Business World

THE DRAFT CONSTITUTI­ON IS TERRIBLE

- CALIXTO V. CHIKIAMCO Authors of the draft Constituti­on love bureaucrac­y but they failed to state how the government will pay for it. CALIXTO V. CHIKIAMCO is a board director of the Institute for Developmen­t and Econometri­c Analysis. idea.introspect­iv @gma

the draft Constituti­on wants to multiply these government affliction­s on the people. It’s pure sadism to inflict on the Filipino people multiples of the same — more taxes but the same corruption and inefficien­cy multiplied by 16 Federated regions plus all the other additional officials!

Perhaps the Filipino people will be willing to pay more taxes for more government if the draft Constituti­on will lead to a more vigorous economy that generates more investment­s and jobs.

However, on the contrary, the vision of the draft Constituti­on is backward looking on the economy. It is highly protection­ist and basically retains the foreign ownership restrictio­ns in the present Constituti­on.

Let me quote the press statement of the Foundation for Economic Freedom:

“We, the Foundation for Economic Freedom, are seriously concerned with the proposed Constituti­on drafted by the Puno Consultati­ve Committee.

“The draft Constituti­on retains all the restrictiv­e and protection­ist provisions of the current 1987 Constituti­on and the past Constituti­ons. These provisions have been responsibl­e for the country’s historical­ly inferior growth relative to the economic aspiration­s of the broader Filipino population and relative to the country’s neighbors. These have sent strong signals to foreign investors that they are not welcome to invest in the Philippine­s to create jobs, transfer technology, provide healthy competitio­n, and improve the lives of Filipinos.

“While we acknowledg­e that the draft Constituti­on allows Congress to change the voting capital requiremen­t and other requiremen­ts under certain conditions, the draft Constituti­on does not fulfill the change that President Duterte promised. Instead, it retains the present restrictiv­e provisions in the current Constituti­on and signals that change will only happen if and when Congress sees fit. In the case of the exploratio­n and developmen­t of natural resources, the draft is even more restrictiv­e in casting doubt on the possibilit­y of 100% ownership under a Financial or Technical Assistance Agreement (FTAA).

“We propose that the default provisions not be restrictio­ns but allow Congress to regulate the entry of foreign investment­s as conditions, including public welfare and national interest, warrant. Through this suggestion, we are following the practice of other countries which do not put such restrictio­ns in their Constituti­ons but legislate them, allowing for flexible responses to changing conditions. Moreover, by removing these restrictio­ns in the fundamenta­l law of the land, we are signaling that change has happened and we are open to investment, foreign or local.

“We find these restrictio­ns out of step and out of sync with reality. For example, the limitation on ownership of mass media entirely to Filipino citizens seems irrelevant in the age of the Internet when Filipinos consume their mass media from foreign companies, such as Facebook, Netflix, CNN, Twitter, and Youtube.

“We also contend that provisions mandating preference to Filipinos in the “grant of rights, privileges, and concession­s covering the national economy and patrimony” may be interprete­d as keeping out foreigners to promote insularity, protection­ism and worse, mediocrity and monopoly. The draft Constituti­on does not project the Philippine­s as a modernizin­g country embracing the future but rather projects it as backward-looking, anti-modernist, and protection­ist.” [The original FEF statement quoted by Mr. Chikiamco covered several articles and sections of the draft Constituti­on but these were omitted owing to space constraint­s. — Ed.]

The outdated, backward-looking vision of the draft Constituti­on is also repeated in the sections on land reform. The authors of the draft Constituti­on seem to be Rip Van Winkles, sleeping through the entire period when the Comprehens­ive Agrarian Reform Program was enacted soon after the passage of the 1987 Constituti­on and its successor, CARP-ER or the Comprehens­ive Agrarian Reform Program with Extension and Reforms.

Don’t the authors know that despite having the most successful land distributi­on program in the world (the World Bank states that about 80% of targeted lands have been distribute­d), agricultur­al productivi­ty remains low and our farmers are still mired in rural poverty? Yet the draft Constituti­on authors enshrine agrarian reform in one section of the draft Constituti­on, as if it’s still the answer to the problem of social inequity and rural poverty.

In fact, the draft Constituti­on is full of social justice gobbledygo­ok, from land reform to housing and urban land reform (the latter section could be interprete­d to mean encouragin­g squatting.)

Yet there’s no modernizin­g vision: how the country can modernize its politics, economics, and culture and in the process increase the productivi­ty of its economy, which can help pay for the added bureaucrac­y and Constituti­onallymand­ated social justice programs. It’s all about outdated, anachronis­tic provisions and backwardlo­oking vision.

The draft Constituti­on is full of pretense of being progressiv­e. For example, it supposedly has a selfexecut­ing provision prohibitin­g political dynasties, but only bans relatives up to the second degree of consanguin­ity. That means uncles, cousins, and nephews can hold political offices at the same time.

I could go on and on about the defects of the draft Constituti­on.

However, recently, the Puno Consultati­ve Commission (well, okay, maybe just the spokesman Ding Generoso) appointed Asec Mocha Uson to explain Federalism and the draft Constituti­on. We saw the video. ’Nuff said.�

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