Obstacles in clearing road obstructions

Every so often, our government officials mount clearing operations* of illegally parked vehicles and other property obstructions on roads, mainly along major thoroughfares in the metropolitan area. Unfortunately, fines and the hassle of getting back a car has not been an effective deterrent.

The Metropolitan Manila Development Authority (MMDA), which operates one of the biggest road clearing enforcement agencies with authority over 16 cities and one municipality, just can’t seem to get around believing how recalcitrant offenders can be.

In posts on the motoring site topgear.com.ph, not a few entries can be amusing, like an incident when a washing machine had to be removed. Luckily, the owner was not fined after quickly responding to the MMDA officers’ warning.

Others are plainly exasperating, like when an illegally parked car that was cleared from a street had to be fined a second time in a matter of two hours after the MMDA team did a second sweep of the same area. In fact, the MMDA says repeat offenders make up the bulk of their apprehensions.

Mostly, these happen in local government units that have weak enforcement capabilities. Understandably, without the display of might that the MMDA Task Force Special Operations has, complete with tow trucks and fully uniformed and motorcycle-riding MMDA apprehension officers, most Metro Manila local governments’ puny apprehension units are at a disadvantage.

Enforcement units, even that of MMDA’s, do come across some nasty individuals who can violently resist being fined or allow their illegally parked or built property removed from the road or sidewalk. In one Top Gear news entry, there was even a case involving a barangay captain who wrongly argued that a car washing service on the street had the benevolent objective of providing jobs to the community’s unemployed. The altercation that ensued escalated to a case of violence against the barangay captain.

Models

A good model of an effective traffic and road law and order enforcement network hands down goes to the Makati Central Estate Association (MACEA), a civic body whose membership includes 390 of the leading organizations that are residents of Makati’s central business district.

For decades since its inception in 1963, MACEA has quietly and without any incident getting to atrocious proportions been able to enforce many traffic and zoning agreements. Street signs, and importantly, one-way signs are prominently seen, and are a big boost to navigating the area.

MACEA supervises one of the most efficient street parking systems I’ve seen. Slip into a street parking space marked by white painted brackets during the day, and a MACEA personnel holding a portable booking and receipt machine will almost immediately be by your side.

They’re even well-trained to handle over-stayers, and very rarely will you be able to extend parking for a free hour. Best of all, one is forced to observe street signs because offenders will rarely go scot-free, and will be forced to deal with physical interventions like wheel-clamping or towing and impounding. The fines are pretty steep too.

The City of Makati, which oversees the central business district, has a good working framework that allows for a harmonious relationship in law enforcement with MACEA, where spheres of responsibility are clearly defined to avoid gray areas.

Other local government units in Metro Manila also grappling with road obstruction issues are looking at other models of effective enforcement. Pasig City, for example, which has another busy central business district, now strictly enforces apprehensions on no-parking streets and no-parking tire clamp zones. The penalties are also on the high side.

Often, the increased volume of vehicles going in and through streets, especially in the localities’ centers where offices are rising, force the local governments to come up with better enforcement rules and tougher penalties.

Hopefully, most of the LGUs will be able to do their own problem-solving in these areas where traffic congestion can be hair-pulling and wasteful of motorists’ time and fuel.

Parking alternatives

Solving illegal road parking and obstruction issues in other areas, though, will not come easy. For one, better laws are needed to deal with the growing number of vehicles owned by people who do not have the corresponding parking space within their property.

One lawmaker had once proposed that vehicle owners must show proof that they have the resources to keep their cars from being parked on streets, but as to be expected, could not muster support because of potentially controversial reactions.

In the Philippines where a household’s first dream would be purchasing a car more than securing a house and lot, parking responsibilities are easily overlooked. Even if local governments convert empty lots into paid parking facilities, just like what they do in other countries, it will be difficult to engage garage-less car owners to consider this as an option if no-street-parking rules are not strictly enforced.

This issue extends to tricycles that are relied on by many commuters as the only transportation means to get to the main roads. Tricycle owners and operators often park their vehicles on streets and sidewalks, and are not just obstructions but even safety hazards, especially at night.

Tricycles are a means for many Filipinos who lack the skills to keep a regular paying job to earn their daily bread, and there are many of these in almost all barangays. Clearly, it is an issue that can become a political liability to a local government official.

Sometimes, we just have to comfort ourselves with the thought that our elected officials are doing the best they can.

Road clearing operations in the Philippines are based on what law?

* Road clearing operations in the Philippines are based on a directive from the Department of the Interior and Local Government (DILG) under the Memorandum Circular No. 2020-145, issued on February 4, 2020.

This memorandum circular aims to reclaim public roads that are being used for private purposes, ensure pedestrian safety, and reduce traffic congestion in urban and rural areas. It mandates local government units (LGUs) to clear obstructions on all roads, including but not limited to, illegal structures, illegally parked vehicles, and other obstructions that impede the safe and convenient passage of pedestrians and motorists.

