Cha-Cha Proponents: Clinging to an Obsolete Ideology
By IBON Foundation
As administration allies push for amendments of economic provisions in the Constitution, research group IBON Foundation says that the resolution seeking to allow corporations to own land and land-based resources in the Philippines are based on an outmoded ideology which believes that liberalizing the economy to greater foreign investment will lead to development.
IBON has long criticized economic liberalization and government economic managers that are dogmatically clinging to this outdated belief. Investment policy was even dropped from the World Trade Organization (WTO) agenda because unrestrained investment liberalization is unacceptable to many underdeveloped country governments.
The last two decades have seen an unparalleled opening-up of the Philippine economy and in the face of a global economic crisis, its destructive impact on peoples livelihood is undeniable. The 1990s have seen record increases in trade and investment yet the supposed gains like a strengthening of the economy have not materialized. The Philippines is facing its worst jobs crisis in its history while foreign investors have repatriated more capital than they ever brought in. Government continues to grant fiscal incentives to foreign investors, which have amounted to lost revenues of Ph96.65 billion annually from 1999 to 2003.
It is clear that the problem is not the restrictions on the role of foreigners in the economy. Every country that has achieved any kind of economic development has controlled foreign investment. South Korea, Taiwan and Malaysia strictly controlled foreign investment for decades since the 1950s. China has strict regulations until today and is still selective in liberalizing. The US, UK, France, Germany, Japan and other advanced countries only relaxed restrictions when their big capitalist monopolies were entrenched. These countries are pushing investment liberalization now only because they are powerful enough to dominate underdeveloped economies and overwhelm weak domestic businesses.
Changing the charters economic provisions to further open up the country to foreign investment and capital will further weaken the Philippine economy. It will worsen joblessness, undermine long-term growth, and strip the country of our natural resources as foreign corporations and local counterparts continue plundering the countrys mineral, forestry and marine resources. Opening up land to foreign ownership will drive land prices up and displace our small peasant farmers. Land inequities, land monopolies and rural unemployment will worsen.
Proponents of Cha-cha are those who stand to gain the most: foreign investors and domestic big business. The US has the biggest stakes with some US$4.5 billion worth of investments in the country. Meanwhile, the beleaguered Arroyo administration is using Cha-cha that benefits US corporate monopoly interests to maintain US support for its illegitimate rule.
The Philippines can benefit from foreign investment but only if this is let in on terms of mutual benefit. If the government has not had the political will to assert the nationalist economic provisions as they are, then removing them completely will only worsen the already intolerable economic situation.
In general, FDI or foreign direct investment favors economies of scale. This require cutting edge technology only developed in capital intensive economies such as the first world, the members of the G8. The Philippines, however, is a service intensive economy where labor cost is lower. Policy makers pushing for FDI policy in justifying the need to lift the standard of living in the Philippines are indeed treating the matter as means to an end.
The reality of FDI are the following: access to market in host country, access to high quality labor at lower cost, tax benefit, less environmental accountability. Moreover, host countries lack adequate resources to enforce the law. The situation only serves to perpetuate bad business behavior by foreign businesses. In short, FDI is exploitation.
Philippines needs to rely on sound economic policy. Beer and alcohol need to be regulated because it makes people lazy and brain dead.
slave wages in the Philippines is the summary product of the Filipino “Nationalist bourgeoisie” politics in cohort with Maoist politics.
If the issue is more jobs and better working conditions is there a difference between brown, yellow or white masters for the “proletariat”?
…in cohort with maoist politics and bourgeois liberalism.
Because while we Filipino workers would like to protect our
Filipino industrial employers against foreign capitalists, slave wages
lang ang naisukli ng mga ito sa mga manggagawa. Mabilis ang estado
sa mga iyak nila, bingi naman ang estado sa iyak ng mga workers.
Bawat ikot ng adjustments bunga ng inflation, dehado palagi ang
mga workers.
And, tubong_probinsya, Bro
The reality of FDI are the following: access to market in host country, access to high quality labor at lower cost, tax benefit, less environmental accountability. Moreover, host countries lack adequate resources to enforce the law. The situation only serves to perpetuate bad business behavior by foreign businesses. In short, FDI is exploitation.
