Updating Constitution to help achieve PDP targets: Neda

NATIONAL Economic and Development Authority (Neda) Secretary Arsenio Balisacan on Monday underscored the importance of updating the economic provisions in the Constitution to attract more foreign direct investments (FDI) and help achieve the Philippine Development Plan (PDP) 2023-2028 targets toward inclusive growth.

During the Committee of the Whole deliberations on Resolution of Both Houses (RBH) No. 7, Balisacan said “massive amounts of investments” in both physical and social infrastructure, as well as human capital, are needed to attain the PDP goals of rapid and inclusive economic growth through high-quality and better-paying jobs and a single-digit poverty rate target by 2028.

Balisacan said President Ferdinand R. Marcos Jr. has given his directive to update the Constitution to “meet the daunting challenges of the present and prepare us for the uncertainties and complexities of the future”.

“We must lift restrictions on critical sectors such as public utilities, education, mass media, and advertising so that we can realize their untapped potential and enable them to contribute to the country’s economic progress,” he said.

Balisacan said the restrictive economic provisions have resulted in lower levels of FDI flows to the country, allowing the Philippines to be surpassed by its neighbors in terms of attracting foreign investments and economic development.

“Compared to our dynamic neighbors, historical data show that the Philippines has obtained a smaller share of FDI inflows that could have generated more economic and social opportunities crucial for inclusive growth and development,” he added.

Balisacan said the Philippines has missed several chances to attract FDI, technological know-how, and managerial talent, which are needed to raise the country’s productivity and competitiveness in the global arena.

Balisacan said opening up public utilities to foreign investment will improve the quality and affordability of services such as energy and water distribution, and offer viable options to address the financing gaps in the infrastructure sector.

In the education sector, Balisacan said the initiative will ensure that Filipinos can access global knowledge, skills and technology that can nurture a culture of innovation, thus positioning the Philippines as a competitive hub for knowledge exchange in the region. /