The Philippines: The Quest for Genuine e-Development

Abstract

After more than a hundred years of independence and its outstanding growth performance during the 1950s and the 1960s, the Philippines today has been regarded as a perennial development laggard—unable to achieve sustained economic growth thus earning the label of an “antidevelopment state.” The country faces numerous development challenges. In this chapter we analyze recent and ongoing efforts to break the antidevelopment cycle by harnessing information and communication technologies (ICT). We review selected ongoing Philippine ICT for development (ICT4D) initiatives and the characteristics of these initiatives. We classify these initiatives as “traditional”—disjointed, unsustainable, and short-term oriented.

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Introduction

After more than a hundred years of independence and its outstanding growth performance during the 1950s and the 1960s, the Philippines today has been regarded as a perennial development laggard—unable to achieve sustained economic growth thus earning the label of an “antidevelopment state.” The country faces numerous development challenges. In this chapter we analyze recent and ongoing efforts to break the antidevelopment cycle by harnessing information and communication technologies (ICT). We review selected ongoing Philippine ICT for development (ICT4D) initiatives and the characteristics of these initiatives. We classify these initiatives as “traditional”—disjointed, unsustainable, and short-term oriented.

Overall, the chapter provides an overview of the socioeconomic development thrust from 1986 to 2010 and the evolving role of ICT in the Philippine’s successive development strategies. It analyzes the Philippine national ICT strategies, e-policies, ICT institutions, and selected public sector led-ICT4D initiatives and the role of the private sector in supporting the Philippine ICT industries.

We present the Philippines as being at a critical point in its history, facing the choice of either continuing “traditional” approaches or adopting a transformational approach for ICT’s role in national development. Although the ongoing ICT revolution holds much promise, realizing its fruits remains a daunting challenge for the Philippines. Citing the need to break the antidevelopment cycle, we reiterate the need for the Philippines to adopt an e-transformation perspective and consider ICT’s transformational role. We believe that this perspective can help policy makers chart a path towards genuine e-development.

History of Development and ICT Strategies (1986–2010)

Why did the Philippines fail to achieve sustained economic growth? The following observations provide snapshots of how this failure manifested in Philippine society, thus earning the country the reputation of being a development laggard (Lim 2010).

On the economic front, GNP per capita has lingered at $1,000 for the past 20 years. In 2010, the Philippine Central Bank estimated the country’s external debt at US $53.1 billion (equivalent to 33.9% of GDP) while public sector debt amounted to US $31.3 billion. With debt servicing amounting to 20% of the approved 2010 national budget (Reuters 2010), and with weak tax collection in recent years, government’s ability to make strategic investments for its people and economy is severely restricted.

On the Millennium Development Goals, the Philippine is off track by 40% of the 21 indicators including that of poverty, hunger, infant mortality, and maternal health (Paredes 2010). Roughly 30% of the population is living below the $1.35/day Asian poverty line. It has been argued that since the Philippines is espousing “pro-rich” growth strategies, prevailing poverty will continue (Newsbreak 2008).

Aside from economic mismanagement, historians and political analysts contend that the State and its resources were often used to further personal or class interest. This dysfunctional nature of the Philippine system is attributed to a complex interplay of internal and external forces, structural and other factors (Bello et al. 2004). This interplay results in a boom-bust cycle or an antidevelopment cycle (Quimpo and Kasuya 2010).

Although most of the antidevelopment characteristics present in the Philippines developed through decades of mismanagement, much has been done to break this vicious cycle, demonstrating the Filipino aspiration to lift the country from the shackles of poverty. The restoration of democracy through the 1986 People Power Revolt and growth-oriented economic policies have enabled the rebuilding of democratic institutions and allowed for a modest expansion of the economy. Recognizing the need for sustained economic growth and the diffusion of growth benefits, the medium-term development plans of the Philippines reiterated the need to harness the potentials of a globalized economy through internal and external opportunities. With the new democratic space came the need for economic expansion by opening the economy to new players, tapping foreign investments, encouraging public–private partnerships, and diffusing the benefits of a liberalized economy through relevant social programs.

The first Aquino administration (1986–1992) focused on the restoration of democratic institutions, emphasizing rural poverty alleviation and addressing the government’s growing public debt. Central to this strategy was the enactment into law of the Comprehensive Agrarian Reform Law in 1988. Although severely hampered by lack of funds and intervention by landed elites, the ensuing Comprehensive Agrarian Reform Program (CARP) proved to be a catalyst for major reform efforts geared toward increasing rural productivity. The Local Government Code (LGC) of 1991 espoused the concept of decentralization by devolving to local government units (LGUs) frontline services such as health, education, and social services.

During the Ramos administration (1992–1998) the main reforms were clearly focused on increasing Philippine competitiveness in the global economy. Heavy investments in infrastructure and regulatory reforms in the service industry, such as the ­telecommunications sector, were put in place with the intention of pump-priming the economy and increasing its global competitiveness. On the issue of poverty alleviation, the law on social reform and poverty alleviation called for the identification of minimum basic needs and adoption of a participatory approach in dealing with ­poverty. Empowering local governments through decentralization and devolution of resources was also part of the reform-oriented thrust of the Ramos administration (Thompson and Macaranas 2006).

The short-lived Estrada administration (1998–2001) recognized the need for a more broad-based approach to address rural poverty. Coining its strategy as “Linggap para sa Mahirap” (Caring for the Poor), the program’s main intent was to identify the 100 poorest families in each province and provide a package of assistance including livelihood and food staples.

The Arroyo administration (2001–2010) continued the push for global competitiveness by increasing investments in infrastructure, small- and medium-scale enterprise (SME) development, and by tapping the potential of global outsourcing. Known locally as the “Beat the Odds” program, the Arroyo administration also focused on poverty alleviation through rural development via the “Kapit-Bisig Laban sa Kahirapan” (KALAHI) program. The KALAHI program addressed the challenges of diffusing the benefits of economic growth by providing human development services, employment creation, and livelihood opportunities.

Overall, the effects of most of these rural poverty alleviation programs were marginal, with most suffering from budgetary constraints and sustainability issues (Abinales and Amoroso 2005). Table 5.1 provides a snapshot of the development agenda espoused by the various administrations from 1986 to 2010, and the accompanying national ICT strategies and institutions.

Table 5.1 Summary of Philippine development initiatives (1986–2010)

Having garnered a commendable mandate during the May 2010 elections, the new Aquino administration, with its promise of bureaucratic reforms, good governance, and sustained economic growth, is expected to continue the economic policies of its predecessor. With a respectable GDP growth of 6.8% in 2010, hopes are high that the new administration will usher a new era of genuine economic growth and improved public perception of government.

Role of ICT in National Development

As early as the 1990s, Philippine development plans reflected a strong recognition of ICT as an enabler of productivity and economic growth. This recognition was further enhanced through the supplemental plans as reflected in the National IT Agenda 21 (1997), the e-Philippines Strategy (2000) and the Strategic ICT Roadmap (2006), and in efforts to enhance ICT institutions. From merely a computer center in the late 1970s, the National IT and E-Commerce Promotion councils were created in 1994 and 1998, respectively. These two councils were later merged in 2000 into the IT and E-Commerce Council (ITECC). Responding to the global trend toward convergence of telecommunications and information technology, the Philippines recognized the need to give more prominence and authority to the ITECC by creating a presidential commission. By 2001, the Commission on Information and Communications Technology (CICT) replaced the ITECC.

Plans were also accompanied by laws and policies to promote the use of ICT to enable agriculture and fisheries modernization; promote good governance, through the LGC, the automated elections and the poverty alleviation laws; and enhance human security, through the human security and antipornography laws.

Overview of Current ICT4D Initiatives

This section looks at how ICT is being used to achieve sustained economic growth. It presents a snapshot of digital Filipinos and their ICT-enabled society. Then it provides an overview of the various ICT-related government-led responses to break the antidevelopment cycle by discussing the following: (a) National ICT strategies, (b) ICT institutions, (c) Philippine e-policies, and (d) ICT4D programs. Finally, it reviews encouraging developments in the private sector-led cyber-services, telecommunications, and semiconductor manufacturing industries.

Profile of the Digital Filipino

There were 2.5 million subscribers for the 488 National Telecommunications Commission (NTC)-registered Internet service providers (ISP) in 2009, accounting for only 3% for the total population (De la Pena et al. 2009). However, Yahoo estimates that 16% of the Philippine population is browsing and using the Internet. This has been facilitated by a remarkable rise in the number of Internet cafes, community e-Centers (CeCs) and other public access points where users who cannot afford the subscription fees of the ISPs in the country can still access the Internet.

In addition, Fig. 5.1 shows that a majority of Filipino internauts rely on Internet cafes to connect to the Internet. However, from 2009 to 2010 there is a slight decrease in the percentage of Filipino internauts who go to Internet cafes for Internet connectivity, as well as those who go to school and work to go online. These declines may be compensated by the increase of Internet access at home by 4%. Furthermore, there is a noticeable rise in the percentage of Filipinos who use mobile devices to connect to the Internet, from 0 to 5%. Those who use mobile devices for Internet access have sending/reading instant messages and e-mails as their top online activities (Ibid).

