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Marine battalion deployed against NPAs in Cagayan

AFTER BATTLING extremists in Mindanao, the Marine Battalion Landing Team 8 (MBLT8) will be fighting communist rebels in the Cagayan Valley region. The military’s Northern Luzon Command said the Marines arrived at Port Irene in Santa Ana, Cagayan on BRP Tarlac on Friday and will join Joint Task Force Tala in operations against the New People’s Army (NPA). The Marines will operate in seven Cagayan towns — Santa Ana, Gonzaga, Buguey, Camalanlugan, Santa Teresita, Lallo and Aparri. Lt. Gen. Emmanuel B. Salamat, Northern Luzon Command chief, said MBLT 8 will contribute to the military’s “effort of bringing a lasting peace and sustainable development in Northern Luzon.” The MBLT 8 was previously deployed to Jolo, Sulu and Tawi-Tawi, where the military has also been conducting operations against the Abu Sayyaf. — philstar.com

Fuel prices roll back in unusual weekend adjustment

OIL COMPANIES have rolled back over the weekend the prices of gasoline, diesel and kerosene, each by more than a peso per liter, two days ahead of the usual Tuesday price adjustment. Gasoline prices are down this week by P1.05 to 1.15 per liter (/L), diesel by P1.25 to 1.30/L and kerosene, by P1.20/L. Most of the companies implemented the price cut at 6 a.m. on Sunday. No advise was given on why they were cutting prices earlier than usual except to say that the price adjustments reflected the movement of prices in the international market. Phoenix Petroleum Philippines, Inc. was among the earliest to implement the price cut on Saturday, 6 a.m. Last Tuesday, the per liter prices of gasoline, diesel and kerosene were also slashed by P1.00, P1.30 and P0.85, respectively. The move followed consecutive price hikes since the start of the year. — Victor V. Saulon

Cebu City to question ‘inequitable’ 1,500 TNVS allocation

MAYOR TOMAS R. Osmeña of Cebu City, the hub of the Visayas and one of the most populous urban centers in the country, is preparing to send a letter to the central office of the Land Transportation Franchising and Regulatory Board (LTFRB) to seek an explanation on Metro Cebu area’s 1,500 transport network vehicle service (TNVS) allocation. Metro Manila has been given 65,000 TNVS slots. “We want to know what are the data involved as far as the transport is concerned and what are the technical analyses and the studies they have done in order to decide such allocation. For us, it’s not equal and not equitable and is biased towards Metro Manila,” City Administrator Nigel Paul C. Villarete told reporters last week. The original allocation for Metro Cebu was 500, while Metro Manila had 45,000. The Metro Cebu area covers a more than 1,000-square kilometer area comprising of six other cities apart from Cebu City and six municipalities. Ride-hailing service providers Grab and Uber both operate in Cebu. — The Freeman

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Tandag bishop calls for probe on flooding from storm Basyang

THE BISHOP of Tandag, Nereo P. Odchimar, on Sunday released a statement to news outlets calling for a multilateral investigation into the disastrous flooding in Caraga Region during tropical storm Basyang last week. The storm that hit Surigao del Sur on Feb. 13 brought “untold suffering among the people, especially in the areas of Cantilan and Carrascal, where a flash flood swept houses away, destroyed several hundred hectares of riceland, and caused at least 5 deaths, and injury to many others,” the statement reads. “Many residents are calling for an investigation into the reasons why the flood came so fast … and that is some areas a number of logs and felled trees were swept downstream, destroying houses and other physical structures along the way. — interaksyon.com

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ComVal provincial gov’t probes 15 village leaders supporting NPA

COMPOSTELA VALLEY (ComVal) Governor Jayvee Tyron L. Uy said his office is undertaking a probe on the reported 15 barangay leaders who are supporting the activities of the New People’s Army (NPA), the armed group of the communist movement. “We know that some of them are really involved with the underground movement,” said Mr. Uy during a media forum in Davao City last week. The Department of Interior and Local Government (DILG) has earlier initiated an investigation on the alleged NPA supporters. Mr. Uy said DILG Secretary Eduardo M. Año, who previously served as a top military official in the eastern Mindanao area that includes Compostela Valley, informed him about the investigation three weeks ago. The governor said he will seek the expulsion of those who are proven supporting the rebel movement. — Carmelito Q. Francisco

‘Shame on you!’ shooting survivor tells Trump

FORT LAUDERDALE — A survivor of the Parkland school shooting called out US President Donald J. Trump on Saturday over his ties to the powerful National Rifle Association (NRA), as several thousand rallied in Florida to demand urgent action on gun control.

