Experts say RP still needs
infra for e-commerce to fly
By Erwin Lemuel G. Oliva
Inquirer.net

Just as a carriage needs a horse to be useful, the local electronic commerce law that was passed this year needs infrastructure to fly.

In a study conducted by the Economist Intelligence Unit (EIU) Philippines Inc. for the year 2000, multinational firms that were surveyed suggested the need to "improve infrastructure deficiencies" in the Philippines if government intends to attract further investments in the country. EIU Philippines Inc., which has been conducting this study for the last 12 years, released the latest report on Tuesday, Dec. 19.

The study, which involved 41 multinational firms operating in the Philippines, indicated that perceived corruption and cronyism plaguing the country is just among the many reasons foreign investments are not expected to come in next year and the following years.

The study observed that the lack of "infrastructure" in the Philippines, specifically information technology (IT) and telecommunications-related facilities, has somehow stunted their business in the country.

Political stability was also up in the list of "glaring weaknesses" identified by the respondents of the study.

While 30 percent of the respondents of the study had some form of e-commerce strategy in place (although the study was still being conducted when the E-commerce Law was signed by President Estrada on June 14), the respondents prefer to locate their so-called "backroom operations" in Australia, Singapore, and India, as far as Asia in concerned.

The study urged the government to "move faster and move decisively in promoting the Philippines as a ‘regional IT center.’"

Apart from creating the environment for the development of cost-competitive broadband access, lower International Direct Dialing call rates and IT-ready institutional support, the study stressed government must improve the "general business operating environment" as well. This includes airport-to-city access and roads in general, to name a few.

"Otherwise, the Philippines will miss the opportunity in the information age, with the top IT countries simply decimating its high-tech worker base (by taking Filipino overseas) and losing the one major advantage it has as an IT center," the study stated.

Addressing Cyberpress Philippines, an organization of journalists covering the converging IT and telecommunications industries, Rep. Leandro B. Verceles Jr. pointed out on Dec. 19 the need for "structural reforms and policy changes" in government when it comes to dealing with information and communications technology (ICT) issues in the Philippines.

Acknowledging that the country has "enough laws" for e-commerce to fly in the country, Verceles said that the government should focus next year on building up the necessary infrastructure to facilitate the implementation of the e-commerce law.

Otherwise, a law without infrastructure to begin with is like "a carriage without a horse," he said.

"Even with the recent passage of the E-commerce Act (Republic Act 8792) and ancillary measures, conventions in government still hamper the law’s take-off. Indeed, structural reforms, strong telecommunications policies and implementation, some reinvention efforts and changes in the attitude of our government workers as regards the use and benefit of ICT in the workplace are needed," Verceles wrote in an ICT reform agenda he recently created.