Fig. 5.1

Internet access locations (Yahoo-Nielsen 2010)

Another feature of the Philippine digital society is the widespread utilization of mobile phones. There are currently 90 million mobile subscribers, with the mobile penetration rate at 96% for the total population (Mendes et al. 2007). This consequently results in heavy usage of short messaging service (SMS) by Filipinos, which led to the Philippines being dubbed the “texting capital” of the world. Aside from exchanging information, Filipinos use SMS as a means of mobile commerce through the passing of usage credits among the subscribers and consumption promotions, such as “text-to-win” promotions, in exchange for monetary rewards (Ibid).

Although the use and development of SMS applications seem to be reaching its saturation point, the utilization of electronic commerce by Filipino consumers seems to be growing at a slower pace. The Philippines is considered one of the slowest e-commerce adopters with an estimated 55% of its online population never making a purchase over the Internet and 59% of local online shoppers not making any purchase in the last 3 months in 2008 (Nielsen Global Online Shopping Report 2008).

ICT-Related Government-Led Initiatives

The following represents government-led initiatives mainly pertaining to the utilization of ICT for attaining national development goals.

National ICT Strategies

Table 5.2 provides a summary of the various national ICT strategies, visions, and action agendas adopted by the Philippines from 1997 to 2006.

Table 5.2 Summary of national ICT strategies

At present, there are ongoing efforts to revise the 2006 Strategic ICT Roadmap. An overview of the Philippine Digital Strategy (PDS) (2011–2016) is discussed as follows.

National ICT Plan for the 21st Century (1997) (National Information Technology Council 1997)

The National IT Plan for the 21st Century (IT21), prepared in 1997 under the Ramos administration, envisioned a Philippines that is a knowledge-based economy. Putting emphasis on the need to focus on IT being an enabler for productivity and innovation, IT21 sought to push the goals of the 1992–1998 medium-term development plan, which was coined as Philippines 2000. This development agenda outlined the steps to prepare and equip the Philippines to attain a “New Industrialized Country (NIC)” status by early 2000. Aside from access to ICT and the upgrading of skills consistent with a knowledge-based economy, it also recognized the need to develop a market-based approach to the development of the local telecommunications industry. This required the enactment of laws and policies to open the local market to new players.

IT21 was based on the vision of transforming the Philippines as Asia’s Knowledge Center. The National Information Technology Council (NITC) was established to handle the production of the agenda document. It was drafted in constant consultation with international and national agencies such as the United Nations Industrial Development Program (UNIDO), the Legislative and Executive Development Council (LEDAC), the Cabinet, and the National Economic and Development Authority (NEDA).

IT21 focused on the action agenda for the use of IT to enable the Philippines to become the leading country in IT education and professional training, and harness the use of information and knowledge for application in business and the arts. Telecommunications technology was regarded in the plan as the underlying infrastructure to support national information sharing and accessibility in the industry, government, and education sectors. The plan envisioned the use of IT applications in governance specifically for information dissemination, to provide citizens access to government services, and for coordination among national and local government units. The IT21 plan proposed how ICT would be integrated in the educational sector through the growth of computer schools and training centers. Additionally, proposals for significant investments in local research and development were cited in IT21. Investments in R&D were seen as an imperative in order to ensure high-quality IT products and services that would be competitive in the global market. High-growth sectors such as telecommunications, software development, and e-commerce were identified as targets for R&D investments.

Support structures were put in place to enable the implementation and sustainability of the programs under the action agenda. In addition to laying out network and telecommunication infrastructures, the development of techno-parks and cyber-cities were coordinated for investments. Project investments were intended to be made possible by also establishing partnerships with the industry and private sectors. Policies and procedures were to be streamlined to promote a more welcoming business environment for both local and foreign investors.

Furthermore, IT21 outlined a legislative agenda and implementation program. The proposed legislative agenda focused on foreign ownership and security of information, while the program centered on increasing Internet connectivity, modernization of government, establishment of ICT flagship projects, restructuring of IT organizations, and technological reform in education and research.

The e-Philippines Strategy (2000) (United Nations Public Administration Network 2000)

The e-Philippines Strategy (e-PS) under the Estrada administration (1998–2001) was seen as a continuation of the IT21, but focused on improving the quality of living through the use of ICT. Aside from its use in the sectors of education and government, ICT was regarded as a possible source of livelihood for Filipinos. The e-PS agenda generally focused on business development, legal and regulatory environment, information infrastructure, and human resource development.

While still considering hardware and electronics manufacturing as a profitable industry, the e-PS shifted emphasis to IT foreign investments and the provision of an affordable manpower pool for IT services, particularly outsourcing. Moreover, the construction of high-rise buildings, instead of “parks” and “cities,” was approved to serve as additional support structures for IT-enabled services.

Meanwhile, the development areas in the e-PS were categorized into four sub-plans as shown in Fig. 5.2. Each of the sub-plans/programs had corresponding projects and action agenda intended to be accomplished by 2010. Programs on e-government are centered on the interconnectivity of government agencies in order to provide accessible information and integrated services. Initially, in line with this, the e-government portal and other ICT systems were developed. e-Government plans also proposed establishing institutions, specifically a Department of Information and Communications Technology (DICT), to oversee technology development in the country. Under e-commerce plans, various communication channels were to be converged in order to provide more affordable access to the public. An e-commerce sub-plan and program were established to address the ICT-related needs of small, micro, and medium enterprises (SMMEs). Consequently, laws for web presence and consumer protection were created. Likewise, the e-community area identified projects for improving literacy, health services, and livelihood in various municipalities. Respectively, there were projects on the establishment of multipurpose telecenters; e-health portal for Municipal Health Office (MHO) services; and AgriNet for information on crop marketability, agricultural geography, and weather. Additionally, e-tourism was promoted to increase economic growth and improve this source of revenue in rural areas. In addition, the e-PS included e-knowledge which gave priority to the enhancement of ICT-related knowledge and skills in both basic education and professional training.

Fig. 5.2

e-Philippines development areas. Source: United Nations Public Administration Network (2000)

Finally, the e-PS stressed that the President of the Philippines would direct ICT development in the country. Thus, in 2000, the chairmanship of the ITECC was transferred to the President of the Republic of the Philippines as signed in Executive Order No. 18—an amendment to Executive Order 264, which merged the previous National Information Technology Council (NITC) and the Electronic Commerce Promotion Council (ECPC) to form ITECC.

Strategic ICT Roadmap (2006) (Philippine Strategic ICT Roadmap 2006)

The Philippine Strategic ICT Roadmap identified flagship projects and key strategic initiatives of the Arroyo administration (2001–2010). The roadmap and associated principles asserted the following:

• ICT plays a critical role in economic growth and development

• ICT is a tool for empowerment of individuals and good governance

• The emergence of the Philippine Information Society will give way to the rise of Sovereign Individuals

• To achieve the full vision of an information society, it is necessary to adopt a multi-stakeholder approach through creative institutional arrangements and partnerships with the private sector and civil society

• There is a need to develop human capital to ensure effective utilization of ICT

• Emphasis should be placed on the creation of local digital content and the need to ensure access and its availability

ICT diffusion projects carried out under the roadmap focused on empowering local communities. Local governments were prioritized through the e-LGU project, which provided LGUs with a Real Property Tax System and Business Registration and Licensing System. Community e-Centers (CeC) were also established, in partnership with the private sector, to provide municipalities with access to information via the Internet. These projects served as a conduit for efficient delivery of government services, and as a venue to promote participation by underserved communities (Philippine CeC Roadmap 2007).

The need for upgrading the ICT infrastructure was recognized by launching the Philippine Cyber Corridor (PCC) in 2005. Under a private-public partnership (PPP) arrangement, the project intended to provide a nationwide network-telecommunications backbone for companies primarily engaged in providing cyber-services in the areas of animation, business process outsourcing (BPO), medical transcription, and software development.

Human capital development was also considered an important pillar of the roadmap. Through the National ICT Competency Standards (NICS), the roadmap initially targeted public school teachers in the basic and primary education levels. The roadmap also outlined initiatives to promote cooperation with other government agencies especially the Department of Education (DepEd), and the Technical Education and Skill Development Authority (TESDA) for vocational training.

Pushing for a new National ICT Strategy (2011–2015)

In the third quarter of 2010, the CICT initiated a review of the 2006 Strategic ICT Roadmap. It is expected that by the second half of 2011, the revised ICT roadmap, renamed as the PDS, will be ready for approval and implementation by the Philippine government. Initially, the PDS is focusing on four ICT subthemes: Human capital development, e-government, infrastructure, and cyber-services. The PDS is expected to chart ICT’s development in the Philippines up to 2016. It adheres to the overall theme of digital inclusion right down to the village (barangay) level. As of May 2011, the PDS is undergoing consultations with the various sectors of society, including business, civil society, academe, and government.

ICT Institutions

Along with strategic and implementation targets, the national ICT strategies clearly envisioned the development of public sector ICT institutions. With the rapid developments happening within the domain of the information/knowledge society come the changes in the Philippines’ perspective in developing its ICT institutions.