The DILG memorandum provides guidelines and deadlines for the implementation of road clearing operations, and it also outlines the roles and responsibilities of various government agencies, LGUs, and law enforcement agencies in the process.

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Source: Philstar and Ziggurat Real Estate

Demographic challenges

Amid projections that the country’s population will reach 115 million by the end of the year, from 109 million in 2020, Malacañang last week announced the approval of the Marcos administration’s long-term plan for managing and harnessing population growth to achieve its development agenda.

Memorandum Circular No. 40 directs all government agencies, local government units, and government-owned and -controlled corporations to “undertake efforts’’ to support the Philippine Population and Development Plan of Action (PPD-POA) 2023-2028, described as the “overall blueprint for inter-agency collaboration to optimize demographic opportunities and address remaining population challenges.”

The Commission on Population and Development (CPD), as the Commission on Population or PopCom is now called, will be the plan’s lead implementing agency.

The creation of a plan of action is indeed necessary, as the Philippines, according to CPD deputy executive director Lolito Tacardon, is now the 13th most populous country in the world, and the seventh in the Asia-Pacific region.

What is more interesting, however, are findings that the country’s fertility rate has slowed down and that the majority of the population belongs to the working-age group. Such findings have raised hopes that with the right conditions, the Philippines will reap the so-called demographic dividend, or economic growth brought about by changes in the characteristics of the population.

The results of the 2022 National Demographic and Health Survey showed that the total fertility rate of Filipino women aged 15 to 49 has declined from 2.7 children in 2017 to 1.9 children in 2022, or below the replacement level of 2.1. It also indicated a steady decline from 6.0 children in 1973.“

Total fertility [in the Philippines] showed that a woman of reproductive health normally gives birth to two children only … This means that the total fertility level slows down the country’s population growth,’’ said Tacardon.

Experts have yet to determine whether the lower fertility rate could be attributed to the successful implementation of the reproductive health law during the Aquino and Duterte administrations, or the economic shock dealt by the global COVID-19 pandemic, which forced already hard-up families to tighten their expenses and made couples postpone having more children.

Tacardon pointed out that the decrease in fertility rate has a bearing on the age structure, so that the “dominant” sector of the population now belongs to the working group aged 15 to 64, while dependents, those aged zero to 14, “are getting fewer in number.” This means, he said, that if the country becomes successful in harnessing the working-age population, “there is a chance to accelerate economic development.’’

“If all or many are working, all will contribute to development rather than [be among those] receiving help from the government,’’ Tacardon said.

That, in sum, is the big IF. Although we’re on our way to experiencing the so-called demographic sweet spot—when the optimal number of the population is of working age with few dependents—the country’s high unemployment rate, pervasive poverty, and other socioeconomic woes will make it impossible to reap the much-desired demographic dividend.

As United Nations Population Fund (UNFPA) country representative to the Philippines Dr. Leila Joudane noted, the Philippines is at a “unique crossroads with its changing demographics,” with a declining fertility rate providing “a window of opportunity [to have a] productive population larger than the dependent population.”

UNFPA however cautioned that “[t]he demographic dividend is not automatic. The country will have to make the right investments and policy decisions in order for it to reap its benefits, by investing in people throughout their life course.’’

Joudane stressed that while the demographic dividend “can be a powerful force …[to be able] to reap its benefits, we need to ensure the rights of people—especially those most left behind—and provide access to quality education, health care, and employment opportunities. We need to also address gender inequality and other injustices that limit people from reaching their full potential.’’

The challenge then to the Marcos administration is clear. The policies and programs spelled out or contained in the PPD-POA are most effectively achieved if the government were to work harder to curb unemployment and create job opportunities right here in the country.

It would be a tragedy for the Philippines to continue to waste its pool of working-age citizens with ill-advised policies that push them to seek better-paying jobs abroad or to offer those who choose to stay little opportunity to improve their lives and get out of the vicious cycle of poverty.

As long as the government depends heavily on overseas Filipino workers to keep the economy afloat instead of providing decent jobs to lift millions from poverty, all these plans of action will be good only on paper and will remain as unfulfilled promises.

Source: Philippine Daily Inquirer

PHL needs to boost digital infrastructure to ensure growth

The Philippines’ digital economy can be used as a catalyst to boost economic growth, but the government must ensure the development of digital infrastructure to support connectivity and inclusion, according to experts. 

“If there is one thing that the public sector should focus on, I will pinpoint infrastructure as that will drive connectivity. For the business sector, it is making sure that they have [to give importance] to digital inclusion, meaning new users,” Google Philippines Head of Data & Insights Nikki L. Del Gallego said during the report’s launch on Tuesday.

