MANILA, Philippines — Among those who expressed agreement in changing the economic provisions of the Constitution is former National Economic and Development Authority (NEDA) chief Ernesto Pernia.
He believes that, at this stage, the country’s economy is slowly recovering from months of the crisis caused by the coronavirus disease (COVID-19) pandemic.
Pernia said amending the Constitution will facilitate further and faster economic growth.
He noted that one way to ensure economic progress is to welcome foreign investments into the Philippines similar to what Vietnam did where their economy progressed despite the pandemic in 2020.
The former economic head said the Philippines has the strictest measures among countries in the world in terms of allowing foreign investments.
“In fact, there are already green shoots of signs that the economy is in the early stages of recovery. But we really need to push that with policies including allowing direct foreign direct investments into the country so that this recovery will accelerate,” Pernia said.
Meanwhile, Deputy Speaker Wes Gatchalian believes that this is the right time to reopen the economy considering the number of Filipinos who lost their jobs including overseas Filipino workers (OFW) and companies that terminated their businesses.
According to Albay Representative Joey Salceda, the country’s economy will gain an additional US$5-B to US$7-B or about P240-B to P336-B every year once it opens its doors to foreign investments.
Interior Undersecretary Jonathan Malaya, during the hearing in Congress, endorsed the more than half a million signatures they collated from 72 provinces across the country supporting the amendment in the economic provisions of the Constitution.
Malaya believes the number will reach millions if not of the pandemic.
For his part, Professor emeritus at the University of the Philippines School of Economics Dr. Raul Fabella said among the challenges facing foreign investors in establishing their businesses here include high cost of electricity, the quality of judicial system and the peace and order.
He cited, as an example, the construction of the Ninoy Aquino International Airport (NAIA) Terminal 3 which amounts to US370-M dollars and has an impending case over ownership that reached the Supreme Court.
“In 2013 the court of appeals awarded Piatco 371 million dollars as just compensation. The Philippine Supreme Court affirmed the Court of Appeals’ decision in 2015, by that time the debt has ballooned to 24 billion pesos,” Fabella noted.
Research group Ibon Foundation, meanwhile, said there is no reason to change the Constitution if the issue is only about economic recovery because the government may simply provide financial assistance such as stimulus package.
“The economy’s development lies in using the protections in the Constitution to gain from foreign investment, not in taking away the protections and giving self-interested foreign investment free rein over the domestic economy,” explained Rosario Guzman, Ibon’s Executive Director and Head of Research Division.
The resolution filed by House Speaker Allan Velasco proposes the insertion of the phrase ‘unless otherwise provided by law’ in the concerned provisions that limit the entry and participation of foreign investors in the country’s economy. –MNP (with reports from Rey Pelayo)
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