Department of Information and Communication Technology

The ICT industry seems to be optimistic about the creation of a new department, DICT. The House of Representatives and now the Senate has approved the creation of DICT on third reading. The leadership of Senator Ed Angara and Congressman Freddie Tinga made this happen. Their determination on a sustained basis has earned the praise and gratitude of the ICT community.

In May 2009, I wrote a column “Philippine ICT after GMA”. In that column, I stated that “the Arroyo administration had a signal opportunity to fully harness ICT for national development and fell short of the mark”. “It appears now that she may fail to deliver the ultimate to bequeath to the nation – a Department of Information and Communication Technology. As things are in Congress, it is highly unlikely that a bill creating DICT will be passed because the current session of this Congress is already winding down and little action has been taken. I will leave the thorough evaluation of GMA’S ICT legacy to historians and analysts ( even as I confirm that she did push the ICT envelope further than her predecessors). I further stated “if we are to move forward as a nation, it is imperative that the next administration build on the ICT policies and initiatives developed by the present one. I hope that the next administration will not disregard Arroyo’s ICT legacy because of the NIH (Not-invented-here) syndrome or the urge to distance itself from the ancien regime.”

After a year and a half of the present administration, I am constrained to state that there are many who claim that there has indeed been an NIH syndrome because there have been no new policy pronouncements other than the transfer of the Commission on ICT to the Department of Science and Technology (DOST). There was also an announcement that there will be a new national broadband system. Since then there has been a deafening silence at DOST.

The ICT community is awaiting with bated breath the final approval of the DICT by the legislature so that the President can sign the bill. Both Senator Angara and Rep. Tinga have expressed their intention to get this done before the Congress goes on recess this March. The Palace has been silent on their position regarding this bill which in turn has generated much speculation. Contrary to industry rumors, I cannot believe the President will veto this bill.

During the bicameral conference committee, I presume a specific time frame for implementation will be imposed. I would further recommend that an independent body will be tasked to develop the implementing rules and regulations (IRR) with private sector participation.

What perplexes the industry is why the President has not given much attention to the creation of a body which will be instrumental in achieving the goals of his administration. As both the House and Senate bills have declared, the consolidation of the ICT function under one department is crucial to our ability to grow our BPO industry. “Daang Matuwid” can best be achieved through the use of ICT in government, particularly in ensuring transparency in the procurement of goods and services. Even the delivery of social services such as the Conditional Cash Transfer will benefit from a DICT which can more effectively coordinate with DSWD, DOH, and Deped in developing systems which will ensure efficient and transparent disbursement of the funds.

The private sector, through the various industry/ business associations and foreign chambers should join forces in delivering once again a clear message to Malacanan that this long and much awaited piece of legislation must be implemented with haste.

The National Competitiveness Council should take the lead in making this happen. In all competitiveness rankings, ICT is a key measurement. In this regard, the Philippines is not perceived in a positive light by the World Economic Forum and other similar organizations.

The mining industry

I am no expert on mining, but based on what I have read in the local newspapers, there is serious concern about a proposed executive order. Manuel V. Pangilinan, chairman of PHILEX, has justifiably stated that even as he supports the desire to give the government its equitable share of profits, “it must be ‘after cost’, meaning that both operating cost and the cost of investment made by the developer have been recovered, then what’s left of the revenue can be shared 50-50”. Having said that truism, he also expressed his reservations.

Clearly, there are many reasons why the industry is concerned about the EO draft. Dialogue between the private and government sector should be enhanced even further. The bureaucracy cannot just pass the buck to the President unless the proper “staff work” has been done. The environment is the cost side while the resources are the revenue side. There must be a balance between the two. In any strategic plan, objectives must be set and targets pinpointed for which someone should be accountable. Unfortunately, neither objectives nor targets are discernible other than increasing revenue for the government. It is unfair to burden the President with making the decision when he was not given a comprehensive road map.

The Philippines has been regrettably tainted with the perception that we have an unstable, unpredictable business environment. Hence, many foreign mining firms have hesitated to invest despite what geologists have confirmed. I hope that the proposed EO does not rattle potential investors more.

The recent survey conducted by a Canadian think tank does not help the mining industry. The Philippines was ranked the “worst among 93 world jurisdictions”. The survey included an assessment of socio-economic agreements/community development conditions; physical security due to the threat of attack by terrorist, criminals and guerilla groups; environmental regulatory environment; legal processes; taxation regime; trade barriers/tariff etc. etc. I would suggest that many of these issues could be rectified if the executive order addresses it. Other items could easily be resolved by local government, enforcement of laws already in place and more than anything else political will on the part of the local and national government.

The US State Department has said that the Philippines is “one of the world’s most highly mineralized countries” with an untapped mineral wealth of $840 billion. Fortunately, China, our neighbor, is the largest consumer of copper and other mineral products. This gives us a competitive advantage we cannot afford to miss. All it requires is getting our act together!!!