Three days after a troubled teen armed with an assault rifle killed 17 people at Marjory Stoneman Douglas High School, 18-year-old Emma Gonzalez delivered a fiery address to a crowd of students, parents and residents in nearby Ft. Lauderdale.

“To every politician taking donations from the NRA, shame on you!” she thundered, assailing Mr. Trump over the multimillion-dollar support his campaign received from the gun lobby. The crowd chanted in turn: “Shame on you!”

“We are going to be the last mass shooting… We are going to change the law,” she vowed — slamming the fact 19-year-old gunman Nikolas Cruz was able to legally buy a semi-automatic firearm despite a history of troubling and violent behavior.

“The question on whether or not people should be allowed to own an automatic weapon is not a political one. It is question of life or death and it needs to stop being a question of politics,” Ms. Gonzalez told AFP following her speech.

In Washington, the political response has made clear that the powerful NRA pro-gun lobby remains formidable, while Mr. Trump himself suggested the root cause of mass shootings was a crisis of mental health — making no mention of gun control.

“If the president wants to come up to me and tell me to my face that it was a terrible tragedy and… how nothing is going to be done about it, I’m going to happily ask him how much money he received from the National Rifle Association,” Ms. Gonzalez said in her impassioned address.

“It doesn’t matter because I already know. Thirty million,” she said, citing the sum spent by the NRA to support Ms. Trump’s election bid and defeat Hillary Clinton.

She then ran through a list of the pro-gun lobby’s talking points — for example, that “a good guy with a gun stops a bad guy with a gun,” that no law could ever stop a madman intent on killing — answering each argument with “We call BS.”

The young woman’s powerful address immediately went viral, with her name a top trending topic on Twitter.

Mr. Trump tweeted a day after the massacre that neighbors and fellow students had failed to flag Cruz to the authorities.

“We did,” Mr. Gonzalez fired back, her voice shaking with emotion as she insisted the community had done its best to raise the alarm. “Time and time again. Since he was in middle school. It was no surprise to anyone who knew him to hear that he was the shooter.”

MISSED WARNINGS
US authorities have come under mounting scrutiny for failing to act on a series of warning signs.

The FBI admitted Friday it received a chilling warning in January from a tipster who said Mr. Cruz could be planning a mass shooting, but that agents failed to follow up.

Mr. Cruz was also known to local police after his mother repeatedly reported him for violent outbursts, while records obtained by the South Florida Sun Sentinel show authorities investigated Mr. Cruz in 2016 after he cut his arms on messaging app Snapchat and threatened to buy a gun.

The newspaper, citing Department of Children and Family Services documents, said the investigation came four days after Mr. Cruz turned 18 — legally an adult, and thus able to buy a firearm.

Investigators said there were “some implications” for the teen’s safety, but concluded that his “final level of risk is low as (he) resides with his mother, attends school and receives counseling” as an outpatient at a mental health center, the Sun Sentinel said.

Mr. Cruz later passed a background check, allowing him in February 2017 to buy the AR-15 rifle used in the massacre.

Mr. Trump spoke by phone Saturday with the Parkland mayor, the county commissioner and the principal of Marjory Stoneman Douglas High School to express his condolences and offer his support.

He then turned political in a tweet Saturday night, asking “why didn’t the Democrats pass gun control legislation when they had both the House and Senate during the Obama Administration. Because they didn’t want to, and now they just talk!”

