ARTICLE XII The State shall protect the nation’s marine wealth in its archipelagic

waters, territorial sea, and exclusive economic zone, and reserve its
NATIONAL ECONOMY AND PATRIMONY use and enjoyment exclusively to Filipino citizens.

Section 1. The goals of the national economy are a more equitable The Congress may, by law, allow small-scale utilization of natural
distribution of opportunities, income, and wealth; a sustained resources by Filipino citizens, as well as cooperative fish farming,
increase in the amount of goods and services produced by the nation with priority to subsistence fishermen and fishworkers in rivers,
for the benefit of the people; and an expanding productivity as the lakes, bays, and lagoons.
key to raising the quality of life for all, especially the underprivileged.
The President may enter into agreements with foreign-owned
The State shall promote industrialization and full employment based corporations involving either technical or financial assistance for
on sound agricultural development and agrarian reform, through large-scale exploration, development, and utilization of minerals,
industries that make full and efficient use of human and natural petroleum, and other mineral oils according to the general terms and
resources, and which are competitive in both domestic and foreign conditions provided by law, based on real contributions to the
markets. However, the State shall protect Filipino enterprises against economic growth and general welfare of the country. In such
unfair foreign competition and trade practices. agreements, the State shall promote the development and use of
local scientific and technical resources.
In the pursuit of these goals, all sectors of the economy and all
regions of the country shall be given optimum opportunity to develop. The President shall notify the Congress of every contract entered
Private enterprises, including corporations, cooperatives, and similar into in accordance with this provision, within thirty days from its
collective organizations, shall be encouraged to broaden the base of execution.
their ownership.
Section 3. Lands of the public domain are classified into agricultural,
Section 2. All lands of the public domain, waters, minerals, coal, forest or timber, mineral lands and national parks. Agricultural lands
petroleum, and other mineral oils, all forces of potential energy, of the public domain may be further classified by law according to the
fisheries, forests or timber, wildlife, flora and fauna, and other natural uses to which they may be devoted. Alienable lands of the public
resources are owned by the State. With the exception of agricultural domain shall be limited to agricultural lands. Private corporations or
lands, all other natural resources shall not be alienated. The associations may not hold such alienable lands of the public domain
exploration, development, and utilization of natural resources shall except by lease, for a period not exceeding twenty-five years,
be under the full control and supervision of the State. The State may renewable for not more than twenty-five years, and not to exceed
directly undertake such activities, or it may enter into co-production, one thousand hectares in area. Citizens of the Philippines may lease
joint venture, or production-sharing agreements with Filipino citizens, not more than five hundred hectares, or acquire not more than
or corporations or associations at least sixty per centum of whose twelve hectares thereof, by purchase, homestead, or grant.
capital is owned by such citizens. Such agreements may be for a
period not exceeding twenty-five years, renewable for not more than Taking into account the requirements of conservation, ecology, and
twenty-five years, and under such terms and conditions as may be development, and subject to the requirements of agrarian reform, the
provided by law. In cases of water rights for irrigation, water supply Congress shall determine, by law, the size of lands of the public
fisheries, or industrial uses other than the development of water domain which may be acquired, developed, held, or leased and the
power, beneficial use may be the measure and limit of the grant. conditions therefor.
Section 4. The Congress shall, as soon as possible, determine, by implement continuing integrated and coordinated programs and
law, the specific limits of forest lands and national parks, marking policies for national development.
clearly their boundaries on the ground. Thereafter, such forest lands
and national parks shall be conserved and may not be increased nor Until the Congress provides otherwise, the National Economic and
diminished, except by law. The Congress shall provide for such Development Authority shall function as the independent planning
period as it may determine, measures to prohibit logging in agency of the government.
endangered forests and watershed areas.
Section 10. The Congress shall, upon recommendation of the
Section 5. The State, subject to the provisions of this Constitution economic and planning agency, when the national interest dictates,
and national development policies and programs, shall protect the reserve to citizens of the Philippines or to corporations or
rights of indigenous cultural communities to their ancestral lands to associations at least sixty per centum  of whose capital is owned by
ensure their economic, social, and cultural well-being. such citizens, or such higher percentage as Congress may
prescribe, certain areas of investments. The Congress shall enact
The Congress may provide for the applicability of customary laws measures that will encourage the formation and operation of
governing property rights or relations in determining the ownership enterprises whose capital is wholly owned by Filipinos.
and extent of ancestral domain.
In the grant of rights, privileges, and concessions covering the
Section 6. The use of property bears a social function, and all national economy and patrimony, the State shall give preference to
economic agents shall contribute to the common good. Individuals qualified Filipinos.
and private groups, including corporations, cooperatives, and similar
collective organizations, shall have the right to own, establish, and The State shall regulate and exercise authority over foreign
operate economic enterprises, subject to the duty of the State to investments within its national jurisdiction and in accordance with its
promote distributive justice and to intervene when the common good national goals and priorities.
so demands.
Section 11. No franchise, certificate, or any other form of
Section 7. Save in cases of hereditary succession, no private lands authorization for the operation of a public utility shall be granted
shall be transferred or conveyed except to individuals, corporations, except to citizens of the Philippines or to corporations or associations
or associations qualified to acquire or hold lands of the public organized under the laws of the Philippines, at least sixty per
domain. centum of whose capital is owned by such citizens; nor shall such
franchise, certificate, or authorization be exclusive in character or for
Section 8. Notwithstanding the provisions of Section 7 of this Article, a longer period than fifty years. Neither shall any such franchise or
a natural-born citizen of the Philippines who has lost his Philippine right be granted except under the condition that it shall be subject to
citizenship may be a transferee of private lands, subject to limitations amendment, alteration, or repeal by the Congress when the common
provided by law. good so requires. The State shall encourage equity participation in
public utilities by the general public. The participation of foreign
Section 9. The Congress may establish an independent economic investors in the governing body of any public utility enterprise shall
and planning agency headed by the President, which shall, after be limited to their proportionate share in its capital, and all the
consultations with the appropriate public agencies, various private executive and managing officers of such corporation or association
sectors, and local government units, recommend to Congress, and must be citizens of the Philippines.
Section 12. The State shall promote the preferential use of Filipino Section 19. The State shall regulate or prohibit monopolies when the
labor, domestic materials and locally produced goods, and adopt public interest so requires. No combinations in restraint of trade or
measures that help make them competitive. unfair competition shall be allowed.

