Philippine Constitution

1. National Economy and Patrimony
ARTICLE XII
Aliser, Rica
Diaz, Niza Marie
Pepito, Ana Marie

2. • National Economy - refers to the entire structure of economic
life in a country.
- encompasses all the activities relating to
or concerned with the production, distribution, and
consumption of goods and services, and what are called
“factors of production.”
• National Patrimony - consists of the national wealth and
possessions of a country derived or acquiredfrom the past
generations and, in turn, transmitted to the next, and so on
successively.

3. - refers to natural resources of our country, which
under the consitution, includes “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 “ all marine wealth in its archipelagic
waters, territorial sea and exclusive economic zone.” (Sec. 2,
pars 1,2.)

4. Three-fold goals of the national economy
• As stated in Section 1, they are as follows:
a) Equity - a more equitable distribution of opportunities, income
and wealth.
b) Growth - a sustained increase in the amount of goods and services
produced by the nation for the benefit of thr people.
c) Productivity - an expanding productivity as the key to raising the
quality of life for all, especially the underpriviledged.

5. Mandate on the State
1) to develop self-reliant and independent national economy
effectively controlled by Filipinos;
2) to promote industrialization and full employment;
3) to protect Filipino enterprises against unfair foreign competition
and trade practices;
4) to give all economic sectors and regions of the country optimum
opportunity to develop;
5) to encourage private enterprises, including corporations,
cooperatives, and silimar collective organizations to broaden the
base of their ownership.

6. Guidelines in the developemnt of the economy
1) Self-reliant economy - Self-reliance simply means that the
Philippines must have the ability to cope with its economic
problems or to implement its development programs.It does
not mean economic self-sufficiency.
2) Independent economy - The national economy must be free
from undue foreign controlor intervention.
3) Economy effectively controlled by Filipinos - “The pricipal
responsibility for the development belongs to Filipino
citizens. They must be principal determinants as well as the
chief benefeciaries of economic progress.

7. Promotion of industrialization and full employment
1) Importance and urgency in the Philippines
2) Based on sound agricultural development and agrarian
reform
3) agricultural development needed for industrialization
4) Balance between develpment and industrialization
5) Adoption of a flexible economic policy.

8. Protection of Filipino enterprise against unfair
foreign competition and trade practices.
1) Protection not against foreign competition per se
2) Permanent protection not contemplated
3) When protection justified

9. SECTION 2
• State ownership of natural resources
1) Regalian Doctrine
2) Presumption of State ownership
• Objectives of policy on natural resources
1) to insure their conservation for Filipino posterity;
2) to serve as an instrument of national defense, helping prevent the
extension into the country of foreign control through peaceful
economic penetration; and
3) to prevent making the Philippines a source of international
conflicts with the consequent danger to ots internal security and
independence.

10. • Exploration, development, and utilization of natural resources
1) Former Scheme
2) More active role by the State
3) Options available to the State
• Period of agreement for exploration,etc., of natural resources
1) Not exceeding 25 years
2) Period of beneficial use
• Agreement for exploration, etc., of natural resources limited to
Filipinos
1) 60% equity requirement
2) Governing body

11. • Protection of Marine Wealth
– archipelagic waters, territorial sea, exclusive economic zones
• Small Scale Utilization
– small scale utilization on natural resources by Filipino citizen
– cooperative fish-farming
– forest-dwellers
– gold panners

12. Technical or financial assistance agreements with
foreign-owned corporations.
• Conditions:
– must involve either technical or financial assistance
– must be for large-sacle exploration
– its provision must be according to the general terms and conditions
provided by law
– the President should notify the Congress of the contract 30 days
from its execution, and
– the state shall promote the development and the use of local
scientific and technical resources

13. SECTION 3
• Classification of Lands of the Public Domain
1) Under the Constitution
a) Agricultural
b) Forest or timber
c) Mineral
d) National Parks
2) Further classifications by law of agricultural lands

14. • Basis and rationale of classification
1) Nature of Land
2) Safeguard against land speculation
• Maximum size of landholdings
1) resrictions imposed by the constitution
a) Individual
b) Corporations and Associations
2) reasons for provision