In fact what you are saying there applies not only to foreign capitals but to the general business sector, foreign or domestic owned, in the Philippines as well. The problem and solutions revolves around good governance.
You sound like an insecure Filipino businessman who hates his variety of different color of skin. I think it is time that the Filipino working class should be looking after their pure class interests. More jobs and best working conditions, and good governance. It does not matter if the cat is red, yellow, or white fur, as long as it catches mice. See the selfish and greedy bureaucrats serving as Trojans for foreign businesses? Good it means more jobs and less Filipinos going abroad to find work. And these selfish, greedy bureaucrats win elections for that. We are no longer in the era of peasants and landlords. What we call peasantry is in fact miserable petty bourgeoisie. You might probably have better chance of getting seats in congress if you give each of these peasants the hope and dream that each of them will become big peasants some day, than killing their wishful, naturally impossible dreams.
We are in the era of SSS, GSIS and OWWA
Businesses they are all the same. Irregardless of color of skin, they are all motivated by PROFIT and SELF INTEREST. [HARNESSING THESE NATURAL FORCES FOR PROGRESS is another, separate, matter. It is not easy struggle.] I think we should be at the side, letting the fittest, most competitive, survive.
Foreign investments properly placed is a plus factor. They add. To depend on them like it is the end of the world for Filipinos if we cannot bring them in, is indeed bankrupt ideology. Worst if third world government acts like slut to them!
Rod J_Bro
Glad you see it my way. But the thread to my comment is gone on this website. It turns now that there is a huge gap in thought where all of a sudden you change your mind here on the thread. And people gonna ask what happen? What happen to my comment that changed your mind. I post again…but clean version.
In my defense to Rod J..
You have portrayed me as insecure Filipino businessman and something about the skin, are u mental praning pa sindi nga. You assassinate my character but I let you slide. In the world of business, there’s nothing wrong with insecurity my friend; it only puts your perception in conservatism mode and your mental antennae working. How many businessmen or indigenous farmers have confidence about the idea of allowing land to be owned by foreign corporations for the purpose of mining, take a poll and see why there’s a lot of insecurities among businesses. Huwag kang papraning.
Here’s a task for you. Tell me why I shouldn’t be insecure about the way the administration is giving away our only puhunan, land and everything in it? Convince me dare taka. Tell me how the foreign take over would benefit our society when after all the natural resources have been harvested and we are left with deteriorating environmental conditions and the problems that arise because of it. Think hard and long term consequences of 100 years or more. Just remember that TIME IS INFINITE, it was 500 B.C. before and now its the 21st century, we come along way as human beings. You might be gone today but you need to secure your seeds to grow into the future, it’s nature baby!!
Rod J_Bro
Where did you get the idea of color of skin from? Nowhere in my response did I suggest or even hint about color of skin, you must be out of your mind Bro. If there were any hint, it would be me advocating protectionism. The article stated (top) that allies in the administration continue to push to allow corporations to own LAND AND LAND-BASED RESOURCES base on the belief that foreign investment will lead to development in the country even though this idea was dropped by the World Trade Organization after many underdeveloped countries have deemed it unacceptable. Moreover, the research done by IBON only confirms why the idea was deemed unacceptable; we are now facing the worst job crisis in history while foreign investors continue to rake in profits. So there is no benefit in giving up our only Aces: fertile land, minerals, pristine waters, and others. We would be better off protecting them and perhaps develop a tourism campaign.
Rod J_Bro
Your only idea is good governance. This is too general Bro, explain exactly how it would shift power to working class.
Good governance per se doesn’t reflect responsible governance in which the well-being of the citizens are in the forefront of every decision making. In your case, what’s a good governance if and when foreign investors for some reason decides to pull out of the country, nothing. The government can’t do squat how ever good the government you perceive it to be, case in point FED EX. You’re relying too much on foreign handouts Bro. It ain’t gonna be there forever, what you gonna do then? Meanwhile the natural resources that you have given up is already used up due to FDI proposing to own land, what are you going to use now that you need it most para uunlad tayo when the time comes? We are going to end up buying it from the same people we sold it to, only it will cost us 100 times fold. Who’s the idiot now! How do you suppose to lead us to providence on mounting trade deficit with inferior resources? Protectionism is the answer. Protectionism is responsible governance.
