Friday, May 26, 2006

Fourth Pillar: The Availability of Legal and Financial Frameworks

There's no doubt that government cannot extend assistance to the private sector without a mandate defined by law. Our ability to move within our innovation ecosystem and our economy is hinge on the environment that our national and local laws provide.

Tax and investment incentives even financial access is almost absolutely defined by our fiscal policies, investment and banking laws. The creation of our organizations and the ability of organizations to expand are encouraged or limited by our laws.

Our vision to expand beyond our shores to enter into global markets will force us not only to deal with our national laws but also the laws of the country we intend to trade with and intervening international laws and conventions.

We have to ask ourselves:

  • What laws will help us take advantage of opportunities?
  • What laws will enhance our capability to penetrate the global market?
  • What laws will help build and nurture our innovation ecosystem, build the critical mass of professionals and practitioners, and create a generation of technology entrepreneurs?
  • What laws or portions of such laws inhibit our Agenda?
  • What laws do we need to pass or portions of the laws we need to amend to push our Cebu ICT Agenda or the National ICT Agenda?
  • What mechanisms and programs will enable stakeholders in the innovation ecosystem to participate in the legislation process to frame pragmatic and relevant laws to further our ICT Agenda?

From the references, notes and discussions about the legal and financial frameworks, the following perceptions, understandings and assertions were discerned from the focus group:

Creation of a local ICT council
This council was suppose to be created after the first summit: One for every chartered or urbanized city, one for the province, and eventually one for the region. It has been partly accomplished by the creation of the Provincial Information and Communication Technology Council through Executive Order No. 06, Series of 2006, issued by the Her Excellency the Gwendolyn Garcia, Provincial Governor of Cebu.

Creation of a working group or organization to review, introduce amendments or introduce laws to make higher and basic education responsive to economic development goals of Cebu
The lack of flexibility in managing the curriculum of higher education and responding to changing global changes, have put our higher education institutions at a disadvantage against its foreign counterparts. Unless we do something to the CHEd charter its executives cannot initiate a more dynamic higher education for our country. At the moment, most technical working groups on higher education are really immersed in doing a work around on the limitations of CHEd's charter and its internal policies. It is time that a more focus group of committed stakeholders sit down with CHEd and work on a long-term solution to these issues.

Creation of a technical group to review, introduce amendments or introduce laws to encourage the growth of the Capital and Financial Markets
All of our policies and incentives programs are really built on the manufacturing model. There is currently no prevailing law or policy that specifically identifies ICT as a sector in an incentives program. There is a confused perspective that Board of Invesmtment incentive packages can be applied to e-services. This is born out of the belief that contact centers and business process outsourcing companies are taking advantage of the incentives under the Philippine Economic Zone program. These incentives are given to foreign direct investments. What we need are specific incentives that will level the playing field for local players entering the export of e-services or IT-services.

Creation of a technical group to review, introduce amendments or introduce laws to establish a Local Development Board
While the private sector will undoubtedly find a vehicle to put its agenda in high gear, government does not have a counterpart to this initiative. There must be a single body that directs the development direction of Cebu. This body must have clout and preferably managed by a representative from the private sector with relevant experience and deep involvement in enterprise development.

Creation of a technical group to review, introduce amendments or introduce laws to develop or formulate incentives to universities, institutions or organizations engaging in the development of the workforce or the human resources of Cebu
If academe is treated just like any service provider, it is just logical that it receives the same incentives as the private enterprise. There must be a group that can work not only with academe but also other service providers delivering competence or capability to discuss, plan and formulate a legislative instrument to help our lawmakers frame the laws properly. It is about time that stakeholders take a more proactive role in legislations that will eventually affect them.

Creating a vehicle to implement the programs and projects that will be born out of the strategic planning workshop of the summit
After all have been said and all perspectives are heard, the next major milestone is putting the plan into an operational machinery to reach milestones defined in the strategic plan. Are we going to let government take this plan and integrate it into one of many existing programs? Is it going to be with a business organization or chamber also among its many programs under the different committees? Or is it going to be another organization specifically focusing on getting the ICT Agenda done? The organizational vehicle will bind the commitments and build the framework under which many stakeholders will be working together. After that, will be finding and choosing the leader who will embody the Agenda and lead the organization to its defined goal and mission.


(The synthesis and materials in the focus group discussions were prepared through the facilities of the Centre for International Education.)

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