Institutions and Governance Reforms for Inclusive Growth€¦ · Institutions and Governance Reforms for Inclusive Growth ... (Executive Order (EO) No. 292). ... . Areas of Reform:

Institutions and Governance Reforms for Inclusive Growth

Alex Brillantes Jr

Notes for Presentation at a Panel on Institutions organized by the Philippine Institute for Development Studies during its Annual Public Policy Conference on the theme “Harnessing

Institutions and Human Capital for Inclusive Growth” 22 September 2015

I am grateful to Dr Gilbert Llanto, President of PIDS for the invitation to be part of this very important conference.

I also wish to thank Dr Raul Fabella for the honor of sharing the panel with him.

Informed by the very insightful paper of Dr Raul V. Fabella “Institutions and Inclusion: An Exegesis of Mediocrity”

Framework for Governance and Reform

• For so long and for so many times, I have been part of many, many informal and formal discussions ruminating on the concern of “what happened to us.” “Why were we left behind?” This question – has always been triggered when we compare ourselves to our ASEAN neighbors. For instance, Dr Fabella used referred to the vast difference between Singapore’s Changi airport and our NAIA that has the dubious distinction of being one of the world’s worst airports. He refers to this as a “shock encounter.”

“For every new arrival to Metro Manila, the first thing that strikes the eye is the relative poverty of public

infrastructure. It seems like a time travel into the past for one who boarded from Changi Airport and

disembarked at NAIA Terminal 1.”

NAIA, Manila,Philippines

Changi Airport, Singapore

NAIA

Changi

A picture taken in Suvarnabhumi Airport Thailand.

REALITY CHECK 9Brillantes 2012

Brillantes 2012 10

Philippines in Part of Asia, Right?

Where is Manila or Cebu man lang?

What happened to us?

Why were we left behind?

Dr Fabella

THE PHILIPPINE STATE IS WEAK AND WILL REMAIN SO FOR THE FORESEEABLE FUTURE. REVERSING THE DESCENT TOWARDS FECKLESSNESS REQUIRES STRATEGIC RETREAT TO CORE COMPETENCE. THE WEAKER THE STATE, THE CLOSER TO THE CORE COMPETENCE SHOULD BE ITS RADIUS OF ACTIVITIES BE. LESS ACCOMPLISHES MORE

• MAXIMIZING THE PUBLIC INTEREST MANY TIMES REQUIRES THE STATE CEDING ACTIVITIES TO THE MARKET OR TO PPP

• WITH A SMALLER AGENDA, THE WEAK STATE CECOMES MORE EFFICIENT AND CONSEQUENTLY STRONGER

• WHEN FACED WITH A TRUE MARKET FAILURE, PREMIUM SHOULD BE PUT IT IDENTIFYING AND IMPLEMENTING FIRST THE MODALITY OF ADDRESS AND, IF INEFFECTIVE, INCREMENTALLY AUGMENTING

• Cites example of Fishing Game Berto and Ambo who are both self-interested.

• Fabella points at the following• Institutions: Formal and informal rules

• State: the weak state

• Elites: Dominance of the Elite (and circulation of the elite)

• Class Dilemma and the role of government, lobbying, elite and counter-elite, development-entrepreneur, leadership (upright leader)

• State has to go back to its core competence

Governance Reform Framework (Brillantes, Fernandez and Perante-Calina)

Areas of Reform: Institutions

• Institutions, Processes

• How to influence behavior

• Reorganization since the fifties

• LGCode

• So do we need more laws?

• Problem is really implementation. We have a weak state that is unable to, or refuses to implement law. Look at the following list of anti-corruption laws

Brillantes 2010 18

Revised Penal Code of

the Book 2, Title 2, 4

and 7 (1930)

This Code specified the crimes committed by the

public officer such as malfeasance and misfeasance

in the office, fraud, forgery, malversation of public

funds or property, infidelity of public officers.

Republic Act (RA) 1379

(1955)

This act declared forfeiture in favor of the state any

property found to have been unlawfully acquired by

any public officer or employee, and provided for the

proceedings.

