Being cluey about foreign capital

One of the key aspects of the Constitutional Reform agenda revolves around the proposal to open the Philippines to full foreign ownership of business assets and private property. It is a worthwhile option to explore as it has been known for quite some time how inept Filipinos are with creating capital indigenously and at keeping a productive chunk of it within its borders. Nonetheless, there is still a need to remain vigilant as to the nature of the capital we allow Filipinos unfettered access to, specifically: We want capital coming in that expands capacity for sustained gains in productivity and equity creation.

The priority at the moment is the immediate need to alleviate the wretched lives of millions of impoverished Filipinos. This provides a strong case for a free-for-all fire sale of domestic assets and business franchises to foreign capitalists. The thinking there is that jobs will be created and consumption stimulated, as soon as (1) a fresh wind of business ventures blows through, (2) formerly idle land and property get snapped up and used productively, and (3) increased competition puts downward pressure on prices as more options are made available to Filipinos.

No argument there. Increased consumption as a result of more options, more competition and therefore reduced costs provide short-term job creation and cost-of-living mitigation. But in looking out for the longer-term sustainability of economic growth, measures need to be seriously considered to ensure that a good chunk of the aggregate freed-up cash resulting from consumers benefiting from lower prices (and gaining more employment) gets re-channeled into investment (or back into the financial system) rather than get pissed away on non-added-value consumption (e.g. celphone trinkets, beer, mistresses and motels, borloloy on onher-type jeeps, etc.)

In short there needs to be either or both (1) an increase in savings rate and (2) increased predisposition to invest. In either case, free cash is conserved (capitalised) instead of pissed away (expensed). At the very least, depositing cash in a savings account, puts that cash in circulation in the financial system which, in principle, is most efficient at channelling it to who needs it the most in the industrial community. But spend that cash on celphone load, and what could’ve been capitalised dissolves into digital oblivion in a single conversation with one’s girlfriend.

Get that ethic rolling, and dependence on foreign capital gets steadily petered down over the years as domestic capital (and the capacity to create it indigenously) ramps up.

Further relaxing restrictions to foreign capital is therefore not the silver bullet that will see us instantly enjoying a bonanza of jobs and bustling commerce and trade. There are many challenges ahead, and as such, we need to be careful about not getting into a complacent if-you-open-it-they-will-enter appeal. Indeed, as I stated in my article “Throwing our doors open to foreign investment when we can’t even get tourists to visit“:

If your house looks and smells like shit, even burglars won’t enter it.

And it is a bit of a no-brainer to behold the way the Philippines assaults the senses of a would-be investor the way a neglected public crapper does. Manila’s international airport and its immediate surroundings, for one, provides very revealing first impressions. But there are many other subtle things about Filipinos that begin to hit the sensibilities of the average business explorer as he gets to know the society. Rules are recommendations, yes means no (and vice versa), being on time is to be grossly un-Filipino, and words without contracts are for the most part empty. To the Western industrialist who considers one’s word and handshake golden, and to a Japanese executive who comes from a society where “there are very few lawyers and the codes are mostly unwritten, but […] are binding, nonetheless” (Greg Sheridan, Asian Values, Western Dreams), the Filipino Way can come across as infuriating.

In short:

We need to clean our house first before we throw open our doors and lay out the Welcome mat.

As we can see, all roads lead back to the way Da Pinoy mind is wired. Indeed, Constitutional Reform can either be the overarching program to facilitate change in our sad society or a key pillar in an even more broadly encompassing change program defined by a handful of Vital Few Initiatives. The important thing is to stay focused on the whole point of these exercises by tethering ourselves to it, even as we get deep into the detail of the actions we mount — and remain cognisant of the Truth about Filipinos: that our society in the form it takes today is a massive outcome of too many actions underpinned by very little thinking.

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Post Author: benign0

benign0 is the Webmaster of GetRealPhilippines.com.