The Philippines’ digital economy is projected to reach between $80 billion and $150 billion in gross merchandise value by 2030, according to the e-Conomy report by Google, Temasek Holdings and Bain & Company.

Rizal Commercial Banking Corp. Executive Vice-President and Chief Innovation and Inclusion Officer and Fintech Alliance PH Chairman Angelito “Lito” M. Villanueva said the growth of the digital economy is just as important to the country’s economic growth.

“Due to the rapidly rising adoption of digital payments and the global e-commerce boom, it is obvious that digital is the way to go if we want to see exponential growth,” he said.

“In this era of smartphones, tablets, and advanced technology, focusing on how to grow our digital economy should be the priority of all governments right now. We must take full advantage of this cash-lite, digitization movement, and capitalize on people’s new post-pandemic, digital-dependent behavior for basic financial transactions,” he added.

In 2022, the share of digital payments in the total volume of retail transactions in the country rose to 42.1% in 2022 from 30.3% in 2021. The Bangko Sentral ng Pilipinas is targeting 50% of retail payments to be done digitally by the end of the year.

In order to optimize the opportunities from the digital economy, Mr. Villanueva said there is a need for stronger collaboration between the private sector and the government. With the government’s support, he noted the private sector can accelerate the reach of digital financial innovations and make digital payments accessible for more Filipinos. 

“To be a thriving digital hotspot, we must push for the necessary regulations and regulatory frameworks to be mandated by the government, such as the Open Access in Data Transmission Act, E-Governance, National Broadband Act, and many more. These laws in action will drive our digital economy to greater heights,” he said.

Bain & Company Partner Bennett S. Aquino said the Philippines will be able to further accelerate the growth of its digital economy if the government and private sector work together.

“The private sector will need to supply the talent. It will really need to develop their own technologies and really understand the customer pain points,” Mr. Aquino said during the report’s launch event on Thursday.

“There will be limitations to this. The private sector is also in charge of infrastructure, but it is dependent on the government,” he added.

Meanwhile, Ateneo de Manila economics professor Leonardo A. Lanzona cautioned that there is still not enough sufficient digital infrastructure to benefit the majority of the population.

“Hence, while many are covered by and exposed to the internet economy, their impact is quite limited to only a few savvy and educated individuals. These same individuals are reaping these benefits from their continual and expanded utilization of the internet,” Mr. Lanzona said.

Mr. Lanzona said that innovations must be “adapted equally to the needs of the general public and the major economic sectors such as industry and agriculture.”

“As these individuals and sectors are being left behind, the unrelenting acceleration of the internet technologies are making it more and more difficult for these laggard individuals and sectors to catch up. In the end, we will end up with a very polarized economy, hardly one that can be seen as a driver of economic growth,” he said.

Mr. Lanzona recommended that the government should come up with an innovation system that will incorporate digital transformation, environmental resilience, and inclusion.

“As the market relies and focuses on digital transformation, the other social concerns are being ignored and may prove to be impossible to achieve. If individual self-interest and social welfare diverge, then clearly government intervention is justified. This lack of regulation in the internet economy is what makes us different from other higher income countries like Singapore,” he added.

RISKS TO GROWTHMeanwhile, Google’s Ms. Del Gallego said a global slowdown is one of the risks to the growth outlook for the Philippines’ digital economy.

The e-Conomy SEA report projected the internet economy of the Philippines to grow by an annual 20% to reach $35 billion by 2025. For 2023, it is projected to grow by 13% to $24 billion in gross merchandise value.

“Much like many industries, one of the standard risks will be the state of the global macroeconomic environment. We are optimistic and hopeful that the high interest rate stabilizes at some point,” Mr. Aquino said.

“If this stays at the current level and if gross domestic product (GDP) growth does not pick up as we have projected it to, that will impact our projections as well,” he added.

Ms. Del Gallego said they are optimistic the Philippines’ digital economy will achieve 20% annual growth through 2025 despite the global headwinds.

“With our GDP still growing even faster than Southeast Asia and inflation easing, it all goes back to the fundamentals that make us confident that the estimate of 20% will continue its momentum while the risks will always be there,” she said.

The Philippines is widely expected to be one of the fastest-growing economies in Southeast Asia this year and in 2024.

Ms. Del Gallego said one of the challenges to the growth of the digital economy is consumers’ low confidence in digital platforms.

“There are certain hesitations from those who might be new to the digital economy. They are likely looking for signals to allow them to trust certain digital platforms or maybe get the confidence to even try it,” she said.

The lack of confidence could be rooted in fears of fraud.

“I think from a consumer level, that remains to be one of the things that needs to be addressed because if everything happens, but the consumers are not ready, then we will not be able to maximize the potential growth,” Ms. Del Gallego said.

Source: Business World