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IBON debunks economic Cha-cha movers’ claims on FDI

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Claims that changing the supposedly restrictive economic provisions of the 1987 Constitution and liberalizing foreign direct investment (FDI) into the country will help economic recovery and lead to development are unfounded. On the contrary, said research group IBON, further FDI liberalization will have long-term adverse impacts on national economic development.

In its Birdtalk semi-annual discussion of economic and political trends, IBON debunked three major myths about FDI and development.

First, increasing FDI is not in and of itself necessary for development. South Korea and Taiwan are the last newly-industrialized countries (NICs) to graduate to developed country status. They did this in the 1970s and 1980s with less FDI than the Philippines is getting today, according to data from the United Nations Conference on Trade and Development database (UNCTADStat).

The two NICs had growth rates averaging some 7-10% in the fifteen years between 1970-1984, especially on the back of rapid industrial development. (See Table) They did this with FDI inflows over that period averaging just 0.5% of gross domestic product (GDP) in the case of South Korea and just 0.4% in the case of Taiwan.

In stark contrast, FDI inflows to the Philippines are over three-fold these and averaged 1.6% of GDP in 2005-2019 but with growth at an annual average of only 5.8 percent. In 1984, FDI inward stock was equivalent to just 1.7% of GDP in South Korea and 5% in Taiwan. In contrast, FDI inward stock in the Philippines was already as much as fourteen-fold that and equivalent to 23.1% of GDP in 2019.

These indicate that the two East Asian NICs rapidly developed during their break-out period in the 1970s and 1980s while having much less FDI than the Philippines today. South Korea and Taiwan are today still less reliant than the Philippines on FDI, in relative terms. Measured as share of GDP, FDI inward flows and stock to them are smaller than FDI to the Philippines over the period 2015-2019.

Second, FDI is not in and of itself sufficient for development. Despite hysterical claims that the Philippines is being left behind in the FDI race, FDI to the country has soared. FDI inward flows have increased over thirty-fold from an annual average of US$187 million (equivalent to 0.5% of GDP) in 1980-1984 to US$6.3 billion (2% GDP) in 2015-2019.

This includes manufacturing FDI tripling from an annual average of US$286 million in 2000-2004 to US$728 million in 2015-2019, according to data from the Bangko Sentral ng Pilipinas (BSP). Yet manufacturing’s share in GDP has actually fallen from 22.5% in 2000 to 18.6% in 2019, with the share of manufacturing to total employment also falling from 10% to 8.5% over the same period.

This includes US$8.3 in foreign investments by Intel, Hanjin and in the Malampaya project. Yet despite headline-grabbing billions of dollars in investments and exports and as much as around 35,000 in jobs created over decades in the country, the Philippines has still not developed any Filipino electronics, shipbuilding or natural gas industries.

Third, increased FDI may not even be immediately forthcoming while the constriction of the policy space for economic development is going to be foreclosed. Economic cha-cha proponents decry the Philippines supposedly having among the most restrictive FDI policy regimes in the world. Yet there does not in general appear to be any strong correlation between FDI restrictiveness and FDI inward flows.

Plotting FDI inward flows as a share of GDP against the FDI Restrictiveness Index of the Organization for Economic Cooperation and Development (OECD), both for 2019, does not even support the idea that less restrictive economies will receive more FDI. (See Chart) The uncertain effect on FDI flows is made more uncertain by how UNCTAD also reports FDI inflows generally falling even before the pandemic hit from US$2 trillion in 2015 (2.7% of GDP) to US$1.5 trillion in 2019 (1.8%).

On the other hand, removing the last remaining protections against FDI through economic Cha-cha will make the nationalist and pro-Filipino economic policies needed even more difficult to put in place. Potentially powerful Constitutional provisions to regulate foreign investment for development – as the currently developed countries have all done in their respective periods of break-out progress – will be lost.

IBON stressed that the economic arguments for lifting restrictions on foreign ownership in crucial areas of the economy – natural resources, land, public utilities, education, mass media and advertising, and any identified strategic enterprises – need to take much greater consideration of historical facts and the current global context.