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76 Comments on "Being cluey about foreign capital"

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Hyden Toro
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A nation that is in deep of Feudalism, will never Industrialize. U.S. Gen. MacArthur was right in promulgating the Land Reform Program of Japan; when he was the Virtual Ruler…The Japanese landowners were responsible for dragging Japan to war, in World War II. Same as other Asian countries…most got out of Feudalism already…So, it is useless to talk about Industrialization, without full Land Reform. We are just wasting our time…

Renato Pacifico
Guest

Hayden, WHO WILL ENFORCE LAND REFORM LAW?

Hyden Toro
Guest

No one; the Rulers are the Feudal Lords themselves. The law is there, but has no teeth…

Subliminal Messenger aka Renato Pacifico
Guest
Subliminal Messenger aka Renato Pacifico
Designer constitutional couture is useless without LAW ENFORCEMENT.  Who will see to it Laws are unbiasedly enforced by Law Enforcer?  The Senators?  The Congressmen?  The West-Pointing PMAyers?  These three monkeys cannot even enforce the laws.  WHO WILL?  Rewriting the constitution cannot do character change of these three monkeys, definitely.  WHO WILL ENFORCE THE LAW?  United Nations Combat Troops?   That is a $64,000,000 question.   Freeing up 60% and 100% of idiot peryodiko would be futile if there is no Law Enforcement.  Who will enforce the laws?  As simple as wang-wang policy cannot even be enforced; Bawal Umihi dito is ignored;… Read more »
Cy
Guest

Hoy, James Thurber, baguhin mo na pangalan mo! Parang pangalan ng banda! Yo! Like I did with my childish nickname – I turned it into a club-style sounding screen name worthy of the limelights. Yo!

GabbyD
Guest

do you have any specific recommendations to address the problems you feel are holding back investment?

benign0
Guest

I’ve got a full Solution Framework for all to read and behold. Check it out right here! 😀 Recommendations abound too on my seminal book which you can download for FREE here! 😀

I also introduce the management concept of the Vital Few which the eminent Ben Kritz also expounds further in his article Less than the sum of its parts.

Happy reading! 😀

GabbyD
Guest

How do you know that the problems you cite are in fact, THE problems holding back investment?

Miriam Quiamco
Guest

Gabby D, Gabby D, you sound like a child with a mind of a tabula rasa, sorry for the personal insults in the other comment thread.  Innocence must be bliss in your nook of the wood.

GabbyD
Guest

haha… i luv the ‘sorry for the insults, but let me insult you here’ shtick. hehehe.. ur so funny. 🙂

so, any evidence miriam?

Cy
Guest

DIGRESSIONS by DJ Cy

GabbyD naman, I repeat my straight answer in another thread: we don’t know everything, we’re just speculating, based on our conceptions of “investment”, “value systems”, etc. To strictly know with a reliable certainty, we’ll have to survey many of the foreign investors themselves in order to get evidence. That takes long, but I have a whiff of hope in my tongue. Sige, no country grammar muna for you GabbyD, contemporary grammar muna…. Peace. Yo!

GabbyD
Guest

wow, cy. thats quite honest of you. i appreciate that. however, i doubt that B0 shares your opinion. i wanna hear it from him, himself.

Cy
Guest
Yo! DJ Cy returning in THE RED ZONE! Yo! Anyway, I would like it if we have evidence coming from primary sources, then statistically interpreted. However, as that takes long, we will have to use the logical resources bequeathed to us by the great logicians. Yo! And with millions of Filipinos jobless already, with many substandard industries abounding here (debatable pt.) something quick must be done, and to find out what it is, we could use the evidence we are talking about, but as it takes long to gather evidence (and baka yung mga Pilipino ay naglulupasay na kapag makuha… Read more »
ChinoF
Guest

Hey, Tomas Andres had a good idea there. I have his Do’s and Don’ts with Filipinos Workers pamphlet. A lot of what was described about Filipinos could be described as Filipinos’ wrong values.

Cy
Guest

Ay, oo nga pala, page 132. Peace!

Cy
Guest

I have three of his books. And I admit that the book I named above is my all-time favorite, above anything I have read. Nabuksan ang isip ko. I have read it since Grade 5. My old copy (my dad’s) became tattered, then I bought a new one recently. =)

Anyway, I don’t have the pamphlet (where can we buy one) but here’s ChinoF’s article about it: http://antipinoy.com/culture-helps-corruption/ Enjoy, as I did. Yo!

