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Vision 2040 embodies Filipinos’ collective aspirations, guiding their trajectory for the future. It empowers citizens to shape the nation’s direction, steering governmental policies towards realising shared goals. This vision fosters a symbiotic relationship between governance and people, underscoring inclusive frameworks for all to pursue their aspirations.
It unifies diverse perspectives, transcends political changes, and serves as a comprehensive roadmap influencing both the public and private sectors. Ultimately, it’s more than a document; it’s a living guide steering the nation towards a prosperous future.
The development policy loans (DPL) series builds on the nation’s long-term vision articulated in AmBisyon Natin 2040 and the recently launched Philippine Development Plan 2023-2028 to achieve inclusive growth and support the government’s reform agenda in accelerating digitalisation.
The Philippines is stepping into a new era of digital evolution with its groundbreaking Digital Transformation Development Policy Loan (DPL). This initiative is geared toward revolutionising government operations, fortifying digital infrastructure, and expanding financial inclusivity through the power of technology. Spearheaded by the World Bank, this initiative carries a mission to stimulate digital service growth while fostering a conducive environment for digital finance.
The development objective of the First Digital Transformation Development Policy Financing for the Philippines is to support government reforms to foster an enabling environment for greater digital technology adoption by (a) improving the digital transformation of government and digital infrastructure policies, (b) expanding financial inclusion through digital finance, and (c) boosting business growth in digital services.
At its core, the DPL aims to digitise governmental operations and service provisions. By harnessing the potential of digital infrastructure, it seeks to infuse efficiency and transparency into public services, empowering individuals distanced from traditional decision-making centres. Ndiamé Diop, the World Bank Country Director for key regions, highlights the transformative potential: “Greater adoption of digital technology can enhance government service efficiency and transparency, empowering previously marginalised individuals.”
The pivotal shift toward digital payments is a cornerstone of this initiative. Presently, cash dominates everyday transactions in the Philippines, including crucial areas like grocery purchases and government service payments. However, transitioning to a cashless economy is poised to unlock numerous advantages, especially in times of crisis.
Smita Kuriakose, Lead Economist at the World Bank, emphasises, “A cashless economy facilitates swift responses during disasters, ensuring prompt government assistance and insurance payouts for affected individuals.”
The costs associated with cash-based economies are substantial. Not only do they burden government revenues, but they also pose indirect challenges such as heightened fraud risks and service delays. Recognising these challenges, the initiative aims to mitigate these drawbacks by advocating for digital transactions.
Despite a surge in internet usage, the Philippines has yet to fully harness the potential of digital technology due to high internet access costs, particularly for small businesses. This impedes their ability to leverage digital tools for growth. The DPL seeks to address this issue by investing in broadband services, aiming to lower costs and enhance accessibility.
Moreover, the initiative aims to foster financial inclusion among individuals and businesses. By promoting broader acceptance of digital payments and reinforcing trust in digital financial services, the DPL aims to empower underserved segments, including women, and propel the shift from cash reliance to digital empowerment.
Ultimately, this initiative is a holistic push towards a digitally transformed Philippines. By championing reforms that bolster digital infrastructure, elevate financial inclusivity, and stimulate competition in digital markets, it’s steering the nation towards a future where technology becomes an enabler for growth and inclusivity.
In an exclusive interview with OpenGov Asia, Dr Enrico C. Paringit, Executive Director of DOST-PCIEERD, underscored the strategic focus on fostering innovation and driving industry development in the Philippines, tethering initiatives to the broader vision outlined in AmBisyon Natin 2040, while aligning research endeavours with the Harmonised National Research and Development Agenda (HNRDA) for 2022-2028.
