Thinking out of the box | Inquirer Opinion
Business Matters

Thinking out of the box

(First of two parts)

The first-quarter growth in the Philippine economy of 6.4 percent is great news, and the mood is very positive that this is sustainable. The buoyant stock market, with the PSE Stock Index breaching 5,200, is one of the best performing exchanges in the world. The Philippine peso continues to surge, which in general is an indication of a strong economy. More importantly, the business sector is optimistic of better things to come, with Malacañang’s determined fight to combat corruption.

There are, of course, still a number of serious issues that need to be addressed to sustain our growth and improve the living conditions of the Filipino people, particularly the poor. Many of these issues are systemic in nature and will take years and concerted effort to correct. Some of these issues and possible solutions are briefly presented below, as a starting point for debate and discussion.

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Corruption in government purchases. The current government procurement law, while laudable, may be supplemented or perhaps replaced by setting up a Department of Procurement that will be responsible for all government purchases above a certain threshold amount. This is similar to the outsourcing of the purchasing function already being done by some of the largest corporations in the world. Given the volume of these purchases, prices from volume discounts will be lower than if government agencies and units do their own purchasing. In addition, it will reduce not only the potential for kickbacks arising from collusion between the government official and the supplier, but also the need to hire purchasing personnel in each of the cities, municipalities, departments and agencies. A Department of Procurement can hire experts and consultants as necessary with respect to purchases that require deep technical knowledge. All requests for proposals will be posted in a dedicated website; all bids will likewise be posted. A process for vetting and accreditation of qualified bidders will have to be put in place.

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K to 12. Many parents are voicing objection to the K to 12 program of the Department of Education in view of the additional cost and burden it places on parents. There are many problems with respect to the quality of Philippine education and the high school and college graduates that we produce. Some argue that 13 years of poor education is worse than 10 years of poor education. Is the problem primarily the number of years of basic education, or the poor curriculum and lack of quality teachers and classrooms? If it’s mainly the number of years, how come most of the graduates of the exclusive and top private schools are at par with those of our Asian neighbors? How come graduates of private schools on the average fare much better than their counterparts in public schools? Should the government address the curriculum issue first before embarking on K to 12, which will actually worsen the shortage of classrooms and of teachers?

Given inadequate government resources, the fixes should probably start with improving the school curriculum, which will be less costly. One suggestion worthy of consideration is requiring the government’s elected and appointed officials to send their kids to public schools nearest their place of residence. This simple suggestion will result in the parents of these kids seriously looking at what’s wrong with the public school system and instituting the needed resources and reforms that, in the long run, will put public schools at par with top private schools. Currently, perhaps most if not all elected and top government officials send their kids to top private schools, thus shielding them from the ills of the public school system.

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Congestion in MRT/LRT. The MRT and LRT are nightmares during rush hours. The coaches are heavily congested and the queues snake all the way down to the ground level. This problem is not being addressed because our government leaders do not have to go through the daily rigor experienced by the ordinary commuter. Why not require our top government officials, particularly those from the Metro Manila Development Authority and the transportation department, to take the MRT/LRT on their way to work? Or perhaps require them to take it at least twice a week? This simple requirement will compel them to swiftly act and do whatever is necessary to address the congestion problem, like adding more coaches and improving the ticketing system.

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Traffic on major thoroughfares. Violations such as buses and private vehicles using the wrong lanes, speeding that results in accidents, buses and jeepneys loading and unloading passengers in the middle of the road, and vehicles blocking the red or orange boxes at intersections are the main causes of traffic. Why not install on all major thoroughfares closed-circuit TV cameras that have the capability of reading the plate numbers of vehicles and automatically printing and mailing out traffic violation tickets? Perhaps all vehicles can be required to install radio frequency IDs that would enable CCTVs to easily capture the identity of erring drivers. Unless fines and penalties are paid, erring drivers will not be able to renew their licenses and vehicle registrations. Strictly implementing such measures will be a step toward disciplining erring drivers.

David L. Balangue is the chair of the Coalition Against Corruption, former chair and managing partner of SGV & Co., and founder of the [email protected]. Comments may be sent to [email protected].

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TAGS: corruption, economy, featured column, K to 12, light rail transit systems, traffic problems

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