Artemio
Guest
Gabby, If you are looking for something that resembles a geometric proof in which you expect to see a relation of strict logical (“air-tight”) necessity between a set of initial premises and their conclusions, then you may find it neither here nor anywhere. Even in the most exacting of sciences, which is physics, there is always room for theoretical refinements and is never air-tight. This is the nature of the ‘sciences’ –i.e. empirical science–They are not strictly deductive but make heavy use of inductive inference. You even seem so nit-picky that you could even argue over trivialities such as semantics.… Read more »
GabbyD
Guest

geometric proof? sobra naman. i have in mind evidence like how Cy proposed. some studies, surveys… you see, anyone can look and concoct a theory. doesnt mean that its correct. or even useful. 

the author is OFFERING his ideas. i’m asking him to fill in the blanks. arent u curious? How DOES he KNOW (if he in fact does KNOW) that the problems hes citing ARE in fact the problems holding back investment? he seems to be certain — certainly implies hes got some evidence, surely.

or maybe not — some people are sure without knowing anything. 

Cy
Guest

Yo! DJ Cy returning to THE RED ZONE, with GabbyD! Hey! Check these out:

www3.pids.gov.ph/ris/taps/tapspp9815.pdf

http://www.adb.org/statistics/ics/pdf/PHI-Full-Report.pdf

http://www.ijeb.com/Issues/data/June07_2_FDIandEconomicGrowth.doc

http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN005115.pdf.

Ay, oo nga pala, this is in blog form, tulad ng sinabi ni Artemio (welcome, Artemio, to THE RED ZONE, by the way!) yo, not in journal or book form, tulad ng mga links na ito, yo, so sabihin na nating summary yung post. Yo!

GabbyD
Guest

fantastic cy! 

if ANY ONE OF THOSE studies mentioned ANY of the factors named by b0, that would really, really help his case. 

Cy
Guest
TELLING TIME by DJ Cy Yo! GabbyD, what if ikaw ang magresearch ng ganoong bagay? Hey! Gawa ka ng isang fail-safe questionnaire tapos magpasurvey ka. Yo! Sisikat ka. Pero if you don’t feel like it and you would rather introspect, one way is to think of the question below: “If you are a foreign investor in any country, what problems in that country would suffice for you to pull back investment?” See, I told you, I have a whiff of hope in my tongue. Peace. Anyway, getting confused? Past = FLASHBACK Present = THE RED ZONE; THE RED ZONE Sunday… Read more »
Cy
Guest

NEEDLEPOINT by DJ Cy

Let us rephrase your question: If you are a foreign investor in any country, what problems in that country would suffice for you to pull back investment?

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Miriam Quiamco
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test

Miriam Quiamco
Guest

strange, rewrote a long post and got lost again, am I banned to post a long one here/

benign0
Guest

I tried looking in the Spam queue and the Trash, but couldn’t find anything. Maybe it’s a glitch. I recommend a safety precaution I observe: type your comment on Notepad first then copy and paste it into the comment field when you are ready to submit. That way, if the site f*cks up, you still have your text intact.

Miriam Quiamco
Guest

might have posted it on the blog of Miss Pedrosa, the one on police decentralization.

Hyden Toro
Guest

Some Yellow Horde Nazi Hackers, paid by the Hacienda Luisita Mafia, are playing with this Blog Site…Just keep on Posting….if you don’t get in the first try…try and try again….

ici
Guest

while we are on this subject, maybe something can be done on monopolies on basic needs like meralco.  oppressive would be the word for them.