Mr. Trump is staunchly opposed to additional restrictions on guns or gun ownership, but Vice-President Mike Pence said at an event in Dallas the president would make school safety “a top priority” when he meets with governors of US states in the coming days.

“Let’s pray for wisdom. For all in positions of authority that we might find a way to come together as a nation to confront and end this evil in our time once and for all,” Mr. Pence said. — AFP

As US-Russia tension flares, nuclear arms control agreements now at risk

MUNICH — As tensions escalate between Russia and the US, the nuclear-armed former Cold War rivals are risking the future of decades-old arms control agreements that have helped to keep a strategic balance and prevent the risk of accidental war.

The conflict played out at a global security conference in Germany where Russia aired grievances about the US and the Trump administration said a new nuclear doctrine unveiled this month doesn’t increase risks. Germany, caught in between, was among European countries voicing concern as both big powers modernize their nuclear arsenals.

US National Security Adviser H.R. McMaster defended the US nuclear posture, which envisages building more low-yield bombs, and renewed accusations that Russia is violating a 1987 treaty that bans the deployment of intermediate-range missiles on land.

“We will not allow Russia any of the power to hold the populations of Europe hostage,” he said Saturday in Munich, appearing on stage moments after Russian Foreign Minister Sergei Lavrov listed a litany of complaints about US-led military expansion since the collapse of Communism.

SYRIA CLASH
Efforts to bridge the divide are stymied by a poisoned atmosphere as the US responds to alleged Russian meddling in the 2016 presidential vote, with 13 Russians indicted Friday including a businessman close to President Vladimir Putin. The two powers are also clashing in Syria, where US strikes killed more than 200 Russian mercenaries who attacked American-backed forces Feb. 7, according to people familiar with the matter.

“In the US, the animus is so tremendous that punishing Russia is the thing to do,” Dmitri Trenin, head of the Carnegie Moscow Center, said in an interview. “I see the demise of the entire arms control regime.”

While the two countries have fulfilled the terms of another landmark nuclear weapons reduction treaty, New START, that accord expires in 2021 and there’s political pressure on President Donald J. Trump to let it expire because of the alleged Russian noncompliance with the INF treaty. Moscow in turn accuses Washington of itself breaking the intermediate-range pact. So far, no formal negotiations are taking place on either issue.

Javier Solana, a Spaniard who served as North Atlantic Treaty Organization (NATO) secretary-general, and Sigmar Gabriel, Germany’s acting foreign minister, expressed alarm.

“The most likely theater for nuclear conflicts would once again be here, in the center of Europe,” Mr. Gabriel told the conference.

Graham Allison, a Pentagon adviser under former US President Ronald Reagan when the two superpowers were negotiating arms control, said he’s skeptical momentum will be found to revive START and the INF.

Arms control was developed primarily to prevent the “insane” possibility that Russia and the US would annihilate each other due to miscalculation or accident, despite not even wanting to go to war, said Mr. Allison, now a professor of government at Harvard University. “Those risks remain today.”

That’s something the Russians can agree on.

According to Sergei Karaganov, a former Kremlin foreign policy adviser, the situation could get “much more dangerous” than during the Cuban missile crisis in 1962, when the world was on the brink of nuclear war.

‘NO LIMITS’
Under New START, which followed from the 1991 START treaty and was signed in 2010, the Russian and US arsenals are restricted to no more than 1,550 deployed strategic warheads on no more than 700 deployed strategic missiles and bombers.

If that long-range missile pact isn’t prolonged and the INF collapses, “you have a situation where there are no limits on Russian and American nuclear forces,” said Steven Pifer, a former top State Department official and arms control expert.

In addition, Russia and the US would stop exchanging data on each other’s nuclear arsenals and permitting regular inspections. “It would be less predictable, less secure, less stable,” Mr. Pifer said.

Russia would respond to any US move to station land-based intermediate-range missiles in Europe by deploying similar missiles to target “all the bases where these weapons will be,” said Igor Korotchenko, director of the Center for Analysis of World Arms Trade in Moscow.

