Notes/Reviewer
ECONOMIC DEVELOPMENT
emanzano//:
Constitution – basic framework of the state,
fundamental law of the state, supreme law of
the land.
Constitutional Law – study of maintenance
of a proper balance between authority as
represented by three inherent powers of
state and liberty as guaranteed by the Bill of
Rights.
Three Branches of the Government:
1) Executive Department – execute
laws
2) Legislative Department – enact laws
3) Judicial Department – interpret and
apply the law
Three
inherent
Government:
powers
of
the
1) Police Power – power of the
Government to regulate and no to
prohibit, maintain peace and order;
2) Power of Eminent Domain- power
to acquire private and public property
upon payment of just compensation
3) Power of Taxation – power to
impose
burden
or
enforced
proportional contribution among
Citizens of the Philippines.
Valid Classification of Equal Protection of
the Law
1) It must be germane to the purpose of
the law
2) It must not be limited to an existing
conditions only
3) It must be based on substantial
distinction
4) It must be equally apply to all
members of the class
Purpose of the Constitution – to limit the
three inherent powers of the government, to
avoid grave abuse of discretion in any part
hereof, including government owned and
controlled corporation and subsidiaries.
Any Order, issuances, rules in contrary with
the
constitution
will
considered
unconstitutional and cannot be enforced.
Art. XII (1987 Constitution)
Section 9. The Congress may
establish an independent economic
and planning agency headed by the
President,
which
shall,
after
consultations with the appropriate
public agencies, various private
sectors, and local government units,
recommend to Congress, and
implement continuing integrated and
coordinated programs and policies
for national development.
Until the Congress provides otherwise, the
National Economic and Development
Authority shall function as the independent
planning agency of the government.
FIRST FILIPINO POLICY
Section 10. The Congress shall, upon
recommendation of the economic
and planning agency, when the
national interest dictates, reserve to
citizens of the Philippines or to
corporations or associations at least
sixty per centum of whose capital is
owned by such citizens, or such
higher percentage as Congress may
prescribe,
certain
areas
of
investments. The Congress shall
enact measures that will encourage
the formation and operation of
enterprises whose capital is wholly
owned by Filipinos.
In the grant of rights, privileges, and
concessions covering the national economy
and patrimony, the State shall give
preference to qualified Filipinos.
The State shall regulate and exercise
authority over foreign investments within its
national jurisdiction and in accordance with
its national goals and priorities.
Section 11. No franchise, certificate,
or any other form of authorization for
the operation of a public utility shall
be granted except to citizens of the
Philippines or to corporations or
associations organized under the
laws of the Philippines, at least
sixty per centum of whose capital is
owned by such citizens; nor shall
such franchise, certificate, or
authorization
be
exclusive
in
character or for a longer period than
fifty years. Neither shall any such
franchise or right be granted except
under the condition that it shall be
subject to amendment, alteration, or
repeal by the Congress when the
common good so requires. The State
shall encourage equity participation
in public utilities by the general public.
The participation of foreign investors
in the governing body of any public
utility enterprise shall be limited to
their proportionate share in its capital,
and all the executive and managing
officers of such corporation or
association must be citizens of the
Philippines.
Administrative Matters
1
Notes/Reviewer
ECONOMIC DEVELOPMENT
emanzano//:
P.D. 453 - CREATING THE PHILIPPINE
CENTER
FOR
ECONOMIC
DEVELOPMENT
Section 1. Creation of the Philippine Center
for Economic Development.
There is hereby created and
established a Philippine Center for
Economic Development, which shall
be located at the University of the
Philippines, with a distinct corporate
personality. The function of the
Center is to give financial and moral
support to the research, teaching,
training and other programs of the
School of Economics of the
University of the Philippines. The
Center shall formulate a program for
financing the endowment of faculty
chairs.
Section 3. Board of Trustees. The affairs of
the Center shall be managed by a Board of
Trustees which shall be composed of nine
members as follows:
(a) The Director-General of the
National Economic and
Development Authority (NEDA), as
Chairman;
(b) The Executive secretary;
(c) The Secretary of Industry;
(d) The Secretary of Finance;
(e) The Commissioner of the
Budget;
(f) The Governor of the Central
bank;
(g) The President of the University of
the Philippines;
(h) The Dean of the School of
Economics;
(i) Two members to be appointed by
the President of the University of the
Philippines, upon recommendation
of the Dean of the School of
Economics, shall serve for a term of
three years and may be reappointed.
