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.

SECTION 1 (CONT.)•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.

SECTION 1 (CONT.)• 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.

THE NATIONAL ECONOMY• REFERS TO THE ENTIRE STRUCTURE OF ECONOMIC LIFE IN A COUNTRY.

• INCLUDES ACTIVITIES RELATING OR CONCERNING WITH PRODUCTION, DISTRIBUTION, AND CONSUMPTION OF GOODS AND SERVICES , AND WHAT ARE CALLED “FACTORS OF PRODUCTION”

• ENTERPRISES AND/OR GOVERNMENT AGENCIES ENGAGED IN THESE ACTIVITIES ARE A PART OF THE NATIONAL ECONOMY

• LAWS ON THE ECONOMY OF A COUNTRY ARE DESIGNED TO ACHIEVE THE GOAL OF ECONOMIC GROWTH AND DEVELOPMENT AND THE IMPROVEMENT OF THE MATERIAL WELFARE OF THE PEOPLE.

NATIONAL PATRIMONY• REFERS PRIMARILY TO THE NATURAL RESOURCES OF OUR COUNTRY

WHICH UNDER THE CONSTITUTION INCLUDE:

“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”

“ALL MARINE WEALTH IN ITS ARCHIPELAGIC WATERS, TERRITORIAL SEA, AND EXCLUSIVE MARINE ZONE”

- ARTICLE XII, SEC. 2, PARTS 1,2

“CULTURAL HERITAGE, INCLUDING HISTORICAL LANDMARKS FORM PART ALSO OF OUR NATIONAL PATRIMONY”

- ARTICLE XII, SEC. 15-16

• ALL NATURAL RESOURCES ARE OWNED BY THE STATE

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.

SECTION 2 (CONT.)• 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.

SECTION 2 (CONT.)• 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.

• THE PRESIDENT SHALL NOTIFY THE CONGRESS OF EVERY CONTRACT ENTERED INTO IN ACCORDANCE WITH THIS PROVISION, WITHIN THIRTY DAYS FROM ITS EXECUTION.

STATE OWNERSHIP OF NATURAL RESOURCES

•THE CONSTITUTION DECLARES THAT ALL LANDS OF THE PUBLIC DOMAIN AND ALL OTHER NATURAL RESOURCES OF THE PHILIPPINES "ARE OWNED BY THE STATE." (PART 1) IN FURTHERANCE OF THE CONSTITUTIONAL POLICY ON NATURAL RESOURCES, SECTION 2 PROHIBITS THE TRANSFER OR CONVEYANCE TO ALIENS OF PRIVATE LANDS SAVE IN HEREDITARY SUCCESSION.

STATE OWNERSHIP OF NATURAL RESOURCES

•OUR CONSTITUTION ADOPTS THE REGALIAN DOCTRINE

•REGALIAN DOCTRINE – HOLDS THAT ALL MINERALS, COAL, ETC. FOUND EITHER IN PUBLIC LANDS OR IN PRIVATE LANDS BELONG TO THE STATE. THE ADOPTION OF THE REGALIAN DOCTRINE WAS CONSIDERED A NECESSARY PREMISE FOR THE RECOGNITION OF THE POWER OF THE STATE TO CONTROL THE EXPLORATION, DEVELOPMENT, AND UTILIZATION OF OUR NATURAL RESOURCES.

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.

SECTION 3 (CONT.)•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.

CLASSIFICATION OF LANDS OF THE PUBLIC DOMAIN

• AGRICULTURAL - LAND DEVOTED PRINCIPALLY TO THE RAISING OF CROPS SUCH AS RICE, SUGAR, TOBACCO, COCONUT, ETC., OR FOR FARMING

•FOREST OR TIMBER - LAND PRODUCING WOOD, OR ABLE TO PRODUCE WOOD, OR IF AGRICULTURAL CROPS ON THE SAME LAND WILL NOT BRING THE FINANCIAL RETURN THAT TIMBER WILL, OR IF THE SAME LAND IS NEEDED FOR PROTECTION PURPOSES;

CLASSIFICATION OF LANDS OF THE PUBLIC DOMAIN

•MINERAL - LAND IN WHICH MINERALS EXIST IN SUFFICIENT QUANTITY OR QUALITY TO JUSTIFY THE NECESSARY EXPENDITURES TO BE INCURRED IN EXTRACTING AND UTILIZING SUCH MINERALS;

•NATIONAL PARKS - LAND MAINTAINED BY THE NATIONAL GOVERNMENT AS A PLACE OF BEAUTY OR OF PUBLIC RECREATION, LIKE THE RIZAL PARK, OR FORESTED LAND RESERVED FROM SETTLEMENT AND MAINTAINED IN ITS NATURAL STATE FOR PUBLIC USE (AS BY CAMPERS OR HUNTERS) OR AS WILDLIFE REFUGE.

