The fresh initiative to amend the Constitution has a “fair chance” of succeeding this time around despite lack of support from President Benigno Aquino III, according to New York-based think tank Global Source.
“That the current president is himself not warm to the idea of changing the Constitution, which his mother, freedom icon Cory Aquino, considered to be her greatest legacy, thus paradoxically improves the chances of it happening. While he will not champion it, he is not seen as standing in Congress’ way, provided it is limited in scope,” Global Source said in an October 3 commentary written by Filipino economists Romeo Bernardo and Margarita Gonzales.
Global Source welcomed news that leaders of the House of Representatives and the Senate would turn their attention to revising the Charter in order to ease some of the limits currently placed on economic activity.
The think tank said the main foreign equity limits on economic activity in the 1987 Constitution are the following: operation and management of public utilities (40 percent), exploitation of natural resources (40 percent), educational institutions (40 percent), advertising agencies (30 percent) and private land ownership (40 percent if a Philippine corporation). No foreign equity is allowed in media ownership.
Both chambers of Congress have reportedly agreed to follow a “bicameral constituent assembly” method where both chambers would meet and vote separately following normal legislative processes, except that approved changes would be opened to a plebiscite.
“This willingness to tackle outdated provisions in the country’s charter is a welcome sign coming from the leadership of the two houses of Congress.
“While there has been wide recognition, especially in business circles, that easing such restrictions will help improve the investment climate, earlier attempts have been stymied by fears that charter change or ‘cha-cha’ would be used to lengthen term limits, including that of the President,” the report said.
Global Source said it’s likely that the new push for Charter change was being driven by concerns over a recent Supreme Court decision providing for a more restrictive reckoning of the nationality requirements in a case involving Philippine Long Distance Telephone Co., the largest corporation in the country by market capitalization, one that could potentially affect other companies with significant foreign ownership as well.
It is also feared that possible further rulings on reckoning of what the Constitution considers foreign ownership will make the country even less competitive in attracting foreign investments, the research said.
“With the sudden urgency, we believe cha-cha may actually have a fair chance of prospering this time around,” it said.
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By: Doris C. Dumlao
Source: Philippine Daily Inquirer, Oct. 7, 2011
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