EDITORIAL - Cha-cha by legislation

As expected, Malacañang has reiterated that President Aquino remains cool to proposals to amend the Constitution for whatever purpose. The statement was issued amid reports that in the first quarter of the coming year, congressmen planned to introduce amendments to certain economic provisions in the 1987 Charter through the legislative route.

The President has no direct hand in Charter change, but his support can facilitate the process in Congress. Previous efforts to win him over to Cha-cha have failed, mainly because – if reports are accurate – he does not believe the effort will be limited to economic provisions. He is said to fear that the situation can spin quickly out of control to include political changes, as certain lawmakers want.

If the President remains firm in his opposition to Cha-cha, he will have to step up efforts to attract more investments that will generate decent jobs and make economic growth inclusive. Analysts have described the Philippines as one of the best performing economies in the world, but the administration itself admits that the benefits of this positive performance are not trickling down to the poor.

Apart from the yawning income gap, the country also lags behind many of its neighbors in attracting foreign direct investment. FDI is needed to create the kind of employment that will make it unnecessary for millions of Filipinos to seek better opportunities abroad, where they risk physical, sexual and other forms of abuse.

Over the years the country has been left behind by its Asian neighbors in economic progress. Today newly democratic Myanmar has been added to the list of competitors, proffering attractive investment incentives.

The cost of electricity in the Philippines – already the highest in Southeast Asia – will further dampen investment and economic activity once the hefty spike in power rates is implemented at the start of the year. Some lawmakers have proposed that the government slash the tax component in the proposed rate increase, or use part of the Malampaya fund to ease the burden on consumers.

Such measures do not call for Cha-cha. If the administration is cool to amending the Charter by any mode, it will be good to show that executive action will do just fine. The administration can start by dealing decisively with problems in power supply and pricing.