Throwing Out Economic Protectionism Will Make Investment Fun in the Philippines
It's time to throw out protectionism to develop the Philippines!
While the 1987 Constitution had limited the presidential powers, however one must remember no law is perfect. One has to modify the law for the better. Sad to say but the 1987 Constitution also created the law of 60/40 which strengthened the Marcos oligarchy system. What's sad to say is that some people still insist in protectionism even when the Philippines is suffering from its effects. It's all thanks to the disorder called "Pinoy Pride" which really destroys the Philippines as a whole.
I can understand why Cebu has foreign investments but the Philippines cannot just rely on a few economic zones. the problem is 60/40 which says that foreigners may only own 40% of shares and that 60% must belong to the Filipino. This policy is utterly unwise and stupid. One may consider what the 60/40 policy in the Philippines reflects on the majority of Pinoys. Culture defines a country and sad to say, the Philippines does have a sore loser culture in Luzon which unfortunately affects even the better areas of the Philippines.
Bad Impressions that 60/40 That Foreign Investors May Have on Pinoys
First, 60/40 gives the impression that Pinoys are sore losers.
Giving only 40% of shares to foreign investment is a reflection of what most Pinoys are... sore loser Failipinos. The Failipino is always known for being a sore loser. When they win even just one game, they parade that they are the best. When they lose the game, they shout foul and accuse the other party of cheating or the judges of being racist. The whole idea of giving 40% shows a lack of sportsmanship.
How can allowing 40% only for foreign investments prove you are a sore loser. Usually a fair joint venture policy allows the foreigner a minimum of 50%. Being a equal share holder in a joint venture is much fairer than only getting 40%. Joint venture policies in developed countries like China allow 50% foreign owned and 50% Chinese owned and higher. You can even negotiate and even if you don't get 50% but hey it's a fair game right? 40% for the partner and you getting 60% means you aren't being a sport.
Second, it gives the impression that Pinoys hate competition.
Sad to say but Failipinos hate competition. While the enlightened Pinoy loves a good challenge, the typical Pinoy doesn't. For the typical Pinoy, they want to operate without competition. Isn't it any wonder why the Philippines' services are mostly incompetent? When it's a monopoly or oligarchy, there's too few suppliers and too much demand. It gives people no choice which in turn places customers under the dictatorship of the service provider. They can all get away with not treating the customer right.
It doesn't take a rocket economist to figure out the law of supply and demand. While I'm not an economist or a big time businessman but I know the basic law of supply and demand. It's basic to understand that when demand goes up and supply is down, it becomes expensive. By restricting choices and making the good expensive, it's easy money isn't it? It really makes me think why electricity and water is so expensive is because of too much demand and too little supply. The oligarchy system knows that and they exploit it.
Third, it gives the impressions that Pinoys are self-centered.
Sad to say but a lot of typical Pinoys or Failipinos are self-centered idiots. They feel like the whole world owes them a favor. It's already obvious with how many times "Pinoy Pride" is flashed. They laugh at other races but when they are victims of racist jokes, they cry foul because only they may do it. They think they are above other races when no race is above another. So how does granting only 40% mean self-centeredness?
In life, you must understand the concept of give and take. You cannot just give and give and take and take, it's give and take. I give you, you receive it. If nobody gives, nobody receives and if nobody receives, nobody gives. It's unfair how some Filipino firms get higher shares to 100% abroad WHILE the Philippines only grants 40% for foreigners. It is showing a selfish, self-centered culture.
The Consequences of 60/40 to the Philippines
It gives room for abuse and incompetence by service providers
Just as I said, supply and demand. Why don't the oligarchs want competition? They are greedy and oppressive. They know little supply and high demand equals higher prices. If there's no competition, they can mistreat their customers all they care because there's no other choices. You can think of how pitiful it would be that you only have Meralco for electricity. Because you have no choice, you must go to Meralco and DO AS THEY SAY. It's an oppressive system. This is a huge breeding ground for incompetence.
It creates a huge lack of employment
Why are so many Filipinos forced to go abroad? Again before those Failipinos brag, "We Filipinos take taking over the world." Let me remind them that OFW means Overseas Filipino WORKER which I have spelled out ALL IN CAPITAL LETTERS. Being a Filipino worker abroad means being a servant of another nation. If I worked in China or Japan, I am BOWING DOWN to China and Japan. The problem originates because of a lack of foreign investments, it means Filipinos are forced to go abroad because of a LACK OF JOBS in their home country.
It also increases the crime rates due to the huge gap between rich and poor
Why is crime so rampant in the centers of oligarchy? It's because of a high rate of poverty. Oligarchies are also a source of crime. They can easily pay poor people to do their dirty work. It also means protection of these oligarchs by government agencies. One must even wonder why Marcos cronies and the likes of Cedric Lee keep breaking the law AND never going to jail? They just pay. Also, a huge rate of unemployment mixed with the lazy culture of Failipinos makes a disastrous combination of why a lot of Pinoys are drug mules. By the way, these drug mules who are executed for their crimes ARE NOT HEROES.
The Real Scope
The Philippines cannot forever ignore the need to open up its economy. It must realize that China got out of its poverty stricken protectionist state by opening the economy, being serious on crime and being more open. It cannot forever try to maintain "tradition" because not all traditions are good. It must open up if it expects to be a real Asian miracle, not just a miracle for the moment. It's time to really get the whole nation on its knees for the better. Revise the 1987 Constitution for the better, not for the worse!