Marques
Guest
I don’t fully agree in we have to clean this first then put a welcome mat. We have to lay a foundation for foreign investment to come in. Change the provision in the constitution first on foreign investments. Then the other things like improvement on security follows. Look at this this way, “If your house smells like shit, if there’s money to be made People will still enter.” China in the cultural revolution was a messy place, they didn’t say improve ourselves first before they welcomed foreigners. Red tape was probably worse then in China compared to ours now. WHY?… Read more »
The Lazzo
Guest
China in the cultural revolution was a messy place, they didn’t say improve ourselves first before they welcomed foreigners. Red tape was probably worse then in China compared to ours now. Richard Nixon visiting Mao was more Cold War strategy than anything. China was apparently falling out with their Soviet communist allies and America opening relations with them was all to stick it to Brezhnev. Open diplomacy, of course, is different from an open economy and an open society. By opening the special economic zones and introducing market reforms, Deng Xiaoping and his CCP allies were doing the self-improvement themselves… Read more »
Marques
Guest
opps my fault, I was referring to the red tape when China opened up (Deng Xiao Pings era) and yes there was the political side to it, but focus on the economics first and how they did it. they didn’t say ah lets improve the PLA and their police force and the peoples attitude and so on before they opened up. opening up was the first crucial step then the others followed remember at this time DXP still had lots of enimies inside the party. when money started to come in thats when improvement started. People had better living standards… Read more »
Marques
Guest

Chinese in China and political party members were convinced when they saw the changes.

and to others reading this
Don’t argue that bec. Chinese are known to be industrious and the lot, they are but we are currently talking about Foreign investors. and That I’m referring to foreign business owners that opened companies in China.

ChinoF
Guest

It seem more like, fixing the problems is easier when you have the money to implement solutions with.

The Lazzo
Guest
We need to clean our house first before we throw open our doors and lay out the Welcome mat. I am particularly worried about what is pretty much a culture of “failure for the nihilistic sake of humor” especially when it’s something I can say I can heavily relate to. I am saving like mad just to make sure I don’t have to depend on welfare when I finally move back to the States. Unfortunately, my little brother, also in college, seems to not give a shit about his minor subjects and is constantly shuttled to and from ‘gigs’ where… Read more »
benign0
Guest
In a sense, looking to foreign capital as a source of salvation is more akin to depending on one’s bonus to pay for the mis-use of one’s base pay. The issue in this example is that one’s lifestyle should have been based on what one’s base pay could fund, whilst bonuses (which may or may not come) should be just that – bonuses. Bonuses are something to enjoy when it comes and something that is ideally not missed when it doesn’t. In the case of the Philippines, the root issue is the use of indigenous resources and how a failure… Read more »
Orion
Guest
Hi benign0, “Foreign Capital as Salvation” was precisely what caused several countries to become the big wigs they are today.  Singapore’s strategy of poverty alleviation and the eradication (or drastic reduction) of unemployment (as first suggested by the UNDP economic development consultant assigned to Singapore – Dr. Albert Winsemius)  was totally dependent on Foreign Investment.  Saudi Arabia, a large number of oil-and-gas rich gulf nations, as well as Brunei became the wealthy countries they are as a result of the entry of Foreign Capital. Saudi Arabia became what it is because of American oil companies including Standard Oil and a… Read more »
The Lazzo
Guest
Singapore actually had a problem with many of its people – including its majority Chinese – in terms of how many people had gambling addictions and did not save. But because of Lee Kuan Yew’s and the People’s Action Party’s policies, the Central Provident Fund was created to serve as a forced-savigns scheme (not a social pension system) which automatically captured roughly 20% of a person’s monthly income and was matched by the company (which was then deductible from taxes) I thought it was enforcing the public caning and the whole Singapore Is A Fine Cityâ„¢ rules. 😀 But good… Read more »
Orion
Guest
Lazzo, The thing about Saudi Arabia long ago was that they didn’t have people who were equipped to work for the oil companies to begin with. They were originally an almost purely pastoralist people into shepherding and goatherding and did not have the technical or educational backgrounds that would have allowed them to work for said oil companies. Moreover, even when they started becoming more and more prosperous due to the petrodollars they earned, most of their people – while being educated with the petrodollars – were still concentrating heavily on esoteric pursuits such as Islamic Theology and Jurisprudence, and… Read more »
The Lazzo
Guest
The thing about Saudi Arabia long ago was that they didn’t have people who were equipped to work for the oil companies to begin with. They were originally an almost purely pastoralist people into shepherding and goatherding and did not have the technical or educational backgrounds that would have allowed them to work for said oil companies. Moreover, even when they started becoming more and more prosperous due to the petrodollars they earned, most of their people – while being educated with the petrodollars – were still concentrating heavily on esoteric pursuits such as Islamic Theology and Jurisprudence, and other… Read more »
Orion
Guest
Lazzo,  Here are my responses to your responses: So, in essence, their change of system to allow foreign ownership – far from actually causing them to modernize – has effectively led to them reinforcing their own feudal culture (with imported labor as their serfs) rather than changing it. So much for system change leading to culture change, huh? Lazzo, the Saudis didn’t even need to “change their system to allow foreign ownership” in order to bring in the Standard Oil Company of California to invest in Oil Exploration activities in the barren Najd Dessert. That’s because the Constitution of the… Read more »
Orion
Guest
(Continuation) Singapore was forced to pick LKY for its own survival after it was booted out of Malaysia. It had to start from scratch, and they were fortunate that LKY was able to guide them to prosperity rather than some dictatorship. However, the Philippines is not Singapore. Sorry, Lazzo, but you got your facts wrong.  Singapore already had Lee Kuan Yew as its Prime Minister way back in 1959 when Singapore was a self-governing British Colony. It was only in 1963 that Singapore – after declaring Independence from Britain – merged with Malaysia. And at that time, Lee Kuan Yew… Read more »
The Lazzo
Guest
Orion: In the time since we last talked, Hezbollah – whom I recall you saying wasn’t really that strong of a force, essentially took over your country of heritage by having their pick for Prime Minister nominated. Their “platform” was their reaction to the tribunal that is very likely to indict them for assassinating a previous Prime Minister. In a sense, I have no doubt that the oligarchy will react negatively to the institution of your ©oRREcT plan. Let’s assume they lose the competition to foreign rivals. Wouldn’t that just lead to a more import-dependent society especially given that the… Read more »
ChinoF
Guest