RA 3019 (1960)

Anti-Graft and Corrupt

Practices Act

This act provided for the repression of certain acts of

public officers and private persons alike, which

constitute graft or corrupt practices or which may

lead thereto, also known as Anti-Graft and

Corruption Practices Act.

RA 6028 (1969). This act provided for the promotion of higher

standards of efficiency and justice in the

administration of laws as well as to better secure the

right of the people to petition the government for

redress of grievances, creating the office of the

citizen’s counselor.

List of Laws Related to Graft and Corruption

From 1930 to 2007

Presidential Decree (P.D.) 6

(1972).

This decree amended certain rules on discipline of

government officials and employees.

PD 46 (1972). This decree made it punishable for public officials and

employees to receive and for private persons to give gifts

on any occasion including Christmas.

PD 677 (1975). This decree amended Section 7 of RA 3019 (as amended).

PD 749 (1975). This decree granted immunity from prosecution to givers

of bribes and other gifts and to their accomplices in

bribery and other graft cases against public officers.

PD 807 (1975) This decree provided for the organization of the Civil

Service commission, in accordance with provisions of the

Constitution of the Republic of the (repealed under

President Aquino’s administration.)

PD 1606 (1978). This decree revised PD 1486 (creating a special court to be

known as Sandiganbayan−the main antigraft court that

adjudicates criminal cases filed against high-ranking

government officials.

PD 1829 (1981) This decree penalizes obstruction of apprehension and prosecution of

criminal offenses.

Batas Pambansa Bilang 195 (1982). This is an act amending sections 8,9.10,11 and 13 of RA3019 (1960)

otherwise known as Anti-Graft and Corrupt Practices Act.

Batas Pambansa Bilang 242 (1982). An act prescribing the period within which a denounced public officer may

bring action against an informant or witness who gave false or malicious

testimony amending for the purpose section two of presidential decree

numbered seven hundred forty-nine, "granting immunity from prosecution to

givers of bribes and other gifts and to their accomplices in bribery and other

graft cases against public officers."

1987 Constitution of the Republic of

the .

Article XI, Accountability of Public Officers; Article II, Section 27 and

Section 28 policy of the State to maintain honesty and integrity in the public

service and take positive and effective measures against graft and

corruption; and Article III, Section 7, provides for the right of people to have

access to public information.

1987 Administrative Code

(Executive Order (EO) No. 292).

This code instituted the Administrative Code of the .

EO 243 (1987). This order created OMB and restated its composition,

powers, functions, and other salient features in the 1987

Constitution of the Republic of the .

RA 6713 (1989). This act provided for the functional and structural

organization of OMB and delineated its powers and

functions.

Code of Judicial Conduct

(1989).

This code provided for the appropriate conduct of judges

in performing their duties; otherwise known as the Code

of Judicial Conduct.

RA 7055 (1991). This act strengthened civilian supremacy over the

military by returning to the civil courts the jurisdiction

over certain offenses involving members of the armed

forces, other persons subject to military law, and

members of the Philippine National Police.

RA 7080 (1991) This act defined and penalized the crime of plunder.

RA 7975 (1995) An act to strengthen the functional and structural

organization of the Sandiganbayan, amending for that

purpose Presidential Decree no. 1606, as amended

RA 8249 (1997).

This act further defined the jurisdiction of the

Sandiganbayan, amending PD 1606 (as amended).

Proclamation 189 (1999). This proclamation declared war against graft and

corruption and authorized the Philippine Jaycee Senate,

through the Graft Free Philippines Foundations, Inc., to

institutionalize public awareness of clean, efficient, and

honest governance.

EO 268 (2000). This order created the National Anti-Corruption

Commission and abolishing the Presidential Commission

Against Graft And Corruption created under executive

order 151, s. 1994, as amended.

EO 317 (2000) This order prescribed A Code Of Conduct for Relatives and

close personal relations of the President, Vice President and

Members of the Cabinet.

EO 12 (2001). This order created the Presidential Anti-Graft Commission

and provided for its powers, duties, and functions and for

other purposes to investigate complaints or hear

administrative cases filed against presidential appointees.

