Beware the dummies! (1)

History is replete with tales of advanced, developed countries taking over smaller ones by force, deceit, or both. These are the stories of colonization — where the colonizers drain the colonized of their resources and even their dignity and self-respect. This is why we have a United Nations and rules of conduct in international relations.

As with countries, so it is with business. Big businesses are always on the prowl to take over nimble, creative small ones built by sturdy entrepreneurs ready to graduate and compete or work side-by-side with the biggies but never given the chance to grow and join, which is why we have anti-trust laws.

In the case of countries like India and the Philippines, where small companies servicing nuclear communities do the last mile — the retailing if you will — we have retail trade acts.

And, in anticipation of multinationals and other combines muscling their way into key and/or nationalized industries and services, countries have their anti-dummy laws. Even the biggest economies have set up anti-competitive rules on top of anti-dummy ones in the name of national security and survival.

Some months back, Arkansas Governor Sarah Huckabee Sanders became the first governor in the United States to force two Chinese state-owned companies to sell thousands of acres of land they had acquired in the state in violation of a new law “prohibiting foreign party controlled businesses from owning land in the state.”

Indeed, countries have started the deep dive against foreign control of key, strategic industries and services in whatever way or form.

We are no strangers to such an undertaking in the name of national interest. No less than President Ferdinand Marcos Jr. ordered the phase-out of all Philippine Offshore Gaming Operators (POGOs), including the expulsion of 20,000 foreign workers from the country. This highlights the determined effort of the government to curb foreign control in critical economic sectors.

The move indicates a broader effort to enforce national sovereignty over strategic industries. While laudable, these efforts have yet to hit the mother lode. Several other critical areas shrouded in foreign domination need urgent attention.

One critical area that calls for urgent scrutiny is our maritime sector, especially the manning agencies that play a pivotal role in upholding the Philippines’ prestigious status as a global maritime power.

Despite regulations limiting foreign ownership of these agencies to a mere 25 percent to ensure that Filipinos retain majority control, there’s a compelling need to reinforce these policies and ensure that they are effectively enforced.

The Department of Migrant Workers and the revised Philippine Overseas Employment Administration Rules and Regulations Governing the Recruitment and Employment of Seafarers were crafted with the noble intention of fostering robust domestic enterprises capable of competing internationally, as well as facilitating the private sector’s active engagement in generating employment shielded from foreign exploitation.

These regulations are not just rules, they are the pillars supporting the development of “national champions” — businesses that don’t just lead locally but are also formidable contenders on the global stage.

Prominent Filipino manning agencies such as Magsaysay, UPL, PTC and CF Sharp exemplify the successful implementation of these regulations. They demonstrate robust Filipino ownership and control, highlighting the potential for Filipino enterprises to meet international standards and significantly influence the global maritime industry.

Yet numerous dangers, loopholes, and deceitful tactics remain in the current system.

For instance, foreign entities like Carnival Cruise Line actively recruit Filipino crews for their operations, bypassing local hiring channels and regulatory frameworks.

In an interview with a local newspaper, Christine Duffy, president of Carnival Cruise Line, said they were recruiting more people to join their 50,000-member staff across the globe.

In fact, in an interview, Carnival’s VP for Cruise Operations Richard Brearley said much of their application process can now be done on their website, bypassing stringently regulated manning agencies. (To be continued)