Reviving Cha-cha

 EDITORIAL

While the clamor from business groups and several international financial institutions to amend the economic provisions of the 1987 Constitution intensify,Malacanang spokespersons are saying this won’t happen under the Aquino administration.

As the first regular session of the 16th Congress started, several powerful lobbying groups – mostly influential business groups and international institutions urged both chambers of Congress to immediately resume cha-cha deliberations.

Now, with House Speaker Jose Belmonte espousing cha-cha to amend economic provisions, this may still be possible through legislation. 

This, as anti-Cha-cha groups like the Kabataan Partylist said they will oppose cha-cha, saying it would worsen plight of the poor and widen the economic divide.

They said lifting economic restrictions would only worsen poverty and inequality in the country.

Ahead of President Benigno Aquino III’s State of the Nation Address in July 22, at least 13 major business groups including the Makati Business Club, Employers Confederation of the Philippines, and the Philippine Chamber of Commerce and Industry called on the president to pressure Congress to pass amendments to the Constitution.

“We strongly urge your administration to consider amending the economic provisions in the 1987 Constitution, which restrict greater private sector participation,” the groups said in a letter to the president dated June 19.

The 1987 Constitution sets a 40 percent limit on foreign ownership of public utilities, land and several key industries.

The main argument of those advocating for the lifting of constitutional limits to foreign ownership is that it would generate more foreign direct investments and would stimulate economic growth. However, this could be the farthest thing from the truth,” according to Rep. Terry Ridon of Kabataan Partylist.“If we lift the current restrictions, local enterprises and businesses would suffer due to the unrestrained dominance of foreign investors. Lifting the economic limits would also open the floodgates for further exploitation of our country’s scarce natural resources, including forests and mineral reserves.”

“Generating more foreign direct investments is also not tantamount to achieving inclusive growth. The country’s experience with foreign investments in the past decades have shown how it only benefited large businesses and corporations, but in exchange stunted job generation and the growth of local industries. This scenario has largely widened the economic divide between the rich and the poor.”

“If the last remaining legal barriers to foreign exploitation will be lifted, a great number of Filipinos will become literal strangers to our own country – penniless mendicants in a nation whose lands and resources are mostly owned by foreign companies.”

According to anti-cha-cha groups people should not be fooled by the rosy picture of growth and development painted by businessmen and tycoons  as behind their statements lie more intensified poverty and exploitation.

It is still three years more of this administration and cha-cha could still happen – depending on the political mood.