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Philippine Congress receives “People’s Draft” petition
Mai News, 24 September 2021 https://www.facebook.com/permalink.php?story_fbid=4383590078345013&id=452401011463959
Saturday, September 11, 2021
Civil society for constitutional reforms (Part 2) - Dr. Bernardo M. Villegas
Civil Society for
Constitutional Reforms (Part 2)
Dr. Bernardo M. Villegas
06 July 2017
TanDem, a part of civil society organized by concerned citizens to
promote inclusive growth through political reforms, has proposed to amend the Philippine
Constitution of l987 by removing the restrictions, limitations and prohibitions
against foreign direct investments. After consulting a group of experts
over a period of six months, the members of TanDem summarized the major reasons
for their proposed amendments. I enumerate their major arguments.
The Philippines has embraced massive poverty since the birth of the Republic
until today. Out of the present estimated 104 million population, where some 65
million are in the labor force, about 4 million are unemployed while 12 million
are underemployed. To address massive poverty, it is necessary to raise
equally massive capital to create or support sustainable jobs. It costs
about Php100,000.00 to employ a single employee for one full year, based on the
lowest minimum wage and cost of business operations. It would, therefore,
cost at least a staggering 400 billion pesos to employ all the unemployed for
just one year.
Unfortunately, instead of making use of all available capital resources,
whether local or foreign, for job generation, the 1987 Constitution—together
with numerous congressional statutes and implementing rules and
regulations—have instead chosen to restrict foreign direct investments in
several sectors of the economy, to protect the monetary interests of Filipino
business people belonging to the “mayaman” class, at the expense of Filipino
workers and consumers of the middle and the “masa” classes, who are then
systematically deprived of better job opportunities and cheaper goods and
services. These restrictions curtail the fundamental right to employment,
which is the most important labor right that gives life to all other labor
rights, such as those providing for the minimum wage, working conditions,
social security, security of tenure, and self-organization. Without the
actual jobs, all other rights under the labor laws and social legislation mean
nothing to the workers.
About 10.2 million Filipinos live overseas of which some 2.4 million are
overseas Filipino workers. Common sense tells us that it is better to
allow foreign investors to move into the country and hire Filipinos locally,
rather than force Filipinos to move overseas, many of whom leave their families
behind, and then work for foreign employers in a foreign land under a foreign
government. The liberalization of foreign investments, to complement
local investments, reasonably lead to job creation (by establishing new
business enterprises or expanding existing business enterprises); consumer price
reduction (by increasing the supply of goods and services); technology transfer
(by adopting and improving foreign technology); access to foreign markets (by
tapping foreign investors to sell Philippine goods and services in their
homelands); and anti-corruption (by allowing the entry of independent foreign
competitors that can counteract the monopoly power of existing Filipino cartels
of government suppliers.
The fear of foreign investors taking over the Philippine economy is
outdated. We are no longer in colonial times during which foreign
investors came with their foreign colonial armies who helped them take control
of the national economy. Foreign colonial armies have long gone, with
only the Philippine security forces remaining to protect the interests of the
Filipino people. It is furthermore proposed that a Foreign Investment
Council be established to address the risk of foreign governments, cartels and
other groups who may pursue agendas prejudicial to the basic securities
(external, internal, food, water, energy, environmental, resource, etc.) of the
Filipino people. The institution of a Foreign Investment Council may
strike a balance between the need to liberalize foreign investments for
economic and social gains, and the need to protect the basic securities of the
people and the State. The existing inflexible legal framework
providing for blanket restrictions and criminal liability for violations drive
away the legitimate foreign investors while endowing Filipino business people
the license to capture the local market for themselves, disregarding the
divergent interests of the Filipino workers and consumers.
These arguments were not arrived at willy nilly. They were distilled from
volumes of proceedings of many hours of discussion of members of the academe,
government, business and civil society. The only guiding principle was
the common good of society, defined as a juridical or social order that enables
every member of society to attain his or her fullest integral human development.
