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Article Xii National Economy and Patrimony SECTION 1. The Goals of The National

This document summarizes key provisions around natural resources and the national economy in the Philippines Constitution. It states that natural resources belong to the State and shall be utilized to benefit the Filipino people. Private corporations can enter agreements to explore and develop natural resources. It also outlines policies to promote inclusive economic growth, support Filipino enterprises, and ensure Filipino control over public utilities and the economy.
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0% found this document useful (0 votes)
569 views10 pages

Article Xii National Economy and Patrimony SECTION 1. The Goals of The National

This document summarizes key provisions around natural resources and the national economy in the Philippines Constitution. It states that natural resources belong to the State and shall be utilized to benefit the Filipino people. Private corporations can enter agreements to explore and develop natural resources. It also outlines policies to promote inclusive economic growth, support Filipino enterprises, and ensure Filipino control over public utilities and the economy.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

ARTICLE XII not more than twenty-five years, and under

National Economy and Patrimony such terms and conditions as may be


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

SECTION 12. The State shall promote the SECTION 18. The State may, in the interest
preferential use of Filipino labor, domestic of national welfare or defense, establish and
materials and locally produced goods, and operate vital industries and, upon payment
adopt measures that help make them of just compensation, transfer to public
competitive. ownership utilities and other private
enterprises to be operated by the
SECTION 13. The State shall pursue a Government.
trade policy that serves the general welfare
and utilizes all forms and arrangements of SECTION 19. The State shall regulate or
exchange on the basis of equality and prohibit monopolies when the public interest
reciprocity. so requires. No combinations in restraint of
trade or unfair competition shall be allowed.
SECTION 14. The sustained development
of a reservoir of national talents consisting SECTION 20. The Congress shall establish
of Filipino scientists, entrepreneurs, 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.

Until the Congress otherwise provides, the


Central Bank of the Philippines, operating
under existing laws, shall function as the
central monetary authority.

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.

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.
ARTICLE XIV for human rights, appreciation of the role of
Education, Science and Technology, Arts, national heroes in the historical development
Culture, and Sports of the country, teach the rights and duties of
citizenship, strengthen ethical and spiritual
Education values, develop moral character and
personal discipline, encourage critical and
SECTION 1. The State shall protect and creative thinking, broaden scientific and
promote the right of all citizens to quality technological knowledge, and promote
education at all levels and shall take vocational efficiency.
appropriate steps to make such education
accessible to all. (3) At the option expressed in writing by the
parents or guardians, religion shall be
SECTION 2. The State shall: allowed to be taught to their children or
wards in public elementary and high schools
(1) Establish, maintain, and support a within the regular class hours by instructors
complete, adequate, and integrated system designated or approved by the religious
of education relevant to the needs of the authorities of the religion to which the
people and society; children or wards belong, without additional
cost to the Government.
(2) Establish and maintain a system of free
public education in the elementary and high SECTION 4. (1) The State recognizes the
school levels. Without limiting the natural complementary roles of public and private
right of parents to rear their children, institutions in the educational system and
elementary education is compulsory for all shall exercise reasonable supervision and
children of school age; regulation of all educational institutions.

