Chapter XXI i.

Develop a self reliant and independent

economy effectively controlled by Filipinos
ARTICLE XII
ii. Promote industrialization and full
NATIONAL ECONOMY AND PATRIMONY
employment

iii. Give all economic sectors and regions

SECT. 1 optimum opportunity to develop

iv. Encourage private enterprises to broaden

the base of their ownership
1. Goals of national economy and the 3 fold
growth v. Protect Filipino enterprises against unfair
foreign competition and trade practices
a. a more equitable distribution of
opportunities, income and wealth (equity)

b. Sustained increase in the amount of goods SECT. 2

and services produced by the nation for the
benefit of the people (Growth)
1. Regalian doctrine
c. Expanding productivity as the key to raising
the quality of life for all, especially the Doctrine which reserves to the state
underprivileged. (Productivity) the full ownership of all natural resources or
natural wealth that may be found in the bowels
 State shall promote industrialization and
of earth.
full employment based on sound
agricultural development and agrarian
reform.
2. Notification by the president
 State shall protect Filipinos against unfair
The president shall notify the
foreign competition and trade practices.
congress of every contract entered into in
accordance with this provision, within 30 days
from its execution. (principle of checks and
2. Concept of national economy and patrimony
balances)
a. National economy -

the entire structure of economic life in

3. Classification of lands of the public domain
a country.
i. Agricultural
It encompasses all the activities
relating to the production, distribution and Land devoted principally to the raising of
consumption of goods and services and what crops.
are called factors of production I.e labor, land
ii. Timer or forest
and financial capital that which are used to
carry out these activities. Land producing wood, or able to produce
wood.
It covers our natural resources, such
as lands of the public domain, water, minerals, iii. Mineral lands
coal, petroleum, and all marine wealth, the
territorial waters, territorial sea, and exclusive Land in which minerals exist in sufficient
economic zone and even our cultural heritage quantity or quality
(Intramuros, and the manila hotel)
iv. National parks

3. How to accomplish the goals

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 Land maintained by the national
government as a place of beauty or public
recreation (Rizal Park)
4. Alienable lands
Only agricultural lands may be alienated.
5. Exploration of natural resources
Full control and supervision of the state.
SEC. 3
1. The need for classification of land
In keeping with the presumption of state
ownership, it has been emphasized that there
must be a positive act of the government, such
as an official proclamation, declassifying
inalienable public land into disposable for
agricultural or other purposes.
Limit the lands of public domain which
may be alienated to public agricultural lands.
SEC 4.
1. Lease of alienable lands by corporations and
individuals.
Corporations may hold alienable land by
a lease for a period of 25 years, renewable for
25 years but not exceeding 1,000 hectares.
Citizens may lease not more than 500
hectares. Or acquire not more than 12 hectares
by purchase, homestead or grant.
2. Aliens cannot own private lands.
Except in cases of hereditary succession,
because the land in the Philippines is reserved
to Filipinos
3. Individuals qualified to acquire lands
i. Filipino citizens
ii. Aliens but only in cases of hereditary
succession
iii. Natural-born Filipino citizens who have lost
their Philippine citizenship subject to limitations
provided by law
4. Foreign sovereign may acquire lands in the
Philippines
It is necessary for the creation and
maintenance of its diplomatic mission (1961
Vienna Convention on Diplomatic Relations)
5. Foreigners may acquire condominium units in
the Philippines
Ownership of land is legally separated
from the unit itself. The land is owned by a
condominium corporation and the unit is simple
a member of said corporation, as long as 60% of
its members are Filipinos the remaining can be
foreigners.
6. Unclassified land belongs to the state
All lands not clearly appearing to be
privately owned belongs to the state.
7. Concept of hereditary succession
Means intestate succession. A
contractual will
8. The roman catholic church can acquire
alienable land
Since it is a corporation sole not
covered by the prohibition against corporations
or associates.
SEC 5.
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1. Indigenous people rights act (IPRA)

Protect the rights of the 2. Intervention of the state in the use of private
indigenous cultural communities to their property
ancestral lands to ensure their economic, social
State can always intervene when common
and cultural well-being.
good demands.

2. State policies pertaining to indigenous

SEC 8.
cultural communities

Page. 348
3. Composition of indigenous communities
referred to by the Philippine constitution
To a group of people or
homogeneous societies identified by
self-ascription and ascription by other, who
have continuously lived as organized
community on communally bounded and
defined territory, and who have under claims of
ownership since time immemorial, occupied,
possessed customs, tradition and other
distinctive cultural traits, or who have through
resistance to political, social, and cultural
inroads of colonization, non-indigenous religion
and culture became historically differentiated
from the majority of Filipinos.
4. Definition of ancestral lands
1. Right of former natural born citizens
The natural born citizens of the
Philippines who lost Philippine citizenship may
be transferees of private lands.
A Filipino citizen who became a
naturalized Canadian can register a parcel of
land bought by him while still a Filipino (Rep V.
CA)
2. Sale of inherited properties
If a land is invalidly transferred to an
alien who subsequently becomes a citizen or
transfers it to a citizen, the flaw in the original
transaction is considered cured and the title of
the transferee is rendered valid.

