By Bernie Cahiles-Magkilat

Top officials of the Chamber of Commerce of the Philippine Islands, the oldest business institution in the country, are appealing to advocates of the charter change for federalism to freeze any moves for shift of government and consider its effect on the business sector.

Jose Luis Yulo Jr., president of CCPI said, “with many islands already separating the country, federalism will add political and economic, as well as geographic physical separation dismembering the country and creating independent dynasties.”

“Such situation,” he opined, “will eventually cause the breakup of the Philippines into smaller separate homelands.”

“If each federal state will pass different laws governing business and the economy, it will become more difficult to do business within our own country, he further stated.

He likewise cautioned that unless there is a stronger central government that can outpower the separate state, it would worsen corruption potential and despotism.

Past Chamber chairman and president and currently chairman of the committee on Philippine Government Melito Salazar, Jr., expressed concern for the business sector. A businessman, educator and columnist, he remarked , “as former undersecretary of Trade and Industry, I had urged local government units to avoid introducing local laws and ordinances which would make it difficult for businesses to operate.”

“My fear is that under federalism, business and industry maybe seen as the goose that lays the golden egg and will be exploited by the state,” he opined.

He appealed to members of the constitutional commission to spend at least one year engaging the youth, academe, GOs and NGOs, civic groups, business sectors and labor towards a better appreciation and understanding of the draft charter.

Expressing two opinions on federalism is Chairman Emeritus Atty. Ramon Pedrosa who was the founding president of August Twenty-One Movement and Alay Sa Kawal Foundation.

“Properly organized,” he said,”federalism may lead to the rediscovery of local initiative , the development of new business opportunities all over, the emergence and strengthening of a solid middle class liberated from the strange hold of the big one.”

However, he commented that “unless firm monetary and fiscal policy is reserved at the center, the new-found independent economic policies at the local federated level may create a situation where the buying power of the peso may deteriorate into runaway inflation.”