Should we open up the economy to foreigners?

The House of Representatives appears likely to approve a resolution that seeks to amend the so-called 60-40 rule in the 1987 Constitution limiting foreign ownership of certain industries. 

Speaker Feliciano Belmonte has been spearheading the economic Cha-cha move in the House, while Sen. Ralph Recto is doing the same thing in the Upper Chamber.

But a little clarification here is needed: what is not being proposed is not to actually amend the restrictive proviso in the fundamental law, but to change the manner in which the amendment could be carried out in the future.

This is going to be done by adding the phrase, "in a manner provided by law" or similar language that allows for flexibility on the part of government in amending certain provisions in the Constitution.

Under Article 12 of the 1987 Constitution, foreign investors are prohibited from owning more than 40 percent of real properties and businesses.

Foreigners are also prohibited from exploiting the country’s natural resources and from investing in the media industry.         

Some sectors, particularly those identified with militant groups, stoutly oppose the idea of opening up the economy to foreigners. They claim that the economy is already under the control of foreign interests, particularly the Americans.

But changed circumstances, such as our rapidly growing population now composed of over 100 million Filipinos, leave us no option but to stimulate economic growth through more investments and more jobs.

By enticing more foreign capital to come in, we should be able to  substantially reduce the ranks of the poor and the very poor.

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