Philippines President Ends Effort to Open Investment

Yielding to widespread opposition, the president of the Philippines said Saturday that he will suspend one of his administration’s priorities: removing constitutional restrictions on foreign ownership.

“As a leader, I must listen,” President Joseph Estrada said in his annual report to the nation.

The president, whose popularity has plunged in recent months, also announced changes in policies and personnel aimed at rejuvenating his administration.

Estrada had vowed repeatedly not to abandon his goal of amending the constitution to remove restrictions on foreign ownership of land and key industries, saying they impede investment in the country.

But many Filipinos believe that opening up the charter, ratified a year after the ouster of dictator Ferdinand Marcos in 1986, could endanger its democratic provisions. Tens of thousands of people protested against the proposed changes in several demonstrations last year.

Estrada said his government will focus instead on short-term economic measures that cause “less cost to national unity.” That will include, he said, a shuffle of his top economic Cabinet posts.

Estrada confirmed that Trade Secretary Jose Pardo will succeed Finance Secretary Edgardo Espiritu, who resigned recently. Espiritu, an experienced banker, helped lead the country’s recovery from the Asian financial crisis.

House Majority Leader Manuel Roxas II will succeed Pardo.

The Cabinet reshuffle is widely seen as an effort by Estrada to find new direction following criticism that his government has failed to develop a credible blueprint for helping the millions of Filipinos living in poverty and has not pushed through much-needed economic reforms.

Estrada also unveiled a committee joining the president and economic advisors that will create and implement economic policies.

The new economic team faces formidable challenges.

The 1999 budget deficit is likely to far surpass the target of $2.1 billion because of poor revenue collection. As of the end of November, the deficit already exceeded $2.5 billion.