SEC.

12-17
ART. XII- NATIONAL
ECONOMY AND
PATRIMONY
Sec. 12 The state shall promote the
preferential use of Filipino labor,
domestic materials and locally produce
goods, and adopt measures that help
make them competitive.
Adoption of Filipino First policy.
This is also provided in the above section.

(1) Duty of the state. The state shall:

(a) promote the preferential use of Filipino labor,
domestic materials and locally produce goods; and
(b) adopt measures that help make them
competitive.
(2) Aim of policy. the constitutional policy is
to give preference or dominance only to the
qualified Filipinos in their own country especially
in the grant of rights, privileges, concessions
involving our national economy and patrimony,
and make them competitive as against
foreigners in both domestic and foreign
markets, and not to insulate them from foreign
competition.

(3) Duty of buying public. Many Philippine-

made products are at part with the worlds best.
It is the duty of every Filipino citizen to buy the
products of his own countrymen.
Sec. 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 quality and reciprocity.
Promotion of trade policy that serves the general welfare.

(1) Trade policy as an implement to achieve specific

goals. - A trade policy is a policy affecting exports and imports
and domestic commerce formulated to achieve specific goals.
Thus:

(a) High tariffs or duties, import quotas or even total import ban
of certain commodities may be imposed to protect local
industries producing similar articles;
(b) Tariffs are made relatively low so as not to discourage
imports and thus raise more revenues;
(c) Import controls are relaxed when they tend to
encourage production of goods that are high-priced
and of low quality;

(d) A trade policy may be design to promote export

industries to earn more foreign exchange or the
domestic oriented industries to replace imports; and

(e) The government may impose dumping duty on

imported articles sold in the Philippines at less than
their fair market value or countervailing duty on
such articles granted subsidy in the country or origin
as a protection against unfair foreign competition, or
grant subsidy to a local industry which is not
granted to a similar industry.
(2) Paramount objective of trade policy. the
constitution makes it clear that the trade policy which
requires the state to promote must be one that serves
the general welfare.
(3) Benefits from international trade. international
trade benefits a country by allowing it to buy from
another countries, goods it lacks, or cannot produce
better, or can produce only at a higher cost, and sell
surplus goods, or those it can produce better and
cheaper. The resulting exchange enlarges the availability
of goods to the mutual advantage of the countries
engaged in it.
(4) Exchange rates of different currencies.
However, since countries use different currencies,
international trade necessarily involves exchanging one
into the other at the prevailing rate of exchange. It is
important that exchange rates are fairly stable;
otherwise, trade and investments are discouraged by the
possibility of losses incurred through changes in the
rates.
(5) Special problems arising from international
Sec. 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
encourage appropriate technology and
regulate its transfer for national benefit.
The practice of all professions in the
Philippines shall be limited to Filipino
citizens, save in cases prescribed by law.
 Promotion of national talent pool of
Filipinos.

Human resources people are the most critical sources of

economic growth. They are the active factors of development
that utilize through their labor the passive factors to produce
goods and serves needed by a growing economy.

Practice of all professions limited to

Filipinos.

A profession has been defined as a calling which requires

the passing of an appropriate government board or bar
examination, such as the practice of law, medicine, public
accountancy, engineering etc.
(1) Nature of right to practice. the practice of a
profession involves public interest and is open only
to persons who have undergone the necessary
academic preparation and passed the appropriate
government examination and who possesses such
other special qualifications prescribed by law.

(2) Exercise of privilege by aliens. the

constitution limits the practice of all professions in
the Philippines to Filipino citizens. However, congress
may provide otherwise in certain cases pursuant to a
treaty, or on grounds of reciprocity.
Sec. 15 The Congress shall create
an agency to promote the viability
and growth of the cooperatives as
instruments for social justice and
economic development.

Agency to promote the viability and growth

of the cooperatives to be created.
A cooperative is a type of business unit through
which individual members cooperate in
providing specific types of services of mutual
benefit to the membership.
Sec. 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.
Formation, organization, and regulation of
corporations.

Private corporations.
Congress can only provide for the formation, etc. of private
corporations through a general law.

Government-owned or controlled
corporations (GOCCS)
They may be create by:

a.) special charters in the interest of the common good and

subject to test of economic viability.

b.) by the incorporation under the general corporation law.

Sec. 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.