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    5 views67 pages

    Article 12-18 (Albano)

    Uploaded by

    Ashburne Bueno

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    © All Rights Reserved
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    341 CHAPTER XXI ARTICLE XII NATIONAL ECONOMY AND PATRIMONY Section 1. The goals of the national economy are a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the under-privileged. The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets. However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices. In the pursuit of these goals, all sectors of the economy andiall regions of the country shall be given optimum opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective organizations, shall be encouraged to broaden the base of their ownership. Goals of national economy The following are the goals of the national economy: (1) Amore equitable distribution of opportunities, income and wealth; (2) Sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and (3) An expanding productivity as the key to raising the quality of life for all, especially the underprivileged. (Sec. 1, Art. XII, 1987. Constitution). : To attain such goals, the State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets, However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices. (Sec. 1, Art. XIl, 1987 Constitution). How to accomplish the goals of National economy There are ways provided for by the Constitution for attaining the goals of national-economy in order to promote the welfare of the people, such as, but not limited to: Scanned with CamScanner 342 (1) (3) (4) (5) PHILIPPINE GOVERNMENT AND CONSTITUTION Develop a self-reliant and independent economy effectively controlled by Filipinos. As discussed elsewhere however, this goal does not prohibit the State from entering into economic treaties with other countries like the World Trade Organization (WTO) Agreement; trade agreements with other States to promote the economy; Promote industrialization and full employment. Industrialization is needed to promote the economy of the State. Where it invites investors in the country especially with the recognition of the private sector as a catalyst of development; Give all economic sectors and regions optimum opportunity to develop. This is a recognition of the role of the private sector in the development of the economy as it. has vast resources compared to the government. There are sectors of the economy which are beyond the capability of the government to develop, thus, the State encourages the private to invest on such. sector of the economy; To encourage private enterprises to broaden the base of their ownership. As above discussed, the State encourages the private sector to widen their base of investment by granting certain privileges like exemption from tax or reduced tax to attract more investments. With this, the State may be able to attain the goals of developing the economy for the welfare of the people; and Protect Filipino enterprises against unfair foreign competition and trade practices. The protection is not against competition but unfair competition? With the WTO Agreement of which the . Philippines is a signatory, the Philippines has opened its market to foreign products subject to the condition that products of the Philippines are also freely sold in the signatory countries. There may be some protection like tariff and import controls to shield Philippine industries from unfair competition. Concept of National Patrimony The national patrimony covers our natural resources, such as lands of the of the public domain, waters, minerals, coal, petroleum, and all marine wealth, the territorial waters, territorial sea and exclusive economic zone. (Sec. 2, pars. 1, 2, Art. XII Constitution). Cultural heritage (Art. XIV, Sec. 15 and 16) including historical landmarks like Intramuros and the Manila Hotel form parts of our national patrimony. Under the Regalian Doctrine, all natural resources are owned by the State. Section 2. All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy: Scanned with CamScanner NATIONAL ECONOMY AND PATRIMONY 343 fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State. With the exception of agricultural lands, all other natural resources shall not be alienated. The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State. The State may directly undertake such activities, or it may enter into co- production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens. Such agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and under such terms and conditions as may be provided by law. In cases of water rights for irrigation, water supply fisheries, or industrial uses other than the development of water power, beneficial use may be the measure and limit of the grant. The State shall protect the nation’s marine wealth in its archipelagic waters, territorial sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens. The Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens, as well as cooperative fish farming, with priority to subsistence fishermen and fish- workers in rivers, lakes, bays, and lagoons. 