Section 2. Powers. The Center shall have
the following powers:
(a) To adopt, alter and use a
corporate seal;
(b) To collect, receive and maintain a
fund of funds, from government
appropriations, and from donations,
grants, gifts, bequests, loans from
domestic or foreign lenders or other
sources of income, and to apply the
income and principal thereof to the
promotion of its aims and purposes;
(c) To acquire, purchase, pledge,
own, hold, operate, develop, lease,
mortgage, pledge, exchange, sell,
transfer or otherwise, in any manner
permitted by law, real and personal
property of every kind and description
or any interests therein as may be
necessary to carry out its purposes;
(d) To raise or borrow money from
domestic or foreign sources for the
purposes of the Center and to do any
and all acts required and/or
necessary under the law to effect the
same;
(e) In furtherance of its purposes, to
extend financial assistance and to
enter into, make, perform and carry
out, or cancel and rescind contracts
of every kind and for any lawful
purpose with any person, firm,
association, corporation, syndicate,
domestic or foreign, or others in
which it has a lawful interest;
(f) To invest funds, as it may be able
to obtain from donations, grants,
loans or appropriations, the returns of
which the corporation uses to subsist
and carry on the activities and
purposes for which it was formed;
(g) In general, to carry on any activity
and to have and exercise all of the
powers conferred by law on a private
or government-owned or controlled
corporation; and to do any and all of
the acts and things herein set forth to
the same extent as juridical persons
could do, and in any part of the world,
as principal, factor, agent, or
otherwise, either alone or in
syndicate or otherwise in conjunction
with any person, entity, syndicate,
partnership,
association
or
corporation, domestic or foreign.
Section 7. Finance Committee.
The Board of Trustees shall
constitute a Finance Committee,
composed of at least three members,
to be headed by a member of the
Board of Trustees, which shall
administer the Endowment Fund for,
and shall be responsible directly to,
the Board of Trustees. It shall advise
and make recommendation to the
Board of Trustees on matters
pertaining to the funding aspect of
programs proposed to be funded by
the Center, on matters pertaining to
maintaining the integrity of the
Endowment Fund.
R.A. 7042 - AN ACT TO PROMOTE
FOREIGN INVESTMENTS, PRESCRIBE
2
Notes/Reviewer
ECONOMIC DEVELOPMENT
emanzano//:
THE PROCEDURES FOR REGISTERING
ENTERPRISES DOING BUSINESS IN THE
PHILIPPINES,
AND
FOR
OTHER
PURPOSES
Section 1. Title. - This Act shall be
known as the, "Foreign Investments Act
of 1991".
Section 2. Declaration of Policy. - It
is the policy of the State to attract,
promote and welcome productive
investments from foreign individuals,
partnerships,
corporations,
and
governments, including their political
subdivisions, in activities which
significantly contribute to national
industrialization and socioeconomic
development to the extent that
foreign investment is allowed in such
activity by the Constitution and
relevant laws. Foreign investments
shall be encouraged in enterprises
that significantly expand livelihood
and employment opportunities for
Filipinos; enhance economic value of
farm products; promote the welfare of
Filipino consumers; expand the
scope, quality and volume of exports
and their access to foreign markets;
and/or transfer relevant technologies
in agriculture, industry and support
services. Foreign investments shall
be welcome as a supplement to
Filipino capital and technology in
those enterprises serving mainly the
domestic market.
As a general rule, there are no
restrictions on extent of foreign
ownership of export enterprises. In
domestic
market
enterprises,
foreigners can invest as much as one
hundred percent (100%) equity
except in areas included in the
negative list. Foreign owned firms
catering mainly to the domestic
market shall be encouraged to
undertake measures that
will
gradually
increase
Filipino
participation in their businesses by
taking in Filipino partners, electing
Filipinos to the board of directors,
implementing transfer of technology
to
Filipinos,
generating
more
employment for the economy and
enhancing skills of Filipino workers.
Philippines of which at least sixty
percent (60%) of the capital stock
outstanding and entitled to vote is
owned and held by citizens of the
Philippines; or a trustee of funds
for pension or other employee
retirement or separation benefits,
where the trustee is a Philippine
national and at least sixty (60%)
of the fund will accrue to the
benefit of the Philippine nationals:
Provided,
That
where
a
corporation and its non-Filipino
stockholders own stocks in a
Securities
and
Exchange
Commission (SEC) registered
enterprise, at least sixty percent
(60%) of the capital stocks
outstanding and entitled to vote of
both corporations must be owned
and held by citizens of the
Philippines and at least sixty
percent (60%) of the members of
the Board of Directors of both
corporations must be citizens of
the Philippines, in order that the
corporations shall be considered
a Philippine national;
T. IIARTICLE II
Art. II (1987 Constitution)
DECLARATION OF PRINCIPLES
AND STATE POLICIES
GENERALLY
ACCEPTED
PRINCIPLES OF INTERNATIONAL
LAW
Section 2. The Philippines
renounces war as an instrument
of national policy, adopts the
generally accepted principles
of international law as part of
the law of the land and adheres
to the policy of peace, equality,
justice, freedom, cooperation,
and amity with all nations.
---NOTHING FOLLOWS---
Section 3. Definitions. - As used in this Act:
a) The term "Philippine national"
shall mean a citizen of the
Philippines or a domestic
partnership or association wholly
owned by citizens of the
Philippines; or a corporation
organized under the laws of the
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