EO 25 (2001). This order established the Governance Advisory Council to

encourage more active involvement of the business sector

in curbing graft and corruption.

RA 9160 (2001)

This act defined the crime of money laundering and

provided for the penalties of such act.

Code of Corporate Governance

(2002).

This code further provided to actively promote corporate governance

reforms aimed to raise investor confidence, develop capital market,

and help achieve high sustained growth for the corporate sector and

the economy.

RA 9184 (2002) This act provided for the modernization, standardization, and

regulation of procurement activities of the Government, also known

as the Government Procurement Reform Act.

EO 38 (2001) This order recognized and extended the life of the Special Task Force

created under EO 156 dated 7 October 1999 entitled “Creating a

Special Task Force to Review, Investigate and Gather Evidence

Necessary to Successfully Prosecute Irregularities Committed at the

Bureau of Internal Revenue, Bureau of Customs and Other

Government Offices or Agencies, government-owned and controlled

corporations, and government financial institutions, and required the

use of the Government electronic procurement system.

EO 72 (2002) This order rationalized the agencies under or attached to the Office

of the President.

EO 109 (2002) This order streamlined the rules and procedures on the review and

approval of all contracts of departments, bureaus, offices, and

agencies of the Government including government-owned and

controlled corporations and their subsidiaries.

EO No. 114 (2002) This order restructured the Bureau of Internal

Revenue toward a Taxpayers’ Focused

Organization.

EO No. 251 (2003) This order required the Bureau of Internal Revenue

to furnish OMB with income tax return filed.

RA 9194 (2003) This act amended RA 9160 (Anti-Money

Laundering Act).

EO 327 (2004) This order amended EO 12 and created the

Presidential Anti-Graft Commission and providing

for its powers, duties, and functions.

Proclamation No. 591

(2004)

This proclamation declared the month of May as

Anti-Graft and Corruption Awareness month.

EO 531 (2006) This order strengthened the Presidential Anti-Graft

Commission by Amending Executive Order No. 12

Series of 2001.

EO 531-A (2006) This order amended EO 531 Series of 2006 to

further strengthen the Presidential Anti-Graft

Commission. This EO has given PAGC the

authority to move for reconsideration in accordance

with established rules regarding quasi-judicial

bodies.

EO 531-B (2006) This order authorized PAGC to investigate presidential

appointees who are members of the Armed Forces of the

Philippines (AFP) and the Philippine National Police

(PNP) if ordered by the President.

RA 9485 (2007) This is called the Anti-Red Tape Act of 2007. This is

an act to improve efficiency in the delivery of

government service to the public by reducing

bureaucratic red tape and preventing graft and

corruption and providing penalties.

Sources:

http://www.tag,org.ph/phillaw

http://www.chanrobles.com

http://sc.judiciary.gov.ph

http://www.csc.gov.ph,

http://www.ops.gov.ph

http://www.pagc.gov.ph

http://www.ombudsman.gov.ph

http://www.lawphil.net

Areas of Reform: Values

•Values, Mindsets, Behavior

•How to influence behavior

•Mayor who would have been president

•CHED and HECS

Duty Bearers: LEADERSHIP IS KEY

• Political Will • As Key to Implementation• Upright leader (Fabella’s

paper)• Duty Bearers• But need to guard against

elite capture• But also at agency and LGU

levels, at CHED level, HECS• At LGU level LGA

Claim Holders: Citizen Engagement

• Claimholders

• Cannot leave governance to government alone: governance –government – business – civil society

• Cannot leave governance of the sector e.g., education, local government, to government alone

• Get involved

• Partnerships – Academe-community linkage / academe-LGU linkage –“town and gown” - coffee summit / salt summit

• Galing Pook good and best practices.

• GK and enchanted farm –

• Going back to our main question on Harnessing our institutions

• Role of the state

• Role of government: regulator, enabler, facilitator, obstacle

• Leadership. Elite. Elite capture. But leadership matters

• Citizen engagement. Partnerships. Academe-community / industry / LGU – town and gown

• But reform behavior through changing institutions, mindsets, values. E.g., Where do you teach punctuality. Values.

THANK YOU