The Need for Responsive Regulations

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For the past few months, SCMAP has been taking part in the Modernizing Government Regulations Program, led by the Development Academy of the Philippines and supported by the National Economic and Development Authority.

 

The goal of the program is to improve Philippine competitiveness by reviewing and harmonizing existing government regulations and policies. It is holding consultations with different industry sectors, including land and air transportation, collecting their feedback with the hopes of streamlining processes with government agencies.

 

If implemented successfully, the result should be predictable and easy-to-understand regulations and processes. This would decrease waiting time, eliminate confusion with conflicting regulations (and agencies), and eliminate red tape and the possibility of corruption.

 

As we all work towards improving the global competitiveness of our logistics systems and processes, we all should recognize that structures are only half the equation. You may have sparkling, gleaming roads and airports, but if using them remain uncomfortable, confusing and outright unworkable, what’s the point?

 

Confusion over government policies and regulation is a significant roadblock to cooperation between the public and private sectors. It’s not to say that the common Filipino is incapable of understanding. The failure to constantly review and revise policies has led to a hodge-podge of documents that overlap and override each other. Who’s in charge of traffic? Who’s in charge of port regulations? Who’s in charge of our public transportation systems? This confusion provides opportunities for corruption.

 

I’m not saying there have been no moves to solve the problem. Both the public and private sectors have implemented reforms that spell out these regulatory gaps and overlaps clearly. Port operators have consolidated processing of requirements in one facility, for example. The government, for their part, have amended laws, or introduced new ones – like the Customs Modernization and Tariff Act (CMTA) – that reflect changing times and attitudes. More recently, a unified traffic authority was introduced to address worsening congestion in the capital, although they will still have to reconcile their mandate with those of the city governments’.

 

Two thoughts. One, as with everything, proper communication is key. These reforms are often hidden behind jargon and legalese and tucked away in a hidden corner of the newspaper, or on the crawl on your television news. All stakeholders can do a better job of communicating these changes, not just to remove confusion, but also to empower end users to speak out of irregularities abound.

 

Two, recognize that government policies are a living, breathing document, not a relic that should be preserved no matter what. The CMTA, for one, replaces a law that was put in place in 1978 – thirty-eight years! Thirty-eight years is a long time to stay still. Thirty-eight years is a long time for innovations and changes to take hold. We have to be more proactive in ensuring policies are responsive to the needs of Filipinos. And make sure these responses are long-term, not short-term. Say, that suspension of window hours for the number coding scheme being implemented today. Easing traffic by clamping on the right to free movement? That’s not a good look.

 

SCMAP elections: This November SCMAP will be electing a new Board of Directors. As per our by-laws, our current president-elect – Nestor Felicio of United Laboratories – will be assuming the presidency from 2017-2018; therefore we will be electing nine directors. To our members, this is an opportunity to ensure that your voice will be strongly heard, especially now that SCMAP is diving deep into ensuring the industry’s global competitiveness. Please do vote. We will release more details in the coming weeks.

 

Henrik Batallones is the marketing and communications executive of SCMAP. A former board director, he is also editor-in-chief of the organization’s official publication, Supply Chain Philippines.