Before anything else, you have to read the article on the link below:
It talks about our country’s issue on honoring contracts with foreign investors.
On reading the article, one paragraph got stuck on my mind: “These sorts of developments, as far as the business environment goes, are of course negative,” said Taimur Baig, Singapore-based chief Asia economist at Deutsche Bank AG. “There’s always a balance to strike between populist demands and doing what is more investor friendly for the economy.”
I agree that there should be a balance between populist demands and investor demands. Aquino is right to try to increase investment to bring up our economy, and I assume that it is for the public interest (of future generations) as well. I may sound like an elitist by saying this, but by always putting the public interest over business, in the long run, will certainly have negative effects on the people themselves. We are only putting ourselves and future generations in a more difficult situation. As they say, too much or too less of one thing is never good. In this case, the government is putting too much attention to the short run needs of the people, in turn, neglecting the business side of things. If we were to put things on a line, with investors on one end, and the public on the other, we are on the end of the public. And like a seesaw, if there is more weight on one end, it will tilt and fall on that side. We have to find the balance in that.
The problem this article says is that by continuously dishonoring contracts, we will appear to be incompetent thereby decreasing the chance of foreign investment to come to us.
All this relates to our task in the EU-ASEAN FTA Network. We look at Bilateral Investment Treaties and try to see if there are loopholes in the system or if the treaties work for the benefit of the country or not.