Supporting locally - owned businesses instead of FDIs

Supporting locally - owned businesses instead of FDIs

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Czarlise De Castro started this petition to Pres. Rodrigo Duterte and

Foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. These investments were made by companies as part of their progress and showcasing their global competitiveness. Various countries such as the United States of America, Japan, China, Hongkong and others choose Philippines as their place for business expansion mainly because of three reasons: low tax rates to be paid to the government, employment for white - collared laborers or other skilled Filipinos and having abundant natural resources. Despite the positive effects that FDIs can bring not only to the economic stability of the country but also to the welfare of the citizens of the nation, the government should not tolerate FDIs in the country.

FDIs really play a significant role in stabilizing the Philippine economy and increasing Filipinos' purchasing power. First, due to the fact that it will provide employment for the people, poverty rate will decrease since people are now able to acquire more goods and services vital for their daily survival. This will eventually lead to a boost in the economy due to having higher purchasing power that contributes to the national income. Second, FDIs further positively makes an impact to the Development of Human Capital Resources. Based from having jobs, the people will be able to educate themselves and have greater knowledge to perform labour through attending training programs and gaining experiences provided by the FDIs. Lastly, it provides competition to domestic investments that will make them more productive, innovative and more efficient resource allocation. However, the negative effects of FDIs are much more of a burden than of the benefits it brings to host countries, specifically the Philippines being a developing country.

Many FDIs in the country are interested in getting these natural resources hosted in exchange of a portion of money to be given to the government. It leads to mining, deforestation, development of rural areas into commercialized ones and a lot more. These men - made activities that generates income for the national economy greatly destroys our environment. Also, only small percentage of the money earned by the foreign company, sometimes not exceeding 10%, is given and this does not pay off what they have ruined. This is the reason why air, water and other forms of pollution is evident in the society. Another explanation as to why FDIs must not be tolerated is because it develops the trait of colonial mentality, where inferiority of locally produced products to imported products takes place. An effect of having FDIs in the country is the importation of goods from the home country. With the thinking of it will cost them less to purchase the imported product or it may cost more but has greater quality than of the local product, people begin to patronize these imported goods instead of the ones which are locally produced. This affects the livelihood of the local producers for their earning will cut short and the domestic industry’s development will not flourish. Most of all, the development of the dual economy effect becomes prevalent. Companies engaging in FDIs mostly are interested to invest in developing countries for easier legal agreements. Due to the benefit that it brings to a certain country, such as employment and economic stability, the locals becomes overly dependent to the foreigners and the economic structure changes. The home country now becomes the capital-intensive and the host country becomes the labour - intensive. This can cause the Filipinos to settle for less and pursue jobs that will lead them to being an employee rather than an employer. Since they are inclined to working for companies, entrepreneurial literacy and establishment of locally - owned businesses will decline in the economy and our global competitiveness for economic growth will vanish.

In hopes of developing the society for a better future for everyone in terms of our economic status, we allow foreigners to take advantage of our own resources with the thinking that it is a win - win situation for both parties. It is good since it strengthens our civil relationship with foreign nations. However, little does the government know that upon the prevalent investment of these countries in our home, we slowly become once again slaves within our territory. We seek for more of the things that we don’t have instead of considering and caring for what we have. The problem with Filipinos, even before the declaration of our independence, is that we don’t appreciate what we have because we think that it is less compared to what others can give to us. This toxic Filipino trait can lead to the downfall of not only our economy but also our lives as individuals. The FDIs should serve as an eye opener to Filipinos to patronize the resources that we have and make it useful. Also this shall serve as a motivation for aspiring Filipino businessmen to take risks and become more competitive in the business world for the FDIs to not overshadow the local business enterprises anymore.

Photo Source: https://www.rappler.com/business/202287-foreign-direct-investments-philippines-2018

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