Amendments to eco provisions of Constitution urged

MANILA, Philippines - The Foundation for Economic Freedom (FEF) is urging Congress to amend economic provisions in the Constitution to promote inclusive growth and strengthen national security.

In a statement yesterday, the FEF said Speaker Feliciano Belmonte Jr.’s proposal to introduce changes to the economic provisions of the Constitution would be beneficial in the country’s goal of making the strong economic growth benefit more people and achieving national
security.

“We call on Congress to promote inclusive growth, reduce poverty, generate jobs, improve consumer welfare, enhance competition,
modernize our strategic infrastructure, and strengthen our national security in an all-around way by passing the Belmonte bill to amend
the Constitution,” the group said

Belmonte’s resolution seeks to insert the phrase “unless otherwise provided by law” to Articles XII (national economy and patrimony), XIV (education, science and technology, arts, culture  and sports), and XVI (general provisions) for Congress to be able to ease restrictions
on foreign ownership in certain industries in the future.

The group said the proposal would provide the key to opening up areas of the economy to more foreign investments, thereby providing more competition, facilitating technology transfer, generating jobs, and improving consumer choice.

The country’s strong economic growth, which has been driven primarily by domestic consumption, has not led to more jobs and reduced poverty.

“Through the restrictive limits set in our Constitution, we are signalling to foreign investors that they are not we come, especially in critical areas like the establishment and operation of public
utilities,” the FEF said.

The group said enabling Congress to open up areas of the economy currently prohibited by the Constitution would also strengthen national
security.

“By increasing foreign direct investments, the country will increase the economic interest of our friends and allies in the international community to maintain our territorial integrity and to uphold freedom
of navigation in the West Philippine Sea,” the group said.

Well-capitalized foreign companies can help modernize and provide competition in strategic sectors of the economy like seaports,
airports, telecommunications, shipping, and air transport which are vital for the country’s national security.

“If well-capitalized world-class companies are allowed to own and operate public utilities like airports, seaports, shipping, and
telecommunications beyond the present limit of 40 percent set by the Constitution, the quality and quantity of bidders for PPP
(Public-Private Partnerships) will dramatically improve.  This can only auger well for PPP Projects particularly in strategic
infrastructure,” the FEF said.