistics Performance Index 71/160 n/a 57/160 n/a 52/155 n/a 44/155 ↓ 27 6 of 9 Mar ‘16 World Bank 53

Ease of Doing Business Rankings
(2016-2017)
Source: Published DB reports (2016-2017)
INDICATORS
2017 REPORT
(190 economies)
2016 REPORT
(189 economies)
Change
2016-2017
OVER-ALL RANKING 99 103 ↑ 4
1. Starting a Business 171 165 ↓ 6
2. Dealing w/ Construction Permits 85 99 ↑ 14
3. Getting Electricity 22 19 ↓ 3
4. Registering Property 112 112 --
5. Getting Credit 118 109 ↓ 9
6. Protecting Investors 137 155 ↑ 18
7. Paying Taxes 115 126 ↑ 11
8. Trading Across Borders 95 95 --
9. Enforcing Contracts 136 140 ↑ 4
10. Resolving Insolvency 56 53 ↓ 3
UPGRADE DOWNGRADE

+71 +32 +10 +97
Dealing with
Construction
Permits
Getting
Electricity
Getting
Credit Resolving
Insolvency
From 156 to 85
From 54 to 22 From 128 to 118
From 153 to 56
UPGRADES
PHILIPPINE RANKINGS (2011-2017)
+9
From 124
to 115
Paying
Taxes

-5 -34 -18
Starting
a Business
Protecting
Minority
Investors
Trading
Across
Borders
Enforcing
Contracts
From 156
to 171 From 132
to 137
From 61
to 95
From 118
to 136
-10
Registering
Property
From 102
to 112
-15
DOWNGRADES
PHILIPPINE RANKINGS (2011-2017)

Ease of Doing Business Rankings
Source: Published DB reports (2016-2017)
PHILIPPINES AND ASEAN : 2016-2017
ASEAN
2017 REPORT
(190 economies)
2016 REPORT
(189 economies)
Change
2016-2017
1 Singapore 2 1 ↓ 1
2 Malaysia 23 18 ↓ 5
3 Thailand 46 49 ↑ 3
4 Vietnam 82 90 ↑ 8
5 Brunei Darussalam 72 84 ↑ 12
6 Indonesia 91 109 ↑ 18
7 Philippines 99 103 ↑ 4
8 Cambodia 131 127 ↓ 4
9 Lao PDR 139 134 ↓ 5
10 Myanmar 170 167 ↓ 3
UPGRADE DOWNGRADE

Complex regulations and un-
harmonized regulatory
framework
Outdated, overlapping
and/or contradictory laws
and regulations

Relatively open with a
number of policies limiting
both domestic & foreign
competition
Regulations were borne as
reactionary measures rather
than instruments based on
coherent government strategy

Substantial tariff and non-
tariff barriers in several key
industries, mostly in
agriculture
Low utilization of and access
to modern and innovative
technologies

“Reforms to ensure
competitiveness and promote
ease of doing business will be
mandatory. Reacting to these
needs, the restrictions on the
economy will be needed to
make more investments to
come and to develop labor-
intensive industries such as
manufacturing, agriculture
and tourism shall be pursued.”
State of the Nation Address (SONA) 2016

Governance Issues that Tempered the
Impact of Reforms
Source: ADB
Process Structure System

Regulatory Excellence in MPAC 2025

• Harmonization of
mutually recognized
standards,
conformance, and
technical regulations for
products in key sectors
• Reduce number of
trade-distorting non-
tariff measures (NTMs)
across ASEAN member
states
Strategic Objectives
1 2

• Complete
harmonization of
standards, mutual
recognition, and
technical regulations in
three prioritized
product groupings
• Increase transparency
and strengthen
evaluation to reduce
trade-distorting non-
tariff measures (NTMs)
Key Initiatives
1 2

Approaches to Regulatory Excellence:
DTI Perspective
• Embed regulatory quality principles in the
regulatory management system
• Eliminate inconsistency in individual
approaches
• Deliver predictable regulatory outcomes

