Tuesday, November 15, 2011

The real point of inviting foreign investment seems lost

My feeling is that we've lost sight of the real point of inviting foreign capital into the country, which is to *seed* the economy with a capital base and provide *initial* stimulus to consume (presumably from those that come to be employed by the businesses that said foreign capital creates).

We forget that there is a second stage to that initial one where the ground work laid by the above seed and initial stimuli become the fertile breeding grounds for *domestic* enterprise to take root.

My skepticism surrounding all this rah rah over foreign investment  lies in both (1) the above second stage no longer being highlighted giving the impression that foreign capital will single-handedly sustain the economy, and (2) the iffy assumption that, given the opportunity, Filipinos will exploit the groundwork laid to engage in their part of the deal, which is to create and accumulate capital domestically.

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