The research group said that the economy’s development lies in using the protections in the Constitution to gain from foreign investment, not in taking away the protections and giving self-interested foreign investment free rein over the domestic economy. Foreign capital can contribute to development but IBON stressed that responsible government intervention and regulation is needed to create meaningful linkages and long-term benefits for the economy. #

Farmers vow to fight ChaCha, 100% land ownership by foreigners

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A farmers’ group said it will oppose efforts at the House of Representatives to tinker with the Constitution, saying charter change (ChaCha) will only benefit President Rodrigo Duterte as well as foreign powers and local political warlords.

In a statement, the Kilusang Magbubukid ng Pilipinas (KMP) said the proposed 100% ownership of land by foreigners will worsen landlessness, poverty, and hunger among the majority of the Filipino population.

““The revived Charter change proposals will only make worse the current Constitution and will aggravate the situation of Filipinos now reeling from the effects and heavy burden of the pandemic and economic recession,” KMP chairperson Danilo Ramos said.

“ChaCha will also further bastardize the existing system of governance dominated by landlords and oligarchs,” Ramos added.

KMP is among the various groups that trooped to the HOR this morning as theHouse Committee on Constitutional Amendments is conducting a hearing on proposed revisions to the economic provisions of the 1987 Constitution. 

The bill wanting to amend the Constitution was filed by House Speaker Lord Allan Velasco he said is aimed at removing the remaining protectionist economic provisions of the 1987 Constitution.

Other proponents of the change, such as Ako Bicol Representative Alfredo Garbin Jr., said the protections in the charter make it difficult for the government to create more jobs and improve the economy, more so that it has been negatively affected by the coronavirus pandemic.

The KMP however said the move aims to further open the local economy to the plundering of land grabbers and large foreign corporations.

“The economic and political repercussions of ChaCha will be irreversible. Filipinos must fight ChaCha attempts to the end,” KMP said.

The farmers added it is like handing the entire Philippines on a silver platter for foreign businesses to devour.

“We cannot allow foreign businesses to take over our land, natural resources, media, and strategic industries. We cannot be second-class citizens in our own country. With ChaCha, everything else will worsen for Filipinos,” the group explained.

KMP warned that multinational agricorporations such as Del Monte, DoleFil, Sumifru and other large plantations, as well as foreign mining companies, will further expand at the expense of farmers and indigenous peoples.

President Duterte also earlier said he wants changes in the Constitution to remove the Party List system and punish Leftist parties that have consistently won seats in Congress.

“All democracy and freedom-loving Filipinos must [therefore] resist Charter Change and Duterte’s tyranny,” the KMP said. # (Raymund B. Villanueva)

Thai LGBTQ+ activists and pro-democracy protesters march together for equality

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They also state demands for reforms of the Thai monarchy

This article was originally published on Prachatai, an independent news site in Thailand.

Thai women, members of the LGBTQ community, and pro-democracy protesters joined a Pride parade last November 7 in Bangkok to call for equality for all marginalized groups, as well as for Prime Minister Gen Prayut Chan-o-cha’s resignation, a new constitution, and monarchy reform.

The march, organized by the gender equality activist groups Seri Toey Plus and Women for Freedom and Democracy, started at the Samyan intersection in central Bangkok. Carrying several large rainbow flags as well as placards calling for gender equality, marriage equality, abortion rights, and legalization of sex work, protesters marched along Rama IV Road, before stopping on Silom Road, a landmark in the center of the city.

During the march, the Women for Freedom and Democracy group, joined by a group of drummers from the theatre group B-Floor, organised a performance of a Thai version of the Chilean feminist anthem “A Rapist in Your Path” to protest against sexual violence, victim blaming, and rape culture.

Originally conceived by the Chilean feminist collective Las Tesis and sung in Spanish, the song has been translated and sung at women’s rights protests across the world as a way of speaking out about sexual violence and the patriarchal power structure that represses women.

The Thai version was translated by the Women for Freedom and Democracy Group. The lyrics state that “the state that ignores our voice is the state that rapes us”, and name “the police, the military, the courts of justice, the entire country, the monarchy” as complicit in gender-based violence.

The Thai version also uses imagery from the Sanskrit epic Ramayana, which is also popular in Thai culture. The story refers to Rama’s wife Sita, who was forced by her husband to walk through fire to prove her purity after her long captivity by Rama’s rival Ravana.