Commission on Information and Communications Technology

Recognizing the need to harness ICT and coordinate private and public sector initiatives, the government created a National IT Council (1994) and an E-Commerce Promotion Council (1998). The global trend toward convergence of IT and telecommunications systems presented a new challenge for the Philippines. As a result, a merger of the councils took place in 2000 and the CICT was created in 2001. Consequently, the National Computer Center (NCC) and the Telecommunications Office were placed under the administrative supervision of CICT.

CICT is now the primary government agency tasked to oversee planning, policy directions, program coordination, and implementation of ICT-related endeavors in the Philippines. Recognizing the need for leadership in pushing for an expanded role for ICT in the country’s development agenda, CICT was placed directly under the Office of the President, Republic of the Philippines. As the lead agency for ICT-related initiatives in the Philippines, the commission was mandated to push the e-Philippines strategy by providing ICT infrastructure and resources for nation-building and global competitiveness, promoting the use of ICTs in different sectors, creating a policy and legal environment to benefit various ICT stakeholders, guaranteeing connectivity and universal access to ICT and services, advocating ICT manpower development, and instituting a regulatory system for ICT user protection (Commission on Information and Communications Technology 2006a).

Within the CICT are subunits that are tasked to handle various projects as described in Fig. 5.3. These subunits are comprised of the E-Government Development Group (EGDG), Information Infrastructure Management Group (IIMG), Human Capital Development Group (HCDG), and Cyber-Services Group (CSG) (Ibid).

Fig. 5.3

Commission on Information and Communications Technology (CICT) subunits

Aside from the CICT, other government agencies are involved in ICT development, with their own project plans.

Department of Science and Technology (DOST)

The Philippine Council for Advanced Science and Technology Research and Development (PCASTRD) and the Advanced Science and Technology Institute (ASTI)—under the Department of Science and Technology (DOST)—are the main research entities addressing critical application areas of ICT and supporting ICT-based entrepreneurship (De la Pena et al. 2009). PCASTRD supports ICT research and development through the following (PCASTRD 2009):

• Funding of ICT R&D projects particularly along internet technologies and software engineering

• Granting of scholarships for graduate programs in ICT in PCASTRD-accredited universities

• Organizing and sponsoring information seminars, conferences, and workshops on ICT

With its mandate of “conducting scientific research and development in the advanced fields of ICT and microelectronics,” ASTI’s main research areas include advanced networking, wireless technologies, and network applications and software (ASTI Research and Development Programs 2011).

Department of Trade and Industry

Department of Trade and Industry’s (DTI’s) main role is to contribute to the country’s goal of achieving economic growth towards poverty reduction. The department’s mandate calls for the expansion of Philippine exports, increase in investments, and the development and promotion of the country’s micro, small, and medium enterprises (Department of Trade and Industry 2008a). The department’s efforts to promote entrepreneurship and export development endeavor to provide an ICT-enabled environment to promote local products and services. DTI is also the agency tasked to manage ICT parks and the Philippine Export Development Council, which identifies ICT services as one of its priority exports (De la Pena et al. 2009).

With the Philippines being recognized as a leading provider of cyber-services and semiconductor manufacturing, DTI is actively partnering with private sector organizations such as the Business Processing Association of the Philippines, (the Philippine Software Industry Association), the Animation Council of the Philippines, Inc., and Semiconductor and Electronics Industries in the Philippines, Inc. (Department of Trade and Industry 2008b).

National Telecommunications Commission

As an attached agency of the Department of Transportation and Communications (DOTC), the NTC is a regulatory agency providing an environment that ensures reliable, affordable, and viable infrastructure and ICT services accessible to all (National Telecommunications Commission 2005).

In general, the creation of national ICT strategies throughout the years has been characterized as a multi-sectoral/multi-stakeholder effort. Government was cognizant of the crucial role of the private sector and civil society in the crafting of the national ICT strategies.

In conclusion, the Philippine has created a variety of institutions to lead the development and implementation of national ICT polices and strategies. However, no formal assessment has been made of ICT leadership institutions or their capacities, nor their interactions, among themselves and with other political and economic institutions. Lacking such assessments, we can only draw broad characterizations, without pinpointing the underlying factors contributing to current performance. It appears that the sum is less than the parts. Roles, responsibilities, and programs tend to overlap, and are not strategically and synergistically managed. Accountability for performance remains weak. Moreover these institutions suffer from common civil service constraints that hinder their ability to compete with the private sector in this dynamic sector and to attract highly skilled staff.

Philippine e-Policies

More systematic and frequent assessments of ICT institutions in the Philippines are needed in view of the diverse and frequent institutional innovations pursued, and of the significant gap between stated aspirations and results on the ground. There are also some successes, notably in public–private partnerships and programs to promote the ICT industry, and formal assessments can improve these programs and draw lessons more broadly for e-transformation in the Philippines and other developing countries.

National ICT strategies have long recognized the role of enabling policies to support and sustain the momentum of ICT4D initiatives. Table 5.3 provides a snapshot of some of the prominent laws that were legislated to support the implementation of the ICT development agenda, and strategies include the Public Telecommunications Policy Act, the e-Commerce Act, and the Election Modernization Act.

Table 5.3 Enacted Philippine e-policies

The Public Telecommunications Policy Act of 1995 is seen as one of the landmark laws of the Ramos administration. It provided for liberalization of the telecommunications industry, thus breaking its decades-long monopoly. The enactment of the law cleared the way for the entry of new players in the industry, promoting competition and protection of consumer welfare.

The E-Commerce Act of 2000 aimed to accelerate the Philippines’ progress in the global business arena. It recognized electronic forms of transactions as valid and reliable. It provided for government offices to have Internet connectivity and for the general public to have universal web access (National Computer Center 2000). Furthermore, DTI was designated to supervise the development of electronic business transactions and was tasked to monitor business activities on the Internet, which covered emerging methods for commerce such as electronic retailing and online content licensing. Corresponding punishments and penalties were also set for computer-related crimes including hacking, cracking, piracy, and online defamation to protect companies and consumers alike.

The Election Modernization Act was enacted in January 2007. The law recognized the need to ensure accuracy, transparency, and security in the election process. Thus, statutes prescribing a random manual audit (RMA), presence of security standards in the ballot and in the counting machine, among others, were required as part of the safeguards. Finally, the law mandated COMELEC to conduct a nationwide information campaign to educate the population and further allay negative public perception about the automated election system (AES).

Recognizing the need for additional policies due to the evolving nature of the Philippine Information Society, the 2006 strategic ICT roadmap stated the importance of legal frameworks as the basis for plans and activities, created in coordination with essential stakeholders and the private sector, and well supported by the general public (Philippine Strategic ICT Roadmap 2006).

As part of the roadmap’s legislative agenda, proposals for the enactment into law of four bills, summarized in Table 5.4, were put forward to the Philippine Congress. As of May 2011 they are pending at various levels of the legislative process.

Table 5.4 Proposed e-policies (legislative bills)

Government-Led ICT for Development Initiatives

A 2005 inventory of ICT4D applications in the Philippines provided a snapshot of ICT4D projects (Table 5.5). These projects were planned and implemented by the government in partnership with the private sector, NGOs, and other government agencies. ICT applications included the use of websites, information systems, local area networks, and SMS technologies. A majority of the projects are under e-government and e-learning development initiatives.

Table 5.5 ICT4D projects in the Philippines

Projects under e-government initiatives were mostly geared toward information dissemination and the improvement of revenue collection for LGUs. Projects included geographic information systems (GIS) for revenue generation and emergency/disaster response. e-Learning projects aimed at distance learning, ICT skills development, and content development. Research and educational institutions and libraries were also networked to provide shared access to knowledge resources. Furthermore, e-learning programs afforded access to new technologies through the establishment of training centers and mobile classrooms (Tiglao and Alampay 2005).

ICT infrastructure projects were categorized under e-science, which involved the provision of telecenters, broadband access, database repositories, and open-source software and freeware. Other ICT applications have yet to be explored. The use of ICTs for livelihood and economic growth is progressing. e-Business applications are either company- or customer-specific, to improve customer service and reach broader markets. e-Agriculture projects cater to research and extension, thus providing farmers, fishermen, and other stakeholders with access to knowledge. e-Employment systems aim to provide work opportunities by integrating job-posting and matching facilities. e-Health projects provided information systems for the management of medical data including patient records, hospital supplies inventory, and even information on diseases and their corresponding treatments. As for e-environment, GIS were developed to map out information on Philippine topography and environmental conditions (Ibid).

In an effort to make government more accessible to its constituents, the Office of the President initiated the creation of the Official Gazette acts as temporary portal of the Philippine government (http://www.gov.ph). Aside from being an information dissemination platform for the Office of the President, the Official Gazette serves as a gateway to the various national government agencies through the departmental links provided. The other branches of government (legislative and the judiciary) can also be accessed through the gazette. The gazette also allows the downloading of official policies and laws as well as policy discussions on national issues and concerns.

Recognizing the power of online media, the Office of the President maintains a separate website (http://www.op.gov.ph) highlighting the various activities and programs of the current Aquino administration. Unlike the Official Gazette, the official website of the Philippine president exudes a more personal approach in communicating with the general public. Additionally, the Office of the President utilizes popular social networking sites (e.g., Facebook) to reach a wider audience.

