A member of the Charter Change Advocacy Commission said yesterday that the Philippines should do away with the restrictive economic provisions of the Constitution to attract much-needed foreign investments that will address joblessness and unstable incomes among the Filipinos.

We need Charter Change now to reform the economy in order to wipe out poverty by creating jobs and stable incomes, lawyer Romela Bengzon, who chairs the committee on economic liberalization, said.

Bengzon spoke before participants of the 16th National Convention of the Vice Mayors' League of the Philippines at the Bacolod Convention Plaza Hotel whom President Gloria Macapagal-Arroyo also addressed earlier.

She that these restrictive provisions are in Article 12 (National Economy and Patrimony) and Article 16 (General Provisions).

Under Article 12, the Constitution prohibits full foreign ownership or control in the areas of exploration, development and utilization of natural resources; ownership of industrial, commercial and residential land; operation of public utilities; ownership of tertiary educational institutions; practice of professions; and ownership and management of mass media and advertising.

If these restrictions will be done away with, foreign investors will already be allowed to have full control of their investments in those areas.

She said that economic provisions should be dynamic instead of being restrictive so as not to impede economic growth, adding these should also address the need for substantial capital that is beyond the means of local investors to provide.

It should allow means for finding solutions to the shortage of expertise and know how obtained from extensive research and study due to lack of funding, she added.

Bengzon said it should also allow the creation of much needed local jobs by encouraging foreign investment. Data show that the Philippines has lowest foreign direct investments in years 1995, 2000 and 2003 at only $3.1 billion. On the other hand, Malaysia had $10.4 billion; Thailand, P7.3 billion; Singapore, P24.1 billion; and Indonesia, $4.3 billion.

Bengzon said that Filipinos do not have capital for large-scale mining or oil drilling, labor-intensive factories, power and waterworks utilities, advanced colleges and universities, modern engineering, cinema or entertainment and advertising because of the country's low savings rate of 18 percent of its Gross Domestic Product.

The figure is only half of the 35 percent needed to spur investments, she said, thus, if the Philippines lifts restriction on foreigners, investments will pour in.

She said, however, that safeguards must also be put in place in such a way that the Parliament shall, upon the recommendation of the economic and planning agency, provide for limitations on foreign ownership in certain areas of investments when the national or public interest dictates.

The State shall also regulate and exercise authority over foreign investments within its national jurisdiction and in accordance with its national goals and priorities, she added.

Bengzon said that with the economic reforms in place, the country can double its investments in three years from the current 18 percent to 35 percent and also double its GDP in eight years. Per capita income can also double in 12 years from the present $1,100.

"We can finally lick poverty. We can catch up with our neighbor-nations from the slow GDP at present," she said.

Bengzon that these economic gains can be protected and sustained by shifting from presidential-bicameral Congress to unicameral parliament, fusing the executive and legislative branches.*NLG

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