Background Report for the 2013 Philippines Development Forum
Submitted by the PDF Working Group on Growth and Investment Climate (WG-GIC)
I.
Background
The Working Group on Growth and Investment Climate is led by the Department of
Trade and Industry (DTI), as the Lead Convener and the International Finance
Corporation (IFC) as Co-Convener. It initiates the conduct of meetings to update the
members on the status of commitments of the working group as well as joint
undertakings with other PDF working groups to implement activities that will help in
accelerating growth and improving competitiveness.
The government recognizes the importance of improving the country’s growth potential
through enhancing its competitiveness at the national and local levels. This can only be
achieved through reforms that reduce the cost of doing business in the country and
address the other policy issues that are deterrents to attracting investments. Successful
reforms on business registration can send positive signals to the international and
domestic investment communities.
Since reforms on streamlining of business processes are of vital importance in improving
the country’s competitiveness1, the Department of Trade and Industry (DTI), through the
Working Group on Growth and Investment Climate and the Department of the Interior
and Local Government (DILG), through the Working Group on Decentralization and
Local Government (WG-DLG) have agreed to jointly undertake the Nationwide
Streamlining of Business Permits and Licensing Systems (BPLS) Program in the
Philippines, through the Joint Memorandum Circular (JMC) signed by the DILG and DTI
Secretaries on 06 August 2010. The Local Government Academy of the DILG, the
BPLS National Coordinator, works closely with the DTI on BPLS activities being
implemented in target LGUs. President Aquino strongly supports this project and
instructed DTI and DILG to cover all cities and municipalities by 2016
This initiative of the two (2) working groups supports the Social Contract of the President
with the Filipino People, specifically on Economy, which states that: “From a
government that dampens private initiative and enterprise to a government that creates
conditions conducive to growth and competitiveness of private business, big, medium
and small.”
Themes - GIC Work Plan 2012-2013
The WG-GIC focuses on the following themes:
Theme 1: Improving Environment for Investment
Theme 2: Increasing Productivity and Efficiency of Firms
Theme 3: Enhancing Consumer Welfare
Theme 1 on Improving Environment for Investment relates to the Social Contract of the
President, specifically on the Nationwide Streamlining of Business Permits and
Licensing Systems (BPLS) Program in the Philippines.
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The Philippines leaped 10 notches in the global competitiveness ranking, 65th spot out of 144
countries. (World Economic Forum (WEF) 2012-2013 Global Competitiveness Report)
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The Nationwide Streamlining of BPLS Program in the Philippines aims to address the
high cost of doing business in the Philippines as a constraint to the competitiveness of
the country. The Program takes its legal basis from RA 9485 “An Act to Improve
Efficiency in the Delivery of Government Service to the Public by Reducing Bureaucratic
Red Tape Preventing Graft and Corruption and Providing Penalties Therefor” or better
known as the Anti-Red Tape Act (ARTA), which was passed in 2007.
In general, the objective of the BPLS Program is to streamline the business permits and
licensing systems in the Philippines of as many LGUs as possible, following the BPLS
standards set under JMC No. 1, Series of 2010).
BPLS Standards (per JMC No.1, Series of 2010)
- Unified form
- Five (5) steps
1.
2.
3.
4.
5.
Securing application form
Filing/submission of accomplished form with documents
One-time assessment of taxes, fees and charges
One-time payment of taxes, fees and charges
Securing Mayor’s Permit
- Processing time
New business permits: not more than 10 days but LGUs are enjoined to strive
for 5 days or less
Business renewals:
- Signatories:
not more than 5 days but LGUs are enjoined to strive
for 1 day or less
Five (5) signatories, but LGUs are enjoined to require only 2
signatories (Mayor and Treasurer or the BPLO)
Target LGUs
In compliance with the instruction of President Aquino during the 03 January 2012
meeting of the Good Governance and Anti-Corruption Cluster (GGAC) to increase the
original 480 target LGUs under the BPLS Program, all cities and municipalities
