1898 1935 1973 1987

ARTICLE XIII ARTICLE XIV ARTICLE XII

Conservation and The National Economy NATIONAL ECONOMY

Utilization of Natural and the Patrimony of AND PATRIMONY
Resources the Nation
Section 1. The goals of
the national economy
are a more equitable
Section 1. All Section 1. The National distribution of
agricultural timber, and Assembly shall opportunities, income,
mineral lands of the establish a National and wealth; a sustained
public domain, waters, Economic and increase in the amount
minerals, coal, Development of goods and services
petroleum, and other Authority, to be headed produced by the nation
mineral oils, all forces by the Prime Minister, for the benefit of the Commented [DV2]: CREATION OF NEDA
of potential energy and which shall recommend people; and an
other natural resources to the National expanding productivity
of the Philippines Assembly, after as the key to raising the
belong to the State, and consultation with the quality of life for all,
their disposition, private sector, local especially the under-
exploitation, government units, and privileged.
development, or other appropriate
utilization shall be public agencies, The State shall
limited to citizens of the continuing, promote
Philippines or to coordinated, and fully industrialization and
corporations or integrated social and full employment based
associations at least economic plans and on sound agricultural
sixty per centum of the programs. development and
capital of which is agrarian reform,
owned by such citizens, Section 2. The State through industries that
subject to any existing shall regulate or make full and efficient
right, grant, lease, or prohibit private use of human and
concession at the time monopolies when the natural resources, and
of the inauguration of public interest so which are competitive
the Government requires. No in both domestic and
established under this combinations in foreign markets.
Constitution. Natural restraint of trade or However, the State
resources, with the unfair competition shall shall protect Filipino
exception of public be allowed. enterprises against
agricultural land, shall unfair foreign
Section 3. The National
not be alienated, and competition and trade
Assembly shall, upon
no license, concession, practices.
recommendation of the
or lease for the
National Economic and
exploitation,
Development
development, or
Authority, reserve to
utilization of any of the
natural resources shall citizens of the In the pursuit of these
be granted for a period Philippines or to goals, all sectors of the
exceeding twenty-five corporations or economy and all
years, renewable for associations wholly regions of the country
another twenty-five owned by such citizens, shall be given optimum
years, except as to certain traditional areas opportunity to develop.
water rights for of investments when Private enterprises,
irrigation, water supply, the national interest so including corporations,
fisheries, or industrial dictates. cooperatives, and
uses other than the similar collective
development of water Section 4. The National organizations, shall be
power, in which cases Assembly shall not, encouraged to broaden
beneficial use may be except by general law, the base of their
the measure and limit provide for the ownership.
of the grant. formation,
organization, or
Section 2. No private regulation of private
corporation or corporations, unless Section 2. All lands of
association may such corporations are the public domain,
acquire, lease, or hold owned or controlled by waters, minerals, coal,
public agricultural lands the government or any petroleum, and other
in excess of one subdivision or mineral oils, all forces
thousand and twenty instrumentality of potential energy,
four hectares, nor may thereof. fisheries, forests or
any individual acquire timber, wildlife, flora
such lands by purchase and fauna, and other
in excess of one natural resources are
Section 5. No franchise, owned by the State.
hundred and forty four
certificate, or any other With the exception of
hectares, or by lease in
form of authorization agricultural lands, all
excess of one thousand
for the operation of a other natural resources
and twenty four
public utility shall be shall not be alienated.
hectares, or by
granted except to The exploration,
homestead in excess of
citizens of the development, and
twenty-four hectares.
Philippines at least sixty utilization of natural
Lands adapted to
per centum of the resources shall be
grazing, not exceeding
capital of which is under the full control
two thousand hectares,
owned by such citizens, and supervision of the
may be leased to an
nor shall such franchise, State. The State may
individual, private
certificate, or directly undertake such
corporation, or
authorization be activities, or it may
association.
exclusive in character enter into co-
or for a longer period production, joint
then fifty years. Neither venture, or production-
Section 3. The Congress shall any such franchise sharing agreements
may determine by law or right be granted with Filipino citizens, or
the size of private except under the corporations or
agricultural land which condition that it shall be associations at least
individuals, subject to amendment, sixty per centum of
corporations, or alteration, or repeal bywhose capital is owned
associations may the National Assembly by such citizens. Such
acquire and hold, when the public
agreements may be for
subject to rights interest so requires. a period not exceeding
existing prior to the The State shall
twenty-five years,
enactment of such law. encourage equity
renewable for not more
participation in public than twenty-five years,
utilities by the generaland under such terms
public. The
and conditions as may
Section 4. The Congress
participation of foreignbe provided by law. In
may authorize, upon
investors in the
cases of water rights for
payment of just
governing body of any irrigation, water supply
compensation, the
public utility enterprise
fisheries, or industrial
expropriation of lands
shall be limited to their
uses other than the
to be subdivided into
proportionate share in development of water
small lots and conveyed
the capital thereof. power, beneficial use
at cost to individuals. Commented [DV1]: Power of imminent domain
may be the measure
Section 6. The State and limit of the grant.
may, in the interest of
Section 5. Save in cases the national welfare or
of hereditary defense, establish and
succession, no private operate industries and The State shall protect
agricultural land shall means of the nation's marine
be transferred or transportation and wealth in its
assigned except to communication, and, archipelagic waters,
individuals, upon payment of just territorial sea, and
corporations, or compensation, transfer exclusive economic
to public ownership zone, and reserve its
associations qualified
to acquire or hold lands utilities and other use and enjoyment
of the public domain in private enterprises to exclusively to Filipino
the Philippines. be operated by the citizens.
government. Commented [DV3]: Retained from section 6 of 1935