(3) Establish and maintain a system of (2) Educational institutions, other than those
scholarship grants, student loan programs, established by religious groups and mission
subsidies, and other incentives which shall boards, shall be owned solely by citizens of
be available to deserving students in both the Philippines or corporations or
public and private schools, especially to the associations at least sixty per centum of the
underprivileged; capital of which is owned by such citizens.
The Congress may, however, require
(4) Encourage non-formal, informal, and increased Filipino equity participation in all
indigenous learning systems, as well as self- educational institutions.
learning, independent, and out-of-school
study programs particularly those that The control and administration of
respond to community needs; and educational institutions shall be vested in
citizens of the Philippines.
(5) Provide adult citizens, the disabled, and
out-of-school youth with training in civics, No educational institution shall be
vocational efficiency, and other skills. established exclusively for aliens and no
group of aliens shall comprise more than
SECTION 3. (1) All educational institutions one-third of the enrollment in any school.
shall include the study of the Constitution as The provisions of this subsection shall not
part of the curricula. apply to schools established for foreign
diplomatic personnel and their dependents
(2) They shall inculcate patriotism and and, unless otherwise provided by law, for
nationalism, foster love of humanity, respect other foreign temporary residents.
(3) All revenues and assets of non-stock, Language
non-profit educational institutions used
actually, directly, and exclusively for SECTION 6. The national language of the
educational purposes shall be exempt from Philippines is Filipino. As it evolves, it shall
taxes and duties. Upon the dissolution or be further developed and enriched on the
cessation of the corporate existence of such basis of existing Philippine and other
institutions, their assets shall be disposed of languages.
in the manner provided by law.
Subject to provisions of law and as the
Proprietary educational institutions, Congress may deem appropriate, the
including those cooperatively owned, may Government shall take steps to initiate and
likewise be entitled to such exemptions sustain the use of Filipino as a medium of
subject to the limitations provided by law official communication and as language of
including restrictions on dividends and instruction in the educational system.
provisions for reinvestment.
SECTION 7. For purposes of
(4) Subject to conditions prescribed by law, communication and instruction, the official
all grants, endowments, donations, or languages of the Philippines are Filipino
contributions used actually, directly, and and, until otherwise provided by law,
exclusively for educational purposes shall be English.
exempt from tax.
The regional languages are the auxiliary
SECTION 5. (1) The State shall take into official languages in the regions and shall
account regional and sectoral needs and serve as auxiliary media of instruction
conditions and shall encourage local therein.
planning in the development of educational
policies and programs. Spanish and Arabic shall be promoted on a
voluntary and optional basis.
(2) Academic freedom shall be enjoyed in
all institutions of higher learning. SECTION 8. This Constitution shall be
promulgated in Filipino and English and
(3) Every citizen has a right to select a shall be translated into major regional
profession or course of study, subject to fair, languages, Arabic, and Spanish.
reasonable, and equitable admission and
academic requirements. SECTION 9. The Congress shall establish a
national language commission composed of
(4) The State shall enhance the right of representatives of various regions and
teachers to professional advancement. Non- disciplines which shall undertake,
teaching academic and non-academic coordinate, and promote researches for the
personnel shall enjoy the protection of the development, propagation, and preservation
State. of Filipino and other languages.

(5) The State shall assign the highest Science and Technology
budgetary priority to education and ensure
that teaching will attract and retain its SECTION 10. Science and technology are
rightful share of the best available talents essential for national development and
through adequate remuneration and other progress. The State shall give priority to
means of job satisfaction and fulfillment. research and development, invention,
innovation, and their utilization; and to SECTION 16. All the country’s artistic and
science and technology education, training, historic wealth constitutes the cultural
and services. It shall support indigenous, treasure of the nation and shall be under the
appropriate, and self-reliant scientific and protection of the State which may regulate
technological capabilities, and their its disposition.
application to the country’s productive
systems and national life. SECTION 17. The State shall recognize,
respect, and protect the rights of indigenous
SECTION 11. The Congress may provide cultural communities to preserve and
for incentives, including tax deductions, to develop their cultures, traditions, and
encourage private participation in programs institutions. It shall consider these rights in
of basic and applied scientific research. the formulation of national plans and
Scholarships, grants-in-aid, or other forms policies.
of incentives shall be provided to deserving
science students, researchers, scientists, SECTION 18. (1) The State shall ensure
inventors, technologists, and specially gifted equal access to cultural opportunities
citizens. through the educational system, public or
private cultural entities, scholarships, grants
SECTION 12. The State shall regulate the and other incentives, and community
transfer and promote the adaptation of cultural centers, and other public venues.
technology from all sources for the national
benefit. It shall encourage the widest (2) The State shall encourage and support
participation of private groups, local researches and studies on the arts and
governments, and community-based culture.
organizations in the generation and
utilization of science and technology. Sports

SECTION 13. The State shall protect and SECTION 19. (1) The State shall promote
secure the exclusive rights of scientists, physical education and encourage sports
inventors, artists, and other gifted citizens to programs, league competitions, and amateur
their intellectual property and creations, sports, including training for international
particularly when beneficial to the people, competitions, to foster self-discipline,
for such period as may be provided by law. teamwork, and excellence for the
development of a healthy and alert citizenry.
Arts and Culture
(2) All educational institutions shall
SECTION 14. The State shall foster the undertake regular sports activities
preservation, enrichment, and dynamic throughout the country in cooperation with
evolution of a Filipino national culture based athletic clubs and other sectors.
on the principle of unity in diversity in a
climate of free artistic and intellectual
expression.