Land occupied,possessed and

SEC 9
utilized by individuals, families and clans who
are members of the ICCs/IPs since time
immemorial.
1. National economic development authority
(NEDA)

SEC 6 Task:

To formulate development plans and

ensure that plan implementation achieves the
1. Use of property bears a social function
goals of national development.
Property is defined as anything that is
Powers and functions:
capable of appropriation.
Reside in the NEDA bored
The use of property bears social function.
Composition:
The rights of an owner over his property
such as the right to use, the right to the fruits, I. President - chairman
right to possess, right to dispose inter alia must
submit to all encompassing police power of the II. Secretary of socioeconomic
state. planning

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 III. NEDA director general - vice
chairman
2. Source of the right of the state to regulate
Members: public utilities

The executive secretary, Founded upon the police power of the

secretaries of finance, trade and state.
industry, agriculture, environment
When private properties is used for a
and natural resources, public works
public purpose and is affected with public
and highways, budget and
interest, it ceases to promote the common good.
management, labor and
Submission to regulation may be withdrawn by
employment, and interior and local
the owner by discontinuing use
government.

3. Franchise, defined

Any special privilege or right

conferred by the state or corporations. It may
means either

A. Corporate/primary franchise

SEC 10. Right granted to a group of individuals

to exist and act as a corporation.(Sec16)

B. Secondary/special franchise
1. Filipino first policy
Right granted to an individual, or to a
Policy gives preference to Filipinos in
corporation after its incorporation, to exercise
matters of ownership of the national patrimony
certain power and privileges, including those
and its national treasures. It is a self executing
conferred for the purposes of public
provision - no need for a law to implement it.
benefit(Power of eminent domain) enjoyed by
public utilities (sec 11)

SEC 11.
4. Public utility

1. Requirement on franchises A business organization which regularly

supplies the public with some commodity, or
I. Grantee must be a citizen of the service, such as electric, gas, water,
Philippines or a corporation or association transportation, telephone or telegraph services.
organized under the laws of the Philippines
where at least 60% of the capital is owned by
citizens of the Philippines. This means 40% of
said capital may be owned by Filipinos
SEC 12.
II. Such franchise, certificate, or
authorization shall not be exclusive in character

III. Such franchise shall not be for a 1. Promotion of Filipino labor, materials and
period longer than 50 years goods.

IV. Such franchise shall be subject to Require the use, under certain
amendment, alteration, or repeal by congress conditions of Philippine made materials or
when the common good so requires. products in government projects or Public
works and construction, whether done directly

4
by the government or awarded through
contracts.
SEC 13.
1. Reciprocity in international trade
This can be defied as the recognition by
one or two countries of the rights and privileges
of one another and vice-versa.
SEC 14.
1. Practice of profession
The practice of profession in the
Philippines is limited to Filipino citizens.
All foreigners, purchased 30% of the
shares of a hospital. The Filipino stockholders
questioned the sale. The Supreme Court held
that the sale is valid. The ownership of shares in
a hospital is not practice of medicine or nursing.
SEC 15
1. Cooperative code of the Philippines
The code aims to foster the creation and
growth cooperatives as a practical vehicle for
promoting self - reliance and harnessing people
power towards the attainment of economic
development and social justice
Give corporations greater opportunities
to serve their members, not only in terms of
financial assistance, but also in undertaking
more productive activities geared toward
uplifting the lives of their members.
SEC 16.
1. Congress may not enact laws to create
private corporations.
Because this is governed by the
corporation code.
However, the constitution reserves to
the congress the creation of a government
owner and controlled corporations such as the
bangko sentral ng Pilipinas.
SEC 17
1. Take over direct operation of a private utility
The state means, the congress acting
through a valid legislation and not the
president.
In david v arroyo, president can declare
a state of national emergency however without
legislation, he has no power to take over
privately owned public utility or business
affected with public interest.
SEC 18.
1. Temporary take-over of privately owned
public utility
In times of national emergency. When
public interest so requires the state, may
temporarily take over or direct the operations
of any privately-owned public utility or business
affected with public interest.
SEC 20.
1. The Bangko Sentral ng Pilipinas (BSP)
Required by the tydings Mcduffie Act
- establishing a central bank.
An independent monetary authority.
SEC 21.
5

1. Foreign Loans
RA 4860 act which authorizes the
president of the Philippines to obtain such
foreign loans and credits, as may be necessary
to finance approved economic development
SEC 22.
1. Anti Dummy Law
Law that provides for sanctions for
violations of the provision of PD 715.
Election of aliens as members of the
board of directors of governing bodies are
allowed in proportion to their share in the
capital of such entities.
_______________________________________
Practice test:
4. Goals of national economy and the 3 fold
growth
5. Concept of national economy and patrimony
6. How to accomplish the goals
7. Regalian doctrine
8. Notification by the president
9. Classification of lands of the public domain
10. Alienable lands
11. Exploration of natural resources
12. The need for classification of land
13. Lease of alienable lands by corporations and
individuals.
14. Aliens cannot own private lands.
15. Individuals qualified to acquire lands
16. Foreign sovereign may acquire lands in the
Philippines
17. Foreigners may acquire condominium units
in the Philippines
18. Unclassified land belongs to the state
19. Concept of hereditary succession
20. The roman catholic church can acquire
alienable land
21. Indigenous people rights act (IPRA)
22. State policies pertaining to indigenous
cultural communities
23. Composition of indigenous communities
referred to by the Philippine constitution
24. Definition of ancestral lands
25. Use of property bears a social function
26. Intervention of the state in the use of
private property
27. Right of former natural born citizens
28. Sale of inherited properties
29. National economic development authority
(NEDA)
30. Filipino first policy
31. Requirement on franchises
32. Source of the right of the state to regulate
public utilities
33. Franchise, defined
34. Public utility
35. Promotion of Filipino labor, materials and
goods.
36. Reciprocity in international trade
37. Practice of profession
38. Cooperative code of the Philippines
39. Congress may not enact laws to create
private corporations.
40. Take over direct operation of a private
utility
41. Temporary take-over of privately owned
public utility
42. The Bangko Sentral ng Pilipinas (BSP)
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43. Foreign Loans

44. Anti Dummy Law