House starts floor debates on removing ‘unintended anomalies’ in Constitution

MANILA, Philippines—Members of the House of Representatives on Monday (Feb. 22) started floor debates on a bid to amend the 1987 Constitution and correct what proponents said was an “unintended anomaly” that restricted Philippine economic growth.

More than a month after the House committee on constitutional amendments began deliberations on Resolution of Both Houses No. 2 , committee chair and party-list Rep. Alfredo Garbin Jr., of Ako Bicol, took to the floor to push for amending the Constitution to open up the Philippine economy to more foreign investors.

“It is about time that we correct the unintended anomaly by introducing this amendment that gives Philippine legislature the freedom to amend those time-bound laws that have been enshrined in the Philippine Constitution to the detriment of the common good of Filipinos now and in the future,” Garbin said in his sponsorship speech.

He said a “well-written Charter must not only safeguard individual rights and organize the government but indicate how it may be amended to make it responsive to changing economic, social and political conditions.”

He said only five words had to be inserted in provisions of the Constitution that needed to be changed: “unless otherwise provided by law.”

This, he said, would “give the government enough flexibility to consider different circumstances prevailing at different stages our road to economic development before formulating policies that should be time-bound.”

Filed by Speaker Lord Allan Velasco in 2019, the resolution was approved last Feb. 2 by the House constitutional amendments panel to ease economic restrictions in the Charter, while retaining the ban on foreign ownership of land.

Members of the panel voted 64-3-3 to adopt the resolution, as Garbin said the House planned to approve it on final reading before going on recess on March 27.

The measure proposed that the phrase “unless otherwise provided by law” be added to the Charter’s Article No. 12 (national patrimony and economy), Article No. 14 (education, science and technology) and Article 16 (general provisions).

These, according to proponents, would ease restrictions in ownership and management of mass media, utilities, educational institutions, investments and capital for foreign investors.

Garbin said these “nationalist” provisions had “proven to be a bane rather than a boon for the country for they have restricted or discouraged the flow of foreign direct investments.”

“While these provisions may be very well-meaning and appear to favor the interests of Filipinos, over the long haul, the country and the common good of all Filipinos suffer,” he said.

“They believe in the need to amend the Constitution to eliminate these overly protective provisions to attract more foreign investments and to adopt policies to enable the country to compete more effectively in the global economy,” he said.

Garbin was joined in the sponsorship by two of the lower chamber’s economists—Albay Rep. Joey Salceda, chair of the House ways and means committee, and Marikina Rep. Stella Luz Quimbo.

In his sponsorship speech, Salceda said “even a little trade and investment would be phenomenal catalysts for rapid development” for underdeveloped countries in what he said was a hyper globalized age.

“Instead, we have remained closed to foreign capital and skill and technology, despite our obvious national need for these development catalysts,” he said, adding that the Philippines is the most restrictive in Southeast Asian, except for manufacturing.

Salceda said he was optimistic that the Philippines will gain 6.6 million jobs “if we immediately follow” the resolution with “the right enabling laws.”

“But there is time, and there is an opportunity for us to catch up,” he said.

“As the economy grows, there remains immense foreign direct investment growth potential in the Philippines as we liberalize FDI,” Salceda said.

“I am convinced that we will very strongly bounce back after COVID-19. We will have an even bigger and more lasting recovery if FDIs can be part of our bounce back strategy,” he said.

He said he was “under no illusion” that the resolution “is a magic wand for all our problems.”

“But it is a necessary beginning,” Salceda said.

“The overwhelming evidence is that we made a mistake to hardcode our fears and paranoia into our Constitution,” he said.

“While we remained stubborn, our neighbors began to leapfrog us. The mature thing to do for a country like ours that has global ambitions is to grow up, acknowledge our misjudgment, and correct our mistake. It is never too late to do the right thing,” Salceda added.

Quimbo, a member of the minority bloc, said she agreed with her colleagues, arguing that “there is no sufficient reason for why the Constitution must be decidedly against the liberalization of our economy, especially at times when protectionist policies are antithetical to our economic interests.”

“Promoting foreign investments can also immediately increase market competition, which has been shown around the world to benefit consumers by reducing prices, improving quality, and facilitating long-term innovation,” she said in her sponsorship speech.

She said efforts to ease economic restrictions in the Charter is “not to simply open the flood gates and allow foreign companies to crowd out our local businesses.”

“It is not a free pass. By including the phrase ‘unless otherwise provided by law,’ the measure provides flexibility to these economic provisions, but still allows the legislature to address the fear of some of our countrymen that we will be inundated with foreign businesses, to the detriment of local industry,” she said.

She said Congress should be given flexibility and leg room to “steer the economy according to the demands of the time.”

“It allows lawmakers to craft measures that can help the Philippine economy compete with its neighbors and promote growth, while also ensuring that appropriate protections are in place for local businesses,” Quimbo said.

“This ChaCha will give Congress the necessary leg room to respond to the needs of the modern world,” she said.

Quimbo added that opening up the economy to FDIs is not the only thing that the country must do to achieve economic growth and development, stressing the need to invest in infrastructure, eliminate corruption and red tape and ensure that the rule of law prevails.

“But the necessary first step is to remove the restrictive economic provisions in our Constitution, or else, we risk being left further behind,” she said.

The resolution, she added, “is not a sufficient condition for inclusive growth, but it is necessary to move forward.”

“This resolution is one necessary step towards the creation of a fairer and more dynamic business environment, one geared towards maximizing benefits for the Filipino people,” Quimbo said.

“Filipinos, not foreigners, will win in this proposal,” she added.

Supporting the resolution, she said, “is the rational choice that Congress ought to make to help our economy move forward.”

TSB