“And the US can’t stay safe over the ocean — we’ll create the same risk for the US as they do for us in Europe,” he said.

Sam Nunn, a former US senator and a prominent non-proliferation campaigner, says he’s increasingly concerned that “both countries can lose count of their strategic interests.’’

Some experts such as Thomas Graham, ex-White House adviser under George W. Bush, believe Russia and the US will blink when faced with the prospect of stepping into a void without the security of arms control.

Russia has proposed a 5-year extension to New START, to 2026, though it’s tying that to fixing complaints about the way the US has complied with the treaty, the Interfax news service reported Feb. 16.

“The chances are diminishing every day,’’ said Konstantin Kosachyov, head of the foreign affairs committee of the Russian upper house of parliament. — Bloomberg

US’ Mattis vows investigation into Syria attack involving Russians

WASHINGTON — US Defense Secretary Jim Mattis on Saturday vowed to investigate an attack involving Russian citizens on American-allied forces in Syria but stopped short of accusing Moscow of orchestrating the assault.

Russia has acknowledged that five of its citizens were killed in a US-led coalition bombing in the eastern Deir Ezzor province after they were part of a group of pro-regime combatants which led an attack on positions held by the Syrian Democratic Forces.

“I understand that the Russian government now is saying that some of their not-military forces, contractors, were involved in that still unexplained attack,” Mr. Mattis said while flying back to Washington after a week-long tour of Europe, adding that Russian officers the US coordinated with were “apparently” unaware.

“But they took directions from someone. Was it local directions? Was it from external sources? Don’t ask me, I don’t know. But I doubt that 250 to 300 people, all just excited on their individual self, suddenly crossed the river in enemy territory, started shelling a location and maneuvering tanks against it.

“So, whatever happened, we’ll try to figure it out. We’ll work with obviously anyone who can answer that question.”

At the time of the attack on Feb. 7, the Russian defense ministry insisted it had no servicemen in the eastern province of Syria. However, many Russian citizens are fighting in Syria as mercenaries working for a private military company called Wagner according to numerous reports. Mercenaries not directly affiliated with the Russian military may be convenient for Moscow’s interests in Syria while assuring deniability of government involvement. — AFP

Thirteen killed in Mexican quake zone helicopter crash; minister unharmed

SANTIAGO JAMILTEPEC, MEXICO — Thirteen people were killed in southern Mexico when a minister’s helicopter crash-landed on its way to the epicenter of a powerful earthquake that rattled the region, officials said Saturday.

The 7.2 magnitude quake caused only material damage when it struck late Friday, but it triggered a tragedy in the town of Santiago Jamiltepec in Oaxaca state, where the chopper landed on its side, crushing a van.

Five women, four men, and three children were killed on the spot, while another person died in hospital, the Oaxaca prosecutor’s office said.

On board the UH-60 Black Hawk military helicopter were Interior Minister Alfonso Navarrete and Oaxaca state Governor Alejandro Murat, who were unharmed.

Dozens of people turned out Saturday to pay their respects to the dead, carrying candles and white flowers, as trumpets and saxophones played in tribute.

Maria Margarita Sanchez lost her son, Lorenzo Zarate, in the accident.

“I can’t describe my sadness,” the 63-year-old told AFP, covering her face with a scarf.

Mr. Navarrete told the Televisa TV network that the helicopter pilot lost control of the aircraft just as it was coming in to land.

A local resident who declined to give his name said many locals had been planning to spend the night outside — at the site where the chopper crashed — for fear of being trapped in their homes in case of aftershocks.

The officials had been heading to survey damage near the epicenter of the quake, located 37 kilometers (22 miles) from the southwestern town of Pinotepa de Don Luis, according to the US Geological Survey.

The earthquake damaged about 50 homes in Santiago Jamiltepec, as well as the town hall and church, but no one was killed, the interior ministry said.

Oaxaca state authorities opened shelters for those affected, and nearly 6,000 soldiers and federal police were deployed to help with the emergency response.

The earthquake came less than six months after two quakes killed hundreds of people in the country.