Rod J_Bro
Other nations are in protectionism mode too, no doubt about it. You can’t enter agricultural products in other countries because of biodiversity reasons according to customs, don’t believe it. What’s stopping a domestic pest from entering the country and causing problems when it’s packed in a textile product which other countries have allowed for importing, or the migration of swine flu through airline passengers, which have a direct consequence to domestic population? The point is that biodiversity is a tool use to discourage importation of certain agricultural products. The reality is that they’re protecting their local growers. Notice closely the agricultural product allowed are those that do not compete in the local market. They have full government control; in short, they have a responsible governance. Citizens first!
We have everything we need to sustain life within the borders of the Philippines if we were to close our borders. We don’t need their ipods, iphone, their playboy, their sony, their cell phone pasaload, or their automated voting machine that doesn’t work in rolling block-outs, and we certainly don’t need to cross the ocean to be in servitude in other countries (promotes low morale). These foreign corporations only profit from us, sumasaw saw lang sila one centavo at a time. Every centavo we spend on these things is one centavo less in our national savings that could in turn offer loans to Pilipino businesses therefore more jobs and services improving Pilipino’s well-being. WE NEED TO SAVE OUR MONEY IN ORDER TO SAVE OUR COUNTRY’S FUTURE AS WELL AS OURSELVES.
Rod J_Bro
I don’t get your point Bro. I was specific about FOREIGN investing in P.I. but whimsically you somehow concluded that it would also apply domestically, ah how? I don’t understand that, explain. That is how your argument basically started, and it started on a magic carpet ride premise. If your talking domestic business, the only domestic corporation doing foreign investing is Jollybee in the U.S., as far as I know. We don’t have capital to do so. San Miguel, alcohol is limited through trade sanctions.
Rod J_Bro
You claim that, “slave wages in the Philippines is the summary product of the Filipino Nationalist bourgeoisie politics in cohort with Maoist politics”, you have documents to prove it? Your idea is out of the universe, di kita ma reach. This sounds far from a perfect marriage but I will allow. Enlighten me of the role of middle class in the history of the Philippines and how it became significant in slave wages. State your argument with REASONABLE premises and FACTS, para ma reach huh. Opinion does not equal facts, ok.
Rod J_Bro
You claim that protectionism is the main reason for slave wages, explain mo ngato parts. You think foreign capitalists will lift domestic standard of living, no way Bro. There are lots of factors: other countries have better incentives, political conditions change all the time, can the business sustain 50 years of life, business takeovers, and lots more. Let’s assume that they are willing to carry this burden on their backs, it would take thousands of special foreign investors that are willing to put up with our infrastructure. Even if we invest out of our own pocket to up date infrastructure, there are no guarantees that FDI would happen base on the factors I mentioned above.
Ang masabi ko lang is that slave wages is a matter of perception. Wages are relative, if you push too much you risk getting laid off without government help. If it’s too low, then you bring about negotiation to middle ground. Look, no one will give you high wages period. It’s a balancing act between business ethics and employee standard of work. You’ve got to fight for every inch, not advocating violence.
Rod J_Bro
Don’t assassinate character you know nothing about.
Contribute and don’t hate on fellow countrymen, specially middle class. We are your closest allies. To think that all of middle class is up to self serving, it’s a huge mistake.
Philippines needs to rely on sound economic policy. Beer and alcohol need to be regulated because it makes people lazy, brain dead, and makes more babies than we can feed.
Last words: The government have the power to implement change, kung gustohin lang nila ito.
Rod J_Bro
Spread the word, Stop consuming western culture, we need to lower trade deficit. Hold media accountable in promoting western culture for the purpose of MASS CONSUMERISM instead of ours, is after all..what..this..is.. all about consumerism. However, we need to consume nonetheless but more of the life giving products and less of the ego boosting products. You know what Im talking about, iphone laber.
Rod J_Bro
Your only idea is good governance. This is too general Bro, explain exactly how it would shift power to working class.
