By Amado P. Macasaet
There is hardly any question about the necessity of lifting the limits imposed by the Constitution on public utilities and exploitation of natural resources.
It must be recognized, however, a Constitution most liberal to local and foreign investment does not necessarily create a climate conducive to business.
An ideal business climate is necessarily a function of effective, honest leadership. Nothing substitutes for that.
If the limit on exploitation of the timber industry had been lifted allowing foreigners to be full owners of the business, we would have preserved the forests and the trees. The mountains would not be bald as they are now causing deaths from mudslides to poor people eking out a living at the foot of the mountains.
The Supreme Court wisely skirted the provisions of the Constitution limiting foreign equity in the development of mineral resources. The way is to enter into a technical and financial agreement with the government.
That facilitated the entry of foreign investment in mining. Strangely, President Aquino practically banned the entry of new mining projects by refusing to issue operating permits to new mines in the more than four years that he has been in office.
The President denied himself the argument of amending the economic provisions of the Constitution. It he agrees to it as is the wont of the House of Representatives, it would be a poor, lame, transparent cover to include lifting of the term limit of the President.
He wants a second term.
At the behest of businessmen who welcome competition from foreigners as an effective way to attain efficiency, the Supreme Court may likewise skirt the Constitution in the manner it did on mining.
Extending the term of the President by amending the Constitution is a setback to foreign investments.
It portrays thirst for power. It could create a perception of one-man rule hated with a passion by business.
After feeling the heat of a pronouncement that he is open for a second term, the President backtracked, but not categorically. He now says he is consulting his advisers and the people.
He does not listen to sound advice. The voice of the people has been expressed in the last survey by SWS which reported the President’s popularity and acceptability rating plummeted precisely because he announced he is open to a second term. He cannot seem to read the sentiment of the people, yet he says he is consulting them.
There is nothing businessmen love to see than the Constitution and the laws followed and implemented to the letter by the Executive Branch and their meaning or import interpreted by the Constitution.
As we often assert, the Philippines is the only country we know that amends its Constitution too often. The changes have not yielded positive results for politics to gain sanity and for the economy to grow.
It’s because the changes do not create the climate. How would foreign investors look at amending the Constitution in the guise of helping them come when it is actually designed for the benefit of one man — the President who wants a second term banned by the Constitution?
Effective leadership is firmness on the right. It is seeking and listening to sound advice. The President does not do that as shown by his refusal to issue operating permits to new mining projects and his protracted war with the Supreme Court, with his own hand-picked Chief Justice for that matter.
There are enough laws intended to attract local and foreign investments. Ferdinand Marcos caused the creation of the Board of Investments that provides incentives of all sorts.
Have we passed a passed a fine-toothed comb over the effects of these incentives?
We have not.
Have we examined the amounts of new capital that came in attracted by incentives?
We have not.
Have we reviewed how much in revenue has been lost to incentives and the gains the economy got from them?
We have not.
From the start, the President kept saying the people are “my bosses.” They are not. The President is his own boss. As has been said long before, “whatever Lola wants, Lola gets.” The President does not always get what he wants. Yet he insists on getting them, no matter how wrong they are.
Early in his term, he put his best foot forward. It worked as indicated by the growth of the economy.
Today, he takes two steps forward and one step back. That does not create a good business climate. On the contrary, it creates a perception that the Chief Executive is a confused leader.
There is a necessity to clear the air. The President must categorically declare he would seek the amendment of economic provisions of the Constitution but the proposed change will not include the lifting of the term limit of the President.
Simple folks and the investors are intelligent enough to discern that the proposed Charter change is political, not economic. We do not like it.
The President likes it, not knowing or never knowing the idea does not help create an ideal business climate.
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Email:amadomacasaet@yahoo.com
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