MANILA, Philippines — P-Noy is clearly determined to appoint Mar Roxas as presidential chief of staff. While many worry that Mar’s appointment may cause conflict with Exec. Sec. Jojo Ochoa, I see this as a positive move.

Mar brings something new to the table—a business oriented, globally focused perspective. His experience as a Wharton educated investment banker and DTI Secretary will surely serve the palace well.

While P-Noy rallies on with his campaign to curb corruption, Mar will be in an opportune position to champion the business and economic side of things, an area right up his alley.

His credentials, coupled with the weight of his new position, can go a long way towards improving the competitiveness of the economy, regaining the confidence of foreign investors, and championing new industries to generate wealth for the nation.

On Competitiveness

In my column last week, I wrote about the World Economic Forum Report that put the Philippines in 85th place, out of 139 countries, in terms of competitiveness. Other reports of equal repute sing the same tune.

The IMD World Competitiveness Report put us at number 41 out of 59 countries, while the IFC Doing Business Survey put us in 148th position out of 184. Clearly, the problem is serious. The country will continue to welter in poverty unless it squarely addresses the structural problems that plague the economy.

Improving our economic competitiveness is a complicated endeavor that transcends many levels. While the Philippines is still attractive to investors for its 98 million consumers and stable economic environment, it is hampered by inefficient government institutions, a complicated bureaucracy, poor infrastructure, corruption, and constantly shifting government policies. These are the issues that need fixing.

The National Competitiveness Council (NCC) was established precisely to sort out these issues. Headed by DTI Sec. Greg Domingo and Guillermo Luz, the NCC’s thrust is to closely monitor the areas that dampen our competitiveness and rally the responsible government agencies to perform better (or faster).

Still, the NCC can only do so much. Its mandate only allows it to act on an advisory level. It does not have the powers to step in and modify the systems and procedures of these government agencies.

What a difference it would make if Mar, as Presidential Chief of Staff, would back the efforts of the NCC. The weight of his office can cut through the bureaucracy of any government agency and get the reforms on-stream quickly.

On Regaining Investor Confidence

The competition for foreign investments is fierce and given our inherent weaknesses, the Philippines is not competing in a position of strength. We still need to match, if not exceed, the efforts of our neighbors.

It’s all about working harder and smarter. Our less than ideal business environment must be offset by the relentless courtship of big ticket investors and giving them the red carpet treatment once they step onto our shores. This can be done through top-level representation.

At the end of the day, big-ticket investors want to be assured of government’s support as they navigate the bureaucracy. They also need to be guaranteed a level playing field.

At the pleasure of the President, Mar would be perfect as the country’s investment ambassador. His experience and business sophistication is exactly what this position calls for.

Just as Mahathir Mohammed, Chuan Leekpai and our own FVR sold their countries as investment havens in the ’80s and ’90s, so can Mar be the great statesman and “salesman” of the nation.

On Championing the Mining Industry

The Philippines is in a position to excel in a number of industries, but none offers the same bang for the buck as the mining industry.

The Philippines is among the 10 richest countries in the world in terms of mineral resources, with an estimated value of US$840 billion. Its value is enough to pay our national debt 15 times over and finance a massive country-wide modernization program similar to that of the United Arab Emirates.

Unfortunately, our metallic mineral production amounted to only $2.5B last year. We are literally just scratching the surface of our true potential.

The mining industry was liberalized 16 years ago via The Philippine Mining Act, a well-written law rigged with enough safety nets to protect Philippine interest. Yet, only 500,000 out of the nine million hectares of mineralized land is being prospected.

Again, the root of the industry’s slow development is the long and tedious bureaucratic process an investor must go through just to start actual mining operations. To make matters worse, the Church, some indigenous people, environmental groups, and local government units continue to impede the entry of new investments into the sector.

Although government established the Mineral Development Council to assist investors through the red tape, the process is still a test of patience.

With the powers and influence at his disposal, Mar can help expedite the development of the entire industry. His efforts can unlock the richness with which God has blessed our land.

By ANDREW JAMES MASIGAN
original source: Manila Bulletin