ARTICLENational Economy and XIIPatrimony

NATIONAL ECONOMYDEFINITIONS

All economic activities within the country

NATIONAL PATRIMONY

Natural resources of the country within the constitution

SECTION 1

THREE-FOLD GOALS OF ECONOMY

EQUITY

g

PRODUCTIVIYW

RO

TH

EQUITY

Equal protection

clause

controlled monopoly

fair competition

&trade

employment

Income opportunity

IN

DU

STR

Y

SER

VIC

E

AG

RIC

ULTU

RE

GROWTH & PRODUCTIVITY

Why promote industrialization, and full employment based on sound agricultural development and agrarian reform

= Philippines has a high population= industrialization generates high employment= Philippines has a high agricultural base= the “tigers of Asia” anchored their industrialization on agriculture

Philippine gov’t exclusively defines what

is unfair trade or competition

PROTECTION FROM unfair foreign competition

BUT…The gov’t rejects

absolute protectionism

Otherwise, face retaliation

GOAL AND GUIDE FOR PROVISIONS?

…a self-reliant and independent

national economy controlled by Filipinos

ARTICLE II SEC. 19

REGALIAN DOCTRINE

SECTION 2

The state owns all lands of public domain

ALIENATE

To transfer or revoke ownership of property

QUESTION

WHY DID WE ADOPT

THE

REGALIAN

DOCTRINE?

necessity

NATIONAL DEFENSEPrevent the extension of foreign control

Prevent the country from becoming a cause of international conflict, endangering the welfare of the people

NOWNOState is more active

State granted natural resources by license/concession/lease

Undertake its development directly

Enter joint productions with citizens or groups with 60% capital owned by citizens

THEN

Enter agreements with foreign groups for large-scale exploration of resources (president notifies Congress within 30 days)

“With the exception of

agricultural lands, all other

natural resources shall not

be alienated”

The sate will not alienate natural resources, even to citizens

Only agricultural

lands may be alienated

Groups with 60% capital owned by Filipinos may join

handling the resources (period of 25 yrs.)

MARINE WEALTH

Use of maritime wealth, territorial sea and EEZ is

reserved for citizens

Corporations must be fully owned by Filipinos

CONDITIONS

FOR USE

EXCEPTIONUses for irrigation, fisheries, industrial uses other than water power

Groups with 60% capital owned by Filipinos may join handling the resources (period of 25 yrs.)

Limit on water depends on the benefit of the joint effort.

Congress may allow use of small unit for citizens with fishermen as the priority.

Can aliens leaselands of public domain

Lease = agreement to use property within a timeframe

no

It would violate Section 2.They may lease a private land.They may have the right to buy real property (land/immovable properties) if granted Filipino citizenship.

WHO CLASSIFIES PUBLIC LANDS?

Exclusively the executive department

PRESIDENT MAY CHANGE PUBLIC LAND TO BE ALIENABLE

It is his prerogative upon recommendation of the department head. Qualified individuals may acquire up to 12 hectares, private groups may not.

SECTION 3

CLASSIFICATIONS OF PUBLIC DOMAINS

NATIONAL PARKS

FOREST or TIMBER

AGRICULTURAL

MINERAL

FORESTS & PARKS

SECTION 4

Congress determines the limits of forests and national parkParks & forests are to be conserved or destroyed by law

Grant alienable & disposable

land to qualified citizens

LAND GRANT

Alternative for

“squatters”

Mode for acquiring public land to qualified citizens

Purposed to benefit

farmers and landless citizens

Recipient may spend for land’s titling &

surveying

Promotion of social

equity and justice

ANCESTRAL LANDS

SECTION 5

Protection of indigenous communities to their ancestral domain

ANCCESTRAL LANDOccupied portions of ancestral domain

ANCESTRAL DOMAINAll lands within and belonging to a cultural region not strictly occupied

ENTERPRISE & COMMON GOOD

SECTION 6

Free enterprise system = people can operate in business and risk their own resources

Capitalism is regulatedState shall intervene as necessary

WHO MAY ACQUIRE PRIVATE LANDS

SECTION 7 & 8

CORPORATIONS with 60% capital owned by citizens

?Filipino citizens&

Aliens, by succession

Natural born who lost citizenship(Transferee of private lands)

WHO MAY ACQUIRE PRIVATE LANDS

SECTION 7 & 8 ?(Natural born who lost citizenship)

WHY ALLOW THIS?