By being more open to Foreign Direct Investments, countries like China and
Vietnam, have within the last twenty or so years attained higher levels of
human development that we have. It is about time that we do amend the
Constitution for the sake of future generations who will benefit most from a
more open economy than the one we have lived with over the last thirty
years. For comments, my email address is bernardo.villegas@uap.asia.
http://www.bernardovillegas.org/index.php?go=/Articles/723/
Civil society for constitutional reforms (Part 1) - Dr. Bernardo M. Villegas
Civil Society for Constitutional Reforms (Part 1)
Dr. Bernardo M. Villegas
06 June 2017
Reforming Philippine society to achieve sustainable and inclusive growth is painstakingly slow that sometimes one is tempted to give up. Even President Duterte realizes how difficult it is to promote good governance and fight corruption. In a less than a year of his Administration, he has sacked a good number of officials he appointed himself and whom he trusted as good and loyal friends because they were not beyond reproach. No society can progress very much without a clean and efficient State. When can we reach that desirable goal? Probably not in my lifetime, considering how other countries very much ahead of us in economic development like South Korea and Malaysia still have their shares of corruption scandals.
I console myself, however, that the Philippines is fortunate for having a civil society sector that is one of the most developed in the world. This civil society oftentimes compensates for the ineptitude and lack of integrity of government officials. There are really thousands of nongovernmental organizations that are assiduously working for the common good in fighting poverty, improving governance, educating the masses, preserving Philippine culture, protecting the physical environment, strengthening the Filipino family, overcoming gender and other forms of discrimination, fighting crime, and addressing human trafficking and the drug problem. And many more. Although some may disagree, I attribute this strength of Philippine civil society to two factors: the Christian culture we inherited from the Spanish colonizers and the spirit of voluntarism learned from the Americans. As documented by a professor of history at the University of Asia and the Pacific, Dr. Juan Mesquida, charitable foundations for the sick, for the poor and the needy founded by Catholic lay people, were already important institutions during the Spanish colonial times. I am not even referring here to the corporal and spiritual works of mercy that religious orders, especially of nuns, have put up very early in the history of Christianity. As regards the spirit of voluntarism in the United States, one can only read the writings of French social philosopher Alexis de Tocqueville about the dynamism of American civil society very early in their history as a democratic nation.
I would like to pay tribute in this article to an NGO that has been working for the improvement of Philippine democracy. I am referring to Tanggulang Demokrasya (TanDem), Inc., an association of distinguished professionals led by Chairperson Evelyn Kilayko and President Teresita Daza-Baltazar with the expert legal assistance of Atty. Demosthenes Donato. TanDem patiently and laboriously organized a series of Roundtable Discussions (RTD) in which they engaged experts on the issue of amending the 1987 Philippine Constitution to help the present and future Governments to promote inclusive growth, that is, growth that will improve the lives of the impoverished masses. Let me go for the jugular. After mustering some very powerful arguments culled from leading economists, political scientists, sociologists, philosophers, and legal experts, they are recommending the following:
a) The amendment of the 1987 Constitution and conduct of the required plebiscite on or about the next national and local elections set on the second Monday of May in the year 2019 under the term of office of the incumbent Duterte administration, to repeal ALL limitations, restrictions and prohibitions against foreign investments and services, to the end that the Constitution will embody only the general principles governing the national economy and patrimony, leaving specific economic policies to the wisdom of the legislative branch of government.
b) Pending the amendment of the l987 Constitution, the urgent repeal of congressional statutes that impose limitations, restrictions and prohibitions against foreign investments and services, to the full extent practicable and beneficial, subject to the principle of international reciprocity and the protection of the basic securities of the State through the institution of a Foreign Investment Council.
c) Pending the amendment of the 1987 Constitution, the immediate repeal of implementing rules and regulations that impose limitations, restrictions and prohibitions against foreign investments and services, notwithstanding the lack of any constitutional or statutory bases for the limitation, to promptly initiate the progressive pursuit of liberalization of foreign direct investments to augment local investments for national development and job creation.
With due respects to the other surviving members of the Philippine Commission of 1986 that drafted the Philippine Constitution of l987, some of whom are not in favor of amending the Constitution, I fully endorse the recommendations of TanDem. They capture very faithfully the personal opinions I held as a member of the Philippine Commission about the need to open the national economy to foreign investments. I was, however, constantly overruled by the majority of the Commissioners who held protectionist and ultra-nationalistic views that led to the restrictive provisions enshrined in our present Constitution. Having participated in the RTDs organized by TanDem I can attest to the fact that its members had nothing but the common good of the Filipinos, especially the needy and the poor, in mind. May their tribe increase. In the second part of this article, I outline the strong and lucid arguments that they presented for their recommendations. (To be continued).
http://www.bernardovillegas.org/index.php?go=/Articles/721/
