Economic Liberalization Should Be Viewed As A Win - Win Scenario

I'm already already getting tired of how some economic neanderthals with backwards thinking give all their reasons to reject easing restrictions regarding Foreign Direct Investors or FDI. You can talk about Filipino activist groups that have their absurdity of supposedly hating the oligarchy and wanting to stop the labor export policy -- all the while they have their anti-elite mentality (while enjoying stuff made by the elite such as i-Phones and MACs) and they refuse to open up the economy which would significantly weaken the oligarchy. Now it's time to discuss about how economic liberalization is actually a win--win situation. 

Ever heard of the ideas that only foreigners will get rich if you allow them to invest in the Philippines and the ridiculous idea that foreign investors are foreign invaders? Those are just a few of the many ways that some Filipinos tend to think of the "win-lose" scenario. Is it me or has it been the norm in the Philippines to only think of a win-lose scenario? Some of them think that by discouraging foreigners from investing in the Philippines that they've actually "won" -- in reality they've lost because any potential employment. They haven't considered the win--win scenario that could have happened -- they could have had a potential partnership that could have generated more employment for jobless Filipinos -- hence reducing the need for Filipinos to go abroad, there would be more tax collection and revenue from the government (which in turn can allow daily wages to increase at a significant rate), and it would be time for Small-Medium-Enterprises to have their chance to go through more customers and service suppliers? But I guess that never enters into their thick skulls, right?

How can economic liberalization help generate employment in the Philippines? Let's face it how many Filipino businessmen are there (regardless of ethnicity) are there vs. the number of unemployed Filipinos? It's time to ask are there even enough businesses in the Philippines to employ more Filipinos. Do I need to stress it for the nth time that FDIs are actually subjected to the laws of the countries where they invest in? They are doing business and not conquering other countries. Why are some people living in a conquest mindset such as it's FDIs vs. OFWs in their quest to supposed "conquer the world"? Has the Philippines taken over the world via OFWs and have first world countries conquered other nations through their local companies investing there? The answer is no -- instead, multinational companies are required to treat the employees in the locale where they invest according to the country's laws -- which in turn if they abuse their employees then they are still answerable to the government.

How can there be more significant tax collection from FDIs doing business in the Philippines? FDIs are still required to pay taxes and comply with Philippine tax laws whether it's the old system or the TRAIN tax system. I did mention some time ago about how SMes can actually benefit because they can have more service providers and more potential customers in a highly competitive environment. If Filipino businesses start to grab that opportunity to grow then think of how much taxes can be collected not just from FDIs but also from them. If there's a significant increase in earnings in the companies then think of how much more taxes are collected. For instance, the real estate business (such as malls) can benefit -- the more tenants the higher the overall taxable income will be. Think about how much money can be collected in a highly competitive environment with lower taxes (hence reducing the tax evasion) than in a lowly competitive environment where people are overtaxed.

So how can the SMEs have a win/win scenario with FDIs? I guess this is the nth time I'm talk about how FDIs serve not only as competitors but as potential service providers, suppliers and not to mention -- they serve as potential customers. Competition helps to serve as a key motivator to why innovation gets a purpose. Innovation is an almost useless concept when there's hardly competition. Innovative thinking will be encouraged not only in thinking of new ideas to compete with competitors but also in finding new ideas to make one's services and products more competitive. If you had to just rely on a few transportation companies and suppliers -- think of how overused they will be. Importing resources can help especially there's the need to let nature rest -- such as having non-timber seasons should be a good time to import materials when it's not export season. If there's competition then think your customers also have competitors who can serve as potential customers. That's why we have a SWOT analysis where we don't only view at the weaknesses and threats -- but also at the strengths and opportunities.

This should the mentality. It should no longer always be limited to (1) Filipinos win -- foreigners loses and (2) Filipinos lose -- foreigners win. Instead, it's time to think of letting a third outcome where (3) Filipinos win -- foreigners win whenever possible. We're not fighting a war of conquest of command and conquer in the world of international marketing -- we're talking about foreign interdependence where countries maintain their sovereignty while having ties with each other.