Those who migratedmaintain filial connections

National interestto encourage their nationalistic sentiment

Many desire to return& contribute

INDEPENDENT ECONOMIC AGENCY

SECTION 9

Congress may establish economic & planning agency headed by president

Highest economic policy planning organ

National Economic & Development Authority shall function as the independent planning agency of the gov’t

FILIPINO PREFERENCE

SECTION 10

Congress will choose investments of Filipinos or groups with 60% capital owned by Filipinos UPON THESE CONDITIONS:By recommendation of economic & planning agency National interest dictates so

FRANCHISE & UTILITY

SECTION 11

Right given by State on people/corporations1. Primary = right of group to exist &

act as a corporation2. Secondary = right of

person/corporation to exercise power & privileges

PUBLIC UTILITYBusiness organization supplying public service (electricity, water, transportation)

Granted to citizens & corporations with 60% Filipino-owned capital

SECTION 12

“FILIPINO FIRST”

FILIPINO FIRST

SECTION 12

DUTY OF STATE• Promote preference over

Filipino labour/products• Adopt measures to make

them competitiveDUTY OF PUBLIC• Buy products of one’s own

country

TRADE POLICY FOR GENERAL WELFARE

SECTION 13

f

High tariff/import

quota =Low tariff& relaxed

import control

Promotion of export industries

Total ban

Protect local industries

=++

Raise revenues &

foreign exchange

FILIPINO TALENTSECTION 14

Human ResourcesMost critical source of economic growth

State shall promote its pool of Filipino talent

PROFESSIONAL PRACTICE IS LIMITED TO FILIPINO CITIZENS, unless Congress provides so in cases of a treaty or reciprocity

COOPERATIVES

SECTION 15

WHAT?Business unit cooperating for specific service of mutual benefit to its members

instrument for economic development

instrument for social justice

increase income & purchasing power of community

may be consumers, producers, marketing,

service cooperatives

FORMATION, ORGANIZATION, REGULATION OF CORPORATIONS

SECTION 16

Prevent special treatment Congress can’t pass special laws for the welfare of a private corporationGovernment-controlled corporations may be created only for public interest

TAKE-OVER OF PRIVATE BUSINESS BY STATE in national emergency

SECTION 17

Done when public interest requires so or direct the operationMust not last beyond period of emergency President may declare state of nat’lemergency & exercise Sec. 17 w/out need of emergency powers

!

GOVERNMENT OWNERSHIP of business

SECTION 18

Establish & own vital industries (communications, etc.)

Transfer utilities & private businesses to public ownership by just compensation

THIS MEANS GOVERNMENT MAY:

DONE ONLY WHEN NATIONAL DEFENCE REQUIRES / NATIONAL WELFARE REQUIRES IT (ex. economized economy, foreign subjugation)

MONOPOLY(single seller

with power to control market price)

SECTION 19

State may regulate monopoly regardless of this provision [POLICE POWER]

Monopoly properly

regulated can serve public

interest

STATE

VS

BUT

CENTRAL monetary AUTHORITY

SECTION 20

Unless Congress says otherwise, Central Bank of the Philippines shall be the central monetary authority

Governing members must be natural-born Filipino citizens

CENTRAL monetary AUTHORITY responsibilities

SECTION 20

Provide policy directions for money

Regulate bank operations, finance institutions or financial companies

1 2 3 4Maintain price conducive to economic growth

Promote and stability & convertibility of peso

SECTION 21

TRANSPARENCY

over foreign loans

obtained/guaranteed

GOALS OF

SECTION 21

AVOIDtemporary passion of president

&

PREVENTinjudicious contracting of foreign loans

THE PEOPLE

SHOULDER THE

GOVERNMENT

ACTS AGAINST AR 12SECTION 22

Acts which circumvent/negate this article are criminal offensesTHIS ACT prohibits use of Filipino citizen as dummy in order to enjoy rights reserved for citizens or those qualified

SOURCES

http://www.slidesh

are.net/JudithFtlvr

/article-12-

national-economy-

and-patrimony

"THE 1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES – ARTICLE XII | GOVPH." Official Gazette of the Republic of the Philippines

Bernas, Joaquin G. The 1987 Philippine

Constitution: A Comprehensive

Reviewer

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