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. National Patrimony This provision actually fortifies what is truly Filipino. Its mandate is to define and preserve the national patrimony. Regalian Doctrine It is the doctrine which reserves to the State the full ownership of all natural resources or natural wealth that may be found in the bowels of the earth. Scanned with CamScanner 344 PHILIPPINE GOVERNMENT AND CONSTITUTION The Regalian Doctrine dictates that all lands of the public domain belong to the State, that the State is the source of any asserted right to ownership of land and charged with the conservation of such patrimony. The doctrine has been consistently adopted under the 1935, 1973, and 1987 Constitutions. (Zarate vs. Dir. Of Lands, 434 SCRA 32 322 (2004); Reyes v. CA, 356 Phil. 606 (1998) as cited in Sec. of the DENR, et.al., vs. Mayor Jose Yap, et.al., G.R. No. 167707). Notification by the President The President shall notify the Congress of every contract entered into in accordance with this provision, within thirty days from its execution. The last clause of this section is another expression of the Principle of Checks and Balances. Classification of lands of the public domain Lands of the public domain are classified into: (1) Agricultural; (2) Timber or forest; (3) Mineral lands; and (4) National parks. (Sec. 3, Art. XII, 1987 Constitution). Alienable lands Only agricultural lands may be alienated. The Constitution provides that with the exception of agricultural lands, all other natural resources shall Not be alienated. (Sec. 2, Art. XII, 1987 Constitution). Exploration of natural resources The Constitution provides that the exploration, development and utilization of natural resources shall be under the full control and supervision of the State. (Sec. 2, Art. XII, 1987 Constitution). 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 domain shall be limited to agricultural lands. Private corporations or associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in area. Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve hectares thereof, by purchase, homestead, or grant. Scanned with CamScanner NATIONAL ECONOMY AND PATRIMONY 345 Taking into account the requirements of conservation, ecology, and development, and subject to the requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public domain which may be acquired, developed, held, or leased and the conditions therefor. The need for classification of land. A positive act declaring land as alienable and disposable is required. 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 land for agricultural or other purposes. In fact, Section 8 of CA No. 141 limits alienable or disposable lands only to those lands which have been “officially delimited and classified.” The burden of proof in overcoming the presumption of State ownership of the lands of the public domain is on the person applying for registration (or claiming ownership), who must prove that the land subject of the application is alienable or disposable (Rep. v. Lao, 405 SCRA 291 [2003]). To overcome this presumption, incontrovertible evidence must be established that the land subject of the application (or claim) is alienable or disposable. There must still be a positive act declaring land of the public domain as alienable and disposable. To prove that the land subject of an application for Tegistration is alienable, the applicant must establish the existence of a positive act of the government such as a presidential proclamation or an executive order; an administrative action; investigation reports of Bureau of Lands investigators; and a legislative act or a statute. (Rep. v. Mufioz, GR. No. 151910, October 15, 2007). The applicant may also secure a certification from the government that the land claimed to have been possessed for the required number of years is alienable and disposable. Section 4. The Congress shall, as soon as possible, determine, by law, the specific limits of forest lands and national parks, marking clearly their boundaries on the ground. Thereafter, such forest lands and national parks shall be conserved and may not be increased nor diminished, except by law. The Congress shall provide for such period as it may determine, measures to prohibit logging in endangered forests and watershed areas. " Lease of alienable lands by corporations and individuals Corporations may hold alienable lands by lease for a period of 25 years, renewable for another 25 years but not to exceed 1,000 hectares. (Sec. 3, Art. XII, 1987 Constitution). Scanned with CamScanner 346 PHILIPPINE GOVERNMENT AND CONSTITUTION Lease of alienable lands Citizens of the Philippines may lease not more than 500 hectares of alienable lands, or acquire not more than 12 hectares by purchase, homestead or grant. (Sec. 3, Art. XII, 1987 Constitution). Aliens cannot own private lands As a general rule, aliens may not own lands in the Philippines. Under the Constitution, save in cases of hereditary succession, no private lands shall be transferred or conveyed, except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain. (Sec. 7, Art. XII, 1987 Constitution). This is by reason of public policy, that land in the Philippines is reserved for the Filipinos. (Rep. vs. CA, 55 SCAD 157, GR. No. 103047, September 2, 1994). Foreign sovereign may acquire lands in the Philippines -The right of a foreign sovereign to acquire property, real or personal, in a receiving state, necessary for the creation and maintenance of its diplomatic mission, is recognized in the 1961 Vienna Convention on Diplomatic Relations (Arts. 20-22). This treaty was concurred in by the Philippine Senate and entered into force in the Philippines on November 15, 