Open FDI Equals CHINA?!

This is an interesting drawing I found on Facebook. It's often used to portray people who look at the removal of the unnecessarily restrictive 60-40 shares ownership policy as, "The current president's gift to China." The same was done during former Philippine president Atty. Rodrigo R. Duterte. The same was also done with Philippine President Ferdinand R. Marcos Jr. It makes me think of stupid comments written by idiots on Facebook. It would be ironic if a lot of anti-FDI and anti-American rants were made not only on Facebook but also were typed using Apple gadgets of all things! They may be quick to use whatever irrational reasons. Some reasons can range from foreigners "unfairly" owning the means to produce equipment (read here) and that they're simply forced to participate in the capitalist economy model to survive (read here). However, I must ask if these guys were forced to use the luxury brands they're using (read here).

As the map shows, some Filipinos say that FDI will destroy the "spirit of the country". It should be ironic that some of them are actually Catholics, belonging to a multinational religion. It should be stupid that members of the Catholic Bishops' Conference of the Philippines (CBCP) should be happy about their shrines going international while going against FDI. They also mention China more than anything. It's almost like they never saw a world map. If they did--they probably think that the world as "one huge China". Please, it's not only Philippines and China. Ironically, some Filipinos against FDI are now asking for help from organizations like the International Criminal Court, the European Union, or just any non-Filipino critic of any politician they dislike. Can these people really make up their minds?

The definition of FDI would really prove that FDIs don't solely come from China:

Foreign investment represents part of the elaborate web of financial relationships between nations and corporations. It's a force that can transform skylines, revitalize industries, and reshape the economic destinies of entire regions. But it's also a phenomenon that raises critical questions about economic sovereignty, democratic preservation, and global power balance.
For the purposes of this article, we'll focus on foreign investment in its contemporary economic sense, leaving aside foreign aid and the investments in human capital and development by one country in another. We'll also set aside, at least explicitly, the historical context of military colonialism and imperialism that has long been intertwined with foreign investment and is broadly understood.
Historically, state engagements and corporate investments abroad have often been closely linked: foreign investments typically piggybacked on state alliances or military impositions in other regions. Examples range from the opening of China to foreign investment following efforts by various American administrations, starting with Richard Nixon, to the European colonialism that empowered domestic firms like the Dutch East India Company and their 20th-century successors that exploited so-called "banana republics" more beholden to foreign corporations than local populations.
Unlike colonialism, modern foreign investment, at least in theory, involves financial interests in a foreign region without direct political control; the transfer of capital is intended for both profit and mutual benefit. Foreign investment thus involves capital flows from one country to another, granting foreign investors ownership stakes in domestic companies and assets. This includes foreign direct investment (FDI), where investors have direct control over the foreign enterprise, and foreign portfolio investment (FPI), which involves purchasing securities and other financial assets without active management of the enterprise. The latter is also discussed as foreign indirect investment.

It's not like laws can't be passed or implemented to regulate FDIs that are 100% owned by the MNC. FDIs can own 100% of their shares (or in some cases, own land, which I'm still against). However, they're still subjected to laws like anyone who stays in the country. FDIs are still required to obey employment laws (which includes not going below the minimum wage), pay their taxes, renew their businesses, and follow environmental laws. Singapore had set his strict environmental laws. Vietnam accepts FDIs but requires them to follow the environmental law. It's because FDIs are like tenants. Tenants are required to follow the laws of the owner of the building or lot. If the tenants refuse to follow--the lessor is obligated to kick them out. The same applies to FDI--either they obey the laws where they invest or they can forget about investing!

Filipinos who still think about FDI equals Chinese invasion need to check all of their purchases and the establishments where the purchased happened. Did they just get a delivery from Grab (Singapore) and FoodPanda (Germany)? Were the drivers Filipinos or foreigners? Did they just get a new smartphone? Were the sales personnel Filipinos or foreigners? Did they just get a new iPhone? It may have come from Vietnam or China. It's because FDI isn't solely from China. The late Lee Kuan Yew invited American MNCs and other MNCs. When China progressed, Deng Xiaoping invited American MNCs. In short, FDIs really don't just come from China. China hasn't bought the world either. Many MNCs are exiting China. These MNCs aren't Chinese but from other countries.

It would be time to look at the removal of 60-40 this way. It would b create a more appealing environment to invest in. It's like if your previous occupation was so bad--you've got the right to leave. The Philippines' 60-40 arrangement may not prohibit but it certainly discourages FDIs from entering (read here).

