Doing business in IP areas

HAPPY WEEKEND

Gina Dizon

BONTOC, Mountain Province -- Asked during a forum on constitutional reforms (CORE) here if Mountain Province should allow Jollibee, Starbucks, McDonalds to enter the place, cultural practices should be considered in the economic  program of a place, speaker-lawyer Johnny Wayet from the Kalinga State University  said during the CORE advocacy roadshow here last week of November.

Said CORE advocacy roadshow organized by the Department of Interior and Local Government emphasized the Philippines should open up and do away with its protective policies.

The CORE roadshow forwarded there is a need to amend the 1987 Constitution’s economic provisions because “some economic policies enshrined in the Constitution serve as binding constraints to growth that result in lower investments, fewer jobs, poor infrastructure, and non-inclusive development.”

Based on 10-year data from the World Bank, foreign direct investment inflows into the Philippines averaged 1.6 percent of gross domestic product (GDP). Foreign direct investments in the Philippines dropped 41% in July 2019.

CORE proposes the state shall promote the development of a dynamic and productive economy  where opportunities, income and wealth are equitably  distributed.

Currently, section 16 of the Constitution states “the state shall develop a self reliant and independent  national economy effectively controlled by Filipinos.”

The province is currently operating  industries manned by residents from  barangays and municipalities with isolated cases of  two or three  business establishments operated by those outside the province.

Such isolated arrangements independently entered into by Sagada residents for one while a provision in their municipal ordinance provides for only those with Sagada ancestry allowed to do tourism-based business in town.

Meantime, residents of this Province in its respective municipalities had been adamant in entertaining outside prospective business on energy and mining.

Social acceptance by people here on big business holds a historical landmark with that of Kalinga and Bontoc leaders in the ‘70s having opposed the infamous  360 megawatt  Chico River Basin Development project.

And on to the Mountain Province’s united consistent stand against large scale mining introduced  by a number of mining corporations. 

The most quoted free prior and informed consent (FPIC) by indigenous peoples on any project introduced in their lands comes as a major requirement before any project is initiated in Sagada or Mountain Province.

               The FPIC provision in the indigenous peoples rights act  (IPRA) is a crucial regulation in any economic investments wanting to enter a  community.

A general perception is that people don’t want to be like Boracay or  Baguio or  another  business metropolis where people from other places are the ones who operate and make business on  ancestral lands.

The opening of the country to investments means the country “must yield to the more important principles of economic dynamism and productivity, and distributive equity to foreign participation.”

While the country is already open to foreign partnership with limited 60-40 arrangement, the proposed provision will “allow a more open economy, subject to regulations to be defined by laws. Instead of imposing a restrictive constitution, the proposed equality provision hopes to make the Philippine economy adapt flexibly.”

That, while FPIC stays to regulate investments and projects from entering indigenous peoples land like Mountain Province.