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Former President Joseph “Erap” Estrada warned Thursday that
there would be unrest if the government pushes ahead with unpopular
moves to amend the 1987 Constitution.
He was referring to reports quoting Senate
President Juan Ponce Enrile as saying that he agreed with the Palace
and lawmakers in the House of Representatives that amending the
economic provisions of the Charter is needed to open the Philippines
to foreign investments.
To date, senators have managed to thwart
attempts from the Palace and the House to amend the Constitution.
But that may change with Enrile’s announcement.
In a statement, Estrada said, “The reason why
I don’t believe Charter change will push through is that I trust
that when push comes to shove, the Filipino people will take a stand
and will not allow such moves.”
“I hope those who are pushing for Charter
change will not let it come to that,” he added.
Estrada said he was confident that senators
belonging to various opposition forces would continue to fight
Charter change, or “Cha-cha.”
“Any form of Charter change, even for economic
provisions alone, will have to be something that will be discussed
or pursued by the next president in 2010,” Estrada said.
Mayor Jejomar Binay of Makati City, also chairman of the United
Opposition, said he opposed Charter change, because the amendments
would not likely be limited to the economic provisions.
He added that once the process started,
lawmakers would be tempted to lift term limits and even entertain
the possibility of changing the form of government from a
presidential to a parliamentary system.
“The people know that that is the real agenda
behind ‘Cha-cha,’ and not the economic provisions,” he said in
statement also on Thursday.
He added that it is doubtful that amending the
economic provisions would help boost the economy, saying that
allowing foreigners to buy land would hurt the local real estate
sector amid the global crisis.
Wrong economics
The independent think tank Ibon Foundation
agreed with Binay.
“The basic argument for amending these
provisions is that the wholesale removal of all manner of protection
and regulation of key domestic sectors will increase foreign direct
investment [FDI] flows into the country and hence promote national
development,” according to a statement also on Thursday.
And “Cha-cha” proponents argue that
strategic enterprises, natural resources, land ownership, public
utilities, professions, education, mass media and advertising should
be completely opened up to foreign capital. It seems that the mere
presence of foreign capital is taken to mean that development is
happening.
But Ibon said this argument is wrong. The think
tank explained, “Foreign investment can play a role in domestic
economic development only under very specific conditions and a
liberal investment environment does not provide those conditions.
This is proven by the experience of countries that have been able to
use foreign investment to their benefit. It is also affirmed,
unfortunately in a negative manner, by the poor experience of the
Philippines with foreign investment.”
Foreign investment is potentially useful, but a
government seeking real development must set the terms for this,
because there is a conflict between the profits of private
corporations and national development, the statement added.
House views
Congressmen insisted that they would not allow
President Gloria Arroyo to extend her term beyond 2010, in an
attempt to allay fears about Charter change.
Zambales Rep. Milagros Magsaysay said the
alleged move to extend the term of President Arroyo would fail
anyway. Magsaysay added that the passage of House Resolution 737 of
Speaker Prospero Nograles is focused only on amending economic
provisions of the Constitution.
Cavite Rep. Elpidio Barzaga also said the
Nograles resolution is exclusively for the liberalization of the
economic provisions of the Constitution.
Northern Samar Rep. Paul Daza said it is better
to discuss issues rather than to speculate about the supposed
motives behind of Charter change. “Its a disservice for people to
sidetrack the debate which should be taking place regarding the
merits of allowing foreign corporations and individuals to own
land.”
Quezon City Rep. Matias Defensor, chairman of
the House committee on justice, stressed that the Nograles
resolution has no politics at all. Talk of term extensions are mere
intrigue, he added.
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