Get Stuck with EDSA, End Up Like Nokia

Yes, we should never forget what history teaches us. A classmate of mine, back in high school, wrote a simple and blunt essay called "History: A Teacher". I doubt he still has a soft copy, given it was already more than 20 years ago. I'd like to quote Duterte critic Andrew James Masigan wrote this in Philippine Star --something that should remain relevant: I would never undervalue the 1987 Constitution. It dismantled the legal framework of a repressive regime and established the democratic institutions we enjoy today. For this, I am grateful. The 1987 Constitution was crafted with the best of intentions. It sought to put the Filipino first in all aspects of governance and to level the playing field amongst sectors and peoples. But it is far from perfect. It failed to consider the importance of foreign capital and technologies and the stiff competition we would have to face to obtain them. In short, its economic provisions were short-sighted . So despite the Constitut...

#SahodItaasPresyoIbaba Economics' Bad Accounting

I would like to apologize in advance to my readers. The picture I'm presenting is in Tagalog, and not all my readers speak Tagalog. I would translate the picture's text into English for convenience. It says: "Ano ang bumubuo sa mga presyo?" means "What comprises the price?" "Gastos ng materyales" means materials expense "Gastos sa kasangkapan" means depreciation expense ""Gaston sa pasahod" means salary expense "Kapitalista" means capitalist Renta is well, rent "Kayang pababain ang presyo" means "Prices can be lowered". It says that capitalists (industrialists, landlords, bankers) and elitist governments are part in the gross profit. Get rid of excise taxes (either permanently or temporarily) for the prices of goods and services. In the times of crisis, in the burden of sacrifices, we need to be watchful for capacity. Whatever savings for times of difficulty by the workers and countrymen, the...

Past Chinese School Education in the Philippines was Based on "Sǐ Jì Yìng Bèi"

Chinoys of my age (and older) may remember these textbooks. I called them as the "symbol of trauma". It was memorizing something without understanding it . One would just memorize (without understanding it) because it was typical. Not being able to memorize what was assigned? Get a bad grade? One can expect physical punishment like hitting the hand with a ruler or chili in the mouth. Chinese language teachers are stereotypically strict . The language textbooks (above) are what were used during the 1990s to the early 2000s. As I wrote it, the Sinjiang textbooks aren't effective in teaching Mandarin , in a world where Mandarin has over a billion speakers! There's a Chinese proverb that says, "死記硬背 sǐ jì yìng bèi" or "Memorize to the point of death". That's exactly what those textbooks are. Memorize to the point of death! Okay, it may sound exaggerated. However, that's how Chinese language teachers in the Philippines were made to teach the ...

Migrante International's Really Bad Economic Literacy

March 17 (which is tomorrow) seems to be an unofficial holiday for some people, right? I'm sickened that the late Flor Contemplacion has been treated like she's some national heroine (and thankfully, tomorrow isn't a holiday) even after Singapore had proven her guilt. A movie was made by Joel Lamangan called The Flor Contemplacion Story . The call for Migrante (Migrant) International has been to remember Flor even after several years. What's not too surprising was to learn that Flor's sons were all arrested for drug-related charges. Even her eldest son died while in prison. You have Migrante International wanting to end the labor export policy. However, a post by Migrante really shows how this group fails basic economics. I will not post the whole press statement but one part that made my eyes roll. >> Further opening the country’s economy to foreign ownership and control will worsen the exploitation of our people and the environment without creating a susta...

"Filipino First Policy" Has NO PLACE in the Rising Asian 21st Century

I guess nobody saw the Asian 21st Century coming, right? China was once a poor nation but look at it now. Vietnam was once a poor nation but look at it now. Singapore was once a poor nation but look at it now. The late great Lee Kuan Yew wrote his book From Third World to First . I'm afraid some people have been using it to go against the presidency of Ferdinand R. Marcos Jr. while ignoring what else Lee Kuan Yew had to say. Lee Kuan Yew described the Filipino press to be rambunctious on pages 304-305 which I agree. I'm afraid that the Filipino press may have had a hand in getting rid of any economic or political reforms that could help the Philippines. Yet, one policy has been holding back the Philippines for decades and yes, it's the Filipino First Policy . Reviewing the Filipino First Policy and why it has no place in the rising Asian 21st century I remembered how the values education subject taught Carlos P. Garcia's stupid Filipino First Policy as a Filipino value...