The Congress may, by

Section 6. The State law, allow small-scale
Section 7. In times of
may, in the interest of utilization of natural
national emergency
national welfare and resources by Filipino
when the public
defense, establish and citizens, as well as
interest so requires, the
operate industries and cooperative fish
State may temporarily
means of farming, with priority to
take over or direct the
transportation and subsistence fishermen
operation of any
communication, and and fish- workers in
privately owned public
upon payment of just rivers, lakes, bays, and
utility or business
compensation, transfer lagoons.
affected with public
to public ownership
interest.
utilities and other
private enterprise to be
operated by the Section 8. All lands of
Government. public domain, waters,
minerals, coal,
petroleum and other
mineral oils, all forces
of potential energy,
fisheries, wildlife, and
other natural resources
of the Philippines
belong to the State.
With the exception of
agricultural, industrial
or commercial,
residential, or
resettlement lands of
the public domain,
natural resources shall
not be alienated, and
no license, concession,
or lease for the
exploration, or
utilization of any of the
natural resources shall
be granted for a period
exceeding twenty-five
years, except as to
water rights for
irrigation, water supply,
fisheries, or industrial
uses other than
development of water
power, in which cases,
beneficial use may by
the measure and the
limit of the grant.
Section 9. The
disposition,
exploration,
development,
exploitation, or
utilization of any of the
natural resources of
the Philippines shall be
limited to citizens of the
Philippines, or to
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.
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
corporations or domain shall be limited
associations at least to agricultural lands.
sixty per centum of the Private corporations or
capital which is owned associations may not
by such citizens. The hold such alienable
National Assembly, in lands of the public
the national interest, domain except by lease,
may allow such citizens, for a period not
corporations or exceeding twenty-five
associations to enter years, renewable for
into service contracts not more than twenty-
for financial, technical, five years, and not to
management, or other exceed one thousand
forms of assistance hectares in area.
with any foreign person Citizens of the
or entity for the Philippines may lease
exploration, or not more than five
utilization of any of the hundred hectares, or
natural resources. acquire not more than
Existing valid and twelve hectares
binding service thereof, by purchase,
contracts for financial, homestead, or grant.
technical,
management, or other
forms of assistance are
Taking into account the
hereby recognized as
requirements of
such.
conservation, ecology,
Section 10. Lands of the and development, and
public domain are subject to the
classified into requirements of
agricultural, industrial, agrarian reform, the
or commercial, Congress shall
residential, determine, by law, the
resettlement, mineral, size of lands of the
timber or forest, and public domain which
grazing lands, and such may be acquired,
other classes as may be developed, held, or
provided by law. leased and the
conditions therefor.

Section 11. The

National Assembly Section 4. The Congress
taking into account shall, as soon as
conservation, possible, determine, by
ecological, and law, the specific limits
developmental of forest lands and
national parks, marking
requirements of the clearly their boundaries
natural resources shall on the ground.
determine by law the Thereafter, such forest
size of lands of the lands and national
public domain which parks shall be
may be developed, held conserved and may not
or acquired by, or be increased nor
leased to, any qualified diminished, except by
individual, corporation law. The Congress shall
or association, and the provide for such period
conditions therefor. No as it may determine,
private corporation or measures to prohibit
association may hold logging in endangered
alienable lands of the forests and watershed
public domain except areas.
by lease not to exceed
one thousand hectares
in area; nor may any
Section 5. The State,
citizen hold such lands
subject to the
by lease in excess of five
provisions of this
hundred hectares or
Constitution and
acquire by purchase or
national development
homestead in excess of
policies and programs,
twenty-four hectares.
shall protect the rights
No private corporation
of indigenous cultural
or association may hold
communities to their
by lease, concession,
ancestral lands to
license, or permit
ensure their economic,
timber or forest lands
social, and cultural well-
and other timber or
being.
forest resources in
excess of one hundred
thousand hectares;
however, such area The Congress may
may be increased by provide for the
the National Assembly applicability of
upon recommendation customary laws
of the National governing property
Economic and rights or relations in
Development determining the
Authority. ownership and extent
of ancestral domain.

