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Gerardo P. Sicat, former economic planning chief, focused precisely on this in his paper entitled "Reform of the Ecnomic Provisions of the Constitution: Why National Progress is Stake" presented at a conference sponsored by the Asian Institute of Management's Policy Center.
In his paper, Sicat begins by reviewing how the Philippines, like many other countries has realized that policies restrictive of direct foreign investment and focusing on trade and industrial protection constitute a bottleneck for economic growth.
Sicat identifies three major provisions that he sees as barriers to country competitveness and efficiency.
The first provision limits foreign ownership of land; the second excludes foreigners from exploitation of natural resources and the third limits foreign capital in public utilities.
Land Ownership
Sicat explains that the basis for restricting foreign ownership of land is the idea that Filipinos would control the land on which they have lived.
He says that, in fact, this had the effect of strengthening the hold that a few rich families had on land and on any businesses that are land intensive.
He points out that foreigners can not take land out of the country and while they are here, they pay taxes, contirbute to the economy and provide jobs.
He further points out that across our country, there is tremendous underinvestment in land.
...
Sicat takes a similar stance with natural resources exploitation - pointing out the virtually prohibitive level of capital necessary to fully explore and develop such resources as metal deposits and oil reserves.
This is particularly sad in these days of rising oil prices.
If, as is the case in many developed countries of the world, we had allowed foreign participation in the exploitation of natural resources, we could actually be less vulnerable to the current spike in oil prices.
Sicat explains that government can retain its power to control the disposition of the product of the development of natural resources and, also retains the power to tax.
What relieving the provision against foreign exploration of natural resources would accomplish, again, is to attract critical foreign investment into the country.
Public Utilities
Sicat explains that the American owners of many of our public utilities were required to divest assets by 1973 when the Laurel-Langley agreement ended.
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If you have bought into the rhetoric that it is better to live in a hell run by Filipinos than in a heaven run by foreigners, then you might be ready to rip Sicat into shreds.
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