“Lets cut the ‘red tape!’ ”

This will be the call of the Department of Labor and Employment (DOLE) and the Asian Development Bank (ADB) as they hold a two-leg seminar on regulatory impact systems at the government agency.

The ADB, an international financial institution that provides development aid, will introduce a technology dubbed as the Regulatory Impact Assessment (RIA) when it partners with the DOLE for learning sessions in Davao on July 30 at the Waterfront Insular Hotel; and on July 31 at the Radisson Blu Hotel in Cebu.

The DOLE in cooperation with the Department of Tourism, will facilitate the RIA seminars, through its regional offices and its policy research and advocacy arm, the Institute for Labor Studies (ILS). Also presenting during the seminars is Director Rolando Canizal, Director of Tourism Planning Research and Information Management of the Department of Tourism, who will speak on the Department of Tourism RIA Pilot Program.

“Regulatory policies and rules are fundamental to a well functioning economy but can be detrimental if lacking in assessment of its applicability, enforceability, and equivalent costs in doing business, and that includes bureaucratic ‘red tape’,” said Cynthia Cruz, Executive Director of the ILS.

The RIA aims to facilitate a disciplined and structured approach to regulation as it improves the quality of the same.

Minimizing Costs of Doing Business

“We need to do more RIAs to ensure that regulatory policies will facilitate and not impede business. We need to help business keep jobs and make more jobs,” said Cruz.

The Philippines has established a National Competitiveness Council (NCC) which is tasked with developing strategies for improving the competitiveness of the Philippine economy. Among the components of the NCC’s task is reducing the ‘red tape’ burden associated with regulation as it adds to individual and business compliance costs, and adds to government enforcement costs.

Currently, the Philippines is ranked 136 out of 183 countries in ‘ease’ of doing business (2012 World Bank Global Survey).

Australia and OECD countries have been using the RIA system to ensure that proposing and existing regulations are efficient and effective in a changing and complex world. The DOLE is trying to learn the RIA system in order to apply it in the review of priority regulations of the Department and the ongoing review of the 38 year- old Labor Code.

The ILS is the focal agency on RIA at DOLE and a key agency in the review process of the Labor Code.

The seminar series is part of a technical assistance program under the PHI Strengthening Institutions for an Improved Investment Climate with the Philippine Government, where the ADB is assisting the implementation of a RIA regime across Departments.

The DOLE, Department of Tourism (DOT) and Department of Finance (DOF) are piloting the institutionalization of RIA.

A Convergence Exercise

Good regulation is fundamental to a well functioning economy and society. It protects the community, business and the environment.

“Through this convergence exercise we hope to better understand implications on how our regulations can better target the ‘issues’ and meet the regulatory objectives through rigorous options analysis, impact assessment, and stakeholder consultation,” said Regional Director Gloria Tangoof the DOLE Regional Office in Cebu.

Unnecessary and poorly designed regulations have significant costs on business, labor and government through inefficiencies due to the time taken to understand, comply with and enforce these regulations.

This results to lower efficiency and profits for business, higher prices for consumers, and greater administration costs for government.

“Together with our tripartite partners and stakeholders in the region, we may be able to come up with options for optimum results. Consultation with business, labor, other government agencies and the community is part of the process that will help us achieve greater impact for all of our stakeholders,” said Tango.

Invited to participate at the RIA seminars are representatives from DOLE, tripartite partners from government, employers, and trade unions.
The ILS was created in July 1987 by virtue of Executive Order No. 257. Since its creation the Institute has always been at the forefront of labor and employment policy research and advocacy providing strategic policy research for the Department of Labor and Employment.

(For more information on this press release please contact Ms. LINARTES M. VILORIA, Chief Labor & Employment Officer, Advocacy & Publications Division, Institute for Labor Studies, Telephone Nos.: 5273490 / 5273447)

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DOLE-ADB Regulatory Impact Assessment Pilot Project Seminar Series