Private Sector-Led ICT Industry Initiatives

The strategies and programs initiated by the government provided a positive impact on the growth of the private sector-led ICT industry in the Philippines. In fact, the steady growth of this industry coupled with remittances from overseas Filipino workers were seen as factors that partially shielded the Philippines from the full effects of the 2007 global economic crisis. Focusing on cyber-services, telecommunications, and semiconductor manufacturing, the private sector-led ICT industry played an important role in the increase of the GDP in recent years, thus becoming a significant contributor to national development.

Growth in the local cyber-services sector has mainly focused on software development, BPO, and contact centers. Table 5.6 presents a comparison of the 2005, 2006, and projected 2010 revenue figures generated by the cyber-services sector that show this sector’s strategic niche qualities. In fact by 2008, the BPO subsector revenues were pegged at US $6.8 billion, placing the Philippines as the second largest BPO industry in the world next to India. In fact, with US $5.7 billion projected revenue for 2010, local and international observers are projecting that the Philippines would be the global BPO industry leader in 5 years time (Esguerra and Balana 2010). The contact center subsector is still seen as the fastest growing segment in the local ICT industry with 112 contact centers nationwide. While medical transcription grew by 97% (De la Pena et al. 2009) by 2006, the animation subsector’s revenue amounted to US $54 million, which is equivalent to a 38% growth rate.

Table 5.6 Job generation and revenue growth in Philippine cyber-services

Prospects for growth are also evident in the Philippine telecommunication sector. By end of 2008, mobile penetration in the Philippines was 75% (International Telecommunications Union 2009) and by 2010, it was expected to be at 90–95% (for a population of 95 million Filipinos). With the expected maturity of the mobile phones, broadband Internet service is seen as the next battleground. Philippine telecom giants Smart Communications and Globe Telecoms estimate broadband users at around 2.3 million, with both companies recognizing the huge potential for growth in the service (Montecillo 2010).

With an estimated 2.5 million wire-line connections (only 10% of Philippine households), landline connections have continued to lag behind mobile ones. Substantial efforts are being made to close the gap. As an example, the major local player Digital Telecommunications Philippines (Digitel) is expanding its wireless digital landline, SunTel, to cover the central and southern Philippines. Digitel plans to utilize its existing 7,000 cell sites coupled with agreements for interconnection with Globe Telecoms (Abadilla, November 2010). Local telecommunication companies were pushing for the adoption of the new generation networks (NGN), with pilot testing of its capabilities being done in 2006.

Regarding ICT manufacturing, the Philippine semiconductor manufacturing sector has exhibited phenomenal growth for the last 10 years. According to the Semiconductor & Electronics Industries in the Philippines (SEIPI) that in 2010 alone, this ICT industry sector registered total of US $2.3 billion worth of investments. The same year also registered robust growth in the sector with an additional 25,000 jobs created, a 41% increase in exports, and with total investments increasing by a staggering 384% (SEIPI 2010). With the Philippine semiconductor sector supplies 10% of the world’s semiconductor manufacturing services, prospects for growth seem to be bright. As a matter of fact, SEIPI projects that by 2016 total investments in the sector will total to US $50 billion.

More Is Yet to Come?

Can the Philippines expect more growth to come from its ICT industry? Most likely. In 2010, the Philippine IT market growth was pegged at US $2.6 billion, as compared to US $2.4 billion in 2009. Multinational vendors are progressively expanding to reach markets in Cebu and Davao, mostly targeting manufacturing plants and SMEs as prospective clients. Aside from ICT products for the consumer market, vendors are also exploring cloud computing service opportunities in the Philippines, particularly for document management systems and web security. Furthermore, the country’s computer hardware expenditure is projected to reach US $1.7 billion and the software market US $284 million in 2010. This increase in the demand for hardware is driven by the growth in the BPO sector as well as the promulgation of government initiatives which require computer hardware resources (Companiesandmarkets.com 2010). Indeed, we can expect robust growth in the Philippine ICT industry in years to come.

In summary, government played a relatively successful role in supporting the rapidly growing private sector-led ICT industry particularly in telecommunications, cyber-services, and semiconductor manufacturing, even though it has yet to become an effective user of ICT for improving services for the poor and the economy at large. National ICT strategies have continued to evolve, initially focusing on opening the monopolized telecommunications industry, and the creation/diffusion of ICT-enabled services to develop a robust ICT market. Subsequent national ICT priorities have progressed toward improving the quality of life through the creation of a more digitally inclusive society and a reform-oriented use of ICT in governance. Enacted laws on automated elections, SMEs, poverty alleviation, agriculture, and fisheries modernization aimed to diffuse the benefits of ICT especially to marginalized groups and for political reform. As will be discussed later, progress on the latter priorities of diffusion and inclusion has been uneven and the results are mixed.

Finally, the phenomenal growth of the private sector-led ICT industry can be attributed to the enactment of laws and policies that opened the once monopolized Philippine telecommunications industry and liberalized entry of foreign investors particularly in the semiconductor manufacturing sector. Government’s resolve encouraged the entry of local and foreign players into the market. The introduction of new players and services will definitely lead to more growth opportunities for this industry. These are promising signs for the Philippines. Will the Philippines capture these opportunities and harness the full potential of ICT for sustainable national development?

Public Sector-Led ICT for Development Initiatives

This section highlights the actual, “on-the-ground nature” of public sector-led ICT4D initiatives. How do strategic plans and policies translate to actual on-the-ground implementation and results? This section discusses selected public sector-led initiatives of ICT4D which are crucial in understanding the potential and constraints to successful ICT4D. It provides an in-depth look at three public sector-led ICT4D areas, namely the e-LGU program (e-Government), ICT in Education (e-Learning), and the use of ICT in the electoral process (e-Governance).

e-Government Initiatives in Local Government Units

The passage of the LGC of 1991 aimed to reform the governance environment. It espoused a decentralization theme: decentralize power from national to local governments and diffuse resources to local authorities, recognizing that most problems are local and that local solutions are more appropriate. The enactment of the LGC increased the allocation of the national budget to local governments from 3 to 18%. A total of 70,000 government personnel previously assigned to national agencies were transferred to local authorities (Wescott 2005). Furthermore, the LGC mandates LGUs to include the use of information systems for services such as investments and job placement, tax and marketing, and public library maintenance (Lallana and Soriano 2008).

The LGC also envisioned the creation in every barangay (village) of an information and reading center as a basic facility. It also recognized the role of civil society, and encouraged participation in the public governance sphere. It became a tool to promote more community-level involvement in governance. The concept of Participatory Local Governance (PLG) brings community-based governance through participation (or involvement) of different stakeholders such as LGUs, NGOs, Peoples’ Organizations, and the private sector.

Moreover, the e-commerce act of 2000 mandated the use of ICT in national and local government units. These laws were seen by many as a solid legal foundation for pushing the development agenda through the empowerment of LGUs.

Recognizing the importance of empowering LGUs through ICT and its inherent challenges, the Philippine government developed an e-government strategic framework that is citizen-centric. It has three basic components namely: (1) provision of digital connectivity; (2) human capital development; and (3) development and deployment of useful applications and generation of relevant content. The following were identified as key results for e-government in the local level:

• Generation of public resources (revenue generation)

• Promote local entrepreneurship

• Adequate delivery of public services

• Mobilization/engagement of citizens

• Promotion of transparency and accountability

Benchmarking e-Government at LGUs

By 2004–2005, a sustained drive to push ICT to LGUs became part of the government ICT strategy, known as the e-Philippines strategy. Table 5.7 shows an assessment of the e-government initiatives in the LGUs in 2005 and 2009, while Table 5.8 presents the different stages of e-government according to the UN-ASPA framework. The assessment shows that a majority of the municipalities are still in Stage 1, while the cities and provinces by 2005 are already in Stage 2. Most of the municipal websites are either inaccessible or nonfunctional.

Table 5.7 e-Government stages of Philippine local government units (LGUs) for 2005

Table 5.8 UN-ASPA stages of e-government

A study commissioned by the Asia Foundation, known as the CALDEM report, provided possible explanations of why the municipalities have been lagging and what are the hindrances in e-government at the local level. The study, as summarized in Table 5.9, shows: (a) essential elements of an e-government strategy for LGUs; (b) factors that hinder LGUs from implementing e-government projects; and (c) strategies to overcome the challenges to e-government in the local level.

Table 5.9 CALDEM report on e-government in LGUs

Figures pertaining to the 2009 ratings on e-government stages for cities show an increase in the number of Philippine cities falling within Stage 2 and 3 for 2009 (Table 5.7).¹ Similarly, more provinces have advanced to stage 2 (53%) and stage 3 (28%) categories.

These improvements in e-government stages by cities and provinces can be traced to the implementation of the government’s e-government agenda particularly focusing on LGUs. With the CALDEM findings at hand, the NCC and CICT adopted the e-LGU program to assist LGUs in developing their respective websites. This comes hand in hand with individual efforts of the LGUs to improve their respective e-government capabilities.