Remembering the Late Jesse Robredo's Quote on Systems That Force People to be Good

It's been some time since Jesse M. Robredo died too soon. Hopefully, his wife Atty. Maria Leonor Gerona-Robredo is true to her word, in her willingness to amend the 1987 Constitution of the Philippines, for the sake of foreign investments. It's a shame I never wrote about the late great man. The CoRRECT Movement on Facebook gave this important note on Robredo's life. Robredo said, "It's not enough for an official to be good. There has to be a system that forces them to be good." Whether or not Robredo was for charter change or a few constitutional amendments, I can't tell. For some racists, let me remind them that Robredo's real surname is Lim and his paternal grandfather is the late Lim Pay Co. In terms of Robredo's credentials (and I tend to sometimes brag about the credentials of those I quote), here's what the City Government of Naga website says: He is an Edward Mason Fellow and a graduate of Masters in Public Administration at the John...

Filipino First Education Created the Fixed Mindset Over Growth Mindset Mentality

Tomorrow is Bonifacio Day. It's effortless to say that Filipino First Policy works. I wouldn't be surprised if Andres Bonifacio gets used as a poster boy. However, Bonifacio worked for British and German investors . I'd like to talk about how decades of Filipino First Policy compromised our education system. Some idiot on Facebook said which I'll paraphrase to avoid getting personal. The idiot said, "If you let foreigners invest here, can Filipinos afford it?" The same idiot also scorns the law of supply and demand (read my post discussing why that's plain silly here ). People who believe in #SahodItaasPresyoIbaba must first prove it works by opening such stores nationwide, to show that the Philippines doesn't need FDI to succeed (read here ). Of course, I can expect them to say "It's the government's responsibility to raise salaries without raising the prices of goods." That's just plain bad accounting and finance too! Andrew Ja...

Refuse to Do Business with a Person Who Looks Down on Menial Work

If there's any reason why some people are angry with the rich--it's because of rich people who look down on the poor. Some people are born rich without knowing the struggles of the one who originally acquired the wealth. Some rich parents make the fatal mistake of making their children feel entitled. Meanwhile, some rich parents make their children do the right thing by not waiting until things get too far. Some rich parents end up making their children attend middle-class schools, do summer jobs, work as employees in their own businesses, and teach them the value of wealth, especially by narrating the struggles before they got wealthy. In looking for a business partner, I feel it's very important to look at the attitude of these people. How do they treat people who do menial work? I could imagine looking forward to a business contract. However, it turns out that the potential business partner is a spoiled brat . Maybe, it's already a red alarm if I'm invited to an ...

Dayang Daya: The Case of Five-Six Lending Services Roaming to Collect Christmas/New Year Debts by January

I remember during the late 1990s when the song "Dayang Dayang" (Princess of the First Degree) was played on the radio. The origins are often debated whether or not it was from Muslim Mindanao or from the other neighboring countries. The Philippines has had settlers also from Malaysia and Indonesia. A parody cover by the late Yoyoy Villame was called Dayang Daya or Cheating Cheating. It was probably making fun of the Indian five-six lending business. Indians tend to be called Bombay because of the location known as Mumbai. I even made the mistake of referring to Indians as "Bombays" more than once. The song "Dayang Daya" does talk about the five-six lending services. It does target a lot of gullible people. I even became nearly distrustful of Indians in college for quite some time. I wrote how a Merry Christmas may lead to an Unhappy New Year due to debt burden (read here ). I tend to say to myself, "Somebody hasn't paid their debt!" every ti...

Will Opening the Philippines to 100% FDI Lead to Foreign Monopoly?

Monopoly - Hasbro I was looking at the CoRRECT Movement Moderated Public Forum on Facebook. I found more illogical arguments by a certain troll in the forum named Juan Dalisay Jr.--the writer of the Superphysics One website. However, this isn't the first argument I ran into as I've seen arguments from Kabataan Partylist and the League of Filipino Students on Facebook. They have claimed that foreign direct investments (FDIs) will lead to exploitation, only they will get rich, that they will rape resources, and an even funnier claim is that they will lead to monopolies . Some people, even fools, should be allowed to defend themselves at CoRRECT Moderated Public Forum than just live in their echo chamber of Facebook pages. However, Kishore Mahbubani and the late Lee Kuan Yew had long disproven that . The testimony is in the book From Third World to First by Lee himself. Mahbubani said foreign investors create jobs, bring capital, and teach new skills. I wonder if protectionist adv...

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