Monday, September 29, 2008

Proposed changes to consitution's national patrimony provisions

Proposed changes to constitution’s national patrimony provisions
Posted by butalidnl on 6 October 2006
http://butalidnl.wordpress.com/2006/10/06/proposed-changes-to-constitutions-national-patrimony-provisions/#comment-713

Charter change proponents say that their proposed amendments (or “revision”?) to the Philippine constitution will help push national development. In addition to the supposed benefits of a unicameral parliament to national development, the proposals also included changes in the “national patrimony” provisions of the 1987 Philippine constitution. Which specific provisions are they proposing to change?

There are actually three sets of charter change proposals. They are the: House of Representatives proposal, the proposal coming from the Consultative Commission (ConCom), and the People’s Initiative proposal. The most comprehensive set of “national patrimony” changes are put forward in the ConCom proposal, while the Peoples Initiative proposal does not deal with the question directly. Let us start with the ConCom proposal.

The ConCom proposed to change the following national patrimony provisions in the 1987 Constitution:

1. “The state shall protect Filipino enterprises against unfair foreign competition and trade practices” (Article 12, Section 1) has been deleted.

2. On the exploration, development, and utilization of natural resources(including marine wealth). The 1987 Constitution reserves the right to undertake these activities to Filipino citizens or corporations/associations/cooperatives which are 60% owned by Filipino citizens. The proposal is to allow foreigners to do these activities. It is also proposed to increase the period of lease of such lands from 25 to 50 years.

3. On reserving certain areas of investments to Filipino citizens or corporations/associations at least 60% Filipino-owned. The proposal is that the parliament shall merely “provide for limitations on foreign ownership” in these areas of investment.

4. The provision in Article 12, Section 10 that says “In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos. ” has been deleted.

5. On the operation of public utilities (Article 12, Section 11) . This is now limited to Filipino citizens or “associations or corporations organized under the laws of the Philippines” (actually, there is no real limitation on foreign ownership here!) This is to be deleted.

6. Article 12, Section 13 which states: “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.” is to be deleted.

The House proposal is generally the same as that of the ConCom for points #1-3 above, except in two details in #2. The House proposal retains the period of lease for public lands at 25 years. It also reserves the exploitation of marine resources to Filipinos.The House proposes to retain the original 1987 Constitution provisions for #4, 5 and 6 above.

As for the Peoples Initiative, it formally does not touch on the national patrimony provisions at all. However, in its Article XIII or “Transitory Provisions” , Section 4, Number 4. it states “Within forty days from the ratification of this amendment, the interim Parliament shall convene to propose amendments to, or revisionof, this Constitution consistent with the principles of local autonomy, decentralization and a strong bureaucracy.” With this provision, the Peoples Initiative effectively paves the way for the Constituent Assembly mode of revising the constitution. It also shows that other proposed changes to the constitution, including those on national patrimony, are waiting on the sidelines of the Peoples Initiative.

Thus, in the end, what really matters would be either the House proposal or the ConCom proposal - at least with regards to the national patrimony provisions.

ePAN to FilAm PAG

On its first day, ePAN is changed to FilAm PAG or Filipino American Political Action Group

Article XII Philippine Constitution: National Economy and Patrimony

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 sustainedincrease in the amount of goods and services produced by the nationfor the benefit of the people; and an expanding productivity as thekey to raising the quality of life for all, especially the under-privileged.

The State shall promote industrialization and full employment basedon sound agricultural development and agrarian reform, throughindustries that make full and efficient use of human and naturalresources, and which are competitive in both domestic and foreignmarkets. However, the State shall protect Filipino enterprisesagainst unfair foreign competition and trade practices.

In the pursuit of these goals, all sectors of the economy and allregions of the country shall be given optimum opportunity todevelop. Private enterprises, including corporations, cooperatives,and similar collective organizations, shall be encouraged to broadenthe base of their ownership.

Section 2. All lands of the public domain, waters, minerals, coal,petroleum, and other mineral oils, all forces of potential energy,fisheries, forests or timber, wildlife, flora and fauna, and othernatural resources are owned by the State. With the exception ofagricultural lands, all other natural resources shall not bealienated. The exploration, development, and utilization of naturalresources shall be under the full control and supervision of theState. The State may directly undertake such activities, or it mayenter into co-production, joint venture, or production-sharingagreements with Filipino citizens, or corporations or associationsat least sixty per centum of whose capital is owned by suchcitizens. Such agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and undersuch terms and conditions as may be provided by law. In cases of water rights for irrigation, water supply fisheries, or industrialuses other than the development of water power, beneficial use maybe the measure and limit of the grant.

