Wednesday, January 15, 2014

Mediocre investment and high unemployment in #Philippines traces roots to #Aquino legacy

In 1986, Cory Aquino presided over the passage of a constitution that effectively bars the easy entrance of foreign direct direct investment into the Philippines. Then proceeds to craft an onerous regulatory framework that prevents locals from easily starting new businesses and limits market participation to the established oligarchy. Those companies that remain open are eventually taxed to death and local entrepreneurs are unable to turn a profit unless they participate in the black market.

Instead of encouraging innovation or fostering a competitive business climate, the Philippine government tells "heroic" professionals (like joeld) to become part of a ballooning immigrant community that sends remittances to prop up the economy. At home, instead of encouraging the growth of an investment friendly business environment, the Ramos administration creates special economic zones to bypass the labyrinth of local business regulations. Why no administration has ever come to the conclusion that the local business climate would be vastly improved by the same deregulation is beyond me.

And now the DOLE laments the fact that there aren't enough workers with technical expertise in the country? It's absurd!

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