To further empower LGUs in utilizing ICT’s potentials, the CICT has adopted the e-government for Municipal Development (eGov4MD) program which aims to diffuse ICT benefits in the LGUs. eGov4MD is a collective initiative among various stakeholders which includes the CICT, the Canadian Executive Service Organization (CESO), and the NCC. It seeks the full deployment of flagship LGU-based ICT applications namely: the real property tax system (eRPTS), the Business Permits and Licensing System (eBPLS), and the Treasury Operations Management System (eTOMS). These applications are meant to enable LGUs, especially the rural municipalities, to improve revenue collection and management, streamline processes to reduce transaction cost, and generally improve the relationship between the LGU and its constituents. ICT human capacity development programs are also part of the eGov4MD initiative (eLGU Journal 2010). Box 5.1 summarizes some eGov4MD achievements as of 2009.

As of 2010, small successes and enormous challenges have emerged in diffusing ICT in the LGUs. Some 1,585 local officials from 632 LGUs have been reached by the various e-LGU initiatives. An estimated 100 pilot LGUs have formulated comprehensive information systems planning assisted by the CICT. There are some success stories of eGov4MD implementation. A number of municipalities have expressed their willingness to adopt the eGov4MD application package (Ibid). Capable LGUs are independently developing their respective e-government services. Empowered, these LGUs took the initiative to develop e-government systems and in some cases partner with the private sector to deliver ICT services to its constituents. These independent initiatives may be one of the factors that can explain the increase in LGUs stage 2 and 3 levels. Cases in point are the Municipality of Bacoor, Province of Cavite and the i-Naga program of Naga City (Box 5.2).

A key facet of the e-government initiatives in LGUs is the implementation of the Community e-Center (CeC) project launched in 2007. The CeC envisions maximum ICT diffusion by providing access to telecommunications and Internet services to the barangays.² As part of its sustainability agenda, the CeC provides training to the community members. This is usually in partnership with the LGUs, NGOs, and other community stakeholders. As of December 2010, the CICT placed the number of operational CeCs at 1,027 nationwide.

Box 5.1 eGov4MD Achievements as of 2009

• •Deployment of eBPLS in 60 municipalities and eRPTS in 27 municipalities

• •Training and deployment of technical staff and volunteer advisers

• •Development of Municipal IT Plans and creation of ICT Committees

• •Establishment of eGov4MD, Inc. to provide technical support and training

• •Enrolment of mayors as e-governance champions

Box 5.2 e-Government Services by Philippine LGUs

Leveraging ICT for e-Government in the Municipality of Bacoor, Cavite Province

The Municipality of Bacoor recently unveiled its new SMS-based application called NETCAST. In partnership with SMART Telecommunications, the service enabled the Municipal government to use NETCAST’s SMS service to push information to constituents. NETCAST offer LGUs capability to send out regular or scheduled announcements, facilitate information exchange, and feedback.

Aside from NETCAST, the Bacoor Municipality subscribes to the idea of full e-governance for the benefit of its constituents. With this idea, significant investments were made to ensure Wi-Fi connectivity in public schools, installation of CCTV cameras for traffic monitoring and crime prevention, barangay computerization projects as well as online service (http://www.bacoor.gov.ph) (“Tech works for Bacoor Mayor,” Philippine Star 2009).

iGovernance Program of Naga City, Province of Albay

The iGovernance Program is part of Naga City’s continuing initiative to promote empowerment of its citizenry in all facets of governance through functional partnerships and innovative participation mechanisms.

The “i” in iGovernance stands for the following elements:

• inclusive governance which seeks to embrace rather than exclude individuals, peoples, and sectors in running government

• information openness which demonstrates that information is power; and it is truly empowering when placed in the hands of the citizens

• Box 5.2 (continued)

• interactive engagement which puts a premium on information exchange through continuing dialog between authority and constituency

• innovative management which engenders a culture of excellence sustained by creativity and innovation

iGovernance involves the use of both paper-based tools and Internet technologies to disseminate information to the community. The City Government refers to their website (http://www.naga.gov.ph) as a tool for engaging citizens. The website contains online services such as tracking of building permits, an e-library, and renewal of business permits. It also has the Citizen’s Charter and an online forum.

The Citizen’s Charter is a guidebook on the key services being delivered by the city government to its customers, including the procedures, response time, personnel responsible for each service, requirements checklist to ­facilitate service delivery, schedule of fees, and location maps of the offices handling the services.

The iGovernance Program also encourages civic participation through the use of SMS and e-mail technologies (Romero et al. 2006).

 

Challenges and Opportunities

Experience shows that many Philippine LGUs, especially rural municipalities, are still grappling with issues regarding cost, availability of ICT personnel, and political priorities. Even with eGov4MD applications being distributed for free by the NCC-CICT, the needed investment in computers and IT equipment is still considered substantial. In remote municipalities, the question of basic infrastructure, including electricity, and the presence of competent IT staff, is a pressing concern. Local government officials in these areas often see investments in IT as a “non-priority.” Expenditures on IT and automation initiatives are seen as competing with other priority concerns such as social programs, waste management, and infrastructure development among others.

At present, there are LGUs that are having difficulties in maintaining their respective CeCs. Indeed, CeC sustainability hinges on cost and the availability of relevant content. CeCs also face competition from privately owned Internet cafes. Although it must be noted that successful CeCs are those that utilized community-relevant content such as the Department of Agriculture’s Farmers’ Information and Technology Services (FITS), local leadership and political commitment are vital factors in the maintenance of CeCs. Currently, many local efforts are underway to revisit the concept of CeCs and review their operation.

The Need for a Change in Paradigm

The current push of the e-LGU program to improve transactional capabilities of the LGUs is commendable but inadequate. Aside from revenue generation, other governance areas should be included as part of the e-LGU agenda. These areas can be online participatory mechanisms for sectoral groups and income generation for constituents, among others.

A paradigm shift is needed: from top-down, government-led e-government for LGUs, to locally led partnerships that engage all key stakeholders: LGUs, local civil society, and the private sector, as well as line agencies of the national government e.g., Department of the Interior and Local Government (DILG), the Department of Agriculture (DA), and the Department of Trade and Industry (DTI) among others. Best local practices from other municipalities and provinces should be considered and shared.

Strong political commitment from local officials is essential to mobilize the needed financial resources and specialized personnel. Evident from examples in Box 5.2 is the ability of these LGUs to bridge the private–public divide. There is a need to craft training programs for LGU officials that will explore models for financing and project sustainability. Local civil society organizations (CSOs) should be part of the e-government thrust of the LGUs.

Mechanisms to ensure long-term commitment of the LGU can also be provided through local-provincial ordinances, nurturing support from the LGU’s IT career staff, and facilitating organizational change. Rethinking current work practices should be integral to e-government efforts (Magno 2010). Finally, there is a need to assess and evaluate e-LGU and CeC projects on an ongoing basis to ensure their efficacy.

Demand for Good Governance in Public Services

New factors may help contribute to this paradigm shift from top-down, government-led, and supply-driven e-government initiatives, to a new paradigm where demand for good governance and accountability from citizens and social intermediaries is strengthened and used to complement and reinforce supply-side initiatives. In recent years the numbers of social intermediaries (NGOs, professional associations, etc.) has increased and their efficiency and reach has grown in the Philippines and many developing countries. Universal use of ICT (particularly mobile and shared access to the Internet) has allowed fairly small groups to become more effective and far reaching in better monitoring various aspects of adherence to compact at the provider level. The combination of these two factors makes for a powerful mechanism to strengthen demand-side governance and social accountability for government services, and to engage citizens in providing feedback on services and co-innovating better services (Box 5.3).

Box 5.3 Accountability and Governance for Service Provision

In between the discrete events of elections, there are periods of continuous governance that affect various aspects of the life of a citizen—provision of excludable services (most notably health and education), access to non-excludable services—public roads, other infrastructure, guarantees of individual, and collective rights (e.g., property rights, right to access information, etc.). The individual citizen does not have the resources (time, the technical knowledge, etc.) to assess the ability and the willingness of the state to cater to all these needs. Also, once the citizen empirically, through her own experience, finds out that the quality of services provided by the state or the provider is low she will most likely conclude that the cost of taking on the institutions of service provision is much higher than the uncertain benefit of redress. The cost of organizing like minded citizens on ad hoc basis may be equally forbidding and, considering lack of experience in such interactions, if mounted, may be ineffective. Yet, for the quality of governance in a country it is important that the time between service provision and the feedback is narrow and the redress (the completion of the accountability loop) happens quickly, so that adjustments to services provided and the rights guaranteed happen quickly and deficiencies do not result in disruptions of services and engrained institutional distortions. For all these reasons citizens delegate oversight and (re)negotiations of some aspects of the social contract and service provision to the social intermediaries (SIs).

The SIs can range from very informal ones—a group of concerned activists, to increasingly more formalized ones—officially registered NGOs, trade unions, professional associations, etc. If delivery of services in a county or a sector has the oversight of a strong set of formal and informal SIs, asymmetry of information for the public is diminished and both the state and the providers feel more pressure to cater to the needs of electorate or (in a more authoritarian setting) population in need of inclusion or appeasement.

The SIs are expected to (1) effectively watch over the quality of legislation governing service provision as well as over the quality of services provided (2) signal the need for redress, (3) advocate the necessity for change in legislation or practice of service provision with the state, (4) renegotiate the contract, and (5) oversee adjusted and improved service provision.

