The Philippines continues to enjoy a very high investors’ confidence in the second quarter of the year due to the following factors identified by the Bangko Sentral ng Pilipinas: Robust consumer demand, coupled with expected influx from the tourism sector; increased activities in the construction sector due to government-driven infrastructure development; higher volume of production due to increase in orders, new contracts and projects; business expansion and launch of new product lines; and continuing confidence in the Aquino administration.
On top of everything, the current administration has provided the necessary hard and soft facilities in accelerating the rollout of infrastructures and other development projects under the Public-Private Partnership Program.
Our economy is moving forward in an unprecedented pace in our history. Stable inflation and low interest rates are needed.
Favorable macroeconomic conditions, coupled with sustained foreign direct investment inflows and overseas Filipino workers remittances, will further drive up investors’ confidence, outlook
and optimism.
The Philippine Constitution and sustainable development
As we are expected to get more progressive economic updates in the coming months, it is important for us to contextualize everything around the self-executing Section 16, Article II of the 1987 Constitution recognizing the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature.
It is important to stress the importance of this constitutional provision to guide investments to recognize reality and the responsibility of sustaining our abundant resources to provide ecosystems services for future generations.
The Philippines is recognized as the epicenter of global marine biodiversity, and hosting high endemism of both flora and fauna, and rich deposits of economically important minerals, and other important drivers of development, such as air and water.
These facts should not only drive corporate social responsibility but should be the core consideration for investments and businesses.
Ensuring the integrity of our resources entails understanding of the central role our natural environment plays in national development.
Greening the Philippine economy
Pursuant to the Philippine Constitution, the government came up with progressive legal mechanisms to protect the country’s resources through Republic Act (RA) 8749, or the Clean Air Act of 1999, RA 9275, or the Philippine Clean Water Act of 2004; RA 9003, or the Ecological Solid Waste Management Act of 2000.
Aside from these laws, we also have laws on forestry, land-use plan and management, and mining.
These landmark laws recognize the impacts of a degraded environment to the health and well-being of the people and the economy.
For example, in Manila alone, based on data from the Department of Health, 60 percent to 70 percent of medicines sold in the market are for upper respiratory problems, such as asthma and bronchitis, among others. Water is becoming an expensive resource due to water pollution, lack of a septage treatment program and efficient sewerage systems.
In August 2012 the Metropolitan Manila Development Authority (MMDA) reported that it collected as much as 1,800 tons of trash of mostly plastic bags and wrappers, consistent with waste audits conducted by Greenpeace and EcoWaste Coalition in 2006 and 2010 showing that more than 70 percent of waste in the Manila Bay consists of plastic bags and packaging.
These laws go beyond the frame of “polluters pay principle,” and reinforce a system of accountability for adverse environmental impacts by focusing mainly on prevention rather than on control to encourage cooperation and self-regulation among Filipino citizens and industries.
This is where the active and conscious role of business and investments, and other stakeholders, are needed; governing boards to operationalize further these laws do not limit their composition solely to the government. It is wise to include development partners, such as business and civil-society organizations.
Incentives for partnerships in nation-building
To establish further the mandates of the state, Presidential Decree (PD) 1151 of 1977 and PD 1586 established the Philippine Environmental Policy and the Philippine Environmental Impact Statement system requiring sponsors of projects, and direct investments affecting the quality of the environment.
In 2010 important to the pursuit of the Constitution, the Supreme Court en banc came out with another landmark and revolutionary Resolution AM 09-6-8-SC to address the urgency of coming up with remedies to protect the environment.
The resolution provides the following legal remedies: writ of kalikasan, writ of continuing mandamus, citizen’s suit, including ordinary civil action and criminal action, allowing any natural or juridical person, or any entity authorized by law to file cases on behalf of persons whose constitutional right to a balanced and healthful ecology is violated, or threatened with violation.
These effectively give stakeholders a stronger voice in nation-building.
Intergenerational responsibility
The concept of intergenerational responsibility of the Oposa v. Factoran case placed the Philippines on the world map as a country of laws that looks at novel concepts in protecting its future—having strong environmental policies and progressive courts carrying out the function of the state as parens patriae.
On a practical note, businesses can always look at working models that retain zero waste, and bring down energy and water utilization. These practices will not only cut their environmental footprints, but also optimize economic returns by cutting a lot of operational costs.
The government, through its laws and the society, in return, incentivises these good practices.
In the era of climate change, and in the current state of our environment, and the socioeconomic status of people dependent on it and at the rate of our progress, the situation necessitates an unprecedented partnership and cooperation by all sectors, governed by the precautionary principle.
Capital needs to recognize that sustainable profit will continuously emanate only from a healthy
work force and environment.
All of these measures seek to increase investors’ perception
and confidence.
Current trends in investment direction favor strong environmental-protection measures provided for by the government, and current financial behaviors seek to stand around a naturally built environment.
Remember, without a healthy planet, there isn’t a healthy anything, and there is no business to be done on a dead planet.