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REALITIES OF PHILIPPINE GOVERNANCE

REALITIES OF PHILIPPINE GOVERNANCE. OUTLINE OF PRESENTATION. I. INTRODUCTION. II. CORRUPTION SCENARIO. III. IMPLICATIONS. IV. RECENT INITIATIVES. V. PROSPECT AND CONCLUSION. I. INTRODUCTION. Good and effective governance is vital to winning the fight against poverty

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REALITIES OF PHILIPPINE GOVERNANCE

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  1. REALITIES OF PHILIPPINE GOVERNANCE

  2. OUTLINE OF PRESENTATION I. INTRODUCTION II. CORRUPTION SCENARIO III. IMPLICATIONS IV. RECENT INITIATIVES V. PROSPECT AND CONCLUSION

  3. I. INTRODUCTION Good and effective governance is vital to winning the fight against poverty within the decade. Such governance rests on a: 1) sound moral foundation; 2) philosophy of transparency; and 3) an ethic of effective implementation. (Part IV “Good Governance and the Rule of Law,” The Medium-Term Philippine Development Plan, 2001-2004)

  4. II. CORRUPTION SCENARIO

  5. II. CORRUPTION SCENARIO • RP is #54 least corrupt country of 99 Countries • surveyed in 1999; slid down to #65 in 2000; • slid down further to #77 in 2001 per survey • of Transparency International • Weak governance is one of the major problems of the RP; not economics per WB Study • Tax leakage in BIR and BOC, 1986-92 BIR 58.7% P406B/yr BOC 45.4% P118.3/yr

  6. II. CORRUPTION SCENARIO • OMB says that $48 billion has been lost to corruption; COA reports P2.0 billion/year • SWS Survey reveals that 49% of respondents said that corruption in government is very large • Top most corrupt agencies per SWS Survey DECS - 13% DPWH - 12% BIR - 6% BOC - 5% PNP - 4%

  7. As regards irregular payments in tax collection, the Philippines ranks second to the worst out of 75 countries. Good to Bad INDIA CHINA PHILIPPINES THAILAND BANGLADESH MALAYSIA VIETNAM SRI LANKA INDONESIA

  8. Close to 50% of Philippine firms regard customs as moderate or major obstacle, similar to India and Higher than in other countries, except Bangladesh INDIA CHINA PHILIPPINES INDONESIA MALAYSIA BANGLADESH THAILAND

  9. Philippines ranks 69 in irregular payments in public • Contracts, worse than Indonesia, Malaysia, and Thailand • In terms of business costs of corruption, Philippines ranks • 65, with only Bangladesh as worst. P P Good to Bad

  10. In almost all aspects of judiciary, Philippines fares worse • than China, Malaysia, and Thailand, though better than Indonesia. • Slowness of judiciary wheels appears most serious concern • in the Philippines. % P P P P P P

  11. III. IMPLICATIONS

  12. III. IMPLICATIONS • Inadequate post-harvest facilities, irrigation, school buildings, state hospitals, technologies, etc. • A number of laws have remained unfunded and unimplemented (e.g. AFMA or R.A. No. 8435) • Government salary structure is one of the lowest in Asia

  13. Philippines’ net Foreign Direct Investments (FDI) as % of Gross Domestic Product (GDP) (1.7%) one of the lowest in East and Southeast Asia, but higher than in South Asia. $3.79B $1.30B $38.40B $3.37B $1.24B $0.17B $0.28B $0.32B -$4.55B CHINA INDIA MALAYSIA VIETNAM THAILAND PHILIPPINES SRI LANKA BANGLADESH INDONESIA

  14. Philippines with lowest Gross Domestic Product (GDP) per capita growth in East and Southeast Asia, also with slowest poverty reduction. Percent Per Annum

  15. Only 20% of roads in the Philippines are paved versus Thailand’s 98%, Sri Lanka’s 95%, and Malaysia’s 76% INDIA CHINA THAILAND SRI LANKA MALAYSIA INDONESIA VIETNAM PHILIPPINES BANGLADESH

  16. COMPARATIVE PERFORMANCE OF RP VS SELECTED COUNTRIES Per Capita Exports International ($), ($B) Reserves ($B) 1999 Jan-Sept 2002 As of Q3 2002 Indonesia 460 42.4 30.0 Thailand 1,850 49.7 37.8 Malaysia 3,092 69.3 33.9 South Korea 6,810 117.1 116.5 Taiwan 12,040 62.2139.8 _1/ U.S.A 31,395 690 62.3 _2/ Philippines 907 22.3 16.0 _1/ 2nd Quarter _2/ 1st Quarter

  17. IV. RECENT INITIATIVES

  18. IV. RECENT INITIATIVES • Reactivated the Presidential Anti-Graft Commission (PAGC) thru EO No 12 in Apr 2001 • Strengthened the Presidential Commission on Good Governance (PCGG) • Established the Governance Advisory Council with private sector funding thru E.O. No. 25 in July 2001

  19. IV. RECENT INITIATIVES • Congress passed/amended the Anti-Money Laundering Act and Procurement Reform Act • Lifestyle Investigation against Government Officials (DPWH, BIR, BOC) with unexplained wealth by OMB & other agencies • MMDA Chairman Bayani Fernando has shown us of what decisive and strategic action and political will means.

  20. IV. RECENT INITIATIVES • Mayor Belmonte for transforming QC from being on the red to having a surplus of P3.0 billion. • Commissioner Parayno for instituting reforms in the BIR by working with Civil Society and pushing for the electronic payment of taxes. • Sec. Joey Lina for his campaign against jueteng, drug lords and promoting his Movement for Righteous Leadership

  21. V. PROSPECT & CONCLUSION

  22. V. PROSPECT AND CONCLUSION • If my people, who are called by name, will HUMBLE themselves and PRAY and SEEK my face and TURN from their wicked ways, then I will hear from heaven and will forgive their sin and will heal their land.” - 2 Chronicles 7:14 -

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