In my words, foreign investment is not a magic bullet, but it allows you to buy the bullet.

The Lazzo
Guest

And shoot someone else with it. 😀

Orion
Guest
Hi benign0: Perhaps a look into a few relationships and interrelationships of different phenomena may help in understanding how the comprehensive Three Point CoRRECTâ„¢ Agenda (or “Full Agenda” of Constitutional Reform – a. Economic Liberalization; b. Evolving Regional Decentralization; c. Shift to Parliamentary System) as it is actually a full and comprehensive programme with interlocking and interrelated modules that are not independent silos, but instead all complement each other. (1) Constitutional Reform’s Economic Liberalization sub-component does indeed seek tocreate massive employment in order to address the massive unemployment that currently exists. More employment means more taxpayers. More taxpayers means more… Read more »
Renato Pacifico
Guest

Despite China, South Korea, Vietnam, Thailand has no “low cost English-speaking  professional class”  INvestors still pours money on them.  The snobbery of english is a myth.  They need hard-working, dynamic, thinking people instead of back-stabbing squabbling english speaking professionals.

Miriam Quiamco
Guest

Of course, foreign investors in the countries you mentioned hire only bilingual people, those proficient in English.  And that is why many South Koreans, Thais, Vietnamese and Chinese study English seriously, spending even their own hard earned money to go to the Philippines or to other native English speaking countries to learn English.  Orion is right, given a more fair foreign investment climate in the Philippines, we will surpass these countries in enticing foreign investors to invest in our country.

The Lazzo
Guest

No, they’re just hiring us to go over there and teach them English.

ChinoF
Guest
“If your house looks and smells like shit, even burglars won’t enter it.” From my point of view now, even if the house looks and smells like shit, the burglars are still here. Perhaps it’s because the burglars themselves were the inhabitants, or even the lords of the house, from the start. Let me also repost a comment which was a reply to the guy who posted something saying that our economic index was still high in a certain study index: “The fallacy here is that ALL investors are assumed to be put off by the bad state of the… Read more »
The Lazzo
Guest

From your article:
The Philippines was lumped along with Ethiopia and Thailand with an indicator score of 0 for several sectors.

Ironically, Thailand was more surprising than Ethiopia. Seriously? I understand how the turmoil turned people off, but I was under the impression that (tourist traps aside, hinthint) it was some kind of shining golden Buddhist paradise for investment.

