AS the plenary deliberations for Constitution change start on Monday (February 15), economist-lawmakers stated the Decision of Each Homes (RBH) No. 2 is important for the nation to have the pliability to answer inevitable modifications in world financial circumstances.
In a letter to Home Committee on Constitutional Amendments Chairman and AKO Bicol Celebration-list Rep. Alfredo Garbin Jr., Marikina Rep. Stella Luz Quimbo emphasised that “the one everlasting factor in an economic system is change.”
Because the nation prepares for financial restoration post-pandemic, Quimbo, nevertheless, added that “we have to act now. We have to introduce flexibility into the financial provisions of our Structure in order that the Legislature has leg room to steer the economic system in response to the calls for of the time.”
She continued: “If the Structure holds vital financial constructions akin to management over capital, entry to sources, limitations to entry as mounted, we will probably be left behind.”
Opposite to considerations that the proposed amendments would enable for the unregulated inflow of overseas capital that might threaten native industries, Quimbo stated “the proposal below RBH2 just isn’t a free move for all overseas investments to return in.”
That, she identified, “is the brilliance of it—it gives flexibility however nonetheless permits the legislature to handle the concern of a few of our countrymen that we’ll be inundated with overseas enterprise leaving native business to wither away.”
In keeping with Quimbo, the phrase to be added, ‘except in any other case supplied by legislation,’ is “each liberating and serves as a safety clause. It permits our financial laws to evolve with the occasions.”
The legislator identified that as 1987 Constitutional Fee member Dr. Bernardo Villegas had stated within the Committee’s hearings, the financial provisions within the Structure have been initially written when the Philippines was the “Sick Man of Asia” and “had little to achieve from opening up and arguably extra to achieve from protectionist insurance policies.”
At the moment, she added, “the Philippine economic system has metamorphosed. Like a Phoenix rising from the ashes, it was, previous to Covid, probably the most promising growing economies, slated to maneuver as much as upper-middle-income standing in 2020.”
The pandemic confirmed, nevertheless, “that such standing can solely be achieved if we’re in a greater place to compete for overseas investments, which we’re quick shedding to international locations akin to Vietnam,” warned the lawmaker.
For his half, Methods and Means Committee Chairperson and Albay 2nd District Rep. Joey Salceda, listed the next among the many advantages of amending the restrictive financial provisions of the Structure— extra overseas investments, extra competitors and higher companies for Filipino shoppers.
Salceda defined that overseas buyers coming in as new gamers in numerous industries would supply native gamers much-needed competitors that in the end profit shoppers.
“It’s not simply because it [FDI] is a supply of capital. Shopper welfare requires competitors, and FDI restrictions defend the oligarchs, breeds oligopolies, and due to this fact reduces client welfare,” added Salceda.
Voting 64 affirmative, 3 unfavourable with 3 abstentions, the Home Committee on Constitutional Amendments has adopted Decision of Each Homes No. 2 filed by Speaker Lord Allan Velasco in search of to present Congress the pliability to amend the restrictive financial provisions of the 1987 Structure to assist the Philippine economic system get better from Covid-19.
The decision seeks to amend sure financial provisions of the 33-year-old Constitution significantly Articles XII (Nationwide Financial system and Patrimony), XIV (Training, Science, Expertise, Arts, Tradition and Sports activities) and XVI (Common Provisions).
It seeks to insert the phrase “except in any other case supplied by legislation” to a number of sections of the Structure, which prohibit overseas possession of public utilities, academic establishments, media and promoting. The addition of this phrase will enable Congress to enact legal guidelines to release the economic system to overseas buyers, or preserve the established order.