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NATIONAL ECONOMY AND PATRIMONY
SEC 1.
The goals of the national economy are a more equitable
distribution of opportunities, income, and wealth; a
sustained increase in the amount of goods and services
produced by the nation for the benefit of the people; and an
expanding productivity as the key raising the quality of
life for all, especially the underprivileged.
The State shall promote industrialization and full
employment based on sound agricultural development and
agrarian reform, through industries that make full and
efficient use of human and natural resources, and which are
competitive in both domestic and foreign markets. However,
the State shall protect Filipino enterprises against unfair
foreign competition and trade practices.
In the pursuit of these goals, all sectors of the economy
and all regions of the country shall be given optimum
opportunity to develop. Private enterprises, including
corporations, cooperatives, and similar collective
organizations, shall be encouraged to broaden the base of
their ownership.
SEC. 2.
All lands of the public domain, waters, minerals, coal,
petroleum, and other mineral oils, all forces of potential
energy, fisheries, forests or timber, wildlife, flora and
fauna, and other natural resources are owned by the State.
With the exception of agricultural lands, all other natural
resources shall not be alienated. The exploration,
development, and utilization of natural resources shall be
under the full control and supervision of the State. The
State may directly undertake such activities, or it may
enter into co-production, joint venture, or
production-sharing agreements with Filipino citizens, or
corporations or associations at least sixty per centum of
whose capital is owned by such citizens. Such agreements may
be for a period not exceeding twenty-five years, renewable
for not more than twenty-five years, and under such terms
and conditions as may be provided by law. In cases of water
rights for irrigation, water supply, fisheries, or
industrial uses other than the development of water power,
beneficial use may be the measure and limit of the grant.
The State shall protect the nation's marine wealth in its
archipelagic waters, territorial sea, and exclusive economic
zone, and reserve its use and enjoyment exclusively to
Filipino citizens.
The Congress may, by law, allow small-scale utilization of
natural resources by Filipino citizens, as well as
cooperative fish farming, with priority to subsistence
fishermen and fish workers in rivers, lakes, bays, and
lagoons.
The President may enter into agreements with foreign-owned
corporations involving either technical of financial
assistance for large-scale exploration, development, and
utilization of minerals, petroleum, and other mineral oils
according to the general terms and conditions provided by
law, based on real contributions to the economic growth and
general welfare of the country. In such agreements, the
State shall promote the development and use of local
scientific and technical resources.
The President shall notify the Congress of every contract
entered into in accordance with this provision, within
thirty days from its execution.
SEC. 3.
Lands of the public domain are classified into agricultural,
forest or timber, mineral lands, and national parks.
Agricultural lands of the public domain may be further
classified by law according to the uses which they may be
devoted. Alienable lands of the public domain shall be
limited to agricultural lands. Private corporations or
associations may not hold such alienable lands of the public
domain except by lease, for a period not exceeding
twenty-five years, renewable for not more than twenty-five
years, and not to exceed one thousand hectares in area.
Citizens of the Philippines may lease not more than five
hundred hectares, or acquire not more than twelve hectares
thereof by purchase, homestead, or grant. Taking into
account the requirements of conservation, ecology, and
development, and subject to the requirements of agrarian
reform, the Congress shall determine, by law, the size of
lands of the public domain which may be acquired, developed,
held, or leased and the conditions therefore.
SEC. 4.
The Congress shall, as soon as possible, determine by law
the specific limits of forest lands and national parks,
marking clearly their boundaries on the ground. Thereafter,
such forest lands and national parks shall be conserved and
may not be increased nor diminished, except by law. The
Congress shall provide, for such period as it may determine,
measures to prohibit logging in endangered forests and
watershed areas.
SEC. 5.
The State, subject to the provisions of this Constitution
and national development policies and programs, shall
protect the rights of indigenous cultural communities to
their ancestral lands to ensure their economic, social, and
cultural well-being.
The Congress may provide for the applicability of customary
laws governing property rights and relations in determining
the ownership and extent of ancestral domain.
SEC. 6.
The use of property bears a social function, and all
economic agents shall contribute to the common good.
Individuals and private groups, including corporations,
cooperatives, and similar collective organizations, shall
have the right to own, establish, and operate economic
enterprises, subject to the duty of the State to promote
distributive justice and to intervene when the common good
so demands.
SEC. 7.
Save in cases of hereditary succession, no private lands
shall be transferred or conveyed except to individuals,
corporations, or associations qualified to acquire or hold
lands of the public domain.
