‘The restrictive economic provisions in Constitution’ (Conclusion)

In closing, I have listened intently to what some members of the Senate said in connection with the issue of amending the restrictive provisions of the Constitution. There are skeptical commentaries on the need to amend the restrictive economic provisions in the Constitution expressed by some senators. Some of these mirror some common reasons advanced by those who oppose these amendments. Let me summarize them:

(1) Foreign investors do not ask for the amendment of the economic provisions;

(2) The poor and many Filipinos do not understand the issue of “constitutional change” as discussed here;

(3) There are more important priorities than the constitutional economic reforms that we should deal with like: (a) improve the ease-of-doing-business; (b) reduce corruption; (c) improve the infrastructure; (d) reduce the cost of energy; and (d) mitigate the economic hardships of the poor, like attend to the causes of inflation;

(4) Enough has been done to amend and clarify the Constitution. We can now allow 100 percent foreign ownership of enterprises, including in energy and that some improvements have been made to liberalize foreign investments.

Let me briefly answer all these concerns.

I begin with the answer #(2) to the issue that many Filipinos – and especially the poor – do not understand the issue of constitutional change on the economic provisions in our time. I believe that this statement serves to sweep under the rug and dismiss the benefits of the constitutional changes to the poor in our country.

The poor are so challenged to improve their living conditions that they are willing to sell their votes to candidates during elections; attend any rallies if provided with food and money for any cause they don’t care much about; and seek handouts, or ayuda, wherever they can find them. If they understood that this constitutional change on the economic provisions would uplift their lives and that of their children especially, they would embrace these changes gladly.

Moreover, with respect to the general population, we should think about what people with skills and what young people think of their own hopes for the future. Many want to work abroad to earn better, not in the homeland. They see little hope that their lives will improve under present conditions of development in the country. Constitutional amendments of the “restrictive economic provisions” will definitely change the equation in the future once we all see its positive impact on development prospects for our country.

As to the comment concerning #(1) – that foreign investors do not ask about our policies concerning foreign investment – yes, they mainly worry about whether they are rewarded the return that they expect from their investments. They vote with their action – if a country fails to provide those returns, they go to the most profitable options in other countries. Investors vote with their feet! Our concern as a country in need of foreign capital is to provide a congenial and stable climate for making them earn their required return.

With respect to #(3) – various areas of activities designed to improve the economy – this is what I can say. As I see positive results from the amendments of these restrictive constitutional provisions, they would also bring improvements to all these activities that seek to enhance the ease-of-doing-business in the country; upgrade our infrastructure; reduce energy costs; make it easier to expose corruption; and, in short, increase the opportunities for conquering other economic problems. Through the creation of quality employment, and superior income-earning opportunities within our economy, our people will have rising aspirations and more hope. All these will raise our technological capability because they will make us more productive in economic terms. I see a lot of positive relationships and outcomes that will help raise our conquest of the many economic issues we face as a nation.

Finally, with respect to #(4), I do not agree with this statement that we have done enough in improving our policies as far as the restrictive economic provisions in the constitution. For one, we need to find ways to bring in foreign capital so that we can improve the productivity of land and maritime investments in the country.

For archives of previous Crossroads essays, go to: https://www.philstar.com/authors/1336383/gerardo-p-sicat. Visit this site for more information, feedback and commentary: http://econ.upd.edu.ph/gpsicat/