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Friday, August 05, 2005
Bigger foreign stake in RP firms seen good
By Charmaine Y. Rodriguez
Sun.Star Staff Reporter
Allowing foreigners to take majority control of companies in industries that currently put curbs on foreign ownership will hasten economic development, stakeholders in Cebu said yesterday.
Teresita Manguerra, Coal Alliance Cooperative chairperson, said aside from their capability to pour in capital and help the coal industry, foreign investors will bring in more jobs.
If investors put in money in a foreign country, they are also expected to abide by the rules and regulations, especially on environment protection.
“I don’t see any disadvantages. They’re (investors) in a foreign country so they will follow everything,” she added.
At present, the Constitution allows foreigners to own only up to 40 percent of educational institutions and activities like the exploration, development and utilization of natural resources. It does not allow foreign control in mass media, except in recording.
But with President Gloria Arroyo’s call to discuss amendments to the Constitution, her economic managers are now calling for the lifting of “protectionist” provisions in the 1987 Constitution to allow more foreign direct investments in industries like mining and natural resources, media, education and health.
National Economic and Development Authority head Augusto Santos has said these industries should be opened to foreigners as long as the country’s security is not undermined.
Trade and Industry Secretary Peter Favila and Finance Secretary Margarito Teves are also amenable to a review of the Constitution’s economic provisions.
Dr. Isabelita Conales, director of programs of the University of Cebu, said allowing foreigners to invest in education would translate to good school facilities and high salaries for teachers.
“The quality of education will improve, and mediocre schools will really have to cope with the changes to survive,” she pointed
out.
However, competition might also cause Filipino-owned schools to close, and foreign control of schools might also mean the westernization of the lessons taught.
Conales said Philippine culture, values and traditions should still be taught to students.
She also expressed concern that tuition might increase and only a few students might be able to afford a college education.
Kapisanan ng mga Brodkaster ng Pilipinas (KBP)-Cebu chairman Edward Abad said he could not speak on behalf of the KBP since only its national officials are authorized to issue a statement on the matter.
However, his personal opinion is that it will be advantageous to the broadcast industry to welcome foreign investments.
Due to the lack of funds, the operations of many broadcast stations today have to be subsidized by the government so the stations can come up with good programs.
Abad believes the entry of foreign investors will also give media workers a chance to get better pay and benefits.
However, there may also be a risk to media independence. “These foreigners might also protect their own interests,” he said.
(August 5, 2005 issue)
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