Cebu tops other PHL cities for its biz-friendly reforms

Cebu City emerged as the “star” city to have adopted reforms in providing conducive environment in doing business in all 20 cities in the Philippines, this according to a study conducted jointly by The World Bank and International Finance Corporation (IFC).

In the last three years, Cebu City has implemented reforms especially in implementing easier requirements in starting a business, lessening the cost of construction permits, and employment of full computerization specifically in the Registry of Deeds.

However, although Cebu City has implemented reforms and improved its regulations in making it easier for businesses to open or start a business, it has to work more to be competitive with the rest of the world, said Mierta Capaul, Global product specialist, Sub-national doing business of The World Bank and IFC.

Capaul and other officials of the IFC and The World Bank and local counterparts were here in Cebu to present the result of the 2008 result of “Dong Business in the Philippines” survey, to stakeholders as well as to present similar program that will be started in 2011.

According to Capaul, although Cebu City has done a good job in lessening the number of requirements for starting a business, and other necessary documentations especially in real estate related investments, it has to coordinate closely with the national government in order to further lessen the paper requirements, and time in completing any documentary process.

The Philippine Cities, including Cebu City, also has to benchmark with other countries, how they are able to attract investment and provide easier process in starting a business, such as in New Zealand, of which it is only requiring one procedure in online access, which makes it less costly and time-friendly.

Although, there are reforms implemented by Philippine Cities in terms of procedures in doing business, specifically in the local government level, the average 15 to 22 procedures are not business friendly and most of all costly.

In the Philippines, Capaul said unless human-interaction will be lessen, bribery is still rampant. “Each time there is an interaction-- there is a big possibility of bribery.”

Thus, the use of full automation in the processing of new business registration, permit, among others is highly recommended to lessen the possibility of corruption and bribery at the same time hasten the number of procedures.

The study noted also, that in the Philippines, only the reforms created by the local government units (LGUs) have been implemented, while the national government still has to implement a program to cut off the bureaucracy and processing procedures, Capaul said.

In Cebu City, one of the outstanding programs it has implemented is the joint coordination with the Cebu City government, and national agencies in providing the one-stop-shop business registry called NERBAC (National Economic Research and Business Action Center).

Over the past two years, 13 out 20 cities in the Philippines carried out 19 regulatory improvements to make it easier to start and operate a business in their localities.

The “Doing Business in the Philippines 2011” is a joint IFC-World Bank report, is the second in a series analyzing business regulations from the perspective of a small to midsize domestic firm in Philippines cities. Five cities were added this year, bringing the total of 25 cities.

Doing Business in the Philippines 2011 documents the wide variations in local business regulations across the country. The high numbers of procedures, expenses, and requirements continue to be the biggest challenge for local entrepreneurs.

The study was conducted in partnership with the Asian Institute of Management Policy Center. It was funded by the Australian Agency for International Development, the Canadian International Development Agency (CIDA), the United States Agency for International Development and the Investment Climate Advisory Services of the World Bank Group. (The Freeman)

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