The State shall protect the nation's marine wealth in itsarchipelagic 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 naturalresources 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-ownedcorporations involving either technical or financial assistance forlarge-scale exploration, development, and utilization of minerals,petroleum, and other mineral oils according to the general terms andconditions provided by law, based on real contributions to theeconomic growth and general welfare of the country. In suchagreements, the State shall promote the development and use of localscientific and technical resources.

The President shall notify the Congress of every contract enteredinto in accordance with this provision, within thirty days from itsexecution.

Section 3. Lands of the public domain are classified intoagricultural, forest or timber, mineral lands and national parks.Agricultural lands of the public domain may be further classified bylaw according to the uses to which they may be devoted. Alienablelands of the public domain shall be limited to agricultural lands.Private corporations or associations may not hold such alienablelands of the public domain except by lease, for a period notexceeding twenty-five years, renewable for not more than twenty-fiveyears, and not to exceed one thousand hectares in area. Citizens ofthe Philippines may lease not more than five hundred hectares, oracquire not more than twelve hectares thereof, by purchase,homestead, or grant.

Taking into account the requirements of conservation, ecology, anddevelopment, and subject to the requirements of agrarian reform, theCongress shall determine, by law, the size of lands of the publicdomain which may be acquired, developed, held, or leased and theconditions therefor.

Section 4. The Congress shall, as soon as possible, determine, bylaw, the specific limits of forest lands and national parks, markingclearly their boundaries on the ground. Thereafter, such forestlands and national parks shall be conserved and may not be increasednor diminished, except by law. The Congress shall provide for suchperiod as it may determine, measures to prohibit logging inendangered forests and watershed areas.

Section 5. The State, subject to the provisions of this Constitutionand national development policies and programs, shall protect therights of indigenous cultural communities to their ancestral landsto ensure their economic, social, and cultural well-being.The Congress may provide for the applicability of customary lawsgoverning property rights or relations in determining the ownershipand extent of ancestral domain.

Section 6. The use of property bears a social function, and alleconomic agents shall contribute to the common good. Individuals andprivate groups, including corporations, cooperatives, and similarcollective organizations, shall have the right to own, establish,and operate economic enterprises, subject to the duty of the Stateto promote distributive justice and to intervene when the commongood so demands.

Section 7. Save in cases of hereditary succession, no private landsshall be transferred or conveyed except to individuals,corporations, or associations qualified to acquire or hold lands ofthe public domain.

Section 8. Notwithstanding the provisions of Section 7 of thisArticle, a natural-born citizen of the Philippines who has lost hisPhilippine citizenship may be a transferee of private lands, subjectto limitations provided by law.

Section 9. The Congress may establish an independent economic andplanning agency headed by the President, which shall, afterconsultations with the appropriate public agencies, various privatesectors, and local government units, recommend to Congress, andimplement continuing integrated and coordinated programs andpolicies for national development.Until the Congress provides otherwise, the National Economic andDevelopment Authority shall function as the independent planningagency of the government.

Section 10. The Congress shall, upon recommendation of the economicand planning agency, when the national interest dictates, reserve tocitizens of the Philippines or to corporations or associations atleast sixty per centum of whose capital is owned by such citizens,or such higher percentage as Congress may prescribe, certain areasof investments. The Congress shall enact measures that willencourage the formation and operation of enterprises whose capitalis wholly owned by Filipinos.In the grant of rights, privileges, and concessions covering thenational economy and patrimony, the State shall give preference toqualified Filipinos.The State shall regulate and exercise authority over foreigninvestments within its national jurisdiction and in accordance withits national goals and priorities.

Section 11. No franchise, certificate, or any other form ofauthorization for the operation of a public utility shall be grantedexcept to citizens of the Philippines or to corporations orassociations organized under the laws of the Philippines, at leastsixty per centum of whose capital is owned by such citizens; norshall such franchise, certificate, or authorization be exclusive incharacter or for a longer period than fifty years. Neither shall anysuch franchise or right be granted except under the condition thatit shall be subject to amendment, alteration, or repeal by theCongress when the common good so requires. The State shall encourageequity participation in public utilities by the general public. Theparticipation of foreign investors in the governing body of anypublic utility enterprise shall be limited to their proportionateshare in its capital, and all the executive and managing officers ofsuch corporation or association must be citizens of the Philippines.