SECTION 15. Arts and letters shall enjoy


the patronage of the State. The State shall
conserve, promote, and popularize the
nation’s historical and cultural heritage and
resources, as well as artistic creations.
ARTICLE XVI civilian position in the Government
General Provisions including government-owned or controlled
corporations or any of their subsidiaries.
SECTION 1. The flag of the Philippines
shall be red, white, and blue, with a sun and (5) Laws on retirement of military officers
three stars, as consecrated and honored by shall not allow extension of their service.
the people and recognized by law.
(6) The officers and men of the regular force
SECTION 2. The Congress may, by law, of the armed forces shall be recruited
adopt a new name for the country, a national proportionately from all provinces and cities
anthem, or a national seal, which shall all be as far as practicable.
truly reflective and symbolic of the ideals,
history, and traditions of the people. Such (7) The tour of duty of the Chief of Staff of
law shall take effect only upon its the armed forces shall not exceed three
ratification by the people in a national years. However, in times of war or other
referendum. national emergency declared by the
Congress, the President may extend such
SECTION 3. The State may not be sued tour of duty.
without its consent.
SECTION 6. The State shall establish and
SECTION 4. The Armed Forces of the maintain one police force, which shall be
Philippines shall be composed of a citizen national in scope and civilian in character, to
armed force which shall undergo military be administered and controlled by a national
training and serve, as may be provided by police commission. The authority of local
law. It shall keep a regular force necessary executives over the police units in their
for the security of the State. jurisdiction shall be provided by law.

SECTION 5. (1) All members of the armed SECTION 7. The State shall provide
forces shall take an oath or affirmation to immediate and adequate care, benefits, and
uphold and defend this Constitution. other forms of assistance to war veterans
and veterans of military campaigns, their
(2) The State shall strengthen the patriotic surviving spouses and orphans. Funds shall
spirit and nationalist consciousness of the be provided therefor and due consideration
military, and respect for people’s rights in shall be given them in the disposition of
the performance of their duty. agricultural lands of the public domain and,
in appropriate cases, in the utilization of
(3) Professionalism in the armed forces and natural resources.
adequate remuneration and benefits of its
members shall be a prime concern of the SECTION 8. The State shall, from time to
State. The armed forces shall be insulated time, review to upgrade the pensions and
from partisan politics. other benefits due to retirees of both the
government and the private sectors.
No member of the military shall engage
directly or indirectly in any partisan political SECTION 9. The State shall protect
activity, except to vote. consumers from trade malpractices and from
substandard or hazardous products.
(4) No member of the armed forces in the
active service shall, at any time, be SECTION 10. The State shall provide the
appointed or designated in any capacity to a policy environment for the full development
of Filipino capability and the emergence of
communication structures suitable to the
needs and aspirations of the nation and the
balanced flow of information into, out of,
and across the country, in accordance with a
policy that respects the freedom of speech
and of the press.

SECTION 11. (1) The ownership and


management of mass media shall be limited
to citizens of the Philippines, or to
corporations, cooperatives or associations,
wholly-owned and managed by such
citizens.

The Congress shall regulate or prohibit


monopolies in commercial mass media
when the public interest so requires. No
combinations in restraint of trade or unfair
competition therein shall be allowed.

(2) The advertising industry is impressed


with public interest, and shall be regulated
by law for the protection of consumers and
the promotion of the general welfare.

Only Filipino citizens or corporations or


associations at least seventy per centum of
the capital of which is owned by such
citizens shall be allowed to engage in the
advertising industry.

The participation of foreign investors in the


governing body of entities in such industry
shall be limited to their proportionate share
in the capital thereof, and all the executive
and managing officers of such entities must
be citizens of the Philippines.

SECTION 12. The Congress may create a


consultative body to advise the President on
policies affecting indigenous cultural
communities, the majority of the members
of which shall come from such
communities.

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