Section 13. The State shall pursue a trade policy that serves the Section 20. The Congress shall establish an independent central
general welfare and utilizes all forms and arrangements of exchange monetary authority, the members of whose governing board must be
on the basis of equality and reciprocity. natural-born Filipino citizens, of known probity, integrity, and
patriotism, the majority of whom shall come from the private sector.
Section 14. The sustained development of a reservoir of national They shall also be subject to such other qualifications and disabilities
talents consisting of Filipino scientists, entrepreneurs, professionals, as may be prescribed by law. The authority shall provide policy
managers, high-level technical manpower and skilled workers and direction in the areas of money, banking, and credit. It shall have
craftsmen in all fields shall be promoted by the State. The State shall supervision over the operations of banks and exercise such
encourage appropriate technology and regulate its transfer for the regulatory powers as may be provided by law over the operations of
national benefit. finance companies and other institutions performing similar
functions.
The practice of all professions in the Philippines shall be limited to
Filipino citizens, save in cases prescribed by law. Until the Congress otherwise provides, the Central Bank of the
Philippines operating under existing laws, shall function as the
central monetary authority.
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 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
Section 16. The Congress shall not, except by general law, provide
made available to the public.
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 Section 22. Acts which circumvent or negate any of the provisions of
and subject to the test of economic viability. this Article shall be considered inimical to the national interest and
subject to criminal and civil sanctions, as may be provided by law.
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