On Sept. 7, an 8.2-magnitude earthquake shook the nation and killed 96 people, mostly in the states of Oaxaca and Chiapas.

Then on Sept. 19 — the 32nd anniversary of a 1985 quake that killed 10,000 — a 7.1-magnitude quake hit the country, leaving 369 people dead.

Friday’s quake triggered Mexico City’s alarm system and caused buildings to sway in the capital. It was also felt in the states of Guerrero, Puebla and Michoacan.

Panicked residents flooded the streets.

“To be honest, we’re all pretty upset. We start crying whenever the (earthquake) alarm goes off,” 38-year-old publicist Kevin Valladolid told AFP through tears after fleeing his building in La Roma, in central Mexico City.

“We’re stressed out, we have flashbacks. So we run out into the street. It’s all we can do.”

Patients from a nearby hospital were forced outside, some in wheelchairs or carting their IV lines. Similar scenes played out in Veracruz.

Standing in the middle of the street, her eyes glued to her fifth-floor apartment, Graciela Escalante, 72, could hardly speak.

“It was terribly strong. We barely managed to get down the stairs. It was the longest staircase in the world,” she told AFP.

“We thought everything was going to collapse again.”

Officials in affected states said they were inspecting buildings damaged by last year’s quakes, which are especially vulnerable to collapse.

“Obviously people are afraid,” said the emergency response chief for the city of Puebla, Gustavo Ariza.

Mexico sits at a spot where five tectonic plates come together, making it particularly vulnerable to earthquakes. — AFP

Inflation has become a bogeyman

The recent news that the inflation rate increased from 2.7% in January 2017 to 3.95% in January 2018 (year over year or YOY) raised alarm bells.

About a year ago, I wrote a similar column on inflation titled “Is current inflation worrisome?” (13 February 2017, BusinessWorld). My answer was no.

Let me quote that article:

“We must resist the bias for or obsession with so-called “low-inflation” at any cost. Basic macroeconomics informs us that in the short run, a trade-off between inflation, on the one hand, and output and jobs, on the other hand, does happen.

“In the current context, consumer spending is heavy, which creates inflationary pressure. Production, however, is being constrained by bottlenecks in infrastructure and logistics. Thus, government needs to ramp up infrastructure spending, in which the resources will be generated from tax reform.

“The country has yet to reach its production potential. And the economy is far from overheating. In this case, a reasonable higher inflation rate can be accommodated to accelerate growth.”

My answer remains the same for the current situation: Inflation is not the main problem. And some people are using inflation as a bogeyman.

A year ago when I wrote the said column, the first package of the comprehensive tax reform was in the early stage of the legislative process. Now, the first package has become law. We have in previous articles analyzed the first package, concluding that on balance, it is a good law. It generates new revenue of PhP90 billion, in spite of significantly lowering the individual income tax rate. It corrects basic weakness in the tax structure such as lifting exemptions on the value-added tax (VAT) to make it efficient and adjusting excise taxes with fixed rates to inflation.

Nevertheless, TRAIN contains weaknesses, particularly in protecting vested interests with regard to a number of VAT items and the excise taxes. But the process has not ended, and the opportunity remains to pursue the reforms as part of package 2.

It goes without saying that the tax reform has raised consumption taxes and thus has increased prices. One question is whether inflation will rise steeply. The doomsayers make such a claim.

The first-round effect on prices can now be seen. The inflation rate in January 2018 is well within the target of the Bangko Sentral ng Pilipinas (BSP). The target’s upper bound is four percent.

Further, the increase in the inflation rate cannot be solely attributed to the tax reform (also known as TRAIN). Other factors like the rise in the world’s oil prices and bad weather contributed to the higher inflation rate.

It is interesting, for example, that tobacco among the different items measured in the consumer price index had the biggest price increase, equivalent to 17.41% (YOY). The increase in the tobacco tax rate for the first half of 2018 is equivalent to 8.33%. In other words, the jump in tobacco prices is explained by other factors as well, like the tobacco industry’s strategy of increasing non-tax prices. The increase in tobacco prices is still welcome, if the goal is to reduce smoking and promote health.

