Sen. Aquilino Martin D. Pimentel III and some Senators have objected to allowing foreign ownership of land as he believes that this will not benefit the economy and will instead spark opposition to Charter change (Cha-cha).

The Philippine Senate committee on constitutional amendments and revision of codes, led by Sen. Robinhood Padilla, has recommended amendments to seven sections in three articles of the 1987 Constitution, including full foreign ownership of land. 

Under the proposed constitutional amendment, Congress may allow foreigners to acquire private lands not exceeding 1,000 square meters and foreign companies to buy rural private lands not exceeding five hectares.

Padilla argued that lifting the restrictive and protectionist provisions of the Constitution would allow foreign businesses to fully own private properties, congressional franchises, schools, mass media, and public utilities, creating jobs for Filipinos. 

However, Pimentel said that this was not necessary and that the country should focus on resolving issues such as high energy costs and an inefficient justice system. Pimentel also highlighted that land ownership is sacred and a very personal issue to many Filipinos. 

The fate of the committee is uncertain, as some members have not yet signed the draft report.

TWO SIDES OF THE COIN

Allowing foreign ownership of land may lead to the exploitation of the country’s natural resources and displacement of local communities, increase in land values making it unaffordable to locals, negative impact on agriculture, and dependence on foreign investments. For one, it could lead to the displacement of local communities. Foreign investors may prioritize their business interests over the welfare of residents, leading to forced evictions and relocation.

Supporters of allowing foreigners to own land, argue that it will attract more foreign investments, create jobs, and boost the economy citing that the provisions in the current constitution limit foreign investment in the country, and foreign investors may look to other countries with more favorable investment policies. foreign investors may also bring in new technology and practices that could benefit local industries although local adoption of new technologies has not hindered the country in the past.

There is a risk that full foreign ownership of land may lead to the exploitation of the country’s natural resources. Without proper regulations and monitoring, foreign investors may prioritize their profits over environmental concerns, leading to damage and depletion of the country’s resources.

Another issue is the potential impact on the agricultural industry. The Philippines is an agricultural country, and the sector employs a significant portion of the population. Allowing full foreign ownership of land may lead to displacement of local farmers resulting in higher food prices and higher unemployment in the agricultural sector.

Full foreign ownership of land in the Philippines is a complex issue that requires careful consideration. While it may bring potential economic benefits, there are also potentially wider risks that may negatively impact the overall welfare of  Filipinos. 

Source: The Editor – Inside Politico | #Inside Politico | April 5, 2023