I agree with Karl. Very important perspectives here.

Joe

good points ben.

Karl:

I’ll give you a good example of how letting foreigners into the micro- or small-business sector can help. I know a foreign guy over in Rizal, owns (through his wife’s name of course) a sari-sari store-cum-canteen-cum-local hangout. He not only has a well-supplied store for the neighborhood, he keeps at least 3 people employed (under strict guidelines and in minutely-exacting accordance with all applicable labor regulations), and has provided a safe, clean sort of social center for the neighborhood. As a consequence of presenting some stiff competition, everybody else has cleaned up their act; the sleazy videoke bars that attracted a lot of obnoxious drunks and fights have gone under, a few of the other neighborhood sari-saris have too, but the others he’s helped improve through offering business advice and serving as a fair wholesale supplier for some of their goods. After a couple years of this, the whole place is cleaner, quieter, and the people who are doing business are making a legitimate living from them, and not coincidentally, maintaining proper tax and business fee payments — which are in turn assessed correctly by the municipality, since the now happier and better-off community constitutes a formidable civic oversight entity.

My point is, we foreigners tend to think long-term and in bigger spheres of influence than most people here, because we have to. There’s no making a quick buck in this country. Laws being what they are, any foray into a business enterprise is intimately tied to our personal circumstances — which, thanks to the absence of a divorce law, we cannot escape unless we are willing to utterly sacrifice everything. Even if we decide to go the more nefarious route and set up a dummy, personal relationships are still the linchpin of the whole thing, and maybe even more of a risk factor. Despite the ridiculous restrictions, there are still enough expats who are willing to do it on a small scale, if only they could do so in a relatively aboveboard manner.

Have to agree with most. if not all.

About that expats having to marry Filipinas just to be able to able to set-up business here, that may not be totally bad in some cases were it is done in good faith, but we know that is not the issue if they are done in good faith or not. The laws on investing are an open invitation for marriages of conveniences making us look like manhuhuthot, wittingly or unwittingly.

About what you said before,if I recall,that it is also ok for mom and pop shops to be run by foreigners, maybe at first i thought it was overkill, but if smes want to grow and not stay small, competition can allow that to happen.

If we are losing nurses,doctors,engineers, we can have expats,of course that can happen once we can afford to pay them, and that can happen if we also allow hospitalsand the like to be run by expats .

The other issues that you raised (schools,etc)are also valid as far as i am concerned.

PS

Got to let this out of my chest early,

I recognize all the issues you raised,but in my case i am still waiting for Noynoy to come up with a better platform and better performance on forums.
because if he really is to win , he must also recognize valid issues that needs to be addressed.

Oligarchs are here to stay whether Noynoy wins or not,but your beef is it is ok as long as they allow competition and shape up or perish.

if he is to win, our discussions would continue and the way it could help is all the issues that needs to be recognized must be addressed.

I am already used to your style(which is no bull**** the better), and I won’t dismiss them as fault finding,and wachamacolit, and of course those who can’t stand the heat must leave the kitchen.

Karl, Exactly. PLDT, Smart, Globe, and Bayantel wouldn’t be too happy if Singtel or Tmobile or Boostmobile sets up shop separately – provides higher wages, provides better benefits, provides superior service.

Thanks to Philippine laws, specifically, the anti-investor provisions of the constitution – PLDT, Smart, Globe, Bayantel can get away with lousy service, low wages, and substandard benefits.

Consider the following:

• Singapore Telecommunications – 45%
• Ayala Corporation – 34%
•  Public stock – 21%

The value proposition of the protectionist clause that is by forcing the issue of foreign investors going into joint ventures technology will be transferred. That is not always the case. In the Philippines for example – has such joint venture improved the services? My take is that it has not improved the service but has instead led to a diversification of marketing bundled products using the same lousy services. Yeah sure – Globe may have more cards for airtime available, but what’s the point buying those cards when your bandwidth sucks? Pinoys like Esposo, Margallo, and Buencamino must be so happy with inferior service. And that’s just for starters – consider our electric utilities. So much so that they want candidates who advocate charter change be junked.

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Also, consider the 7TH Foreign Investments Negative List