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.

CONGRESS’ ROLE IN DETERMINING LIMITS• FOREST LANDS AND NATIONAL PARKS WHOSE BOUNDARIES HAVE

BEEN MARKED AS PROVIDED BY LAW ARE TO BE CONSERVED.

• IT IS PROHIBITED TO INCREASE OR DECREASE THEIR AREAS EXCEPT AS MAY BE AUTHORIZED BY LAW.

• THE PROHIBITION AGAINST LOGGING TAKES INTO ACCOUNT THE NEED TO PROTECT OUR DWINDLING FOREST RESOURCES FROM FURTHER DEPLETION AND TO PREVENT FLOODS, SOIL EROSION, SILTATION, POLLUTED RIVERS AND DROUGHT WHICH RESULT FROM INDISCRIMINATE LOGGING, NOT TO MENTION THE LOSS OF OTHER THINGS THAT MAKE UP OUR FOREST, SUCH AS THE RARE BIRDS AND ANIMALS AND FLORA WHICH MAY BE UNIQUE TO THE PHILIPPINES. AS THE FOREST SHRINKS, SO DOES THE WILDLIFE POPULATION.

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.

•THE CONGRESS MAY PROVIDE FOR THE APPLICABILITY OF CUSTOMARY LAWS GOVERNING PROPERTY RIGHTS OR RELATIONS IN DETERMINING THE OWNERSHIP AND EXTENT OF ANCESTRAL DOMAIN.

PROTECTION OF RIGHTS OF INDIGENOUS CULTURAL COMMUNITIES TO THEIR

ANCESTRAL LANDS•SECTION 5 EXPRESSIVELY RECOGNIZES THE LEGAL EXISTENCE AND IDENTITY OF INDIGENOUS CULTURAL COMMUNITIES AND THEIR RIGHTS WITH RESPECT TO THEIR ANCESTRAL LANDS.

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.

USE OF PROPERTY BEARS A SOCIAL FUNCTION

• THIS PRINCIPLE IS DISCUSSED UNDER SOCIAL JUSTICE AND HUMAN RIGHTS. (ART. XIII, SEC. 1, PAR. 2.) IN PURSUIT OF THE ENDS OF SOCIAL JUSTICE, "THE STATE SHALL REGULATE THE ACQUISITION, OWNERSHIP, USE AND DISPOSITION OF PROPERTY AND ITS INCREMENTS."

• IN ADDITION, IT MAY BE MENTIONED THAT THE RIGHT TO OWN PROPERTY IS DERIVED FROM THE RIGHT TO USE IT. MAN HAS THE RIGHT TO USE THINGS IN GENERAL FOR HIS SURVIVAL OR DEVELOPMENT

• THIS IS THE REASON WHY THE RIGHT TO PROPERTY CANNOT BE UNLIMITED.

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.

ACQUISITION OF PRIVATE LANDS•ONLY THOSE WHO ARE "QUALIFIED TO ACQUIRE OR HOLD ALIENABLE LANDS OF THE PUBLIC DOMAIN" MAY ACQUIRE PRIVATE LANDS. UNDER THE CONSTITUTION, PRIVATE LANDS MAY BE TRANSFERRED OR CONVEYED TO THE FOLLOWING: • (1) ·FILIPINO CITIZENS;

• (2) CORPORATIONS AND ASSOCIATIONS AT LEAST 60% OF THE CAPITAL OF WHICH IS OWNED BY FILIPINO CITIZENS (SEE SEC. 2, PAR. 1.);

• (3 ) ALIENS BUT ONLY IN CASES OF HEREDITARY SUCCESSION

• (4) NATURAL-BORN FILIPINO CITIZENS WHO HAVE LOST THEIR PHILIPPINE CITIZENSHIP SUBJECT TO LIMITATIONS PROVIDED BY LAW. (SEC. 8.)

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.