A food item whose price increased sharply was fish, with a rate of 11.97% (YOY). The main explanation is the stormy weather in the Visayas, leading to a significant drop in catch and hence much higher prices of fish.

The Department of Finance (DoF) and the BSP maintain that the inflation rate for one year that can be specifically attributed to TRAIN will be between 0.5 and 0.7 percentage point.

The DoF says that the four percent inflation rate is moderate. Moderate inflation does not harm growth; in fact, it accompanies growth. Higher consumer and government spending exerts upward pressure on inflation. Like it or not, inflation will increase as incomes and spending increase.

On the other hand, a very low inflation rate suggests a growth slowdown, and hence a decline, too, in jobs and incomes.

Still, I disagree with DoF in describing current inflation as “moderate.” It is low! To put things in perspective, again something that I wrote in “Is current inflation worrisome?,” economists of the first caliber, namely Michael Bruno and William Easterly and Rudiger Dornbusch and Stanley Fischer define moderate inflation as one with a lower bound of 15-20%.

Nowadays, inflation globally is tame. An inflation rate that is far from double-digit is low. Even if we assume that the inflation rate somewhat breaches the BSP target of containing inflation this year at four percent, we need not worry. We are far from having runaway inflation.

The BSP itself has expressed confidence in the current situation. It will not move to drastically check inflation; it will not take monetary policy action that will dissipate the growth momentum. In fact, the BSP just recently reduced the reserve requirement by 100 basis points, from 20% to 19%. If the BSP were too worried over inflation, it would not have reduced the reserve requirement at all.

Such move shows a confident and sophisticated BSP. It has signaled its policy preference for growth and jobs, even if it allows a little more inflation.

Beware of making inflation the bogeyman. We have more serious problems that challenge the economy. Look elsewhere. For instance, the infrastructure bottlenecks and the political uncertainty demand our attention.

 

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

Nation at a Glance — (02/19/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Digitalization of government

(First of two parts)

In almost every industry, “digital” has become the latest buzzword. The scope of digital possibilities is being explored across every business sector, from financial services, health care, to manufacturing, and many others. Given the widespread adoption of digital in business, it would be reasonable to consider the significant benefits that digital can bring to government services and its impact on its constituents.

For some reason, going digital has been on the back burner of government priorities, particularly in developing countries. In fact, few governments in developed and developing countries have attempted to adopt a digital approach in servicing their respective citizens and stakeholders, despite the obvious benefits. One notable example where digital is enhancing government services is in India, which has a national digital identification (ID) called Aadhaar.

The ID system was established for all its residents to promote inclusiveness, and which can be used as an electronic Know-Your-Customer (eKYC) tool to acquire financial products, telecommunication plans, and avail government services. The eKYC cuts significant processing times for the benefit of all parties.  While significant investments are needed for governments to digitize some, if not most, of their citizen-servicing mechanisms, the potential benefits that can be reaped cannot be underestimated.

EFFICIENCY AND COST-SAVING

Digitalization typically results in better efficiency. Various institutions have different drivers for digitalization, such as accessibility, cost-cutting, tracking, or even simply for the sake of increasing digital adoption itself. All these will — to a certain extent — lead to efficiency. In the most basic sense, a government agency that wants to go paperless (by transferring all its printed materials into the cloud) will be able to save and share space with other government agencies, as well as reduce its carbon footprint and traffic (e.g. delivery and disposal of supplies). In addition, government officers can save time when looking for specific documents due to digital indexing, which can further enhance productivity. Estonia, for example, claims to have saved 800 years of working time per year as a result of its digital campaign.

Improved social services
Digitalization can potentially improve the citizenry’s quality of life. An example would be renewing one’s driver’s license which could involve traveling to the national transportation agency, filling out forms, and waiting in long queues. The entire process can take hours instead of just minutes if the government transportation agency were to embrace a digital approach. Many processes can be accomplished online.

