Top economist pushes for Charter economic reform
THE country’s leading economist has underscored the urgent need for strategic amendments to the 1987 Constitution and the adoption of comprehensive economic reforms to significantly enhance the country’s investment climate.
National Scientist Raul Fabella, a Professor of University of the Philippines School of Economics, made this pitch to Members of the House of Representatives during a recent forum where he presented his paper titled “PH Investment Rate: Why are we far behind? How do we rebound?”.
The forum was organized by the House of Representatives Congressional Policy and Budget Research Department (CPBRD) led by Deputy Secretary General Dr. Romulo Emmanuel Miral Jr. and moderated by Markina City Rep. Stella Quimbo, senior vice chairperson of the House Committee on Appropriations.
In his presentation, Professor Fabella highlighted the stark reality of the Philippines’ investment rate, which stands as the lowest among selected ASEAN countries, at 22.4 percent.
In comparison, nations such as Thailand, Indonesia, and Vietnam boast higher investment rates, with China’s investment rate reaching between 34-50 percent in recent years.
He noted that this disparity underscores the Philippines’ preference for consumption over investment, resulting in a low savings rate and an “anti-investment ecology.”
“All economic progress boils down to investment. Countries that invest less will over time eat the dust of countries that invest more,” Fabella said.
President Ferdinand “Bongbong” Marcos, Jr. and government economists have all acknowledged the necessity of amending the restrictive economic provisions within the 1987 Constitution as a foundational step towards reversing the country’s position at the bottom of the investment ladder.
