“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

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.

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

business Olympics 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.

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.

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 R&D, credit financing for businesses, extension services, support for labor productivity as in basic education and literacy)

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

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)

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

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.