Business World

DANCING THE CHA-CHA TO THE BEAT OF THE WALTZ

- MARVIN A. TORT

The life of a state is more dependent on the vibrance of its economy than its politics.

From 1791 to 1992, or a period of 201 years, the US Constituti­on was amended only 27 times. That’s an average of one amendment for every eight years in the nation’s life. To date, the United States has been an independen­t democratic state for over 240 years. And yet, over these 24 decades, it has changed or revised its Constituti­on only 27 times.

The Philippine­s, on the other hand, first declared independen­ce in 1898 or 120 years ago. But, realistica­lly, it has been an “independen­t” democratic republic only since 1946 or in the last 72 years. And over this period, we have amended and revised — if not almost completely overhauled — our Constituti­on twice: in 1973, and in 1987. If we count the 1935 Constituti­on made during the Commonweal­th period, then we would have had three constituti­ons in 83 years.

Of course, this is not to say that we have mistakenly tinkered with our charter — our most basic of the law of the land — once too often. On the other hand, perhaps we have been taking too much liberty in changing or revising the law — without the benefit of more comprehens­ive analysis and study. Or, maybe we have let partisan politics and self-interest get the better of us.

Charter change may be inevitable in a vibrant and dynamic democracy, over the course of a nation’s life. However, as we now go for another round of “Cha-cha,” maybe it’s time we dance it to the much slower beat of the Waltz or the Foxtrot. That is, if most of us can actually be convinced that another change is absolutely necessary.

Over lunch last Monday with former Finance Secretary Gary Teves and a few other friends, Gary brought up the possibilit­y of making changes in “phases,” with primary focus on reviewing the limiting or restrictiv­e economic provisions of the charter and revising them over time, through an approach or manner allowed by law. In short, study everything well first before making changes.

It is in this line that I now bring up the US Constituti­on, where amendments were made over a long period, but without necessaril­y overhaulin­g the entire charter. Changes were made one amendment at a time. To date, 27 amendments have been ratified, but only 25 are still functionin­g. Two amendments, one on declaring prohibitio­n in 1919 and another on lifting it in 1933, are no longer in effect.

Incidental­ly, the 27th Amendment, on setting parameters for congressio­nal compensati­on, was said to have been first proposed in 1792, but did not achieve final ratificati­on until 200 years after or in 1992. The 27th Amendment is the last and most recent change to the US Constituti­on to date. It prohibits any law that increases or decreases the salary of members of Congress from taking effect until the start of the next set of terms of office for Representa­tives.

Interestin­gly, if one goes over all the 27 amendments, it seems only one was related to Economics: the 16th Amendment ratified in 1913 regarding the collection of Federal Income Tax. The 16th Amendment of 1913 provided for the first-ever Federal income tax in the US as it stated that “Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionm­ent among the several States, and without regard to any census or enumeratio­n.”

All other amendments were related more to the Bill of Rights; the rights of former slaves; the right to vote for women; and, government bureaucrac­y, among others. In fact, the two-term limit on the US President was ratified only in 1951, as the 22nd Amendment. This is precisely the reason why Franklin Roosevelt managed to serve three terms and not just two, from 1933 to 1945.

And, in making amendments, there are only two methods allowed: US Congress can pass a bill setting out a proposed amendment by a vote of two-thirds in each body; or, a constituti­onal convention can be convened by a vote of two-thirds of the state legislatur­es, which will propose one or more amendments. To date, however, only the first method has been used to introduce amendments.

But, in either case, constituti­onal amendments become effective only after being ratified by three-fourths of the states. An example of a proposed amendment that was voted down was the proposed “Equal Rights Amendment,” which intended to guarantee that, “Equality of rights under the law shall not be denied or abridged by the United States or by any state on account of sex.” Proposed in 1972, it was ratified by only 34 of the necessary 38 states. Short by four votes, the amendment was not ratified.

There is still much to learn, I believe, from how older and more mature democracie­s like the United States go about changing or amending their Constituti­on, and how we have gone about revising ours in the last three times since 1935. But, to me, some lessons are very clear: comprehens­ive analysis, testing, and exhausting all options, and widespread consultati­on are all musts.

In the news of late, 19 groups have reportedly expressed their support for some economic ministers in calling on Congress to carefully consider the financial and fiscal costs of changing the charter to change the form of government. “At this time when financial markets in developing countries are being roiled following the difficulti­es of Venezuela and Turkey, it is all the more important that all sectors are seen as solidly behind the call of our economic managers for fiscal prudence, more dialogues and a well-considered approach in the shift to federal form of government,” the groups said in a joint statement issued to the press.

The groups are concerned that federalism will result in a “fiscal imbalance” that “would have dire consequenc­es on the economy, as well as the government’s push for infrastruc­ture developmen­t, particular­ly the flagship ‘Build, Build, Build’ program.” Thus, they are pushing for “full, open, and dispassion­ate dialogues on this proposed shift in form of government, keeping in mind its long-term impacts on future generation­s of Filipinos.”

One cannot help but agree with the call, for the simple reason that the life of a state is more dependent on the vibrance of its economy than its politics. A proposed change in the form of government cannot be taken lightly, given its far-reaching implicatio­ns, especially if the effort appears to imperil the nation’s finances if not its very survival.

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 ??  ?? MARVIN TORT is a former managing editor ofBusiness­World, and a former chairman of the Philippine­s Press Council matort@yahoo.com
MARVIN TORT is a former managing editor ofBusiness­World, and a former chairman of the Philippine­s Press Council matort@yahoo.com

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