In a June 8 pastoral statement, titled: “Let us be circumspect” on efforts in the House of Representatives to amend the Constitution on this matter, the Catholic Bishops Conference of the Philippines (CBCP) warned against the “rush into amending the Constitution”, stressing the need to safeguard “social justice” while heeding the call of businesses to improve the country’s investment climate.

“Lately, we have been urged by different prominent persons and influential sectors to consider the amendment of the Constitution,” read the statement that was signed by CBCP President Archbishop Socrates B. Villegas of Lingayen-Dagupan and posted on the Church body’s official Web site.

“While amendments having to do with the form of government are matters that we, your bishops, leave to politicians and to their discernment, proposed amendments in respect to economic provisions bear directly on issues of social justice,” the CBCP said.

“The social encyclicals of the Church bear witness to the fact that the Church has always considered social justice an area of her competence and solicitude.”

The statement particularly noted that “restrictive provisions limiting foreign participation in the Philippine economy” have been blamed for insufficient foreign direct investment (FDI) in the Philippines.

Net FDI to the Philippines surged to an all-time high last year, the Bangko Sentral ng Pilipinas (BSP) reported last March. Net FDI -- a key source of jobs and credit to the economy -- reached $6.201 billion last year, up 65.9% from $3.737 billion in 2013 and topping the upwardly revised $4.4-billion forecast of the BSP for 2014.

Still, the country’s FDI intake paled in comparison to those of its peers even in just the first nine months of last year. BSP data showed that Singapore dwarfed FDI inflows of its Southeast Asian peers at $58.202 billion in the first three quarters of 2014. In the same period, net inflows to Indonesia stood at $19.219 billion; Thailand, $14.064 billion; Malaysia, $8.130 billion; and Vietnam, $6.720 billion.

“We will not forget... that the framers of the 1987 Constitution -- and even the members of the Constitutional Convention that drafted the 1973 Constitution -- had one purpose in enshrining those restrictions... : preserving the wealth and resources of the country for our countrymen,” CBCP said.

“Rightly, we have always steered away from the prospect of foreigners enriching themselves by the country’s resources and our labor force, transferring their earnings overseas and leaving us none the better because of their presence and their exploitation of our resources, both natural and human!” it added.

“Now, however, we are told that limiting foreign control of some corporations, such as banks, media, advertisement, including the operation of public utilities and the exploration, development and utilization of natural resources has been counterproductive. It is claimed that we have so many resources that remain untapped -- beneficial to none -- because local capital is just woefully insufficient for capital-intensive ventures.”

The CBCP asked “all responsible to conduct serious studies” to answer three questions: “What do we, as a nation, stand to gain from relaxing the provisions now deemed restrictive? How are we assured that the resources of the country, both natural and human, benefit Filipino nationals principally? What are the human, social and environmental costs of lifting present limits to foreign participation in Philippine economic and business affairs?”

Sought for comment, American Chamber of Commerce of the Philippines (AmCham) Senior Adviser John B. Forbes said the statement “has some serious misunderstandings of the contemporary environment in which foreign companies have created millions of jobs for Filipinos... Surely, that is a form of social justice.”

Henry J. Schumacher, executive vice-president of the European Chamber of Commerce of the Philippines said it was “not a fair statement, looking at today’s foreign investment environment.”

“Foreign investors are contributing to the economy and are employing people. A fair return on investments guarantees sustainable inclusive growth,” he said.

The House aims to put Resolution of Both Houses 1 -- which opens the Constitution to the amendments -- to vote on final reading tomorrow before going on a break until July 27, House Majority Leader Neptali M. Gonzales II said. -- V. A. A. F. Nonato 

Source: Business Wolrd Online