Reconstruct the
skeleton, reconnect the neurons
The Driving
Question: In the Philippines, are
free market forces, unfettered by government intervention or regulation,
adequate for providing appropriate deployment of the national information
infrastructure in support of health and health care?
Let me start with a simple definition of a “free market”: A
free market is a market economy based on supply and demand with little or no
government control.[1]
Based on the phrase, government control is not issue in a free market world.
Business is business. Players can do anything they want around this domain
given that they do not do acts liable to a nation’s supreme rule and ethical
principles.
Then here comes the issue: The deployment of a National
Information Infrastructure in support of health and healthcare. Infrastructure
and Telecommunications (ICT), which is dominated by private companies, plays a
critical role for its development and future. The NII will not work without its
nerves and skeleton.
The national information infrastructure is a vast market for
these ICT private players, why? It is their territory, their bread and butter and
most importantly, our country has not yet laid the foundations before they
started rolling out. They (at some point) did the legwork. During the early
Philippine government, modernizing the infrastructure and telecommunications
has already been planned, for they saw its potential and crucial role of
uniting the archipelago and weld its diversities. But until now, this remains a
blueprint. It was not fully acted upon and was passed on from administration to
administration until it was slowly parked and was then overruled by private
sectors. The deregulation and privatization acts added to the loose control
over things. The government allowed these big players succumb to the pockets of
the middle and low class citizens which are an enormous portion of the pyramid.
They control things to generate more
profit. They dictate the tempo of an economy.
The Philippines, like any other country, have a lot of players when it comes to this field which results to dreaded thing called “competition”. To some extent, business competition creates more gaps rather than binding to achieve a major goal: to make life easier through ICT’s. The profit generated from the ICT business is colossal. This in return, attracts more and more players to the domain, adding more complexities and chaos. The image on the left side is an example of a colossal revenue, Telecommunications. This chart was from the recent "text refund" mandated by the NTC to the two Telco moguls. They of course, do not want to abide. :) (image taken from: https://wawam.files.wordpress.com/2012/11/refund-telco2.jpg)
The Philippines, like any other country, have a lot of players when it comes to this field which results to dreaded thing called “competition”. To some extent, business competition creates more gaps rather than binding to achieve a major goal: to make life easier through ICT’s. The profit generated from the ICT business is colossal. This in return, attracts more and more players to the domain, adding more complexities and chaos. The image on the left side is an example of a colossal revenue, Telecommunications. This chart was from the recent "text refund" mandated by the NTC to the two Telco moguls. They of course, do not want to abide. :) (image taken from: https://wawam.files.wordpress.com/2012/11/refund-telco2.jpg)
For me, good governance is still the key. The government
initiating plans for the improvement of health through the use of the present
technology is a great start. Through the Philippine Health Interoperability and
Exchange framework, we had a clearer view of the future of the NII. But it has
to rebuild its skeletons and reconnect its neural network. The government
should act as the steward of its development.
Based from history and the readings provided, the government
cannot do these alone. At some point, it will still need some help from other
sources (e.g. Private companies), even if it’ll be minimal. On the other hand,
the private sector should debunk its high profitability ideology and support
the advocacies for a national information infrastructure. It is easier said than done? From here, policies and laws take charge. The government has to review the present ICT
situation and design strategies and amendments that do not impede both public
and private interests. These will give direction to a more favorable system. It
can yield to an endless private-public relationship that should be dictated
more by the public sector. It can create an equilibrium where in the rules are
beneficial to both sides. The Private-Public Partnership (PPP) is the best
model for this idea. In an article about PPP, Marissa Miley stated,” The
definition of a PPP differs greatly across sectors, countries, and even US
government agencies. Broadly speaking, such a partnership involves financial
and in-kind commitments from private players such as corporations or
foundations to enhance public projects. Ideally, the partners share common
goals.[2]”
A win-win situation for both sectors will render positive results. Examples of an envisioned collaboration,
1. The most 2006 report found in the Department of Energy (DOE) website states that electrification of rural areas is not yet 100% attained. Electricity should be accessible to all Geographically Isolated and Disadvantaged Areas (GIDA’s) which will be paid by the government for a minimum cost but would not hurt the electricity industry.
2. Another example: Mindanao has its own network of communication lines since early 1970’s. What if it will be powered by any of the two telecom giants just to create a Mindanao health line?
1. The most 2006 report found in the Department of Energy (DOE) website states that electrification of rural areas is not yet 100% attained. Electricity should be accessible to all Geographically Isolated and Disadvantaged Areas (GIDA’s) which will be paid by the government for a minimum cost but would not hurt the electricity industry.
2. Another example: Mindanao has its own network of communication lines since early 1970’s. What if it will be powered by any of the two telecom giants just to create a Mindanao health line?
To summarize, we cannot discard the idea of a free market in
the construction of the national information infrastructure. A definitive
action from the public sector or authorities will help regulate the
environment. It will be more effective
with government intervention. In the end, a free market with fair-play.
Let me end with this phrase cited from T.H. White “The Destiny of Man is to unite, not to
divide. If you keep on dividing you end up as a collection of monkeys throwing
nuts at each other out of separate trees.”
Sources:
https://www.doe.gov.ph/power-and-electrification/expanded-rural-electrification
http://freemarketeconomy.net/what-is-a-free-market-economy/
http://freemarketeconomy.net/what-is-a-free-market-economy/
For PPPs in general to be helpful, the government should do its sovereign duty to protect the welfare of the people and not the profit that will be generated from the people. This would almost be impossible to happen in a government where bureaucratic red tape and corruption reign supreme. In a critical sector like health, the lack of good governance will be felt hard and thus unacceptable.
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