The Philippines is very gradually edging closer to the establishment of a dedicated government department charged with promoting and supporting the information and communications technology (ICT) sector, though it would take some time before the new agency can achieve its supporters’ lofty ambitions.
Last Oct. 12, the House of Representatives approved one version of a bill that lays out the terms to create a new government department charged with overseeing the development of the nation’s ICT sector.
In its second reading of the bill, the House backed the establishment of the Department of ICT (DICT), a move seen as an essential step towards building the country’s ICT infrastructure and developing a focused policy for the industry.
A similar bill is currently before the Senate, where it is expected to be approved in the coming weeks.
Among its many tasks, the DICT will coordinate and implement the national ICT development agenda, including policies, programs and projects, according to a briefing the National Economic and Development Authority issued earlier this year.
The new department will also be tasked with implementing “national e-strategies cutting across other critical sectors such as e-education and e-health, and the country’s representation in international and regional ICT bodies.”
Long-delayed
The plan to form a department responsible for ICT has long been in the works and was first proposed in the late 1990s, when a bill was tabled before Congress in 1998.
However, the initiative has been repeatedly stalled as a result of changes in government policy priority and opposition from other state agencies.
As recently as June, the Department of Science and Technology (DoST) stated that a new body was unnecessary because other state offices carried out its functions.
More recently, however, DoST officials have changed course, saying they no longer oppose the establishment of a DICT.
The idea for the creation of the department has received strong support from industry groups and nongovernment organizations, with the National ICT Confederation of the Philippines (NICP) declaring that the proposed agency is crucial for successful development of the sector and advancement of Philippine society.
In a letter sent to senators at the end of September, the NICP wrote that the Philippines needed a DICT to ensure that gains and opportunities in the ICT sector were mainstreamed and spread evenly throughout the country.
“Without a DICT, we strongly believe that programs and projects to maximize ICT as a tool for social and economic development, education, health, governance, environment and other concerns will never trickle down to our cities and provinces,” the letter stated.
Other organizations that support establishing the department include the Joint Foreign Chambers of the Philippines, the Contact Center Association of the Philippines and the Business Process Outsourcing Association of the Philippines.
In an address that introduced the bill to the upper house in mid-September, Senator Edgardo J. Angara asserted that if the Philippines had established the DICT during the previous government’s term, which ended in mid-2010, the country would already have “a working framework for e-governance initiatives and applications, especially on universal health care, precision farming, disaster risk reduction, e-learning, combating cybercrime and business regulation”.
The IT and business process outsourcing (IT-BPO) industry generated revenues of $9 billion last year, directly employed more than 500,000 people and created jobs for 1.3 million more, Mr. Angara said.
However, he noted that without a dedicated ICT department, the country has as yet been “unable to seize the huge opportunities of the fast evolving digital age.”
Opportunities slip by
Indeed, a lack of centralized focus and forward-thinking initiative continues to undermine the country’s potential in this regard, evident in its current ranking in the International Telecommunication Union’s (ITU) global ICT competitiveness survey.
ITU’s most recent report, issued in mid-September, placed the Philippines 16th in the Asia-Pacific region and 92nd out of the 152 countries assessed.
Though this ranking was better than its 2010 position of 95th, the Philippines still trails behind many of its neighbors, a number of which are also vying for an increased slice of the international IT-BPO market.
The envisioned DICT could direct a campaign to encourage greater investment in broadband expansion, particularly by enticing more direct investment or bringing in new telecommunication players.
The founding of the DICT would help develop the sector by providing a focused policy body and a direct voice in Cabinet, but it would take time for the agency to find its feet and become an effective advocate for the ICT industry.
Establishing the new department serves as an acknowledgement of the importance of ICT in the Philippine economy and the potential the sector holds for the future.
Paulius Kuncinas is Regional Editor, Oxford Business Group.
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By: Paulius Kuncinas
Source: Business World, Nov. 10, 2011
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