Promote transparency
Given how most governments are promoting honesty and transparency programs, digitizing transactions can help provide better visibility and clarity. Corruption can occur during cash transactions between citizens and government agencies. Making transactions digital will not only help state auditors monitor cash flow but will also encourage citizens and government agencies to uphold ethical practices. With digital platforms, every transaction can be effectively tracked and be monitored, while at the same time, reducing bureaucracy and corruption.

TECHNOLOGY APPLICATIONS IN DIGITAL GOVERNMENT

Big data and analytics
The main benefit of data analytics in government is to harness the enormous amount of data available, which is often underutilized. By leveraging data analytics, government agencies can speed up their decision making supported by specific data and information.

For example, one application would be to determine peak hours on certain roads to better address traffic management. In Singapore, the use of analytics during peak hours helped successfully implement the Electronic Road Pricing (ERP) program. Singapore’s government claims to have decreased the number of vehicles on the affected roads by 35,000 vehicles and traffic by 13% during peak hours. Additionally, the Singapore government was able to use the proceeds from ERP to improve public transportation and/or subsidize fares to encourage public transportation usage. Indonesia has conducted trials for the similar implementation of ERP in one of its business districts in Jakarta.

Another sample of big data application is establishing industry-specific tax benchmarking systems. The Australian Taxation Office was able to gather about a million tax returns of small and medium-sized enterprises (SME) and used predictive analytics to establish industry-specific financial benchmarks in order to spot any possible discrepancies in the income reported by the firms. The use of predictive analytics in this example is useful for any evaluation-related processes in government agencies that are prone to undervaluation practices.

Robotics Process Automation and Artificial Intelligence
Robotics Process Automation (RPA), which refers not to a physical robot, but to a type of software, is a rules-based process tool used to eliminate swivel chair processes which can cut a significant amount of time compared to regular individuals doing the job. A ‘bot’ may work with greater accuracy and can work 24/7. It can create a document, read instructions from e-mail, transfer a document from a file type to another, input text  into specified fields, and other manual, repetitive, and error-prone tasks.

RPA can be implemented in the field of new application processing and customer onboarding. For example, citizens who want to apply for government services for their PhilHealth, SSS, TIN, and Pag-IBIG accounts, need not to go to their sites to enroll. The bot will simply extract information from data submitted online, store them in the defined database, and process them for delivery of their respective IDs (detecting discrepancies, generating unique numbers, printing IDs, and initiating courier delivery order) with little to zero human intervention.

On the other hand, the purpose of artificial intelligence (AI) is to create an intelligent machine that can mimic how humans think. AI has opened the world to new possibilities, and continues to advance and gain popularity. AI may greatly assist governments in fraud detection, services delivery, and decision making among others. AI, combined with RPA, is a powerful tool called Intelligent Automation which improves the capability of the rules-based ‘bots’ to be able to create their own rules, eventually existing without the need of humans to maintain themselves.

One possible application is also to establish intelligent chatbots in various government agencies, which are capable of answering basic queries and performing basic tasks to improve service delivery. This can allow government front liners to focus on doing more complex and value-added tasks, thereby improving workforce satisfaction and resulting in better services. An intelligent bot can be tasked to answer inquiries on tax brackets and rates, schedule appointments, perform rough valuation tariff estimates on customs goods, and engage the citizens by conducting digital surveys.

As an example, the city of Los Angeles, in partnership with Microsoft, introduced a chatbot named CHIP (City Hall Internet Personality) that is able to answer more than 700 queries at the same time. In addition, it has reduced the incoming number of e-mails by 50%, so employees can focus on more complex issues instead of taking the time to respond to each e-mail.

Similarly, the State Government of Mississippi established a chatbot named “Missi” to handle inquiries about hunting and driver’s licenses, and taxes; reducing citizens’ waiting time for queries from an average of 45 minutes into less than 10 minutes.

In the second part of this article, we will discuss more areas where digitalization can create significant impact on government services.  We will also look at the current level of digitalization in Philippine government operations.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

Christian G. Lauron is a Partner and Irsyad Stamboel is an Associate of SGV & Co.