Economic Cha-cha seen to promote inclusive growth, boost nat’l security

The Foundation for Economic Freedom (FEF) said yesterday removing the restrictive economic provisions in the Constitution would promote inclusive growth and strengthen the country’s national security.

The FEF pushed for the immediate passage of Resolution of Both Houses No. 1 filed by Speaker Feliciano Belmonte Jr. that seeks to insert the phrase “unless otherwise provided by law” in the economic provisions in the Constitution limiting foreign ownership in certain areas of the economy.

The FEF in a statement said the phrase will provide the “key” to opening up areas of the economy to more foreign investments, thereby providing more competition, facilitating technology transfer, generating jobs, and improving consumer choice.

The measure was approved by the House committee on constitutional amend- ments and the same is expected be deliberated in plenary when Congress resumes session on May 5.

“Presently, our current growth has not led to more jobs and reduced poverty. Economic growth has been primarily consumption-driven, not investment-driven. Through the restrictive limits set in our Constitution, we are signaling to foreign investors that they are not welcome, especially in critical areas like the establishment and operation of public utilities,” the FEF said in a statement.

“Our current level of Foreign Direct Investments (FDI) remains the lowest among the ASEAN 5, namely Vietnam, Malaysia, Indonesia, Thailand, and the Philippines,” it said.

“We call on Congress to promote inclusive growth, reduce poverty, generate jobs, improve consumer welfare, enhance competition, modernize our strategic infrastructure, and strengthen our national security in an all-around way by passing the Belmonte bill to amend the Constitution,” the foundation said.

The foundation said by increasing FDIs, the Philippines’ will increase the economic interest of friends and allies in the international community to maintain the country’s territorial integrity and to uphold freedom of navigation in the West Philippine Sea.

Well-capitalized foreign companies can help modernize and provide competition in strategic sectors of the economy like seaports, airports, telecommunications, shipping, and air transport, it said.

“The modernization of these strategic areas of the economy is vital for our national security,” the FEF said.