Summary
Highlights
The national economy aims for a more equitable distribution of opportunities, income, and wealth. It also seeks a sustained increase in goods and services for the people's benefit and expanding productivity to raise the quality of life, especially for the underprivileged, promoting social welfare and economic stability.
The state aims to promote industrialization and full employment based on sound agricultural development and agrarian reform. It also protects Filipino enterprises from unfair foreign competition and ensures all economic sectors and regions have optimum development opportunities, fostering inclusivity and balanced growth.
The exploration, development, and utilization of natural resources are under the full control and supervision of the state. The state can directly undertake these activities or enter into co-production, joint venture, or production sharing agreements with Filipino citizens or corporations where at least 60% of the capital is Filipino-owned, for a period of 25 years. The President can also enter into agreements with foreign-owned corporations but must notify Congress within 30 days of execution.
Lands are classified into agricultural (for farming and livestock), forest or timber (for trees and wood production), mineral lands (containing valuable mineral resources), and national parks (protected areas for conservation and recreation).
Alienable lands are those that can be sold or passed to private individuals or entities. Private corporations can lease these for a maximum of 25 years, renewable for another 25 years, not exceeding 1,000 hectares. Filipino citizens can lease up to 500 hectares or acquire up to 12 hectares by purchase, homestead, or grant, to prevent land concentration.
NEDA functions as the independent planning agency of the government, responsible for directing government efforts in economic planning and development. Congress is mandated to enact measures encouraging enterprises wholly owned by Filipinos.
The operation of a public utility is granted to Filipino citizens or corporations with at least 60% Filipino ownership for 50 years. The practice of professions is limited to Filipino citizens.
During a national emergency, the state may temporarily take over or direct operations of privately owned public utilities or businesses with public interest. Monopolies, which can lead to unfair practices and high prices, shall be regulated or prohibited by the state when public interest requires.
The Central Bank of the Philippines (Bangko Sentral ng Pilipinas) functions as the central monetary authority, managing money supply, monetary policy, and currency. Its members must be natural-born Filipino citizens, of proven integrity and patriotism, with the majority from the private sector. Its functions include providing policy direction in money, banking, and credit, supervising bank operations, and regulating finance companies.