While the role of all SIs is to improve the quality of services provided by the state or the provider, different SIs have different comparative advantages in helping the closing of accountability loop. While (1) less formal SIs are better equipped to generate and disseminate information about the quality of service provision (their voice recently enhanced by advent of ICT tools), (2) bigger, more formal SIs have the structure, the staff, and the resources to monitor the quality of service provision on the ground.

Box 5.3 (continued)

In democratic settings SIs are created as the result of bottom-up mobilization and preserve their connection to citizenry via mobilization for collective action. SIs gain legitimacy in the eyes of the citizens through their ability to advocate on behalf of the citizens or to mobilize general public for participation in collective action. SIs can be engaged in mobilizing citizens for participation in collective actions or serve as proxies for citizen participation themselves. Citizens in turn can support with a lesser or greater level of intensity and personal and/or financial involvement a particular cause singled out by an SI.

For example, a campaign against online violence against women (e-VAW) has gained prominence in the Philippines. Through the “Take Back the Tech” or “Take Control of Technology to End Violence against Women” project, local SIs represented by NGOs together with other civil society groups and government agencies are actively pursuing this advocacy against this new form of violence against women. The Foundations for Media Alternatives (FMA), an NGO seeking to democratize ICT systems and resources for citizens and communities, is leading activities to build awareness about e-VAW. Local consensus building activities are also being undertaken with the intention of proposing a National Action Strategy for e-VAW (TakeBackTheTech 2005).

When SIs oversee the providers, their role in this capacity is defined more narrowly since it follows the compact that has been made between the state and the providers. The role of SIs interacting directly with the providers is to ascertain that (1) the compact between the state and the provider adequately reflects the interests of the group they represent and (2) the providers are providing services according to the rules and plans set out in the compact. For e.g., SIs overseeing budget implementation make sure that the agencies responsible for budget allocation and sector specific use of resource are fulfilling their tasks in accordance with the particular budgetary regulations. Others monitor adequate provision of services by the providers according to the established rules.

 

Education

The main government institutions responsible for the educational system are: the Department of Education (DepEd), Commission on Higher Education (CHED), and the Technical Education and Skills Development Authority (TESDA). Each establishes programs and initiatives in both skills training and knowledge development. Taken as part of the educational reform agenda of the Congressional Commission on Education (EDCOM) in 1992, the “trifocalization” and the redefinition of the educational structure of the Philippines allowed each sector to concentrate its efforts in the respective areas: DepEd for basic education, CHED for tertiary education and graduate studies, and TESDA for technical-vocational educational training (TVET) (Commission on Higher Education 2010).

Each of these institutions takes part in integrating ICT in education for human capital development and improving the quality of the educational system. From the human capital perspective, ICTs are considered as necessary tools to enhance worker skills and information accessibility, essential for both good governance and positive economic development (Arinto 2006).

The ICT Plan for education was developed by the DepEd in 1996 to strengthen the human resource base of the Philippines. It is a 10-year program comprised of phases starting from planning and analysis from 2000 to 2001, execution and monitoring in 2002–2008, and evaluation in 2009.

The plan’s four thrusts are: (1) technology integration in mathematics, science, and English by means of upgrading the curriculum; (2) setting standards for monitoring performance and accountability through an improved delivery support system; (3) improving fund generation by identifying effective financing schemes; and (4) organizing diverse training programs for human resources retooling. The ICT plan is centered on providing accessible technology, equipment, and facilities for various education stakeholders for research and development. Technology integration serves as a foundation for the plan’s focus on IT competence by creating ICT-based instructional materials, training public school teachers on ICT literacy, using innovative technologies in training, and providing schools with the necessary educational packages.

Other Strategic ICT Actions in Education

• Creation of an ICT integration framework

• Allocation of funds through the General Appropriations Act (GAA)

• Provision of tax incentives for the placement of needed ICTs in public schools

• Setup of mobile IT classrooms

• Development of the 2002 Basic Education Curriculum (BEC)

• Emphasis on the use of ICT for capacity development, basic education, and life-long learning in the 2004 Medium-Term Development Plan (MTDP)

The ICT plan also includes the following government development programs (Ibid):

• Curriculum and Materials Development: for the ICT usage in core subject areas

• Staff Development: for teacher training in ICT

• Facilities and Acquisition Development: for obtaining computer hardware and software

• Advocacy and Promotion: for the promulgation of awareness on the benefits of ICT

• Technology Access and Development: for accounting existing ICT facilities and equipment in schools

• Monitoring and Evaluation: for measuring the effectiveness of delivery systems and other instructional materials

The CICT plays a vital role in providing the infrastructure and manpower resources to enable implementation of programs that support computer literacy and ICT skills development. Aside from the IIMG, the HCDG in particular provides a significant contribution to ICT literacy. HCDG focuses on the development of competencies specific to ICT by promoting the ICT expertise training, formulating ICT policies for integration in education, supporting ICT initiatives and research in various disciplines, and determining ICT competency standards in the government (Commission on Information and Communications Technology 2006b).

Programs and Projects

The key programs and projects pursued under the IT Plan for education are: ICT infrastructure (personal computers for public schools), ICT-based education (cyber education), ICT literacy (NICS), alternative learning (e-learning for out-of-school youth (OSYs)), and distance learning (ICT literacy skills for teachers and student). These are briefly described below.

• ICT Infrastructure: Personal Computers for Public Schools (PCPS)

  The PCPS project was initiated by the DTI in 2001, when Japan awarded a P600 million grant, through its Non-Project Grant Assistance Countervalue Funds to the Philippine government. This initiative was in recognition of the youth’s need for adequate computer literacy skills and the Philippine’s capability to provide IT services in the global arena, thus prompting the development of a “continuous pool of manpower” in the IT sector.

  The PCPS project was composed of three phases, spanning 2001 to 2007. Table 5.10 presents the number computers that were set up in the first and second phases. The second phase of PCPS also included the provision of computer servers and network infrastructure to 250 LGUs for their respective public service automation initiatives. The third phase, from 2005 to 2007, with Japanese funding, provided 47,100 computer packages to 3,714 public high schools nationwide. The first two phases reduced the computer deficit in public schools from 76 to 55%, and, after the third phase was completed, was further reduced to 37%. Additionally, phases 1 and 2 included computer literacy training programs for public school teachers on basic computer operation, computer integration in classroom instruction, troubleshooting, and preventive maintenance (Department of Trade and Industry 2008c).

  Table 5.10 Personal computers for public schools (PCPS) project phases and outputs (2001–2005)

• ICT-based Education: Cyber Education Project

  The Cyber Education Project (Cyber Ed), established in 2007, aimed to enhance the existing educational program through distance education. It seeks to bridge the gap between various stakeholders in urban and rural schools. Besides CD-based educational materials such as coursewares and activity-based learning, the project involves the use of satellite-based technology in delivering training and lessons through live presentations, virtual workshops, media downloads, and instructional TV programs. It also serves as a medium for teachers to access professional development materials and training activities. The materials are evaluated by national experts to ensure the quality and appropriateness of the lessons. Through this project, the administrative sectors in the Philippines—namely the central office, regional offices, division offices, and public schools—will be interconnected (DepEd:EducNews 2010).

• ICT Literacy: NICS

  The NICS contain a definition of the required knowledge and skills of an individual involved in an ICT field. Such standards are used to measure achievements of targets for education initiatives, and to eventuate performance and professional development. CICT Circular No. 01 of 2010 propagated the use of the NICS and included the creation of standards according to identified job roles and expectations from the government, business, educators, workers, and students.

  The identified standards were the result of collaborations between government agencies and private stakeholders. The competencies were grouped according to a standard, skill set, or a corresponding job role including basic, advanced, teachers, application developers, civil servants, network professionals, career executive service officers, and CeC knowledge workers. Performance indicators and underpinning knowledge were also specified for each competency (National Computer Center 2010).

• Alternative Learning: eSkwela Project

  The eSkwela project started in 2006 by CICT in partnership with the Bureau of Alternative Learning Systems (BALS) under DepEd. Unlike most educational projects of the government, this project adopts an informal educational structure for lesson delivery. The program’s ultimate beneficiaries are the OSYs. It addresses their need for basic education. It prepares OSYs for the Accreditation and Equivalency Test. Instruction is delivered through the use of developed e-learning modules that contain multimedia components and interactivities based on the existing printed modules from BALS. The printed modules are reviewed and converted into digital media content in partnership with State Universities and Colleges as well as individual volunteers from private institutions. Aside from the OSYs, the project’s immediate beneficiaries are the implementers comprised of the center manager, learning facilitators, and network administrators who are trained for program sustainability.

  Part of the program is to establish learning centers in a chosen community, which houses the computer units with Internet connectivity, e-learning modules, and other multimedia peripherals. Currently, there are 52 eSkwela sites in the Philippines, which is about half of the target 105 sites to be implemented by March 2011. Initially, in the pilot sites, CICT provided the infrastructure for the selected communities. After the project was implemented in the pilot sites, the implementation model was altered based on field experience. The field implementation model (LGU-based, school-based, or church based) dictates the composition of the field implementers appropriate for the community. The eSkwela project is currently in the transition phase of transferring the full operation and implementation of the learning communities from CICT to BALS.