nationwide should have reformed their business permit and licensing systems by end
2016.
Accomplishments
1.
Processing Reengineering
As of 30 September 2012, 784 LGUs have already undergone process reengineering (432 LGUs from the 480 target list; 352 LGUs are non-target).
2. Results-Based Monitoring and Evaluation (RBME)
Towards the institutionalization of the enhanced M&E framework for the Nationwide
BPLS Program, a two-day seminar/workshop was conducted on 24-25 May 2012 at
the Goldland Millenia Suites Hotel, Pasig City.
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The activity was undertaken to build the capacity of key program actors, particularly
from the DILG and DTI field offices, to implement and mainstream results-based
M&E processes and tools at the local level.
3. BPLS Automation (Component 2 of the BPLS Program)
The forum on BPLS Automation entitled: MOVING FORWARD: From BPLS
Streamlining to Automation: Sustaining Partnerships for BPLS Reforms
was conducted on 24-25 July 2012, at the Crowne Plaza Manila Galleria,
Quezon City, which aims to orient LGUs on the next wave of reforms in
business processing: BPLS automation and making business-friendly
inspections.
The Sub-Working Group on Local Investment Reforms (SWG-LIR)
As stipulated in the MOA, the SWG-LIR shall be jointly managed by the PDF Working
Groups on Growth and Investment Climate (GIC) and Decentralization and Local
Government (DLG) to promote reforms that would address the constraints to local
investment generation.
Composition
•
Lead Conveners: DTI and DILG
•
Co-Convener:
•
Sub-groups: BPLS Oversight Committee and others that may be formed as the
need arises.
•
Government partners/members will depend on the activities
•
Secretariat support to be rotated between DTI and DILG.
United States Agency for International Development (USAID)
Functions
•
Promote investments at the local level through reforms
environment for both local and foreign investments;
•
Identify projects that will address constraints to investments at the local level;
•
Seek funding support for its activities and coordinate with development partners in
efforts to promote local investments, consistent with the principles of the Paris
Declaration on Aid Effectiveness.; and
•
Coordinate with concerned government agencies and instrumentalities in the conduct
of its activities, as necessary.
that provide a positive
Reform Areas
• Streamlining local and national regulatory processes;
• Addressing governance issues that affect investments;
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• Promoting local economic strategies conducive to investment, e.g. investment
promotion, organization of LGU alliances and clusters;
• Improving information support through generation of data that are critical to
investment generation; and
• Addressing consumer-related issues.
For the Summary of meetings convened and the major agenda at the meetings since the
last PDF, please refer to Annexes A and A.1.
For the WG-GIC Directory, please refer to Annex B.
II. Major Policy Issues and Challenges Identified
The WG-GIC, with the support of USAID through INVEST, conducted the following
studies:



Survey of Business Taxes and Fees;
Investment Incentives at the Local Level under Existing National Laws; and
Developing a Framework for Local Economic Development and Competitiveness
Indicators.
These studies were made to address the following issues and challenges:



Implementation of BPLS Automation in LGUs taking into account varying stages in
the implementation of reforms and capacity to implement automation;
Inconsistency in interpretation of BPLS standards by LGUs; and
Inconsistency of some Local Investment and Incentives Codes (LIICs) with national
laws.
III. Recommendations (deliverables that the WGs are ready to commit to address the
remaining challenges of the Social Contract/PDP)

Continue BPLS Rollout to target LGUs from 2013-2016;

Prepare Guidelines on Implementation of BPLS Automation for LGUs;

Review of the DILG-DTI Joint Memorandum Circular (JMC) to clarify definition of
terms used in implementing BPLS standards and ensure consistency in interpretation
of LGUs;

Issue a Directive on a uniform template for the preparation of a Local Investment and
Incentives Code (LIIC) that is consistent with national laws to guide the LGUs in the
preparation of their respective LIICs (can be a joint undertaking with the Working
Group on Decentralization and Local Government); and

For agribusiness and tourism, identify processes and requirements for starting a
business that need to be streamlined.
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