1965. (The Holy See vs. Rosario, G.R. No. 101949 December 1, 1994) Foreigners may acquire condominium units in the Philippines The law provides that no condominium unit can be sold without at the same time selling the corresponding amount of rights, shares or other interests in the condominium management body, the Condominium ‘Corporation, and no one can buy shares in a Condominium Corporation without at the same time buying a condominium unit. It expressly allows foreigners to acquire condominium units and shares in condominium corporations up to not more than 40% of the total and outstanding capital stock of a Filipino-owned or controlled corporation. Under this set up, the ownership of the land is legally separated from the unit itself. The land is owned by a Condominium Corporation and the unit owner is simply a member in this Condominium Corporation. As long as 60% of the members of this Condominium. Corporation are Filipinos, the remaining members can be RIGO: (Hulst vs. PR Builders, Inc., G.R. No. 156364, September 25, ) Unclassified land belongs to the State Under the Regalian Doctrine, all lands not otherwise clearly appearing to be privately-owned, are presumed to belong to the State. Forest lands, like mineral or timber lands which are public lands, are not subject to private Scanned with CamScanner NATIONAL ECONOMY AND PATRIMONY 347 ownership unless, under the Constitution, these become private properties. In the absence of such classification, the land remains as unclassified public land until released therefrom and rendered open to disposition. (Director of Lands vs. IAC, 219 SCRA 339 [1993]). Concept of hereditary succession Hereditary succession means intestate succession, for ifit were testate succession, then, there would be commission of fraud. In short, there would be contractual will. (Ramirez vs. Ramirez, February 15, 1982). The Roman Catholic Church can acquire alienable lands The Roman Catholic Church can acquire alienable lands since it is a corporation sole which is not covered by the prohibition against corporations or associations. (Director of Lands vs. CA, 168 SCRA 165). Laws implementing the provision Since the ratification of this Constitution, various laws have been enacted by Congress to implement the above provision. Some of these laws are the Chain Saw Act of 2002 Republic Act No. 9175; Philippine Plant Variety Protection Act of 2002 Republic Act No. 9168; Mt. Kanla-on Natural Park (MKNP) Act of 2001 Republic Act No. 9154; Wildlife Resources Conservation and Protection Act Republic Act No. 9147; National Caves and Cave Resources Management and Protection Act Republic Act No. 9072; Philippine Fisheries Code of 1998 Republic Act No. 8550; Philippine Mining Act of 1995 Republic Act No. 7942; Amendment to the Agrarian Reform Code Republic Act No. 7907; Tax Laws Incorporated in the Revised Forestry Code Republic Act No. 7161; Prohibition Against Cutting of Trees in Public Roads, Plazas, etc, Republic Act No. 3571; An Act Amending Section Thirty- Six of P. D. No. 705, Otherwise Known as “The Revised Forestry Code of the Philippines” . ‘ Section 5. The State, subject to the provisions of this Constitution and national development policies and programs, shall protect the rights of indigenous cultural communities to their ancestral lands to ensure their economic, social, and cultural well-being. The Congress may provide for the applicability of customary laws governing property rights or relations in determining the ownership and extent of ancestral domain. rc \ a a Scanned with CamScanner NATIONAL ECONOMY AND PATRIMONY 347 ownership unless, under the Constitution, these become private properties. Inthe absence of such classification, the land remains as unclassified public land until released therefrom and rendered open to disposition. (Director of Lands vs. IAC, 219 SCRA 339 [1993]). Concept of hereditary succession Hereditary succession means intestate succession, for if it were testate succession, then, there would be commission of fraud. In short, there would be contractual will. (Ramirez vs. Ramirez, February 15, 1982). The Roman Catholic Church can acquire alienable lands The Roman Catholic Church can acquire alienable lands since it is a corporation sole which is not covered by the prohibition against corporations or associations. (Director of Lands vs. CA, 168 SCRA 165). Laws implementing the provision Since the ratification of this Constitution, various laws have been enacted by Congress to implement the above provision. Some of these laws are the Chain Saw Act of 2002 Republic Act No. 9175; Philippine Plant Variety Protection Act of 2002 Republic Act No. 9168; Mt. Kanla-on Natural Park (MKNP) Act of 2001 Republic Act No. 9154; Wildlife Resources Conservation and Protection Act Republic Act No. 9147; National Caves and Cave Resources Management and Protection Act Republic Act No. 9072; Philippine Fisheries Code of 1998 Republic Act No. 8550; Philippine Mining Act of 1995 Republic Act No. 7942; Amendment to the Agrarian Reform Code Republic Act No. 7907; Tax Laws Incorporated in the Revised Forestry Code Republic Act No. 7161; Prohibition Against Cutting of Trees in Public Roads, Plazas, etc. Republic Act No. 3571; An Act Amending Section Thirty- Six of P. D. No. 705, Otherwise Known as “The Revised Forestry Code of the Philippines” . : Section 5. The State, subject to the provisions ‘of this Constitution and national development policies and programs, shall protect the rights of indigenous cultural communities to their ancestral lands to ensure their economic, social, and cultural well-being. The Congress may provide for the applicability of customary laws governing property rights or relations in determining the ownership and extent of ancestral domain. an tr AS Scanned with CamScanner 348 PHILIPPINE GOVERNMENT AND CONSTITUTION Indigenous Peoples Rights Act (IPRA) This law aims to execute the constitutional mandate to protect the rights of indigenous cultural communities to their ancestral lands to ensure their economic, social and cultural well-being. State Policies pertaining to indigenous cultural communities Sec. 2. Declaration of State Policies.