• Distance Learning: iSchools (Commission on Information and Communications Technology 2006c)

  The project is centered on the development of ICT literacy skills, particularly for teachers and students in public high schools. This is in line with the government’s agenda of establishing an Educational Digital Network, which seeks to bridge the digital gap by providing access to various sources of information and instructional software.

  The project envisioned the acquisition of computer units and broadband Internet connectivity for all public high schools in the Philippines by 2010. Hardware and software assistance for the beneficiaries is provided through Regional Help Desks and Maintenance Shops. Additionally, part of the iSchools program is Educators Training that aims to enhance the school stakeholders’ ICT competencies in order to sustain the program in their respective institutions. The project also involves the creation of a digital library of instructional media and educational content accessible to schools throughout the country (Ibid). As of 2007, there were 1,100 schools nationwide wherein the iSchools project has been implemented.

Challenges and Opportunities

There is a great deal of support coming from the communities that are the main beneficiaries of the programs. Establishing good relationships with the target communities and getting them directly involved in the programs gives them a sense of ownership, which will eventually provide the means to carry on the project. Stakeholders’ sense of ownership of the ICT for Education (ICT4E) programs allows for a positive outlook on the programs’ sustainability. Partnership with industry companies provides ample support in research and instructional development through sponsorships and incentives for scholarships, research facilities, ICT infrastructure, mentoring programs, ICT-based learning programs, and innovation and incubation projects.

The ICT plan shows promising developments in Filipino ICT literacy. However, problems exist with regards to successful implementation. Despite claiming a significant share of government budget, resources for education are still inadequate to support projects that involve the use of ICT. Aside from the shortage of funds, there is still a lack of awareness in the top-level of government concerning the use and benefits of ICT for teaching and learning. This deficiency may have been responsible for past reductions of the budget for ICT4E. The 2011 budget allocation for education shows some increase but does not necessarily favor plans for ICT in education. DepEd priority initiatives and expenditures are centered on infrastructure development for the Education For All program. By 2011, the number of children enrolled in preschool is targeted to increase from 1.9 to 2.5 million (Luistro 2011).

Even with the availability of IT infrastructure and equipment in urbanized locations, most prospective users in rural areas are not able to benefit from the e-learning modules and other online instructional materials due to the lack of resources in the provinces. Although several of the above programs have been cross-cutting, and have involved multiple stakeholders, there are also isolated initiatives from various sectors in the country that result in duplication of efforts and eventually, waste of resources. These independent efforts stem from the existence of educational institutions within government agencies. Turf issues also contribute to the problem of sporadic and fragmented programs as there is no clarity with regards to corresponding ICT4E responsibilities. Furthermore, the government sectors implementing ICT4E programs do not monitor such projects for effectiveness.

Political Reforms Through Poll Automation

The conduct of elections is seen as one of the main ingredients for democracy. Elections are the main avenue for expressing the sovereign will of the people, underlining the democratic principle of true power residing in citizens. The Philippines has the distinction of having the longest history of democratic elections in Southeast Asia. Through decades of Spanish colonization up to the American occupation at the onset of the twentieth century, the Philippine electoral system and processes, while imperfect, generally were seen as democratic tools for political legitimacy.

However, despite the country’s long tradition of democracy, elections in the Philippines continue to be plagued by inefficiencies, errors, endemic occurrences of violence, and wholesale and retail fraud. Elections are often perceived to be subverted and manipulated to favor certain interests and groups eager to use this democratic cloak to legitimize their ascent to power and their access to national resources. Philippine elections have been described as classic examples of the Herculean struggle between those who want to preserve the integrity of its democratic institutions and those who want to use these very same institutions to advance their narrow interests.

Electoral reforms in the Philippines have been elusive. For decades, efforts toward electoral reform and modernization have become a battleground for these two forces. More recently, the increasingly evident potentials of ICT have added new possibilities and challenges to the struggle for credible elections. Like the proverbial two-edged sword, ICTs must be seen as tools that can either serve or subvert a purpose. Their design and use, particularly in a context as sensitive as national elections, must be exercised with careful forethought and diligence, especially in light of the vast amount of resources that they entail.

Efforts toward reform and change are constantly gaining ground through the enactment of laws supporting reform. The impact of these initiatives is amplified by an increasingly vibrant civil society, with one of the most notable features being the active participation of the Parish Pastoral Council for Responsible Voting (PPCRV) and the National Movement for Free Elections (NAMFREL) to name a few. Other reform-oriented legislative proposals in the pipeline are the Anti-turncoatism bill; the Campaign Reform bill; a bill strengthening the role of political parties; and the Freedom of Information bill.

The May 2010 national and local elections were hailed by various sectors as being a success in terms of their relative speed during the precinct tally and transmission of the results to the canvassing centers. Using the SAES-1800 model of the precinct count optical scan (PCOS) machine, the usual 2-month process of manual counting, tallying and canvassing was dramatically slashed to a few days. In fact, many AES critics even declared that “they [were] glad to be proven wrong” and that “COMELEC has luck on its side,” adding to the initial euphoria that characterized the first national automated elections in the Philippines.

However, as the days progressed, problems and malfunctions pertaining to the AES began to surface, suggesting that democratic institutions need more than a technology-centric solution to address sociopolitical challenges. In an assessment made by the College of Computer Studies, De La Salle University of the May 2010 elections entitled “Towards Strengthening Electoral Reforms through ICT,” the following were identified as general weakness of the May 2010 automated elections system (Roxas et al. 2010):

• Gap between the intent of the law and actual implementation policies: COMELEC failed to craft relevant policies to address the basic tenets of a good IT project implementation, e.g., source code review, RMA, performance audit, and procedures for electoral protest.

• Failure to incorporate good governance practices: Since ICT is being used as a tool for electoral reform, it is but proper for COMELEC to adhere to principles of good governance: (a) Transparency—all performance data must be released to enable scrutiny an independent third party; (b) Participation—COMELEC should ensure maximum participation by civil society groups and election watchdogs; (c) Accountability—full-scale investigation must be launched to address allegations of fraud and graft.

• Failure of COMELEC to adopt best practices in IT project management and system implementation.

Automating Elections in the Philippines: Is There a Need to Change Perspectives?

For the May 2010 elections, US $252 million was spent on automation. Considering that the use of the AES for the May 2010 elections was under a lease agreement, the question is: can the Philippines afford a recurring cost for automated elections?

The May 2010 elections should be treated as both a learning experience and wake-up call for Filipinos to address financial sustainability of automated elections. The De La Salle University study puts forward a list of recommendations that can be explored for future automation endeavors:

• Creative arrangements can be explored for the purpose of automating the elections such as technology transfer agreements, multi-election agreements, and local assembly-quality assurance options. Government-to-government technology purchase options can be explored to lessen allegations of irregularities.

• As much as possible, local IT experts can be utilized as third party evaluators or consultants to ensure that the chosen technology is adapted to meet local needs and demands

• There is a need to upgrade the ICT capabilities of the poll body. An ICT-enabled COMELEC can definitely contribute to the effective use of ICT and the reduction of unnecessary cost in project management and systems implementation.

Assessing the Traditional Approach to ICT4D

The Philippines is at a development crossroads: it can continue on the traditional path or adopt a transformational approach to ICT4D. This section aims to provide a limited assessment of the current ICT4D initiatives in the Philippines that we argue have followed the traditional path. “Traditional approach” public sector-led ICT4D initiatives have the following characteristics:

• Centrally driven, top-down, or bottom-up but not centrally supported

• Often disjointed or unconnected with other similar initiatives of other agencies or departments

• Often donor-driven pilot projects, lacking the resources for scaling-up

• Lacking a long-term perspective

• Lacking impact assessment and learning mechanisms

• Inadequately attending to sustainability

How are these traditional characteristics reflected in Philippine ICT4D initiatives? Let us take two instances: (a) Nature of National ICT Strategies and (b) Public sector-led ICT4D initiatives.

Nature of National ICT Strategies

While all the MTDPs from 1986 to 2010 recognize the enabling quality of ICT for national development, interpretations of the term “enabling tool” vary from one political administration to the next. In just a decade (1997–2006), the Philippines experienced numerous changes in its “strategic” ICT plans (Fig. 5.4), interpretations of the enabling role, and in e-leadership institutions. These changes occurred as soon as a new ruling administration (a new president for this matter) assumed office. This led to wasteful and short-term activities that did not provide for institutionalization of strategic ICT philosophies, strategies, and goals.

Fig. 5.4

Philippine national ICT strategies in a timeline

Developing countries with a limited resource base like the Philippines cannot afford to change priorities in strategic areas such as ICT4D, which demands long gestation and cumulative learning to realize deep transformation and significant payoffs. Changing the national ICT plan should be purposeful and mindful of the sociopolitical requirements and potential impact that the changes can effect. Changes in plans are expected, but should be based on formal assessments and evaluation mechanisms.

Public Sector-Led ICT4D Initiatives

Section “Public Sector-Led ICT for Development Initiatives” gave an overview of three public sector-led ICT4D initiatives. Table 5.11 provides an assessment of these initiatives according to five criteria derived from the e-development framework presented in Chap. 1.