SEC. 8.
Notwithstanding the provisions of Section 7 of this Article,
a natural-born citizen of the Philippines who has lost its
Philippine citizenship may be a transferee of private lands,
subject to limitations provided by law.
SEC. 9.
The Congress may establish an independent economic and
planning agency headed by the President, which shall, after
consultations with the appropriate public agencies, various
public sectors, and local government units, recommend to
Congress, and implement continuing integrated and
coordinated programs and policies for national development.
Until the Congress provides otherwise, the National Economic
and Development Authority shall function as the independent
planning agency of the government.
SEC. 10.
The Congress shall, upon recommendation of the economic and
planning agency, when the national interest dictates,
reserve to citizens of the Philippines or to corporations or
associations at least sixty per centum of whose capital is
owned by such citizens, or such higher percentage as
Congress may prescribe, certain areas of investments. The
Congress shall enact measures that will encourage the
formation and operation of enterprises whose capital is
wholly owned by Filipinos.
In the grant of rights, privileges, and concessions covering
the national economy and patrimony, the State shall give
preference to qualified Filipinos.
The State shall regulate and exercise authority over foreign
investments within its national jurisdiction and in
accordance with its national goals and priorities.
SEC. 11.
No franchise, certificate, or any other form of
authorization for the operation of a public utility shall be
granted except to citizens of the Philippines or to
corporations or associations organized under the laws of the
Philippines at least sixty per centum of whose capital is
owned by such citizens, nor shall such franchise,
certificate, or authorization be exclusive in character or
for a longer period than fifty years. Neither shall any such
franchise or right be granted except under the condition
that it shall be subject to amendment, alteration, or repeal
by the Congress when the common good so requires. The State
shall encourage equity participation in public utilities by
the general public. The participation of foreign investors
in the governing body of any public utility enterprise shall
be limited to their proportionate share in its capital, and
all the executive and managing officers of such corporation
or association must be citizens of the Philippines.
SEC. 12.
The State shall promote the preferential use of Filipino
labor, domestic materials and locally produced goods, and
adopt measures that help them competitive.
SEC. 13.
The State shall pursue a trade policy that serves the
general welfare and utilizes all forms and arrangements of
exchange on the basis of equality and reciprocity.
SEC. 14.
The sustained development of a reservoir of national talents
consisting of Filipino scientists, entrepreneurs,
professionals, managers, high-level technical manpower and
skilled workers and craftsmen in all fields shall be
promoted by the State. The State shall encourage appropriate
technology and regulate its transfer for the national
benefit.
The practice of all professions in the Philippines shall be
limited to Filipino citizens, save in cases prescribed by
law.
SEC. 15.
The Congress shall create an agency to promote the viability
and growth of cooperatives as instruments for social justice
and economic development.
SEC. 16.
The Congress shall not, except by general law, provide for
the formation, organization, or regulation of private
corporations. Government-owned or controlled corporations
may be created or established by special charters in the
interest of the common good and subject to the test of
economic viability.
SEC. 17.
In times of national emergency, when the public interest so
requires, the State may, during the emergency and under
reasonable terms prescribed by it, temporarily take over or
direct the operation of any privately owned public utility
or business affected with public interest.
SEC. 18.
The State may, in the interest of national welfare or
defense, establish and operate vital industries and, upon
payment of just compensation, transfer to public ownership
utilities and other private enterprises to be operated by
the Government.
SEC. 19.
The State shall regulate or prohibit monopolies when the
public interest so requires. No combinations in restraint of
trade or unfair competition shall be allowed.
SEC. 20.
The Congress shall establish an independent central monetary
authority, the members of whose governing board must be
natural-born Filipino citizens, of known integrity, and
patriotism, the majority of whom shall come from the private
sector. They shall also be subject to such other
qualifications and disabilities as may be prescribed by law.
The authority shall provide policy direction in the areas of
money, banking, and credit. It shall have supervision over
the operations of banks and exercise such regulatory powers
as may be provided by law over the operations of finance
companies and other institutions performing similar
functions.
Until the Congress otherwise provides, the Central Bank of
the Philippines, operating under existing laws, shall
function as the central monetary authority.
SEC. 21.
Foreign loans may only be incurred in accordance with law
and the regulation of the monetary authority. Information on
foreign loans obtained or guaranteed by the Government shall
be made available to the public.
SEC. 22.
Acts which circumvent or negate any of the provisions of
this Article shall be considered inimical to the national
interest and subject to criminal and civil sanctions, as may
be provided by law. |
