FEF statement of support for Charter change on lifting economic restrictions

August 28, 2015 at 15:01

FEF statement of support for Charter change on lifting economic restrictions

by BusinessMirror – 

WE, the Foundation for Economic Freedom (FEF), support the ongoing deliberation at the Lower House on the Resolution of Both Houses 1 (RBH1), or the Belmonte Resolution that seeks to amend the restrictive economic provisions of the Constitution.

We laud the House Speaker for firmly pursuing said measure amid threat of possible derailment brought by sudden changes in the political atmosphere and calls for political Charter Change. 

It is high time that we amend the Constitution. The country’s economy continues to be in an upswing, registering a growth of 6.4 percent in second quarter 2014, however, growth has not translated into employment. As we have often said, “more investments mean more jobs.”

The Philippines has a low domestic savings rate but this can be augmented by foreign investments. It is the firm belief of the foundation that opening up the economy to foreign investors and allowing more freedom in investments and flow of factors of production will lead to more economic activity that will benefit all. 

Moreover, entry of foreign investments in strategic industries that are highly technical and require high capitalization is a win-win scenario. Foreign investments are expected to provide competition and break monopolies of existing market giants and increase consumer welfare through better service delivery and more choices. 

Enough with the negative propaganda of foreign investors owning our land. The intent of RBH1 is not an outright removal of the restrictive economic provisions. 

The insertion of the phrase “unless otherwise provided by law” in certain sections of the Constitution means that the provisions are not fixed but flexible, and can be further defined by laws that will need to be legislated in Congress. 

We will still define the sharing and extent of ownership. 

The global conditions are not the same as before. For a developing country like ours, there is much to be gained from opening up and taking full participation in the global market. 

It is true that removing the restrictions is but one of the many factors that we need to get the market fundamentals right. But further delaying the amendments will further delay our opportunity at development, especially now when investor confidence is high. It is our choice whether to adapt or to perish.

Source: www.businessmirror.com.ph

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