The Philippines should intensify efforts to get a bigger share of the significant foreign direct investments (FDI) being placed in the Association of Southeast Asian Nations (Asean) region, especially capital from China, according to an international economic and investment expert.
Dr. Dan Steinbock, a visiting fellow at the Shanghai Institutes for International Studies, who recently came to Manila, said the Philippines should try to look past its geopolitical conflicts with China and attract more Chinese investments into the country.
Steinbock, in his talk on Philippine economic prospects in an era of new economic uncertainties, said FDI are crucial for the country to continue its growth ambitions and realize inclusive, long-term economic expansion. He pointed out that China is increasing its spending overseas, particularly in Vietnam and Indonesia. Like the Philippines, Vietnam “has a bone to pick” with the mainland over territorial issues, but this has not stopped it from reaching out to Beijing regarding foreign investments.
Vietnam and other economies with territorial conflicts with China “have been able to separate the negotiations on the economic policies and the territorial issues,” and this is something the Philippines should look into, Steinbock said.
“Here we have an example of Chinese capital going out. Of course, this is very much in the Chinese’ interest [since] there’s a lot of overcapacity, as well. They can scale it out this way, but it could be very helpful for countries in the region and it can accelerate their industrialization,” Steinbock said.
He said the Philippines “doesn’t get what it should” in terms of FDI inflows because of issues such as national control, existing legislation and government efforts to keep the Constitution separate from other objectives. “I think that you could have both, perhaps. I think you should have moved ahead faster because it’s not just we’re not getting enough, we are losing the good years of FDI development. They’re gone and they won’t come back. So now you have to work twice as hard for twice as little, perhaps,” he said.
In an earlier published newspaper interview, Steinbock said he believes China wants regional stability as it can’t afford the consequences of a long-term conflict.
“It is not late in the game for the Philippines. Vietnam has diffused some of the issues. There must be a common understanding that it will work,” Steinbock said, noting that Chinese investments in the Philippines are “just a drop” compared to those in other countries in the region.
1 comment
Another impractical if not outright absurd advise from an all knowing expert. Seems, he is unable to grasp the underlying culture among Orientals. This fellow does not care if you lose face as long as you get cash/investment. There are are other sources of FDI’s, with less strings attached. China, may have a lot of surplus dollars to splurge on, but they are as afraid or more afraid than everyone else, should the US and its allies move and initiate economic sanctions on them because of their territory grabbing activities. At the moment and in the near future, even without Chinese FDI, the Phil. economy is on a roll. As Mr. John Mangum puts it sucintly, ‘the world is a dangerous place, but the Philippines is a safe oasis”.