Our Strategy

Project Repeal

Expected Outcomes
Reduced cost of compliance for people
and businesses; savings for the economy,
measured in PhP Millions annually

Objectives
Crowdsource
Proposals
Cut
RegulatoryCost
Establish
RepealSystem

Inspiration

Scope
Fullelimination of a rule/issuance because ithas
beendeemednolongernecessary.
Amendment
Consolidation
Delisting
Repeal
Addition, deletion and/or change of certain
provisionsofaruleorregulation
Integration of multiple, similar regulations into
onelegaldocument.
Removalof invalid rulesand regulations from an
agency’swebsiteandrosterofactiveissuances.

Process
Regulatory
Mapping
Identification
& Assessment
of Options
Implementation
of the Chosen
Option
Public
Reporting
Post – Implementation
Monitoring & Review
Stocktaking of
Existing
Regulations
Consultation &
Crowd-sourcing
Self-
Assessment
Administrative
Simplification
Policy
Analysis
Deciding
Which Option
to Take

Approaches
• Whole – of – government approach to regulatory
reform aimed at cutting red tapes affecting ease of
doing business and the delivery of social services;
• Employ a horizontal approach (inter-agency) to
upgrade quality of existing regulations;
• Developmental, stakeholder– focused and
evidence– based approach to regulatory decision
– making

Updates
STOCKTAKE Total
As of June 13, 2016 17,388
Enrolled for 1st Repeal Day (3,777)
Balance for Review 13,611
Additional Submissions 16,514
As of October 31, 2016 30,125

Updates
• Amendment of the 2009 Implementing Rules and
Regulations of Republic Act 9184;
• Omnibus Rules and Regulations Governing Travel
Taxes;
• Simplification of the process of securing Alien
Employment Permits
• Consolidation of Rules and Regulations on the
Change of Office Address of Corporations

Updates
• Review,repeal and/or amendmentsof laws and
regulationsto improvetrade of goods in the
Philippines (import and export processes)
• Finalizationof List of Policy Imperatives for Inclusionto
the National LogisticsMaster Plan;
• Repealand/or Amendments of CAOs and CMOs in
accordancewith the Customs Modernizationand Tariff
Act;
• Further Reviewof the IRR of RA 9184;

Updates
• Inventory and ongoing assessment of laws and
regulations imposing non-tariff measures;
• Repeal and/or amendment of rules and
regulations governing the operations of private
ports;
• Repeal and/or amendment of rules and
regulations governing cargo handling in ports;
• Amendment of product standards
• Repeal of JMC No. 1, s. 2010 and issuance of DTI-
DILG and DICT JMC No. 1, s. 2016

Updates
• Partnership with the Senate Committee on Trade, Commerce
and Entrepreneurship and its counterpart in the House of
Representatives
- Passage of the Ease of Doing Business Bill (incl. Relevant
amendment to the Local Government Code) and National
Competitiveness Bill
- Comprehensive Amendment of Republic Act No. 9485
- Passage of the Bill Creating the Government Efficiency
Office to establish and institutionalize efficient and effective
regulatory management system
- Amendment of the Corporation Code of the Philippines

Updates
• From 8 agencies participating in June 2016, it has
increased to 75 agencies participating as of October 31,
2016
• Partnership with United Kingdom’s Regulations Delivery
Office in the Development of the Philippines Regulatory
Cost Model
• Establishing partnerships with the Civil Service
Commission, Philippine Institute for Development
Studies, UP Diliman, ADMU, DLSU, PUP and PSPA
• Second Repeal Day on December 8, 2016 at Philippine
International Convention Center

We NEED YOU...
Submit your proposals to:
project.repeal@competitive.org.ph
a.faraon@competitive.org.ph

Thank you.
F O L L O W U S
on your favorite social media accounts!
@DTI.Philippines
@DTIPhilippines
@DTI.Philippines

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