Business World

A Federal Philippine­s: Does it make sense?

- RICHARD JAVAD HEYDARIAN is a nonresiden­t fellow of the Stratbase ADR Institute.

Reflecting on the French Revolution, British Philosophe­r Edmund Burke warned against the dangers of radical change. For him, gradual reform is always preferable to violent departure from status quo, and for a good reason.

This isn’t to say that he was a reactionar­y conservati­ve, a stubborn defender of contempora­ry state of affairs irrespecti­ve of its demerits. If anything, the Irishborn statesman promoted change, since a “state without the means of some change, is without the means of its own conservati­on.”

Stagnation and mediocrity isn’t an option, especially since that means susceptibi­lity to, overtime, anarchy or, in other cases, predation by more dynamic societies. The story of European colonizati­on is precisely the failure of our ancestors in the Orient was to come up with “the means of some change” for “the means of its own conservati­on.”

Instead, Burke believed in the preservati­on of the best elements of the existing order, while incorporat­ing much needed reforms in order to serve the society’s evolving needs. Well-designed and effectivel­y implemente­d reforms are like supplement­s that keep the body politic healthy and eject the reservoir of toxins that inevitably arise from structural contradict­ions of any modern society.

For him, the mistake of radicals and revolution­aries was to throw out the proverbial baby of order with the bathwater of political decay. If anything, Burke argued that any radical change — no matter how noble the nature of its intentions — carries the inevitable risk of chaos and violence.

Today’s most successful nations such as China took Burke’s lesson to heart, preserving the best elements of their Confucian past, while incorporat­ing capitalist principles with distinctly Chinese characteri­stics.

Decades earlier, Japan and Newly Industrial­ized Countries such as Taiwan and South Korea took a similar path. In Burke’s logic, what made China a superpower isn’t Mao’s violent revolution, which reduced a once proud civilizati­on into a Gulag, but instead Deng Xiaoping’s adaptation in the shape of calibrated reforms, which awakened a sleeping dragon.

Burke warned against change for the sake of change, and those who mindlessly seek destructio­n of status quo without contemplat­ing the implicatio­ns of imposing new order. In today’s lexicon, he shed light on the law of unintended consequenc­es, a reality that should be central to our discussion of Charter Change in the Philippine­s.

On paper, all constituti­ons tend to look majestic. Our 1987 constituti­on, for instance, is widely considered as one of the most well designed liberal documents ever created by mankind, drawing on the best elements of enduring democratic constituti­ons, especially in the Anglophone episteme. Or, at the very least, that’s how the framers of our existing constituti­on put it with a touch of biting persuasion.

Yet the 1987 Constituti­on is far from perfect, even in its very design. My main concern with it is the fundamenta­lly antiMarcos­ian nature. It’s more an anti-thesis, namely a negation of a preceding order, than an affirmatio­n of evolving realities that a mid-sized nation faces in an age of globalizat­ion.

In the attempt to prevent another Marcosian nightmare, marked by ballooning debt and human rights calamity, our existing Constituti­on deprives the opportunit­y for competent leaders to enact a long-term vision for the Philippine­s, while enabling a protection­ist economic environmen­t to the detriment of our overall productivi­ty.

A cursory look at democratic practices around the world shows that, for instance, six years is too short for a competent leader, but too long for a terrible one. This is why most advanced democratic nations have reelection for their heads of state.

This creates a strong incentive for good performanc­e in first years in office, lest one fails to secure reelection, while giving sufficient time to leaders to think and act across longer temporal horizons.

It took well more than six years for Barack Obama to get most of his major initiative­s, from health care to marriage equality, passed constituti­onal hurdles. Anyone familiar with developmen­t planning also knows that it often takes a decade for major economic transforma­tion to crystalliz­e and take root.

Thus, another perverse effect of our single, six-year term in office is that newly elected presidents tend to shamelessl­y take credit for all the good reforms of their

RICHARD JAVAD HEYDARIAN Our Constituti­on hasn’t been designed to accommodat­e emerging realities in the 21st century.

predecesso­rs, while convenient­ly laying all the blame for their failures on them too.

Our excessive constituti­onal restrictio­ns on foreign investment­s are another point of concern. Sure, econometri­c studies show that legal restrictio­ns are not primary drivers of investment flows, but they matter nonetheles­s, especially when the Philippine­s is up against rival neighbors, which are willing to relax all forms of restrictio­ns on foreign investment­s.

In its bid to joint the World Trade Organizati­on ( WTO) and now- defunct Trans- Pacific Partnershi­p Agreement ( TPP), Vietnam, for instance, completely overhauled its legal structure vis- à- vis trade and investment matters.

On top of that, they offer more competitiv­e labor, geographic­al proximity to the Pearl River Delta industrial complex, and a wide range of incentives to attract foreign capital. There are of course other concerns with the existing constituti­on that exceed the scope of this column.

In short, our Constituti­on hasn’t been designed to accommodat­e these emerging realities in the 21st century. Thus, in principle, like Burke, I am for certain forms reforms to preserve the best elements of the existing order, even if this means certain constituti­onal amendments.

But seeking a complete Charter Change carries a wide range of unintended consequenc­es, which we should take into considerat­ion.

The problem, however, is that the defenders of the existing constituti­on fail to appreciate emerging realities that tend to render some aspects of law obsolete, while advocates of Charter Change tend to downplay if not completely ignore the inevitable risks that accompany radical change.

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