Good governance per se doesn’t reflect responsible governance in which the well-being of the citizens are in the forefront of every decision making. In your case, what’s a good governance if and when foreign investors for some reason decides to pull out of the country, nothing. The government can’t do squat how ever good the government you perceive it to be, case in point FED EX. You’re relying too much on foreign handouts Bro. It ain’t gonna be there forever, what you gonna do then? Meanwhile the natural resources that you have given up is already used up due to FDI proposing to own land, what are you going to use now that you need it most para uunlad tayo when the time comes? We are going to end up buying it from the same people we sold it to, only it will cost us 100 times fold. How do you suppose to lead us to providence on mounting trade deficit with inferior resources? Protectionism is the answer. Protectionism is responsible governance.
protectionism is also called narrow nationalism aka racism. mang-unggoy na rin lang tayo, ungoyin na natin ang sistema na yong tested na, epektibo, make sense. If you noticed about the cat that cathes mice, theoreya ni Deng Shao yan. I think it makes sense.
I think the Filipino bourgeoisie, particularly the so called nationalist bourgeoisie is a hopeless one. A goose that does not lay golden egg. does’nt deserve any protection.
Rod J
Nationalist is about standing for sets of principles that we as Pilipino social agree to lead us to our vision. Is this what our ancestors wanted for us? I don’t think so. Where does racism come from? And even so, where do you stand when the time comes when you have to protect your land from invaders.
Take a look at our average women, because of hardship they sacrifice their personal principles to marry foreigners in order to support family. The point is that they are losing confidence in Pilipino men in carrying on responsibility and nation.
Quit being philosophical about things and know exactly how things work.
Reading off the theories doesn’t prove your point, it comes down to results. Free market system is only 200 years old and it has gotten us into this mess in a global scale. Meanwhile other classical models have been around for thousands of years and they seem to work, we have survived right. Classical systems are time tested while free market is in developing stages, thousands of yrs. vs.
200 yrs.
Stock crashes in almost all nation that have market exchanges, hint free market that you so adore, all the time because of speculations. Who pays? The working class and middle class that took a gamble for a better future.
Rod, bring something to the table Bro. Your argument consist of baseless claim and then lots of similes and metaphors. You’re an opinion based writer. And opinions are worth -10 centavos.
Open your eyes and feel the sentiment of the people around you, Bro and join us middle class. A shift needs to happen, a paradigm shift!
Rod J
Pointed question to you Bro: how do me lower trade deficit?
So that we balance our imports and exports account. Meaning our exports pay enough of the western culture goods that we buy and have to pay back.
Racism, discrimination, and nationalism are independent of each other. Just because you’re one, doesn’t mean you’re also the other.
I wouldn’t go too far as racism, it’s too stigmatizing, perhaps discriminatory. Other nations are discriminating all the time, and that’s a FACT!
What LEGACY do we want to leave the future builders of our nation?
The legacy of DEBTS.
Debt we’ve been paying for since money was introduced in the land. Our ancestors once had the riches holdings, but literally overnight they became the poorest when money was introduced as the only means of exchanging goods. They did not know where to get money nor how to make them. Thus the beginning of our LEGACY INTO DEBT.
DEBT cripples our life line to progress.
As soon as we bring our head out
From the depths of the Oceans
oxygen debt
We want to leave a lasting impression so that when our future looks back at us, they too can find within themselves the values and vision we intended for them.
Somehow we have turned away from our past.
A carpenter and a businessman have hardtime understanding each other. class viewpoint, class standpoint.
National industry: businessman sees Filipino capital.Himself. Carpenter sees industry that is in the Philippines, employing Filipinos. Himself
People are dying for a government that is impartial. Thats the ideal. Reality is the state is an instrument of a class. Its by one or by the other. No other way?
Good governance is indeed too general. Let’s put it simple and objective… One of them is impartiality by the State. Not a government run by self interests.
Maybe an impartial government exist somewhere. But we Filipinos have our realities. The working class must “capture political power”. There are only two options: one, go to the hills. two, win elections.
If majority class cannot win elections, they have a problem.
Rob J
I see where you coming from, academia. But you can’t help notice the irreconcilable results.
Your going into technical claims about carpenter and businessmen, I feel. You have support about the misunderstanding? This misunderstanding have to play a significant role why people are dying of impartial government.
Will impartial government guarantee jobs, increase food supply, will it keep foreign goods from taking over local markets?
I think what you real wanting to say is RESPONSIBLE governance
What about RESPONSIBLE Governance?
Can you comment on this.
Leave your response!
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