ChinoF
Guest

That surprised me, too. I assumed though that their foreign ownership laws are restrictive, just like ours. This article I found on the net seemed to confirm it.

ChinoF
Guest

Let me add this article from The Nation about Thailand that came out alongside the Manila Standard one I linked to.

The Lazzo
Guest

Not much better than ours, apparently. 49/51 is still a minority like 40/60. But I can see where the impression of Thailand doing better comes from.

Construction, tourism & retail/66/91.6/98.1

ChinoF
Guest

Also, Thailand, along with other countries, have no foreign ownership limits in the constitution. I just took a look at the 2007 constitution, there seems to be none. They define foreign ownership limits by legislation – makes it easy to change.

The Lazzo
Guest

Though it’s still vulnerable to nationalistic sensibilities. Easier to change, if only a little.

ChinoF
Guest

Ah yes, easier indeed.

The Lazzo
Guest

Easier, but not easy. Note how I bolded the suffix.

kickapoo
Guest

Philippines couldve been a backpacker’s paradise. Beautiful obscure beaches, exciting mountains to assault, friendly locals, diverse culture, amazing climate. With mysterious lore in each province to boot. Englesh-spokening-dollars pa ang mga Pinoy.

Tourism is a billion dollar industry in Mexico, a country much similar to ours.

Instead of a booming tourism industry, all I see are malls popping out everywhere. Parang mga catch-basin where OFW money are being siphoned and into the pockets of rich businessmen. Nice, Pilipinas kay ganda…or to quote an Ewok ” Yan ang maganda…”

P-Noy
Guest

@kickapoo, berry goot observation.  Never thoughted of that.  I like that “Malls … catch-basin … (of) OFW money”  So, kickapoo, you are now posting and talking like Benign0.  Sure I do like that “catch-basin” thingie.

Jay
Guest
@kickapoo The country IS a tourism paper-tiger! Imagine all the good and revolutionary things set up for tourism in other countries and how they are reaping those benefits in many ways. Imagine that in the country and the benefits reaped not only for the government looking to hog more money, but for logistics overall. But that IS also the problem! Sure its much harder given the geography of the Philippines, but even that can be given a positive spin meant for some form of profit and even establishing markets that exclusively exists in Manila, the supposed hub of the country.… Read more »
GabbyD
Guest

“But I digress… Instead of needing to “change their system to allow foreign investment”, Standard Oil merely signed a simple concessionary agreement with the Saudi Government that fully authorized Standard Oil to do exploratory drilling in what was essentially unused and unwanted dessert land. All that Standard Oil needed to do was pay the Saudi Government generous royalties once they started selling the oil they drilled.”

this is EXACTLY what is happening NOW in the philippines.

what MORE do you want and why?

J_ag
Guest
Memo to my other favorite delusional economist and others…. 1. Is there a constitutional bar to any foreign corporation to enter the Philippines and own (100% equity) and operate businesses involved in the more strategic and systemically important productive sectors and sub-sectors of the Philippine economy (i.e, agriculture, manufacturing, mining, energy development, software development, finance, wholesale & retailing)? If you answer yes, then it is obvious you do not know what your are talking about. It is more ignorance than stupidity. No one will hold it against you. Let us not talk about the non-productive sectors which is the service… Read more »
benign0
Guest
Mr J_ag, Re (1) perhaps you are referring to clever and creative ways “foreign investors” get around legal “restrictions” on ownership of domestic assets? Last I heard, that’s what CFO’s are paid the big bucks for… 😉 Re (2) Good question. How about this wireframe definition for starters (let me know if it suits you): “Foreign capital” can be any of the following: (2.a) Funds moved from one country to the subject country for the purpose of acquiring assets situated within said subject country. (2.b) Knowledge, expertise, and technology originated and owned by one country, nationals of or that country,… Read more »
GabbyD
Guest

what are these clever ways? if its legal, is that a problem?

further, for the industries that jag has mentioned, if u look at the Negative FDI list, u’ll find that these industries arent constrained.