Section 12. The State

shall formulate and Section 6. The use of
implement an agrarian property bears a social
reform program aimed function, and all
at emancipating the economic agents shall
tenant from the contribute to the
bondage of the soil and common good.
achieving the goals Individuals and private
enunciated in this groups, including
Constitution. corporations, Commented [DV4]: CREATION OF AGRARIAN REFORM
cooperatives, and PROGRAM
similar collective
organizations, shall
Section 13. The Commented [DV5]: Retained
have the right to own,
National Assembly may
establish, and operate
authorize, upon
economic enterprises,
payment of just
subject to the duty of
compensation, the
the State to promote
expropriation of public
distributive justice and
lands to be subdivided
to intervene when the
into small lots and
common good so
conveyed at cost to
demands.
deserving citizens.

Section 7. Save in cases

Section 14. Save in Commented [DV6]: Retained from section 5
of hereditary
cases of hereditary
succession, no private
succession, no private
lands shall be
land shall be
transferred or
transferred or
conveyed except to
conveyed except to
individuals,
individuals,
corporations, or
corporations, or
associations qualified
associations qualified
to acquire or hold lands
to acquire or hold lands
of the public domain.
of the public domain.

Section 8.
Section 15. Any
Notwithstanding the
provision of paragraph
provisions of Section 7
one, Section 14, Article
of this Article, a natural-
VIII and of this Article
born citizen of the
notwithstanding, the
Philippines who has lost
Prime Minister may
his Philippine
enter into international
citizenship may be a
treaties or agreement
transferee of private
as the national welfare
lands, subject to
and interest may
limitations provided by
require.
law.
Section 9. The Congress
may establish an
independent economic
and planning agency
headed by the
President, which shall,
after consultations with
the appropriate public
agencies, various
private sectors, and
local government units,
recommend to
Congress, and
implement continuing
integrated and
coordinated programs
and policies for national
development.

Until the Congress

provides otherwise, the
National Economic and
Development Authority
shall function as the
independent planning
agency of the
government.

Section 10. The

Congress shall, upon
recommendation of the
economic and planning
agency, when the
national interest
dictates, reserve to
citizens of the
Philippines or to
corporations or
associations at least
sixty per centum of
whose capital is owned
by such citizens, or such
higher percentage as
Congress may
prescribe, certain areas
of investments. The
Congress shall enact
measures that will
encourage the
formation and
operation of
enterprises whose
capital is wholly owned
by Filipinos.

In the grant of rights,

privileges, and
concessions covering
the national economy
and patrimony, the
State shall give
preference to qualified
Filipinos.

The State shall regulate

and exercise authority
over foreign
investments within its
national jurisdiction
and in accordance with
its national goals and
priorities.

Section 11. No
franchise, certificate, or
any other form of
authorization for the
operation of a public
utility shall be granted
except to citizens of the
Philippines or to
corporations or
associations organized
under the laws of the
Philippines, at least
sixty per centum of
whose capital is owned
by such citizens; nor
shall such franchise,
certificate, or
authorization be
exclusive in character
or for a longer period
than fifty years. Neither
shall any such franchise
or right be granted
except under the
condition that it shall be
subject to amendment,
alteration, or repeal by
the Congress when the
common good so
requires. The State shall
encourage equity
participation in public
utilities by the general
public. The
participation of foreign
investors in the
governing body of any
public utility enterprise
shall be limited to their
proportionate share in
its capital, and all the
executive and
managing officers of
such corporation or
association must be
citizens of the
Philippines.

Section 12. The State

shall promote the
preferential use of
Filipino labor, domestic
materials and locally
produced goods, and
adopt measures that
help make them
competitive.
Section 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 equality and
reciprocity.

Section 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 be promoted by
the State. The State
shall encourage
appropriate technology
and regulate its transfer
for the national benefit.

The practice of all

professions in the
Philippines shall be
limited to Filipino
citizens, save in cases
prescribed by law.

Section 15. The

Congress shall create an
agency to promote the
viability and growth of
cooperatives as
instruments for social
justice and economic
development.

Section 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.

Section 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.

Section 18. The State

may, in the interest of
national welfare or
defense, establish and
operate vital industries
and, upon payment of
just compensation,
transfer to public
ownership utilities and
other private
enterprises to be
operated by the
Government.

Section 19. The State

shall regulate or
prohibit monopolies
when the public
interest so requires. No
combinations in
restraint of trade or
unfair competition shall
be allowed.

Section 20. The

Congress shall establish
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.