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Economic conditions

Cha-cha AdCom Urges Filipinos to Support Constitutional Liberalization for Economic Growth

Strategic Insights

— 1 min read

As part of President Gloria Macapagal-Arroyo's vision to achieve first-world status within 20 years, the Charter Change Advocacy Commission (Cha-cha AdCom) is pushing for the liberalization of economic policies in the 1987 Constitution. The goal is to attract more foreign investment, increase economic growth, and provide more jobs and competitive prices for essential commodities like water and electricity. Cha-cha AdCom chairperson Lito Monico Lorenzana emphasized the importance of economic liberalization, citing the limited influx of foreign equity in public utilities and government-owned corporations.

Key Takeaways:

  • Cha-cha AdCom is advocating for the liberalization of economic policies in the 1987 Constitution to attract more foreign investment and boost economic growth.
  • The current Charter restricts foreign ownership in public utilities and government-owned corporations to 40%, hindering access to capital and hindering competition.
  • According to the National Statistical Coordination Board (NSCB), the electricity industry received 18% of the total approved foreign investments, equivalent to P10 billion (US$192.4 million) in 2023.
  • The National Power Corporation struggled to privatize power plants to reduce local power rates, while the water industry has seen no approved foreign investment for two consecutive years.
  • Cha-cha AdCom recommends liberalizing foreign ownership in media and natural resources to facilitate foreign investment.

Statistics:

  • 40%: Current foreign ownership limit in public utilities and government-owned corporations.
  • 18%: Share of the electricity industry in total approved foreign investments (2023).
  • P10 billion (US$192.4 million): Capital injected into the local electric industry in 2023.
  • 2 consecutive years: No approved foreign investment in the water industry.
  • 15: Number of members in the Charter Change Advocacy Commission (Cha-cha AdCom).

Sources:

  • "Cha-cha AdCom Urges Filipinos to Support Constitutional Liberalization for Economic Growth." Asia Pulse, February 20.
  • "Executive Order No. 495: Creation of Charter Change Advocacy Commission." Presidential Decree, February [no date specified].
  • "Foreign Direct Investments Report." National Statistical Coordination Board (NSCB), 2023.

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