Cy
Guest
Yo! See last two sentences. Meanwhile, savor your imagination. Peace. This is one example. “Although foreign investors were forbidden by the Philippine constitution to either own or lease public agricultural lands, there were 124 transnational agribusiness firms operating in the Philippines in 1985, of which 58 were directly engaged in the cultivation of cash crops on the southern island of Mindanao. As early as the 1920s, Del Monte Corporation had established a pineapple plantation in Bukidnon in northern Mindanao. B.F. Goodrich and Goodyear Tire Corporation came in the 1950s, and Castle and Cooke entered in the 1960s, setting up a… Read more »
J_ag
Guest
You did not answer the question but reverted to a convoluted answer on the definition of capital. The more important productive sectors of the Philippine economy i.e. are open to 100% foreign equity including finance, wholesale and retail. Where have you been living? In a cave? Foreign finance capital used to buy exiting domestic assets do not create an economic investment. Are funds actually transferred from one country to another or are credits transferred. You obviously do not have a clue above moving funds from one country to another. No need to strain your intellect. Do you know of any… Read more »
benign0
Guest

Actually I answered your question. I defined foreign capital. Here, you now merely show (1) why you think this definition isn’t correct, and (2) what you think I don’t know. But see, dude, what sets apart the men from the little squirts is the ability to come up with either (a) a counter-thesis to the idea presented and/or (b) augment the tabled idea with additional input into it.

All you do here is grandstand your quaint textbook knowledge and merely substract from the collective intellect. 😀

Marques
Guest
J_ag, (original msg:”1. Is there a constitutional bar to any foreign corporation to enter the Philippines and own (100% equity) and operate businesses involved in the more strategic and systemically important productive sectors and sub-sectors of the Philippine economy (i.e, agriculture, manufacturing, mining, energy development, software development, finance, wholesale & retailing)? If you answer yes, then it is obvious you do not know what your are talking about. It is more ignorance than stupidity. No one will hold it against you.”) it is very clear na by law you can’t have 100% equity by foreigners in general ( though there… Read more »
J_ag
Guest
Stick to the facts not your opinions. There is no bar to foreign companies (100%) here to be involved in agriculture and manufacturing. Sharing technology means they get it for free. China is now offering their own version of bullet trains cheaper and will be offering Chinese made aircraft in much bigger scale. GE produces jet engines and also owns one of largest jet leasing companies in the world. They also are involved in selling mortgages. GE came to be because of the patents of Thomas Edison. They expanded into producing turbines for electric power plants. Then they went into… Read more »
Marques
Guest
clear na hindi mo masagot yung question ko, Post here where in our contitution/law does it allow any foreign company to set up business here “Sharing technology means they get it for free. China is now offering their own version of bullet trains cheaper and will be offering Chinese made aircraft in much bigger scale. ” they will pay royalty etc. research. Now if Marques can inform everyone if in economic history financial capitalism came before industrial capitalism? I was saying how pointless you connected patents to financial companies, when it was really created to earn more money with financial… Read more »
GabbyD
Guest

please see the FDI liberalization law, the 2 negative lists. 

J_ag
Guest
“WE NEED TO OUT-INNOVATE, OUT EDUCATE AND OUT BUILD THE REST OF THE WORLD.” Barack Obama, in case one is clueless is President of the U.S. The history of economics in the U.S. is one of guided intelligent design by the government of the U.S. Protectionist policies are one side of the mercantilist coin. The other side which is proactive protectionism is industrial policy. “This history is worth reviewing because America is poised for another debate over whether its economy evolves or is designed, with President Barack Obama’s opponents claiming that whatever is good in America’s economy has always evolved… Read more »
J_ag
Guest
The history of economic evolution is one of a complex system of processes that change. Karl Marx and later Schumpeter pointed out the fatal flaw in Capitalism. Old ways being changed by new ways of doing things. How can disparate businesses manage the changes within domestic concerns much more across national boundaries? The ignorance level in this blog is actually very high. One can have his own opinions but one cannot have delusional facts as a basis. Human intellect can observe, innovate and invent. Money is a technological tool. It too has undergone changes. “This evolutionary character…..is not merely due… Read more »
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Maternal Health
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Hi there! Would you mind if I share your blog
with my zynga group? There’s a lot of folks that I think would really enjoy your content. Please let me know. Thank you

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