Arriving at the Saladaeng Intersection, the protesters sat down and hold up their hands in the three-finger ‘Hunger Games’ salute while the national anthem is played from speakers on the truck leading them. Photo and caption from Prachatai

The march stopped under Bangkok skytrain Saladaeng BTS Station, where protesters used the truck that led the march as a stage for dances and speeches on various social issues, such as legalization of sex work, abortion rights, gender-based discrimination in STEM fields, sexual harassment against women activists, being LGBTQ in a Muslim community, ethnic group and immigrant rights, and the patriarchal power structure in the Thai monarchy. The event included a performance by a group of drag queens.

The activists also spoke out against sexual harassment and called for women and LGBTQ people to be represented on protest stages, and stated the pro-democracy movement’s three demands, which are Gen Prayut’s resignation, a new constitution, and monarchy reform. #

LGBTQ rights and sex worker rights activist Sirisak Chaited dressed in a towel with the message “sex work is not a crime” during the march to call for the legalization of sex work. Photo and caption from Prachatai

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Kodao republishes articles on Global Voices as part of a content-sharing agreement.

Reporting the people’s demands is not a crime

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STATEMENT BY THE PEOPLE’S ALTERNATIVE MEDIA NETWORK/21 May 2020

Information is of utmost importance during the COVID-19 pandemic. Reporting the people’s grievances and demands is the solemn duty of the media; it is not a crime.

The Guimba municipal council’s Sangguniang Bayan Resolution No. 52 s.2020 last May 11 empowered the mayor of the Nueva Ecija town to file criminal charges against radio network Radyo Natin Guimba (RNG) for alleged violations of the Bayanihan to Heal as One Act of 2020 (Republic Act 11469) by reporting the complaints of residents over the implementation of the Social Amelioration Program (SAP).

Prior to the resolution, RNG reported that a municipal councilor and son of the incumbent mayor confiscated RNG field reporter Lina Villaflor’s media identification cards issued by the Presidential Communications and Operations Office.

Earlier, on April 22, the mayor had written the station requesting a copy of the radio broadcast aired that day, stating that the “false and malicious” statements made by the commentator could be a basis for his legal action against the station.

This is a form of censorship meant to intimidate the media into either silence or reporting eventually and issues in a manner acceptable to local government officials.

Subsequent direct attacks against the station have been reported, among them the barring of RNG reporters from covering the sessions of the Guimba Sangguniang Bayan. On May 19, the local police again barred an RNG reporter from covering the distribution of rice seeds to farmers.

All these are in violation of press freedom, and were apparently in response to RNG’s reports on the problematic implementation by the Guimba local government of the SAP.

RNG reported that several residents had trooped to their station to air complaints on the “selective” manner in which the cash aid is being distributed—that the municipality and its barangay officials were prioritizing rich farmers over small tillers.

RNG also reported that the local police have prevented them from taking photos and videos of people who trooped to the municipal hall to complain about the SAP implementation.

As much as it is the constitutional right of the people to air their grievances, it is also the constitutional right – and the primordial duty – of the press to report on these issues.

Local government executives should keep in mind that that the current national emergency does not empower officials to silence dissent and curtail press freedom, both of which are essential to a functional democracy in which elected officials are duty-bound to defend the Constitution. #

‘Cha-cha’ to worsen PH ruin, says group

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By Melvin Gascon

Environment groups on Monday expressed concern over the proposed charter change by the Duterte government, saying the draft federal constitution bodes danger for the environment.

In a statement, Kalikasan People’s Network for the Environment rejected the bid to change the constitution and replace it with one that would supposedly allow foreigners and political dynasties to gain full control of the exploitation of the country’s mineral resources.

“We resoundingly reject Duterte’s Cha-cha which would only open up more of our natural resources, lands, and coastal areas to 100-percent privatization and foreign ownership,” said Leon Dulce, Kalikasan national coordinator.

Kalikasan cited provisions in the draft constitution which supposedly removed the exclusive right of Filipino-owned companies to exploit the country’s natural resources.

Under a proposed federal system of government, natural resources will supposedly be under the control of regional republics, which, Dulce said, will most surely fall into the hands of the regions’ political dynasties.

‘Only worse’

The group thumbed down the government’s ongoing efforts to address ecological problems, saying these were “not commensurate” with the rate of environmental destruction the country is facing.

On the contrary, the Duterte government is “encouraging policies which threaten to exacerbate these losses,” Kalikasan said.

