Philippines Leads Asia Pacific’s Turn to Openness

PH advancing fiscal transparency in APEC through the Cebu Action Plan

10 June 2015 Bagac, Bataan—The Philippines wraps up the hosting of the APEC 2015 Workshop on Fiscal Management Through Transparency and Reforms today in

Las Casas Filipinas de Acuzar. While the first day focused on open data and budget transparency, the second and last day will focus on international tax transparency and

cooperation.

In the first day, open governance reforms in various aspects across APEC member economies were brought forward. Framing the discussion in terms of opportunities,

McKinsey & Co. Associate Principal Kristine Romano projected that open data can help unlock $3.2-$5.4 trillion in economic value per year in 7 domains, in consumer

finance, oil and gas, health care, electricity, consumer products, transport, and education.

Various sessions explored how openness can optimize results in procurement and contracting, budgets and expenditures, the provision of tax incentives and subsidies,

and expanding fiscal space to target more productive public investments. Emphasis was placed on ICT innovation and citizen participation as ways to bolster fiscal

transparency reforms.

Member economies echoed the goals of making fiscal transparency work for inclusive economies. Budget Undersecretary Richard E. Moya commented, “Transparency is

not enough, it is not an end. It is a means towards efficient and effective delivery of public goods and services.”

Finance Secretary Cesar V. Purisima said, “The Philippines is ahead of the curve as an open, transparent government delivering real economic returns for our people. We

find evidence from some of our neighbors showing how the Philippine experience with good and open governance is not an isolated miracle. These are results we wish to

scale up across the region.

Together with APEC member economies, we will advance the tested idea that openness, in terms of data and citizen participation, is the best guarantee of inclusive

and sustainable growth.”

Member economies continuously develop fiscal policies to ensure fairness and integrity of tax systems in an increasingly fast-paced and interconnected world.

Sessions will highlight initiatives on international cooperation addressing tax avoidance and evasion, as well as base erosion and profit shifting. International best

practices on auditing cross-border transactions and facilitating exchange of information, such as AEOI and FATCA initiatives, will be discussed.

Openness in the extractive sector will also be an important focus as numerous economies increasingly rely on the mining, oil, and gas sectors for revenues.

Sessions will draw on the processes and standards of the Extractive Industries Transparency Initiative (EITI) and how openness benefits the management and

regulation of the extractives sector.

The 2-day workshop builds on the existing body of work and firms up the fiscal transparency pillar of the Cebu Action Plan (CAP). The CAP, proposed by the

Philippines, intends to boost financial integration, fiscal transparency and resiliency, as well as infrastructure development and financing among APEC member

economies for more sustainable and inclusive growth trajectories across the region.

Delegates will be treated to a walking tour around the recreated town of heritage houses in Las Casas Filipinas de Acuzar. Meanwhile, the Bataan Provincial

Government is set to play host to a dinner capping off the workshop.