PRESIDENT Gloria Macapagal-Arroyo said Thursday she would call a national convention next year to change the constitution and the Philippines' form of government to help raise its economic growth rate.
Arroyo said she believed a federal, parliamentary form of government would be more effective in enacting reforms than the current unitary, US-style presidential system with a bicameral legislature.
The charter was last changed in 1987.
"Next year, when Congress opens, I plan to propose the holding of a constitutional convention that will propose to change the form of government to a parliamentary system and the transition to a federal form of government," Arroyo said on local television.
The proposed change was part of the government's medium-term economic development plan, she said.
Arroyo, who won a full six-year term in last year's elections after succeeding the deposed leader Joseph Estrada following a military-backed popular revolt in 2001, had earlier backed down on calls to change the charter after the opposition charged it could be used to prolong her presidency.
Government economists have also said that the existing constitution is not attuned to the market-based economy and gives too much power to the judiciary, which can effectively scuttle the executive's economic policies.
The constitution bars foreign participation in key businesses and limits a president to a single six-year term.