ONE of the mandates given to the administration’s Consultative Committee (Con-Com) on constitutional reform is to review the economic policies prescribed in the 1987 Constitution.
Many among charter change advocates endorse liberalizing key industries such as telecommunications. Some would even go as far as opening the utilization of our natural resources to foreign entities. Their core selling point is the potential influx of foreign direct investments (FDI) to the country.
Notably, in a letter submitted to the Senate Committee on Constitutional Amendments, the Makati Business Club, one of the more vocal and ardent promoters of economic liberalization, cited three major impediments to FDI growth in the Philippines: “(1) the perception of high levels of corruption in government; (2) restrictive foreign ownership rules; and (3) uncompetitive labor compliance costs.”
Obviously, simply removing foreign ownership restrictions would not automatically bring in more FDI to the country because the other two obstacles must be addressed as well. Nevertheless, the administration’s Con-Com should still give serious consideration to lifting foreign ownership restrictions.
Article XIV, Section 4 (2) of the 1987 Constitution provides: “Educational institutions, other than those established by religious groups and mission boards, shall be owned solely by citizens of the Philippines or corporations or associations at least sixty per centum of the capital of which is owned by such citizens.”
Removing such restriction makes it plausible to imagine higher learning institutions such as Carnegie Mellon establishing a campus in Baguio, Dumaguete or Marawi. And while investors in the field of education may not bring spectacular numbers in terms of FDI, if the scenario painted here does eventuate, a whole range of economic opportunities immediately becomes available to Filipinos in these areas.
The Con-Com should also reconsider the restriction found in Article XVI, Section 11 (1) which states: “The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens.”
Removing this obstacle makes it possible to envisage international film outfits establishing a fixed presence in a region such as Calabarzon. This region not only has the biggest population in the Philippines but it is an area rich in history and replete with amazing scenery. Reshaping this region in the image of Auckland, New Zealand would not be wishful thinking.
The Con-Com can likewise consider liberalizing the advertising industry. Removing this restriction can pave the way for international boutique firms to set up shop in major growth centers such as Cebu, Davao and Cagayan de Oro.
It is important to remember though that economic liberalization does not automatically mean the absence of government regulation. The intervention of the state in these sectors is still necessary to ensure trade practices are fair and just, consumer rights are protected and our national patrimony is preserved. (Michael Henry Ll. Yusingco, LL.M)