The chair of the House Committee on Constitutional Amendments on Wednesday said the existing economic restrictions in the 1987 Constitution have counteracted the structural reforms that were introduced to further liberalize the Philippine economy.
In his sponsorship speech on the Resolution of Both Houses No. 6 calling for a constitutional convention to amend the Constitution, Cagayan de Oro City Representative Rufus Rodriguez said despite the passage of the amendments to the Retail Trade Liberalization Act, the Foreign Investment Act and Public Service Act in the previous administration, the reality is that constitutional limitations contravene the objectives of these laws.
Rodriguez, further citing statements and position papers coming from the business sector during the public consultations, maintained that those amendments are not sufficient.
“We should consider that the Constitution is the fundamental law of the land and all laws must conform to it and not the other way around. Meaning, not unless and until the constitutional restrictions are removed, the apprehensions and hesitancy on the part of the investors will consequently remain,” he said.
He pointed out that the 1987 Constitution contains numerous restrictions against the flow of foreign capital in specific areas of economic activities.
“Although the restrictions on foreign ownership are designed to prioritize Filipino citizens, it is noted however, that the country sorely lacks the requisite capital to boost our economy and develop our natural resources. It is high time to liberalize such restrictions in order to encourage the free flow of capital in the country and pave the way to global competitiveness,” he said.
He said the Philippine Constitution needs to be reviewed claiming it is the third most restrictive in the world and the most restrictive in the Association of Southeast Asian Nations (ASEAN).
Citing a graph from the Organization of Economic Cooperation and Development (OECD) in 2020, Rodriguez said the Philippines is the most restrictive in terms of foreign equity capital which are enshrined in the Constitution.
“Despite the efforts of Congress to address the inimical economic situation of our country, the Philippines’ FDI (foreign direct investment) Regulatory restrictiveness hampers the flow of much needed foreign investments,” he said.
He said adopting a more liberal policy will increase the country’s capital, increase firm productivity, increase government revenue, increase imports and exports, and increase the gross domestic product growth rate.
As for the rationale behind the calling of a constitutional convention, he said this mode of amending the Constitution would be “more transparent, more democratic, and less divisive.”
The constitutional convention will be composed of one delegate representing every legislative district in the country.
“It is important that constitutional reforms be completed through a transparent process that ensures the participation by the nation at large. In keeping with the sovereign mandate of the people, the new Constitution of the Republic of the Philippines should be truly reflective of the ideals and aspirations of the Filipino nation, and not just of a select few,” he said. (PNA)
Photo credit: House of Representatives website
