The Role of Private Sector

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The Role of Private Sector Government in
Promoting Efficiency Competitiveness
Accessing Meeting Requirements of Markets for
Aquatic Products 2-6 June 2003 Dusit Hotel Nikko,
Manila   by Director RAUL V. ANGELES Board of
Investments
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Philippine Accession to GATT

• Since Philippine accession to GATT in 1994, the
  general level of tariff protection have been
  reduced and quantitative restrictions have been
  removed.

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• These economic transformations have impinged the
  way BUSINESSES and GOVERNMENT deal with and among
  each other.

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The business environment can now be likened to
business Olympics, where the local and foreign
businesses compete -- the world market being the
playing field. Market competition has
become stiffer among rivals, such that only the
efficient ones survive.
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• BEFORE The role of government was to REGULATE,
  POLICE and DIRECT much economic activity, prices
  and economic conditions.
• NOW Government role in modern economy has been
  focused on the CREATION OF A CONDUCIVE
  ENVIRONMENT where BUSINESSES can flourish. The
  ultimate goal is to reduce cost of doing business.

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• Government undertakes macroeconomic functions
  through fiscal, monetary, investments, tariff and
  even, environmental policies.
• The government is also involved in the provision
  of public goods that are important requisites for
  smooth business operation.
• (e.g. national defense, domestic security, peace
  and order, physical infrastructures, support for
  RD, credit financing for businesses, extension
  services, support for labor productivity as in
  basic education and literacy)

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• BUSINESSES are now learning the value of
  STRATEGIC COLLABORATION between and among
  themselves as well as with the public sector.
• Industry Roadmaps
• Realizing that competition is no longer with
  local rivals, but with foreign counterparts in
  the global market, businesses are now learning
  the value of STRATEGIC ALLIANCES in carving out
  market niches and strengthening competitive
  advantage, both in the home front and in the
  global market
• Industry Associations

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• BUSINESSES are now also involved in the
  implementation of and compliance to
  environmental standards to ensure that they are
  operating sustainably and in consideration of
  social responsibility.
• (e.g. implementation of HACCP Compliance and Good
  Manufacturing Practices Waste Management and
  Reduction Programs and Implementation and
  Monitoring of the Code on Aquaculture Practice)

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• The ultimate goal of BUSINESS now boils down to
  one ensuring that operations are highly
  productive, highly efficient and sustainable.

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Today, we find an economy wherein the market and
private sector action determines economic
activity, while government steers the overall
economy with developmental policies and programs.
A strategic SYNERGY between the private sector
and GOVERNMENT is essential for promoting
efficiency and competitiveness of industries.