Enhancing Good Government through Public Enterprise (Privatization)

and Spatial Information Management

(e-Government)

What is Privatization?

A government policy of transferring the agencies functions or assets of government into the hands and control of the private sector.

Reasons: 1. Contracting out services

Ex: Invitation to Bid

– Is an open market competition among interested contractors to post the lowest or highest bid Request for Proposal (RFP).

– Mechanism that inviting all qualified group to presents proposal to government that provides in details how the group worked perform the service

2. Public-Private Collaboration

– A cooperative agreement between a government and a private sector.

– It is sometimes what we called BOT (Build-

Operate-Transfer), a scheme where one party builds an infrastructure like roads

or markets and other entity operates it.

3. Franchising – Refers to right of the government to

grant program/service on an exclusive basis to private individuals/groups in a defined locality.

4. Load/assets shedding

– Refers when a government sells out a facility/equipment or simply discontinues the public service then the private individual/groups may come in to cover particular service delivery.

5. Volunteerism

– Volunteers serve as assistance in time of need.

Roles of Public Administration 1. Honest, accurate translation of

political leaders into more specifically designed policies

2. Flexibility in dealing with special cases at the point of delivery

3. But this flexibility should not be used arbitrarily

4. Feedback of expert advices, active imagination and assertive inquiry on the aprt of the administrator

5. Efficiency. It is a hope that all of these can be done without costing too much.

Issues 1. Job separation

2. Price increase in the utility

Waves of Privatization FIRST WAVE – President C. C. Aquino Proclamation

No. 50-A which provides policy and procedural framework for privatization of government assets.

The program aims to:1. Improve efficiency and provide better

quality services.2. Focus government energies and

resources on providing basic public goods/services.

3. Create a favourable investment climate 4. Broaden ownership base & develop the

capital market and 5. Generate revenues for priority

government expenditures

During Aquino Administration: – 296 public sector enterprise & 399 non-

performing assets transferred to government by the PNB and DBP

Asset Privatization Trust (APT) was created to dispose off GOCCs.

Government sold 230 assets with net proceeds of 14.3 B

APT was defunct into Privatization Management Office (PMO)

SECOND WAVE Ramos Regime

– He took initiative to amend BOT law to make it flexible; allowing nine times of schemes, not only BOT including Bill-Transfer-Bill Lease Transfer and Built-Operate-Distribute

– He proposed EPIRA Law & Water Crisis Act (MWSS)

– During His term, RA 6957 (Phil. Infrastructure Privatization Program) and RA 7718 (Independent Power Producers) are being passed.

THIRD WAVE

Estrada Administration (1998)

– By virtue of E.O 12, he re-affirmed the private sector in economic growth and expanded the scope of privatization by directing other government agencies including LGU to identify additional assets or activities that are best handled by private sector.

– As a result, certain public services are being privatized like the construction of public market and garbage collection

Gloria M. Arroyo – Approved the EPIRA law (June 2001)– Paved the way for privatization of

NAPOCOR.

GOVERNMENT OWN CORPORATIONS (GOCCs)

What is GOCC?

– By virtue of PD 2097 A stock or non-stock corporation whether

performing government or proprietary functions which is directly chartered by special law/organized under the general corporation law which is owned and controlled by government directly or indirectly through a parent corporation (to the extent of at least majority of stocks)

Aims of GOCC

1. To reduce involvement of the state;2. To reduce the financial burden of the

government;3. To promote greater efficiency; and4. To raise funds from the sale of GOCCs

and their assets

Ground Rules for GOCCs

GOCC should perform efficiently and effectively

Basic types of Privatization

a. The sale of government assets such as railroads to a corporation or public housing units to their tenants;

b. The private financing of public utilities such a stool highways; and

c. The private provisions of service like garbage collection

GOCCs Technical Reform/Programs1. Improving corporate governance;

2. Creation of effective oversight body;

3. Rationalization of GOCCs portfolio; and

4. Review of the performance evaluation system.

Public Private Enterprises

– Refers to the recognition of the primary role of the private sector in economic development, under the policies of deregulation, economic liberalization and privatization.

– The private sector imbued with a sense of responsibility, as they shall support worthy social, civic, artistic and nationalistic projects for the benefits of the community (Albueva as cited by Lazo)

Spatial Information (e-Government)

What is e-Government?

– Refers to the use of Information Technology in particular the internet, to deliver services in much more convenient, customer-oriented and altogether different and better way

The broader definition of e-Government is the adoption of any information and communication technology by government. (Owen, R.)

Medium of e-Government– The technologies include video

conferencing, touch tone data entry, CD-Roms, Internet and Private Intranet as well as technologies such as interactive television and internet access via mobile phone and personal assistance. (Owen, R.)

Computerization and the application of Technology advancement have been used as well in governance, commerce & international relations which made it accessible to the people.

Two (2) Phases of e-Government

1. Internal – Operation of Government itself.

Example: • Electronic procurement;• E-Forms; and• Web-based management information

system.2. External – Online services offered to

citizens and businesses. Example: • Application form for employment and• Bill payment portals

Public Administrators nowadays have embraced technology as part of their daily lives to promote/improve their

performance in allocating services to the public

Services of e-GovernmentA. Pushing Information over the Internet:

- Regulatory Policies;- General Holidays;- Public Hearing Schedules; and- Brief Issues and Notification

B. Two-way communication between agency and citizens.- Dialogue:

• Post problems• Post comments

C. Governance, online polling, voting and campaigning

e-Government in the Philippines

– July 2000• Government Information System Plan

(GISP) was approved and adopted as a framework for computerization programs in government agency pursuant to E. O 265.

•Private Sector and e-GovernmentThe private sector is recognized as partner in the country's ICT development efforts.

Example of Government websites:

-- Office of the Presidentwww.op.gov.ph

-- Department of Budget & Management

www.dbm.gov.ph -- Department of Social Welfare and Development

www.dswd.gov.ph

Thank you