This is an article repost.
MANILA, Philippines – The Philippines can easily triple the inflow of foreign direct investment (FDI) to at least $8 billion annually in just a few years after it amends the restrictive economic provisions in the Constitution, the chairman of the House committee on constitutional amendments said.
Misamis Occidental Rep. Loreto Leo Ocampos, chairman of the panel, also welcomed statements from US Ambassador Harry Thomas Jr. that the US supports moves to amend the Constitution drafted by appointed commissioners of the late President Corazon Aquino in 1987.
“I think our FDIs will triple from the current $2 billion to $3 billion (sic) once these constitutional reforms are implemented so that we could be at par at least with Vietnam,” Ocampos told The STAR. “We are the lowest in terms of FDI in Southeast Asia.”
The panel is set to resume hearings next week on various proposals to amend the Constitution, but lawmakers will focus only on the economic provisions. Charter change moves in the House got a boost following favorable signals from the Aquino administration.
Citing data from the Bangko Sentral ng Pilipinas (BSP), Ocampos said the Philippines obtained only $2.928 billion in FDI in 2007 compared to Malaysia, which got $8.403 billion; Thailand, $9.575 billion; Indonesia, $6.928 billion; Singapore, $24.137 billion; and Vietnam, $6.739 billion that same year.
He said the FDI inflow to the Philippines that year was actually a significant improvement from 2003 when it obtained only $491 million.
However, the flow of investments could have been much higher and faster were it not for the restrictions in the Constitution, Ocampos said.
He said the International Monetary Fund and the Asian Development Bank stressed the Philippines needs to raise its investment rate for its growth to be sustainable.
“We will focus only on the economic provisions, not the political aspect of the Constitution, because it’s the economic provisions that have direct impact on the Filipino people,” Ocampos told reporters last week.
“All our economic policies should not be in the Constitution because changing them is difficult. They should be dynamic and refinements should be just a subject of legislation,” he said.
He said amending the economic provisions will be easier than changing the political provisions “because this is where all the apprehensions set in.”
He said the common thread of various measures filed in the House seeking constitutional amendment, including the one filed by former President and now Pampanga Rep. Gloria Macapagal-Arroyo, was the opening up of certain sectors of the economy to direct foreign investments and foreign ownership.
Ocampos said development of the country’s natural resources and operation of public utilities should not be confined to Filipinos since foreign entities have also proven to be capable of developing them.
More supporters
Moves to amend the 1987 Constitution, particularly the economic provisions, gained support from three senators yesterday.
Speaking at the weekly Kapihan sa Diamond Hotel media forum, senators Panfilo Lacson, Jinggoy Estrada and Antonio Trillanes IV said the Aquino presidency provides a perfect time to review and change the Constitution.
Lacson said Senate President Juan Ponce Enrile and Speaker Feliciano Jr. recently met to reconcile Charter change proposals in their respective chambers.
“I confirm there have been initial talks between the Speaker and the Senate President on Charter change but as far as I know the discussion focused on economic provisions and not on political provisions,” Lacson said in Filipino.
He said there is a need to amend the Charter due to the effects of globalization.
“I agree that we have to revisit the economic provisions of the Constitution due to the effects of globalization and if our provision limits the entry of investments in our country, we will be left behind by our neighbors,” he said.
Lacson also favored a proposal allowing foreigners to own 100 percent of commercial and industrial lands.
He said the 60-40 (Filipino-foreign) ownership is a deterrent to investors and is not being followed as “dummies” exist in company ownership.
For his part, Estrada said now is the best time to amend the Constitution since a majority of Filipinos have strong confidence in President Aquino.
Trillanes, meanwhile, seeks the revision of economic provisions that would help address the high domestic shipping rates.
“It’s time to revisit the flawed Constitution but let us limit the amendments to the economic provisions,” he said.
==============================================================================
By: Paolo Romero with Helen Flores
Source: The Philippine Star, Aug. 16, 2011
To view the original article, click here.
Comment here