The state will go on bringing down the cost of doing business in the Philippines in its bid to create a better investment climate and to attract more capital in labor-intensive industries.

In her speech during the Asean Summit in November 2001, President Gloria Macapagal-Arroyo stressed the government’s "line of enlightened liberalization, deregulation and privatization," as she vowed to push information and communication technology (ICT), promote reforms in the power sector, improve support infrastructures, and maintain the peace.

The focus is on her administration’s thrusts to improve a flailing economy she inherited when she was proclaimed president on January 21, 2001 following a people power revolt against an ineffective government.

A year and a half going to her 2^nd State of the Nation Address (SONA) on July 22, the President and her team have jumpstarted the promotion, rather than regulation, of ICT with the declaration that "technology is the foundation" of the country’s economic growth

In compliance with the E-Commerce Act, the National Computer Center has launched the e-Gobyerno that placed the whole bureaucracy within easy reach, at a click of a computer key.

The ITECC e-Government Implementation Committee will present in November an e-Philippines Management Plan that will strengthen the ties between government and the private and business sectors.

Businesswise, the Department of Trade and Industry (DTI) is carrying out a development plan for e-services, having profiled major ICT-enabled services like call centers, medical transcription, accounting and finance, animation, among others.

The mapping of information technology (IT) firms was completed in the financial districts of Makati City, Ortigas in Pasig City and Quezon City. Mapping work is being done in other parts of Metro Manila.

Promulgated on March 15, 2002 were guidelines for IT community access as in the case of Internet cafes, telecenters and learning centers.

The government has sponsored and joined in outsourcing meetings and missions resulting in 17 investment leads, three of which are call centers to operate this year, and conducted walking tours for foreign business groups on IT firms, schools and telecommunication companies.

It also came out with a "Showcase Hour," a program highlighting the countries IT products and services as well as contracted the Gardner Inc. to conduct a survey-research on the country’s IT-enabled services.

From January to March alone, the DTI has approved nine IT projects that generated 2,977 jobs.

A similar IT plan was developed for small and medium enterprises (SME), kicking off with a service providers matchmaking fair where 10 exhibitors netted P18.256 million and launched 16 products. SME portals are also being set up.

The state will soon let telecommunications players put up high-speed networks and connectivity in eight IT hub areas, while deregulating rates that will result in healthy competition and lower connectivity costs.

In Congress, at least two bills on ICT are being worked out. One is the bill on Internet privacy and security to shield IT firms from computer fraud and abuses; the other, a bill creating the Department of ICT to address the new phenomenon of emerging technologies.

In her first SONA on July 23, 2001, President Macapagal-Arroyo looked forward to the day when the Philippines would be one of the world’s center for software development and data management in this decade.

Besides ICT promotion, the government has also tasked itself to go on reforming the power sector to lower the cost of doing business in the country.

As a start, the Joint congressional Power Commission has approved the implementing rules and regulations for the Power Reform Law and the privatization plan for the National Power Corporation (Napocor) on February 27 and March 13, 2002, respectively.

The President has also ordered a mandatory rate reduction of P0.30 per kilowatthour monthly on bills of electricity users starting the billing period June 26 to July 25.

She has also urged Congress to amend the Electric Power Industry Reform Act or Republic Act 9136 to give power consumers immediate relief from the high cost of purchase power adjustments, reduce the cost of electricity, and ensure a more reliable and efficient electricity system.

A legislative franchise for the National Transmission Corporation is also sought to lower the potential stranded cost and universal charges usually passed on to end-users, while enhancing the value of Napocor’s transmission assets and raise its privatization value.

Further, the Department of Energy has energized as many as 1,136 villages, most of them in remote areas, nationwide, as of May 31, 2002.

All this will minimize bottlenecks to productivity and reduce operating costs of businesses.

On February 3, 2002 before the Economic Club of Chicago, the Chief Executive stressed that the government would likewise "aim to expand the investment opportunities related to infrastructure required to improve the competitiveness of industries in the form of mass transport systems, roads, bridges, telecommunications and ports" by harnessing private sector support through the Build-Operate-Transfer Law.

A case in point is the ongoing implementation of two rail projects, one going north and the other south, to speedily transport people and goods to areas outside Metro Manila.

The Northrail will disperse communities towards the Subic and Clark freeport areas while the Southrail will cover the Cavite-Laguna-Batangas-Rizal-Quezon (Calabarzon) front.

Five more rail lines that can seat more than 1.3 million passengers daily are in the pipeline, expected to be completed by 2004.

These projects include the Light Rail Transit (LRT) Line 1 capacity expansion, Metro Manila strategic mass rail development, LRT Line 1 south extension, Mass Rail Transit (MRT) 3 Phase 2, and MRT 4 Phase 1.

Aside from this, the government will continue the liberalization of the airline industry.

Under this program, the President has issued on December 9, 2001 Executive Order 219 that established the domestic and international civil aviation liberalization policy.

Its implementing rules and regulations noted that any air carrier possessing a valid CPCN or TOC could be designated as an official international air carrier.

Another highlight was the provision that at least two operators on each domestic route or link should be encouraged and that domestic rates, charges and fees should be liberalized.

The country has also signed an improved air services agreement with Sigapore, South Korea, Macau, Luxembourg and Qatar.

But more than promoting ICT, pushing power reforms and improving support infrastructure to attract investments and create more jobs, the Chief Executive further promised to maintain peace and order, in the workplace and in the streets.

In industries, the Department of Labor and Employment reported that it had a 94 percent conciliation and mediation success, having averted 407 notices of worker strikes and lockouts from July to December last year.

To uphold general law and order, the President issued Executive Order 21 adopting a holistic government response consisting of political, economic, psychological and security components.

President Gloria Macapagal-Arroyo has enjoined voters to go out and cast their ballots in the simultaneous barangay and youth elections tomorrow.

The President said these two important electoral exercises would revitalize democracy in the lowest, but vital, political levels of government.

She noted that the barangay council is the basic form of government that renders public service in the nation’s communities.

The Sangguniang Kabataan, serves as the stepping stone of the youth in becoming responsible leaders of the country, she added.

The President said the people must not only go out and vote, but also ensure that the polls would be honest, orderly and peaceful.

"Mahalaga ang bawat boto ninyo. Sagrado sa ating demokrasya ang inyong karapatang pumili ng ating mga pinuno (Your votes are important. Your right to elect our leaders is sacred)," she said.

Earlier, she declared July 15 as a special non-working holiday to enable qualified voters to exercise their constitutional right to vote.

The President said the people should take part in the affairs of their respective communities.