USA Reports Corruption, Human Right Violations, and Business Monopolies in PH

The US Department of State 2020 Investment Climate Statement cited improvements in the Philippine economy and noted issues such as corruption, the legal system, human rights violations, and the domination business monopolies as impediments to foreign investments.

The report states “Restrictions on foreign ownership, inadequate public investment in infrastructure, and lack of transparency in procurement tenders hinder foreign investment. The Philippines’ regulatory regime remains ambiguous in many sectors of the economy, and corruption is a significant problem,”

The report continues “large, family-owned conglomerates, including San Miguel, Ayala, Aboitiz Equity Ventures, and SM Investments, dominate the economic landscape, crowding out other smaller businesses.”

The report went on to detail investment constraints include foreign ownership limitations, poor infrastructure, high power costs, slow broadband connections, congestion in major cities and ports, slow and burdensome business registration process, regulatory inconsistencies, inefficient judicial system (including inexperienced judiciary in handling complex issues involving technology, science, and intellectual property cases), and corruption (the Bureau of Customs was considered one of the most corrupt agencies in the country).

“The Philippines’ most significant human rights problems were killings allegedly undertaken by vigilantes, security forces, and insurgents; cases of apparent governmental disregard for human rights and due process; corruption; and a weak and overburdened criminal justice system notable for slow court procedures, weak prosecutions, and poor cooperation between, police and investigators,”