Economic reforms via ‘Cha-cha’ may be futile without political changes

By Kyle Aristophere T. Atienza, Reporter

POLITICAL analysts on Sunday urged lawmakers to also push political reforms aside from easing economic restrictions in the 1987 Constitution, saying economic changes would not be effective without fixing the country’s weak political structure.

“If we open up the economy, we should also strengthen our agencies that will be responsible for ensuring that a more open economy will really redound to the benefit of the people,” Edmund Tayao, who teaches at the San Beda Graduate School of Law, said by telephone.

Congress should also strengthen domestic institutions and make the country’s Charter responsive to emerging threats, he said.

“Our political institutions do not have accountability,” Mr. Tayao said. “Anyone who has money to burn can just come to the Philippines, finding it easy to start a business here whether it’s absolutely legitimate or not. Economic reforms should include political reforms.”

In December, Speaker Martin G. Romualdez said lawmakers would focus on the “very prohibitive” economic provisions of the Constitution as part of constitutional reforms this year, a year before the midterm elections.

It would be difficult to get a consensus on economic reforms, much less implement them, if the government failed to ensure that Philippine political institutions are responsive to the needs of the people, Randy P. Tuaño, dean of the Ateneo de Manila University School of Government, said in a Facebook Messenger chat.

“It would be good if we have economic reforms,” he said, “Our governance institutions should be responsive to any programs that would allow these sectors to bounce back.”

He cited the late President Fidel V. Ramos’ Philippines 2000 program for economic liberalization, which he said was accompanied by social and political reforms.

“This is the only Constitution compared with many constitutions around the world where the key provisions always end with ‘as may be provided by law,’” Mr. Tayao said. “Compared with the many Constitutions around the world, we probably have the most perfect set of social justice provisions, but these cannot be implemented in the absence of enabling laws.”

For example, the 1987 Charter provides for the ban of political dynasties and labor-only contracting, but these need legislation.

Charter change (“Cha-cha”) has gained public attention after the airing last week of a TV commercial demonizing the legacies of a People Power uprising that toppled the regime of the late dictator Ferdinand E. Marcos.

The pro-Cha-cha ad was aired amid reports of “vote buying” for a people’s initiative to change the Constitution, which lawmakers including presidential sister Senator Maria Imelda “Imee” R. Marcos want to probe.

Human rights group Karapatan said the “people’s initiative” was pursued after “Cha-cha” attempts last year via the usual avenues of constitutional convention or constitutional assembly failed.

The “people’s initiative,” which has been tagged as “politicians’ initiative,” is seen as a shortcut to Charter change, with people in poor communities being asked to sign blank sheets of paper in exchange for money,” it said in a statement.

“Such accounts strongly remind us of how the 1973 Philippine Constitution was supposedly ratified via ‘viva voce’ just months into the declaration of Marcos Sr.’s martial rule through hastily called barangay assemblies,” it added.

Terry L. Ridon, a former lawmaker and convenor of think tank InfraWatch PH, urged Congress to start proceedings on its proposal to reform the economic provisions of the charter to allow a full discussion.

“It should invite all interested parties to present their positions on whether economic amendments to the Charter should proceed,” he said. “It should distance itself from other initiatives that seem to spoil the focus on purely economic amendments, such as groups that funded the controversial TV ad.”

Mr. Romualdez last month said they seek to amend the Charter through a people’s initiative, allowing the public to decide whether the Senate and House should vote separately or as one.

There had been attempts to revise the Constitution and shift to a federal type of government under ex-President Rodrigo R. Duterte, during whose term Congress passed changes to 85-year-old Public Service Act to allow full foreign ownership in domestic shipping, telecommunications, shipping, railways and subways, airlines, expressways and tollways, and airports.

In 2021, Congress approved the Singapore-inspired Corporate Recovery and Tax Incentives for Enterprises Act, which cut the corporate income tax on domestic and foreign corporations to 25% from 30%.

Mr. Tayao said the Constitution should respond to economic and security threats.

“When the Constitution was drafted in 1987, we were responding to one single issue, which was the dictatorship,” he said. “There was no comprehensive view. Now, we are still struggling with labor-only contracting, which the Constitution should have already corrected.”

“The Constitution also supposedly has very meaningful provisions as far as indigenous people and local governments are concerned, but again, the same problems with decentralization and indigenous people remain,” he added.

“The political provisions are the ones that are really problematic.”

The Charter should also be attuned to emerging geopolitical threats, he said, citing tensions with China. “As far as the national territory is concerned, it requires a reformulation or rewording so we can improve our strategies, whether it’s on the West Philippine Sea issue or something else,” he said.