Art 12

1. Section 1. -
(1) Goals of national economy
1. a more equitable distribution of opportunities, income and wealth
2. a sustained increase in the amount of goods and services produced by the nation for the
benefit of the people
3. an expanding productivity as the key to raising the quality life for all, especially the
under privileged
(2) Promotion of industrialization and full employment
1. it should be based on sound agricultural development and agrarian reform
2. it should be through industries that make full and efficient use of human and natural
resources
3. the industries should be competitive in both domestic and foreign markets
(3) Protection of Filipino enterprises against unfair competition and trade practices
(4) Opportunity to develop (optimum)
1. all sectors of economy
2. all regions of the country
(5) Broadening the base of ownership of private enterprises (encouraged)
1. corporations
2. cooperatives
3. similar collective organizations

2. Sec 2. -
(1) Ownership by the state of all public lands and natural resources
1) public lands
2) waters
3) minerals
4) coal
5) petroleum
6) other mineral oils
 7) forces of potential energy
8) fisheries
9) forests
10) timber
11) wildlife
12) flora
13) fauna
14) other natural resources

(2) Prohibition to alienate natural resources

1. except agricultural land
(3) Full control and supervision of state in the exploration, development and utilization of
natural resources
(4) State may directly undertake activities or enter into production agreements with Filipino
Citizens or private entities
1. For as long as 60 percent capitalization of Filipino Citizens are observed
2. The agreement is for a period not exceeding 25 years, renewable for another 25 years,
and under conditions provided by law

(5) Water rights for irrigation, water supply, fisheries or industrial uses other than the
development of water power, the beneficial may be the measure and limit of the grant

(6) Protection of marine wealth, and reservations of its exclusive use and enjoyment to Filipino
Citizens
1. archipelagic waters
2. territorial sea
3. exclusive economic zone

(7) Small scale utilization of natural resources is allowed, in favor of Filipino Citizens
1. Cooperative fish farming is allowed
2. Priority is given to subsistence fishermen and fish workers
 (rivers, bays, lakes and lagoons)

(8) Technical or financial assistance may be entered into by the President with foreign
corporations for large scale exploration, development, utilization of minerals, petroleum,
and other mineral oils
1. for as long as:
1) the terms and conditions are in accordance with law
2) it contributes to the economic growth and general welfare of the country
3) it promotes the development and use of local scientific and technical resources
4) the Congress is notified of every contract entered into within 30 days from its
execution

3. Sec 3
(1) Classification of lands of public domain
1. agricultural
2. forest
3. timber
4. mineral lands
5. national parks
(2) Classification of agricultural land will depend on its use
(3) Only agricultural lands of public domain shall be alienable
(4) Private corporations or associations may not hold alienable lands of public domain
1. except by lease
2. and only for a period not exceeding 25 years, renewable for another 25 years
3. it should not exceed 1000 hectares

(5) Citizens of the Philippines may not lease more than 500 hectares of agricultural land
(6) Citizens of the Philippines may not acquire more than 12 hectares of agricultural land by
purchase, homestead or grant
 (7) Congress shall determine the size of land of the public domain which may be acquired,
develop, held or lease, including the conditions imposed, taking into account the
conservation, ecology and development thereof, and subject to the requirements of agrarian
reform

4. Section 4
(1) Congress should
1. determine marking and boundaries of forests and national parks
1) And after such determination, conserve it.
2) They cannot increase or decrease boundaries except by law

2. determine a period when logging shall be prohibited on certain areas (endangered forest,
watershed areas)

5. Sec 5. -
(1) protection of the rights of indigenous cultural communities to their ancestral lands
1. purpose: to ensure their economic, social and cultural well being
2. limits:
1) subject to constitutional provisions and national development policies and programs
2) The congress may, by law, provide for applicability of customary laws to govern
property rights or relations in determining ownership and extent of ancestral domain

6. Sec 6
(1) use of property has a social function
1. that is why all economic agents should contribute to common good
(2) private persons or entities have the right to own, establish and operate economic enterprises
1. but it is subject to the duty of the State to promote distributive justice, and to intervene
when the common goods so demands

(3) Private lands shall be transferred or conveyed to individual or entities qualified to acquire or
hold lands of the public domain
1. except in cases of hereditary succession
7. Sec 9
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