Section 12. The State shall promote the preferential use of Filipinolabor, domestic materials and locally produced goods, and adoptmeasures that help make them competitive.

Section 13. The State shall pursue a trade policy that serves thegeneral welfare and utilizes all forms and arrangements of exchangeon the basis of equality and reciprocity.

Section 14. The sustained development of a reservoir of nationaltalents consisting of Filipino scientists, entrepreneurs,professionals, managers, high-level technical manpower and skilledworkers and craftsmen in all fields shall be promoted by the State.The State shall encourage appropriate technology and regulate itstransfer for the national benefit.The practice of all professions in the Philippines shall be limitedto Filipino citizens, save in cases prescribed by law.

Section 15. The Congress shall create an agency to promote theviability and growth of cooperatives as instruments for socialjustice and economic development.

Section 16. The Congress shall not, except by general law, providefor the formation, organization, or regulation of privatecorporations. Government-owned or controlled corporations may becreated or established by special charters in the interest of thecommon good and subject to the test of economic viability.

Section 17. In times of national emergency, when the public interestso requires, the State may, during the emergency and underreasonable terms prescribed by it, temporarily take over or directthe operation of any privately-owned public utility or businessaffected with public interest.

Section 18. The State may, in the interest of national welfare ordefense, establish and operate vital industries and, upon payment ofjust compensation, transfer to public ownership utilities and otherprivate enterprises to be operated by the Government.

Section 19. The State shall regulate or prohibit monopolies when thepublic interest so requires. No combinations in restraint of tradeor unfair competition shall be allowed.

Section 20. The Congress shall establish an independent centralmonetary authority, the members of whose governing board must benatural-born Filipino citizens, of known probity, integrity, andpatriotism, the majority of whom shall come from the private sector.They shall also be subject to such other qualifications anddisabilities as may be prescribed by law. The authority shallprovide policy direction in the areas of money, banking, and credit.It shall have supervision over the operations of banks and exercisesuch regulatory powers as may be provided by law over the operationsof finance companies and other institutions performing similarfunctions.Until the Congress otherwise provides, the Central Bank of thePhilippines operating under existing laws, shall function as thecentral monetary authority.

Section 21. Foreign loans may only be incurred in accordance withlaw and the regulation of the monetary authority. Information onforeign loans obtained or guaranteed by the Government shall be madeavailable to the public.

Section 22. Acts which circumvent or negate any of the provisions ofthis Article shall be considered inimical to the national interestand subject to criminal and civil sanctions, as may be provided bylaw.

Fil-Ams' VOICE

For some time now, the Philippine economy is partly insulated from world shocks because of inward dollar remittances from OFWs, now on a consistent range of over $15B a year, and growing. Sixty percent of this comes from or thru North America or the popular aggregation called FilAms. This accounts for about 25% of dollar inflows to the country. The other 75% comes from exports of PEZA zones, the major market of which is still North America. However, our exports pale in comparison to our tiger neighbors. We must ask WHY and from whence, we may be able to separate the chaff from the grain and discuss solutions and positive action plans.

Given our dependence on North America and given the desire of FilAms to advocate "tigerization" of the Philippines, their voices and those of concerned Filipinos must be heard from both divides - by Malacanan, by the Congress, by the Senate, by all branches of the Philippine government and by Washington DC.

Fil-Am PAG is envisioned to be a positive political action group airing issues on Philippine "tigerization". It shall take no media spins or flaks and shall always work positively with all political regimes in both divides. This is a moderated site and acidic remarks shall not be allowed posting.

Posts are encouraged with a memorandum of arguments and solutions (MOAS) format. Posts without these shall be returned and authors shall be encouraged to conform with the MOAS format.

Fil-Am PAG

Fil-Am PAG stands for Filipino American Political Action Group - beamed towards FilAms in North America and Filipinos in the Philippines. It is a formal attempt to look at issues that greatly interest both concerned Filipinos and Filipino Americans in their common advocacy of "tigerizing" the Philippines, as it is indeed long overdue.

THE QUESTION IS WHAT KEEPS US FROM CATCHING UP WITH OUR TIGER NEIGHBORS WHEN WE WERE AHEAD OF THEM IN THE 60's?

The Fil-Am PAG idea incubates from EPIC25@yahoogroups.com, a group of concerned Filipinos and Filipino Americans but Fil-Am PAG is independent of EPIC25.

The views in these posts and the views expressed by authors are their own and does not necessarily reflect the view of Fil-am PAG.