‘Such is the fate of many forward-looking reforms that had to surmount the hurdle of the legislature.’
LEADERS of the House of Representatives, along with a majority of congressmen, are convincing the Senate to act on their Resolution of Both Houses No. 2, which seeks to amend economic provisions of the Constitution. The resolution was adopted by the House on third and final reading last June 1.
The resolution wants to insert the phrase “unless otherwise provided by law” to the constitutional provisions on national economy and patrimony; education, science and technology, arts, culture, and sports; and on general provisions to give Congress flexibility to enact laws that would free up the economy to foreign investors.
Speaker Lord Allan Velasco and Albay Rep. Joey Salceda believe that the measure will open the economy to more foreign direct investments (FDIs), noting that since the Filipino people’s approval of the 1987 Constitution, the nation has been most restrictive to FDIs, thus contributing to our slow progress.
Citing data from the World Economic Forum, Congressman Salceda said the “FDI restrictions also resulted in the presence of oligopolies, making the Philippines the most oligopolistic in the region.”
Most economists like Salceda believe that if the Philippines opens its doors further to foreign investors through easing of foreign ownership restrictions, the country can exponentially grow the same way as Vietnam which has its own Foreign Investment Law passed in 1987.
When asked what legacy he will leave to the nation when he finally ends his presidential term next year, President Rodrigo Duterte said his biggest accomplishment is the dismantling of the oligarchy in the country. While he really tried to do this, we submit that his efforts are not yet fully completed to claim victory.
Salceda agrees with the President when he said that oligopolies reduce the investment appetite. He pointed out that “operating as monopolies and oligopolies, the corporate conglomerates (which dominate Philippine economy today) find it convenient to restrict production and investment below the competitive level.”
The Albay congressman said more modern technology and knowledge transfer will enrich the country and push the economy forward with the entry of more foreigners, and this can be done by doing away with the restrictive and protectionist provisions of the Cory Constitution.
The Senate, however, is tepid on this issue of economic provisions in the Charter, saying they lack the material time to act on the measure. Perhaps in the next Congress?
Leftist lawmakers, meanwhile, are wary of the joint resolution because it might open the Constitution to political provisions other than just economic.
Such is the fate of many forward-looking reforms that had to surmount the hurdle of the legislature.
