Foreign Equity and Professionals News

Let Cha-Cha begin

This is a re-posted editorial/opinion piece.

‘They want to dismantle the hurdles and they intend to do so with or without Malacañang’s support.’

SPEAKER Sonny Belmonte said he will push through with proposals to amend the Constitution, specifically the provisions reserving ownership of land and engagement in certain businesses to Filipinos. This is in line with a previous agreement with Senate President Juan Ponce Enrile. As per the agreement, the process will follow the one observed in the passage of ordinary legislation, except that passage requires a three-fourths vote by members of each chamber.

Belmonte said both chambers are taking this course despite the Palace’s lukewarm support for amending the charter at this time as the congressional leaders gathered during the last Legislative-Executive Development Advisory Council. Belmonte said most legislators feel the restrictive constitutional provisions make the country less attractive to foreign investments. They want to dismantle the hurdles and they intend to do so with or without Malacañang’s support.

Belmonte was deliberately taking the middle road. He knows quite well that any opposition from Malacañang will leave the proposed amendments dead in the water. Most legislators, after all, know which side of their pork barrel is larded.

But constitutionally speaking, the Executive Branch formally has no role in the process of amending the charter. In the four sections of the Article XVII (Amendments or Revisions), there is no mention whatsoever about the Executive Branch.

There are three ways in which the amendments may be proposed. First, is by Congress upon a three-fourths vote of its members. Second, by a Constitutional Convention called through a three-fourths vote of Congress (alternatively, Congress can pass by simple majority vote a resolution throwing the question of calling a convention to the electorate. And third, through the controversial people’s initiative.

In any case, the proposed amendments have to be ratified in a plebiscite to be called not earlier than 60 days and not later than 90 days.

We have no idea why President Aquino is not keen on amending the charter. We are sure he knows those restrictive provisions have to go if we are to attract the levels of foreign investments that enabled Thailand to recently reach the status of an upper-income middle economy (a per capita income of $4,200 against the Philippines’ $2,000).

Perhaps, he simply does want to be dragged into a war with the noisy “nationalist” fringe, some factions of which are formally allied with his administration.

Whatever is holding Aquino back, it makes good political sense for him to let Belmonte and Enrile carry the charter change ball. His administration gets the benefits, without spending political capital of his own.
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Source: Malaya Business Insight, Editorial, Aug. 22, 2011
To view the original article, click here.

This article is relevant to  Part IV: General Business Environment – Foreign Equity and Professionals.

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