The push for economic charter reform in the Philippines continues to gain momentum as lawmakers cite examples of advanced economies amending their constitutions to keep up with the changing times. Representatives Joey Salceda and Teodoro Haresco Jr. highlight the need to revisit the 1987 Constitution and amend restrictive economic provisions to maximize the country's economic potential and achieve President Rodrigo Duterte's vision of a new era of prosperity. They argue that adopting economic amendments will lead to growth and prosperity for the Philippines.
Salceda points out that the United States Constitution has been amended 27 times, demonstrating the flexibility and adaptability of constitutional frameworks. Haresco further supports this argument by citing examples of countries in the Association of Southeast Asian Nations (ASEAN), such as Singapore, Malaysia, Thailand, and Indonesia, that have made amendments to their constitutions to support economic development. He emphasizes the correlation between constitutional amendments and economic growth, comparing the number of amendments in ASEAN countries with their respective GDP per capita.
The House of Representatives in the Philippines is heeding the call for economic charter reform, prioritizing the proposed amendments to the economic provisions of the 1987 Constitution as requested by President Duterte's political party, Partido Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban). The House Speaker, Lord Allan Velasco, has stated that they will work on the proposed amendments and submit them to the Senate for further deliberation. The timeline for the process is not specified in the article [4b9d5fcf][1527ce68].
The push for shorter debates on Charter change (Cha-cha) is gaining support from lawmakers who believe it will boost investor confidence in the Philippines. Albay 2nd district Rep. Joey Salceda, chairman of the House Committee on Ways and Means, agrees with NEDA Secretary Arsenio Balisacan that completing the Cha-cha process quickly will benefit the economy [1527ce68].
Salceda states that there is no investor uncertainty in the House framework and that there is cause for investor optimism. He assures that the House's proposals to lift the restrictive economic provisions of the 1987 Constitution will expand the scope of the economy open to foreign investment and make investing in the Philippines easier. Under the House's proposal, existing limits in the Constitution will be subject to an enabling law [1527ce68].
Balisacan emphasizes the importance of reaching a common position quickly to avoid uncertainty that inhibits investments. The House of Representatives aims to lift the restrictive economic provisions of the 1987 Constitution, while the Senate is more concerned with checks and balances [1527ce68].
The challenges at the Subic Bay Metropolitan Authority (SBMA) are also highlighted as a factor that could impact the country's economic progress. SBMA Chairman and President Johnson D. Tan's policies have rankled many businesses in the port area, leading to higher costs of doing business and the revocation of certificates without due process. This goes against the principle of due process enshrined in the Constitution. The government's vision to move the country to upper middle-income status and reduce poverty incidence relies on a vibrant economy with more jobs and income. The country's debt is approaching P13 trillion, and any additional economic shock could push it beyond repair. The SBMA should not be allowed to let businesses stagnate, and the government needs to ensure that all government bureaucrats align with the economic vision. The Philippines has earned investment grade ratings from Moody's, Standard and Poor, and Fitch Ratings, but the Covid pandemic has weakened the country's economic and fiscal strength. The burden of fiscal instability is a concern due to the country's debt and potential increase in interest rates [7d484182].
The challenges at the SBMA and the push for lifting economic provisions in the constitution are two significant factors that could impact the country's economic progress. Streamlining business processes and creating a business-friendly environment, along with removing restrictive economic provisions, can contribute to a vibrant economy with more jobs and income, ultimately helping the Philippines achieve its goal of becoming an upper middle-income country and reducing poverty incidence [7d484182][abc1021d].