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ARTICLENational Economy and XIIPatrimony
NATIONAL ECONOMY
D
E
F
I
N
I
T
I
O
N
S
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
PRODUCTIVIY
W
R
O
T
H
EQUITY
Equal
protection
clause
controlled
monopoly
fair
competition
&
trade
employment
Income
opportunity
INDUSTRY
SERVICE
AGRICULTURE
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
DEFENSE
Prevent the extension
of foreign control
Prevent the
country from
becoming a cause of
international conflict,
endangering the
welfare of the people
NOW
NO
State 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
EXCEPTION
Uses 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 lease
lands 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 park
Parks & 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
LAND
Occupied
portions of
ancestral
domain
ANCESTRAL
DOMAIN
All 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 regulated
State 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
migrated
maintain filial
connections
National
interest
to 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/corporations
1. Primary = right of group to exist &
act as a corporation
2. Secondary = right of
person/corporation to exercise power
& privileges
PUBLIC UTILITY
Business 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 competitive
DUTY 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 TALENT
SECTION 14
Human
Resources
Most 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 corporation
Government-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
operation
Must not last beyond period of
emergency
President may declare state of nat’l
emergency & 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 4
Maintain
price
conducive
to
economic
growth
Promote and
stability &
convertibility
of peso
SECTION 21
TRANSPA
RENCY
over foreign
loans
obtained/gu
aranteed
GOALS
OF
SECTION
21
AVOID
temporary
passion of
president
&
PREVENT
injudicious
contracting
of foreign
loans
THE PEOPLE
SHOULDER THE
GOVERNMENT
ACTS AGAINST AR 12
SECTION 22
Acts which
circumvent/negate this article
are criminal offenses
THIS 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
http://www.visitrot
terdam.info/wp-
content/uploads/2
014/12/toilet.png
http://www.freeico
nspng.com/upload
s/download-link-
for-eps--svg-or-
file--0.png
http://www.visitrot
terdam.info/wp-
content/uploads/2
014/12/toilet.png
CREDITS
BUENAFE
ABILAY
JUANILLO
CUETO
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ARTICLE XII final ver