Baronda, Chinette V.

BSBA-3A
Soc.sci 5 -Reporter 3

NATIONAL ECONOMY AND PATRIMONY

Sec. 12 The state shall promote the preferential use of Filipino

labor, domestic materials and locally produce goods, and adopt
measures that help make them competitive.

Adoption of Filipino First policy.

This is also provided in the above section.

(1)Duty of the state. The state shall:

(a) promote the preferential use of Filipino labor, domestic
materials and locally produce goods; and
(b)adopt measures that help make them competitive.
(2)Aim of policy. the constitutional policy is to give preference or
dominance only to the qualified Filipinos in their own country
especially in the grant of rights, privileges, concessions involving
our national economy and patrimony, and make them competitive
as against foreigners in both domestic and foreign markets, and not
to insulate them from foreign competition.
(3)Duty of buying public. Many Philippine-made products are at
part with the worlds best. It is the duty of every Filipino citizen to
buy the products of his own countrymen.

Sec. 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 quality and reciprocity.

Promotion of trade policy that serves the general welfare.

(1)Trade policy as an implement to achieve specific goals. - A trade

policy is a policy affecting exports and imports and domestic
commerce formulated to achieve specific goals. Thus:
(a) High tariffs or duties, import quotas or even total import ban
of certain commodities may be imposed to protect local
industries producing similar articles;
(b)Tariffs are made relatively low so as not to discourage imports
and thus raise more revenues;
(c) Import controls are relaxed when they tend to encourage
production of goods that are high-priced and of low quality;
 (d)A trade policy may be design to promote export industries to
earn more foreign exchange or the domestic oriented
industries to replace imports; and
(e) The government may impose dumping duty on imported
articles sold in the Philippines at less than their fair market
value or countervailing duty on such articles granted subsidy
in the country or origin as a protection against unfair foreign
competition, or grant subsidy to a local industry which is not
granted to a similar industry.
(2)Paramount objective of trade policy. the constitution makes it
clear that the trade policy which requires the state to promote must be
one that serves the general welfare.
(3)Benefits from international trade. international trade benefits a
country by allowing it to buy from another countries, goods it lacks, or
cannot produce better, or can produce only at a higher cost, and sell
surplus goods, or those it can produce better and cheaper. The
resulting exchange enlarges the availability of goods to the mutual
advantage of the countries engaged in it.
(4)Exchange rates of different currencies. However, since countries
use different currencies, international trade necessarily involves
exchanging one into the other at the prevailing rate of exchange. It is
important that exchange rates are fairly stable; otherwise, trade and
investments are discouraged by the possibility of losses incurred
through changes in the rates.
(5)Special problems arising from international trade. special
problems usually arise from international economic relations.

Sec. 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 encourage appropriate technology and
regulate its transfer for national benefit.

The practice of all professions in the Philippines shall be

limited to Filipino citizens, save in cases prescribed by law.

Promotion of national talent pool of Filipinos.

Human resources people are the most critical sources of economic

growth. They are the active factors of development that utilize through their
labor the passive factors to produce goods and serves needed by a growing
economy.
 Practice of all professions limited to Filipinos.

A profession has been defined as a calling which requires the passing of an

appropriate government board or bar examination, such as the practice of
law, medicine, public accountancy, engineering etc.

(1)Nature of right to practice. the practice of a profession involves

public interest and is open only to persons who have undergone the
necessary academic preparation and passed the appropriate
government examination and who possesses such other special
qualifications prescribed by law.
(2)Exercise of privilege by aliens. the constitution limits the practice
of all professions in the Philippines to Filipino citizens. However,
congress may provide otherwise in certain cases pursuant to a treaty,
or on grounds of reciprocity.

Sec. 15 The Congress shall create an agency to promote the viability

and growth of the cooperatives as instruments for social justice and
economic development.

Agency to promote the viability and growth of the cooperatives to

be created.

A cooperative is a type of business unit through which individual members

cooperate in providing specific types of services of mutual benefit to the
membership.

Sec. 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.

Formation, organization, and regulation of corporations.

1. Private corporations.
- Congress can only provide for the formation, etc. of private
corporations through a general law.
2. Government-owned or controlled corporations (GOCCS)

They may be create by:

a. special charters in the interest of the common good and subject to
test of economic viability.
 b. by the incorporation under the general corporation law.

Sec. 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.