PH to lead in pushing for structural reforms among Apec members
CEBU CITY — The Philippines will take the lead in pushing for structural reforms among members of the Asia-Pacific Economic Cooperation (Apec) to “align our business practices” with the 21 member economies.
Speaking to reporters on Sunday, National Economic and Development Authority (Neda) secretary Arsenio Balisacan said this would be the discussion during the Structural Reform Ministerial Meeting (SRMM) on Sept. 7-8 here.
Balisacan, who is also the chair of SRMM, explained that structural reform is about changing government policies and regulations for a more efficient economic transaction.
He said structural reform is about”removing barriers” to eliminate complex and unnecessary government regulations and processes that make doing business difficult.
“Removing such impediments will allow resources to move more freely so they can be put into more productive use,” he said.
Because of these impediments, he said businesses remained small because they are constrained from expanding their markets.
Structural reform
The structural reform to be held here in Cebu is the only second one since it was held in Australia in 2008.
Balisacan said the 21-member economies of Apec agreed then on certain structural reforms, and these would be reviewed tomorrow on how much progress has been done.
The Neda official said another important agenda for the SRMM is the post-2015 agenda for the Apec region, proposed to be named as the Renewed APEC Agenda on Structural Reform (RAASR).
He said the meeting would be composed of five themes such as the structural reform for inclusive growth, structural reform and innovation, structural reform and services, tools for structural reform, and the new directions for structural reform in Apec.
“Structural reform is crucial for the Philippines as a growing economy to maintain its growth momentum,” Balisacan said.
He cited that member economies of the Apec should work in unison to “properly push” the structural reforms across the region.
“While each economy can push for its own structural reform, APEC will benefit if structural reform is done in unison,” he said.
“What we can achieve as economies working together will be greater than what we can achieve individually,” he added.
Balisacan mentioned the structural reforms the Philippines have undertaken, including the passage of the fair Competition Act and the creation of the Competition Commission.
He also cited the recently launched Philippine Business Registry that reduced the number of days it takes to register a business.
Impediments to opportunities
Balisacan also cited impediments that hinder pursuing job opportunities across the regions due to certain restrictions.
He cited the case of professionals seeking opportunities overseas who found their licenses not recognized in other countries.
Some business who want to expand their market are also facing economic and legal restrictions.
He said some firms which may want to do business in another country face legal prohibitions.
“Structural reform can range from simple changes in procedures to very significant policy reforms,” he said.
Balisacan said “resilient communities” are needed across the regions for the continuity of business.
In the Philippines, he cited that before the Aquino government took over, the Philippines was mired with poor infrastructure and poor regulatory environment, including poor governance.
“We need to continue deepening reforms to ensure investors will remain attracted to the country,” he said.
Amid these concerns, Balisacan said senior officials will identify measures to address these impediments in doing business transactions across the regions.
“We have to explicitly identify what reforms are needed, and what indicators are necessary to implement them,” he said.
He said the SRMM would also look into new ways of doing business and other endeavors.
“Foreign investment is not just about capital. It’s also about technology,” he said. JE