The group also challenged the government to protest the reported destruction by Chinese fishermen of corals and other marine resources in the West Philippine Sea.

“We are with the 80 percent of the Filipino people opposed to the Duterte regime’s continuing inaction over China’s continuing occupation and reclamation efforts in our water (and the) 90 percent of Filipinos who strongly believe retaking the reefs and shoals turned into islands are on just grounds,” Kalikasan said.

They slammed the Duterte government’s centerpiece of its environmental programs, the rehabilitation of Boracay island, as “a fake program”, as this was carried out with no concrete strategic plans.

“No concrete action has been taken on the still-permitted mega-casinos and big resorts, and attempts at independent investigations into the island’s situation are being prevented,” Dulce said.

Kalikasan also assailed the alleged failure of President Duterte to make good his promise to make erring mining companies liable for their violations against the country’s environmental laws.

“Duterte’s hogwash rants against the big mines are being contradicted by the actions of his own Mining Industry Coordinating Council (MICC) which is set to reopen and allow to operate at least 24 of the 28 big mines supposedly up for closure or suspension,” they said.

“More and more people will get to see for whom this regime indeed stands for: the mining oligarchs at the helm of his own (members of) Congress and Cabinet,” Kalikasan added. #

Anti-tyranny group assesses Duterte’s laws and bills

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Days before President Rodrigo Duterte’s third State of the Nation Address on July 23, the Movement Against Tyranny gathered in Quezon City to assess the government economic policies and Congressional bills.

Economic experts, legislators and legal luminaries presented before the forum their assessment of Duterte’s tax reform law as well as efforts to amend both the Human Security Law and the Constitution.

Davide hits charter change as ‘war against the environment’

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By Kalikasan PNE

Calling the proposed charter change (cha-cha) a “war against the environment,” former Chief Justice Hilario Davide Jr. said the constitutional amendments threaten a “catastrophic environmental crisis and grave intergenerational injustice.”

In his keynote speech in a public forum on the ecological implications of cha-cha held at the Miriam College Environmental Studies Institute last April 12, 2017, Davide said the lifting of the 60 percent Filipino citizenship requirement is potentially dangerous.

“[L]eaving it completely to Congress to provide a new rule, which could even include no requirement at all, would end up with the outright surrender of the natural wealth – and eventually even of the country itself – to foreigners, especially to foreign business conglomerates,” Davide said.

Davide said various doctrinal principles and rules on the right to environment, such as the jurisprudence of the ‘Oposa v. Factoran’ case on intergenerational justice and the Supreme Court’s Rules of Procedure for Environmental Cases in 2010, “would be either put to naught or severely emasculated” by cha-cha’s proposed amendments.

He also noted that the proposed Federal component States or Regions, each “lorded over by enlarged or new political dynasties who may have their own business empires” would create new layers of corruption regarding the exploitation, development, and utilization of natural resources.

Kalikasan PNE photo.

In a unity statement released during the forum, the LUNTIAN (Lumaban sa Cha-cha, Ipagtanggol ang Kalikasan) coalition said that on top of allowing 100 percent foreign ownership, “timber lands, mineral lands, reclaimed lands, and national parks that have been exclusive for public interest will be reclassified to allow private ownership, making these critical ecosystems vulnerable to land grabs and monopolies by foreign capital and big business.”

They furthered that “cha-cha proposes to delete Article XVIII Section 25 which prohibits foreign military bases and facilities in the country. If approved, the conversion of our shoals such as in West PH Sea and Benham Rise into naval and air bases, including the storage of nuclear weapons and other dangerous war materiel on Philippine soil, will be legally free.”

The forum was organized by the Kalikasan People’s Network for the Environment (Kalikasan PNE) in cooperation with the LUNTIAN Coalition, Miriam Public Education and Awareness Campaign for the Environment (Miriam PEACE), Green Convergence, Advocates of Science & Technology for the People (AGHAM), Center for Environmental Concerns – Philippines (CEC), Nilad, UP Green League, and the No to Cha-cha Coalition.

The forum organizers announced that they will hold an ‘Eco-Walk’ on April 21, 6:00 to 9:00 AM at the University of the Philippines – Diliman comprised of environmental education activities such as bird watching, native tree walks, a museum walk, and an urban gardening workshop for children, to highlight what is at stake should cha-cha push through.#