EDITORIAL - Economic Cha-cha

Business groups have expressed their views on Charter change, and it would be prudent for lawmakers to consider those opinions. Cha-cha is supposed to be about uplifting the lives of the people – not just of the power elite, whose personal and family fortunes depend on maintaining their grip on political power, but of the millions of ordinary Filipinos who need meaningful jobs and livelihood opportunities.

The investors are the ones who can provide those jobs and other opportunities for legitimate income generation. In the past decades, however, the Philippines has progressively slipped in national competitiveness, with investors including some Filipinos taking their businesses to neighboring countries.

Despite sustained economic growth – one of Asia’s fastest – the country trails its neighbors in attracting job-generating investments. Even with economic powerhouse China becoming less attractive for foreign investors, the businesses aren’t going to the Philippines but to countries such as Vietnam.

Some of the disincentives to investments in the Philippines can be corrected by amending restrictive economic provisions in the Constitution. There are only a few such provisions, and amending them can be done relatively quickly if Congress convenes a constituent assembly, with the two legislative chambers voting separately and independently.

In a joint statement over the weekend, three of the nation’s top business groups – the Makati Business Club, Management Association of the Philippines and Financial Executives Institute of the Philippines – issued a statement of support for economic Cha-cha through a constituent assembly.

For a change in the form of government and other radical reforms, however, the business groups said longer deliberations are needed, through a constitutional convention. While this mode is longer, involves elected delegates and is more costly, it would be a “justifiable” investment in something that could result in “significant social returns in the long run,” the joint statement declared.

Their sentiments are shared by many, who are worried by the undue haste by which Charter change for federalism is being pushed by pro-administration lawmakers. The case for economic Cha-cha is clear, but still murky for federalism. Proponents of a federal system should consider the points raised by the business groups and assess where they want to take the latest effort to change the Constitution.