ARTICLE XIINATIONAL ECONOMY AND
PATRIMONY
Section 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 to raising the quality of life for all, especially the
under-privileged.
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.cralaw:red
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.cralaw:red
Section 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.cralaw:red
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.cralaw:red
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.cralaw:red
The President may enter into
agreements with foreign-owned corporations involving either technical
or
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.cralaw:red
The President shall notify
the Congress of every contract entered into in accordance with this
provision,
within thirty days from its execution.cralaw:red
Section 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 to 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.cralaw:red
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 therefor.cralaw:red
Section 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.cralaw:red
Section 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.cralaw:red
The Congress may provide
for the applicability of customary laws governing property rights or
relations
in determining the ownership and extent of ancestral domain.cralaw:red
Section 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.cralaw:red
Section 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.cralaw:red
Section 8. Notwithstanding
the provisions of Section 7 of this Article, a natural-born citizen of
the Philippines who has lost his Philippine citizenship may be a
transferee
of private lands, subject to limitations provided by law.cralaw:red
Section 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 private sectors, and local government units, recommend to
Congress,
and implement continuing integrated and coordinated programs and
policies
for national development.cralaw:red
Until the Congress provides
otherwise, the National Economic and Development Authority shall
function
as the independent planning agency of the government.cralaw:red
Section 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.cralaw:red
In the grant of rights, privileges,
and concessions covering the national economy and patrimony, the State
shall give preference to qualified Filipinos.cralaw:red
The State shall regulate
and exercise authority over foreign investments within its national
jurisdiction
and in accordance with its national goals and priorities.cralaw:red
Section 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.cralaw:red
Section 12. The State shall
promote the preferential use of Filipino labor, domestic materials and
locally produced goods, and adopt measures that help make them
competitive.cralaw:red
Section 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.cralaw:red
Section 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.cralaw:red
The practice of all professions
in the Philippines shall be limited to Filipino citizens, save in cases
prescribed by law.cralaw:red
Section 15. The Congress
shall create an agency to promote the viability and growth of
cooperatives
as instruments for social justice and economic development.cralaw:red
Section 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.cralaw:red
Section 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.cralaw:red
Section 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.cralaw:red
Section 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.cralaw:red
Section 20. The Congress
shall establish an independent central monetary authority, the members
of whose governing board must be natural-born Filipino citizens, of
known
probity, 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.cralaw:red
Until the Congress otherwise
provides, the Central Bank of the Philippines operating under existing
laws, shall function as the central monetary authority.cralaw:red
Section 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.cralaw:red
Section 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.
|