LIST A: FOREIGN OWNERSHIP IS LIMITED BY MANDATE OF THE CONSTITUTION AND SPECIFIC LAWS

No Foreign Equity

1. Mass Media except recording (Art. XVI, Sec. 11 of the Constitution; Presidential Memorandum dated 04 May 1994)

2. Practice of all professions1

    a) Engineering

        i. Aeronautical

        ii. Agricultural

        iii. Chemical

        iv. Civil

        v. Electrical

        vi. Electronics and Communication

        vii. Geodetic

        viii. Mechanical

        ix. Metallurgical

        x. Mining

        xi. Naval Architecture and Marine

        xii. Sanitary

    b) Medicine and Allied Professions

        i. Medicine

        ii. Medical Technology

        iii. Dentistry

        iv. Midwifery

        v. Nursing

        vi. Nutrition and Dietetics

        vii. Optometry

        viii. Pharmacy

        ix. Physical and Occupational Therapy

        x. Radiologic and X-ray Technology

        xi. Veterinary Medicine

    c) Accountancy

    d) Architecture

    e) Criminology

    f) Chemistry

    g) Customs Brokerage

    h) Environmental Planning

    i) Forestry

    j) Geology

    k) Interior Design

    l) Landscape Architecture

    m) Law

    n) Librarianship

    o) Marine Deck Officers

    p) Marine Engine Officers

    q) Master Plumbing

    r) Sugar Technology

    s) Social Work

    t) Teaching

    u) Agriculture

    v) Fisheries

Isn’t it ironic that the country who sends professionals to work overseas – does not want professionals from other countries. Give and take people – hindi yung puro lang take, walang give.

We are losing our professionals overseas, wouldn’t it make sense to allow other countries who have professionals, who are willing to put up with the Philippines subhuman compensation?

(Art. XII, Sec. 14 of the Constitution; Sec. 1 of RA 5181)

3. Retail trade enterprises with paid-up capital of less than US$2,500,000 (Sec. 5 of RA 8762)2

Consider the lot of retired foreigners who have the capital, who got married to Pinays, who are actually bankrolling the Pinay’s retail operations. Ano ba ‘to – government sponsored huthutan? Don’t they need protection in case the Pinay and her families rip the foreign spouse up? There is an unaddressed segment that’s not being met – and the caps are not helping at all.

4. Cooperatives (Ch. III, Art. 26 of RA 6938)

What’s wrong with having foriegners invest in coopratives? here’s what – coops with members coming from poorer classes can go into joint venture with a foreigner. For example, PLDT’s terminated workers can set up a cooperative, go into joint venture with ZTE or Singtel – that creates jobs for the laid off workers and introduces more innovations.

But, the oligarchs don’t want competition.

Up to Forty Percent (40%) Foreign Equity

17. Exploration, development and utilization of natural resources (Art. XII, Sec. 2 of the Constitution)4

18. Ownership of private lands (Art. XII, Sec. 7 of the Constitution; Ch. 5, Sec. 22 of CA 141; Sec. 4 of RA 9182)

Ownership of the land is an issue as pointed out in the OECD studies.

19. Operation and management of public utilities (Art. XII, Sec. 11 of the Constitution; Sec. 16 of CA 146)

If foreigners can do a better, cleaner, more efficient, lower costing service – why restrict them from doing so?

Why put up with local utilities like the Lopez-owned Maynilad (owner of ABS-CBN, major Noynoy backer) or Benpres (another Lopez company) that deliver lousy expensive service?

Instead of legislation, open up the market – If Lopez does not shape up, let him sink!

20. Ownership/establishment and administration of educational institutions (Art. XIV, Sec. 4 of the Constitution)

We’d like to improve our educational system and having foreigners to come in and invest even own a majority share will help upgrade our schools – and we don’t want them? So, we’d rather be stuck with the Jurassic educational institutions? Can’t have the cake and eat it too.

21. Culture, production, milling, processing, trading excepting retailing, of rice and corn and acquiring, by barter, purchase or otherwise, rice and corn and the by-products thereof (Sec. 5 of PD 194; Sec. 15 of RA 8762)5

22. Contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, company, agency or municipal corporation (Sec. 1 of RA 5183)

Same deal, if the foreign entity provides better quality at lower prices – why stop it from doing so? It pays taxes, hires people, creates economic velocity – and we don’t want it?

Kasi po, ang gusto ni Maynilad (aka Lopez oligarchs that bankroll Noynoy) – sila lang!

Go over the FINL and you will see that the industries singled out for protection are dominated by oligarchs. If Noynoy truly wants a level playing field – this FINL has to go.

Obviously, Noynoy and his alipores don’t want that – so expect the same lousy service – pinoys get what they deserve.

“Aquino’s oligarch backers are not interested in addressing systemic corruption because they are benefitting from it. PLDT, Globe, ABS-CBN are more interested in protecting market share and the bottom line by keeping foreign investors (and competition) out.”

“The domestic market is not growing due to its oligopolic nature. The need to break the oligarchies chokehold on the economy becomes more imperative. As long as the oligarchs and their stooges are in control, there will always be massive poverty, thereby creating systemic pressure for corruption.”

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Although PLDT is partially owned by Salim (Pangilinan’s financier) and Globe.partially owned by Singtel,,Transco(Chinese)And with all those that used tricks to go around the antidummy law ,the point is Our laws would not yet allow Singtel to run on its own here,globe and the rest will be forced to shape up or packup.

Our richest family henry sy’s would not allow Wal Mart to setshop here so what do we have? waltermart nga ba yon.

Look at them diversifying spreading their meager resources too thin and trying to be everything for everyone. , we need foreign competition.

We have a house speaker, proposing charter hange for economic provions and hell breaks loose.

That is our current situation whether the oligarchs are aquino backers or not.

Homer,

Thanks for pointing those points out. You have just given me my homework.