- The State shall recognize and promote all the rights of Indigenous Cultural Communities/Indigenous Peoples (ICCs/IPs) hereunder enumerated within the framework of the Constitution: a) The State shall recognize and promote the rights of ICCs/IPs within the framework of national unity and development; b) . The State shall protect the rights of ICCs/IPs to their ancestral domains to ensure their economic, social and cultural well being and shall recognize the applicability of customary laws governing property rights or relations in determining the ownership and extent of ancestral domain; c) The State shall recognize, respect and protect the rights of ICCs/ IPs to preserve and develop their cultures, traditions and institutions. It shall consider these rights in the formulation of national laws and policies; d) The State shall guarantee that members of the ICCs/IPs regardless of sex, shall equally enjoy the full measure of human rights and freedoms without distinctions or discriminations; e) The State shall take measures; with the participation of the ICCs/ IPs concerned, to protect their rights and guarantee respect for their cultural integrity, and to ensure that members of the ICCs/ IPs benefit on an equal footing from the rights and opportunities which national laws and regulations grant to other members of the population; and f) The State recognizes its obligations to respond to the strong expression of the ICCs/IPs for ‘cultural integrity by assuring maximum ICC/IP participation in the direction of education, health, as well as other services of ICCs/IPs, in order to render such services more responsive to the needs and desires’ of these communities. Composition of the indigenous cultural communities referred to by the Philippine Constitution Indigenous Cultural Communities/Indigenous Peoples refer to.a group of people or homogenous 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 Scanned with CamScanner NATIONAL ECONOMY AND. PATRIMONY 349 distinctive cultural traits, or who have, through resistance to political, social and cultural inroads of colonization, non-indigenous religions and culture, became historically differentiated from the majority of Filipinos. |CCs/IPs shall likewise include peoples who are. regarded as indigenous on account of their descent from the populations which inhabited the country, at the time of conquest or colonization, or at the time of inroads of non-indigenous religions and Cultures, or the establishment of present state boundaries, who retain some or all of their own social, economic, cultural and political institutions, but who may have been displaced from their traditional domains or who may have resettled outside their ancestral domains. Definition of ancestral lands Ancestral Lands, refers to land occupied, possessed and utilized by individuals, families and clans who are members of the ICCs/IPs since time immemorial, by themselves or through their predecessors-in-interest, under claims of individual or traditional group ownership,continuously, to the present except when interrupted by war, force majeure or displacement by force, deceit, stealth, or as a consequence of government projects and other voluntary dealings entered into by government and private individuals/ corporations, including, but not limited to, residential lots, rice terraces or paddies, private forests, swidden farms and tree lots. (Sec. 3, RA No. 8371). Section 6. The use of property bears a social function, and all economic agents shall contribute to the common good. Individuals and private groups, including corporations, cooperatives, and similar collective organizations, shall have the right to own, establish, and operate economic enterprises, subject to the duty of the State to promote distributive justice and to intervene when the common good so demands. Use of property bears a social function In the definition of property, the law classifies the same as anything that is capable of appropriation. The Constitution expressly mandates that the use of property bears a social function. It therefore means that the rights of an owner over his property such as the right to use, right to the fruits, right to possess, right to dispose inter alia must submit to the all encompassing police power of the State. This is best illustrated in the recent landmark decision of the Supreme Court. of the. Philippines in Carlos Superdrug Corporation doing business under the name and style “Carlos Supredrug’, et al. vs. DSWD., et al., GR. No. 29 June 2007. In this case, the Expanded Senior Citizens Act of 2003 grants to senior citizens a 20% discount from all establishments relative to utilization of

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