Table 5.11 Assessment of public sector-led ICT4D initiatives

Criterion 1: Adherence to National ICT Plans and Policies (HIGH)

All ICT4D initiatives are rated high in consistency with existing national ICT plans and policies. Both ICT for Education and e-LGU initiatives have been part of each national ICT plan since 1997. Also relevant laws have been enacted to support these ICT4D initiatives. e-LGU projects also needed crafting of local ordinances, while e-Skuwela and Automated Elections needed organizational policies to ensure commitment and sustainability of ICT4D projects.

Criterion 2: Support of National and Local Institutions (MEDIUM/HIGH)

Both e-LGU and ICT4E initiatives are rated medium in terms of national and local institutional support because they are mainly donor-driven and are centrally managed by CICT. Although pilot projects for both initiatives have their respective success stories, sustainability is in doubt once the external funding ceases and projects are turned over to their respective executive line departments and LGUs. This is true for the eGov4MD and CeC projects under the e-LGU initiative and the Alternative Learning projects under e-Skuwela.

Project ownership issues were also given a medium rating as current initiatives are being managed and implemented by CICT in coordination with the participating LGU for e-LGU and the DepEd for ICT4E. Little coordination exists across these potentially interdependent initiatives. This “silo-mentality” inhibits proper allocation of resources and sharing of expertise and experiences.

The Automated Elections initiative is rated high criterion institutional support as it fell within the sole jurisdiction COMELEC. Being a constitutional and autonomous office, COMELEC has a clear mandate of managing elections in the Philippines, and this clear mandate afforded to it by the constitution allows COMELEC to be more purposeful in its ICT initiatives. Allocation of resources for its ICT initiatives such as the automated elections is provided for by law. It is because of this clear mandate that COMELEC went all-out in pushing for automated elections for the May 2010 elections.

Criterion 3: Availability of ICT Skills (LOW)

All initiatives are rated low on skill availability, reflecting the shortage of ICT skills needed to design and implement these initiatives. There is a strong recognition of the need for ICT-trained personnel to implement and sustain efforts for all the initiatives. For example, the De La Salle University study of the 2010 Automated Election cited the need to transform COMELEC into an ICT-enabled organization (Roxas et al. 2010).

The effectiveness of these initiatives also suffered from shortage of e-leaders and ICT champions within the public sector. As an example, the LGU best practices (Box 5.2) points to the importance of having a local chief executive (e.g., Mayor, Provincial Governor, etc.) to own and lead e-government initiatives at the local level.

Economy-wide, scarcity of IT personnel, low salaries of skilled civil servants, and competition with the private sector and even job opportunities abroad are additional factors that contribute to the shortage of skills for public sector-led initiatives.

Criterion 4: Availability of Financial Resources (LOW/HIGH)

The low ratings were given to the e-LGU, CeC, and e-Skuwela projects where the need for additional financial resources will be evident once donor support is depleted.

The Automated Election projects of COMELEC are an exception to the prevailing scarcity and uncertainty of funds. COMELEC is bound to hold elections in accordance with a constitutional guarantee. With the perceived success of the first automated elections of May 2010, the Philippine Congress is expected to support the popular public clamor for poll automation.

Criterion 5: Presence of Assessment Mechanism (LOW)

All three ICT4D initiatives are rated low on the presence of formal evaluation and learning systems. Formal assessment and evaluation of public sector-led ICT4D initiatives comes as a mere afterthought. Being at the tail end of most ICT4D projects, evaluations efforts are usually downgraded and not institutionalized because of depleted resources.

A Transformative Approach to ICT for Development

The Philippines is currently adhering to a traditional path that has proven to be inadequate in breaking its antidevelopment cycle. We believe that a transformational approach is needed to leverage the enabling role of ICT and to break the antidevelopment cycle. This e-transformation strategy can be best characterized by: adoption of a holistic e-development paradigm, sustained growth of private sector led ICT industry, continuous engagement with stakeholders, building e-leadership capacity, and institutionalizing formal evaluation mechanisms (Fig. 5.5).

Fig. 5.5

Pathways for attaining genuine e-development for the Philippines

Adoption of an e-Transformation Paradigm

An e-development paradigm calls for a holistic and long-term strategy that enables and transforms the whole economy. Recognizing its cross-sectoral, cross-industry, cross-agency, and cross-hierarchical nature of e-development, this paradigm takes into account: (a) effective diffusion, (b) effective utilization of ICT, and (c) deep institutional, structural and capability changes in the economy and society (Hanna 2009).

The e-development perspective looks at ICT as a cross-cutting enabling tool for institutional change, process innovation, closer integration of government services, and collaboration among government agencies. This would entail both vertical and horizontal integration of government services in an effort to the break administrative silos, tap synergies, promote the strategic management and implementation of ICT programs, and ensure maximum diffusion of benefits and sustainability of initiatives.

Finally, adoption of an e-transformation paradigm calls for the consideration of ICT’s transformational role in other growth-service areas. It also means increasing attention to and systematic design of national ICT diffusion programs and targeting SMEs, lagging regions, and disadvantaged groups. Aside from areas mentioned in section “Public Sector-Led ICT for Development Initiatives,” other areas that can be considered may include health informatics, tourism, agricultural productivity, and small and medium scale enterprises (SMEs) to name a few.

Sustained Growth of Private Sector-Led ICT Industry

Aside from private sector investment, reform-oriented government e-policies contributed to a robust industry growth. New e-policies such the legislative bills on cyber-security, intellectual property, and data security must be put in place to ensure dynamic grow of this industry.

A genuine e-development strategy must recognize the private sector’s role in achieving its strategic goals. This role may extend beyond promoting the ICT industry to include partnerships with government and civil society to transform public and educational services, create sustainable Community e-Centers, diffuse e-business among SMEs, and improve the overall business environment.

While recognizing the growth potential of the ICT industries, an e-transformation perspective calls for linking the ICT sector to the national development strategy by looking comprehensively at the following:

• Need to expand its local market through backward integration of services

  With the current market being characterized as export-oriented, the Philippines should consider the expansion of its domestic ICT market in service of the rest of the economy. This can be done by integrating local service providers (e.g., academic institutions, local manufacturing firms, LGUs, national government agencies, etc.) with export-oriented ICT industries and by promoting the development of local ICT4D applications for high impact areas in key sectors of the economy.

• Ensure spill-over of technical know-how

  Expansion and the spill-over effect of technical know-how must be ensured. This can be done through the development of joint academic and vocational training programs between the private sector, government, and academic institutions.

• Consider possible export diversification strategies

  Aside from servicing its traditional export market (the United States and Japan), the Philippines should consider other emerging markets to decrease its vulnerability to global economic slowdowns (Lim 2010). These alternative markets may include China, South Korea, the Middle East, and ASEAN neighbors.

Continuous Engagement with Stakeholders

The dynamic and multi-stakeholder nature of e-development points to the need to continuously engage societal stakeholders. Government must act as a facilitator of the e-development process (Chap. 1), taking into account the needs and aspirations of stakeholders. This continuous engagement should communicate e-development goals and ensure stakeholder buy-in and support. This engagement process should be accompanied by a strategic communication plan for the e-development agenda.

Need for Genuine e-Leadership

Aside from the need for greater political commitment from national leaders, genuine e-leadership can be characterized as having the following characteristics:

• Existence of an authorizing environment

  This pertains to the need to create an environment where the function of authority can be exercised. This function of authority should have the ability to link development priorities across government agencies. Genuine e-leadership also requires active leadership not hostage to private sector interests.

• Clear mandate and responsibility for ICT institutions and other government line agencies

  An e-development agenda should articulate the roles and responsibilities of various public sector institutions. A clear legal and administrative mandate should be ensured to minimize possible resistance.

• Need to include the Department of Budget and Management (DBM) for expediency of resource allocation

  Inclusion of the DBM in the formulation of the e-development agenda and related plans is highly recommended. This is for the purpose of ownership and ensures the expediency of e-development initiatives.

• Continuous development of champions and sponsors

  Continuous development of e-development/ICT4D champions should be encouraged. Government training programs for local and career service executives should include topics/courses on e-development/ICT4D. The implementation of the proposed Government CIO training program should be pursued. CSOs and the academe should also play a role in this area. As part of their advocacy, research and continuous engagement with the public sector, CSOs, and the academe can be part of this critical mass that will ensure support for the e-development agenda.

Institutionalized Assessment Mechanisms

The need to institutionalize assessment and evaluation mechanisms is a key ingredient to an adaptive and learning e-development strategy. These mechanisms must be stakeholder-driven and institutionalized down to the project level. In summary, we have highlighted the attempts of the Philippines to break its antidevelopment cycle through ICT4D initiatives. The chapter presented the Philippines as being at a development crossroad: either to continue on its traditional route or chose a transformational role for its ICT4D initiatives. This new role for ICT in national development should subscribe to the tenets of e-transformation by viewing ICT as an enabling tool that can open new opportunities and options for social, institutional, and economic transformation. This transformational role for ICT can lead the Philippines to the attainment of a genuine e-development.

Will choosing a transformational route be an easy task for the Philippines? Surely not. A committed national effort will be necessary and reflected in political will, capacity, resources, and partnerships. The current initiatives of the new Aquino administration to create the PDS (2011–2016) should assess past initiatives and create a new national ICT4D framework to realize ICT’s transformational role.