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~~~~ held in the, City of Manila on Mox:day, second ~he
\ '0.«.,~_ ~? ,;,,·aay of June, nmeteen hundred and slXty-nme
j ~ ',';-1, /.. __
1 ~r:S'''~('j/:/ [JOINT RESOLUTION No. ~ Z ]

!~
,. C·'.. .
'.";/' JOINT RESOLUTION ESTABLISHING BASIC POLI-
\ '/ CIES TO ACHIEVE ECON01IIC DEVELOPMENT
AND ATTAIN SOCIAL JUSTiCE.
WHEREAS, despite progress in eertain areas of the na-
tional economy, the need is urgent to accelerate boldly and
resolutely th t social and economic. development of the
country; .'
WHEREAS, the etfective solutIon of the country's econo-
mic and social problems requires a clear understanding
between Congress and the Executive, on the one hand, and
the people, on the other, on the basic policies that shall
govern the national endeavor towards economic and social

I development ,in order to insure effective cooperation in

their implementation; and
WHEREAS, it is imperative to set forth the core of the
national philosophy that will achieve social justice, develop
national self-reliance, and increase the productivity of the
national economy; Now, therefore, be it
Resolved by the Senate and the II ouse of Representa-
tives of the Philippines in Congress assembled:
To promulgate the following policies that will guide the
country in its efforts to bring about social and economic
development:
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A. PARAMOUNT OBJECTIVES OF ECONOMIC POLICY
The sound and balanced development of the economy on
a self-sustaining basis, with emphasis on basic and in-
tegrated industries that generate maximum benefits to
society, the widespread application and development of
science and technology by the people, the attainment of
maximum employment, and the growth of per capita real
income shall be the paramount objectives of economic
policy.
The pursuit and attainment of these objectives are the
joint responsibility of the State and of every Filipino,
with the State pro'1'tding direction to, and coordination
of, economic activities through national planning, and main-
tainingconditions that create a favorable climate for in-
vestment that will encourage the people to implement the
plan, and will not stifle individual initiative, innovation
or free economic choice, subject to such limitations as
the national interest may dictate.
Thus, every encouragement shall be given by the Gov~
ern men t to Filipino businessmen and investors to estab-
lish and operate basic and integrated industries essential
to change the structure of our economy, substantially
minimize our dependence on imports of ra\v materials,
semi-processed goods and machicery and equipment, alter
the quality and increase the value of our exports, provide
greater job opportunities at better wages, and aC;lieve a
higher rate of economic growth. In arriving at national
decisions affecting the establishment, dispersal and loca-
tion of such industries, the State shall be guided by what
is socially and economically desirable rather than by what
is profitable alone.
Industries in accepted areas of priority shall be accorded
liberal credit facilities, and the proper industrial financing
institution shall be provided with sufficient funds and au-
thority to satisfy their financial and credit needs specific-
ally and exclusively.
059037
C)
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However, if the private sector is unwilling or unable to
undertake them despite financial assistance and encourage-
ment offered by the State, the State shall assume pioneer-
ing functions, particularly in v,ital areas which have not
been adequately developed.
i For this purpose, through an appropriate and effective
•I
State development institution, the government shall vigor-
ously push through a program of industrial and agricul-
t tural pioneering and development, dispersed through the
different regions of the cO}lntry; and to this end, the State
shall establish the required infrastructure, including ade-
quate security, transportation and communication facili-
ties, and a supply of power at reasonable cost throughout
the country.
Since the role of Government is to sup,Jlement, not to sup-
plant, private capital, it shall relinquish ownership of its
enterprises, or the management or operation thereof, to
the private sector whenever the latter is ready to take
over said enterprises under such conditions as shall ensure
equal opportunities to all and shall not impair the na-
tional interest.
The Government shall channel it" assets and efforts to
areas of determined priority and to activities that will
contribute to genuine economic and social deY€lopment,
giving priority to economic development.
\':ithin the context of what is socially desirable, every
effort shall be exerted to persuade and encourage private
capital to invest in enterprises that can operate with maxi-
mum efficiency in providing quality goods and services
using domestic raw materials at competitive prices to the
national and foreign markets. However, in their infant
stages, products of domestic industries and agricultural
enterprises shall be given competitive advantages in the
national market through direct incentives, and selective
tariff, import, credit and foreign ex'change measures; and
foreign markets for these products and others that can be
produced at competitive cost shall be fully explored and
developed.
059037

4,
In granting these incentives, priority shall be given to
industries that have the potential for full and complete in-
tegration, and to enterprises owned by farmers' associa-
tions and cooperatives; and the State shall promote the
establishment of enterprises, with dispersed ownership, of
such magnitude and resources as will enable them to ope-
rate efficiently and compete effectively, especially in foreign
markets.
1\Iarketing and distribution shall be granted special in-
centives, and steps shall be taken to create a fully integrated
system of marketing and distribution of agricultural and
industrial products and to promote Philippine shipping.
B. EFFECTIVE PLANNING FOR SOCIAL AND ECONOMIC
DEVELOPMENT
The attainment of our national objectives requires a
planned. comprehensive, integrated and resolute approach
by the Government and the people together. Accordingly,
there shall be a national economic development authority
\Vit!l p01,':el'S to plan and ccol'dinate the nation's economic
activities.
C. NATIONAL CO:YDIIDlENT TO Al]STERITY AND SELF-RELL'.:-';CE
Austerity and self-reliance are among the keystones to
progress and national greatness. Consl)iCL1DlL~ consump-
tion and the ostentation of wealth are an ,Esault on the
social conscience and should be avoided by :cd 1, Ial' they
are censured by the whole nation.
The disposition of the nation's foreig'1 e::chan:,;e shall
be subjected to a rigorous system of priorities and the
impoltation of items that are not essential to the nation's
sound and balanced development shall be subjected to tariff
and to quantitative and/or qualitative measures.
Hereafter, subsidies shall be granted only when absolutely
necessary, and only to enterprises at least seventy per
cent of the capital of which is owned by Filipinos. Agri-
cultural subsidies shall be granted primarily to commodi-
ties essential to the life of the people.
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D. COMMITMENT TO SOCIAL JUSTICE AND
ECONOMIC DE;\lOCRACY
The inequities in the distribution of the nation's income
constitute serious impediments to the attainment of social
justice ordained by the Constitution and foment social un-
~ rest and dissatisfaction.
The State shall take steps to enlarge and de\'elop the
middle class, prevent unwarranted monopolies, and recon-
~
cile conflicts behveen the welfare of consumers, entrepre-
neurial incentives and the earnings of bbor. It shall
vigorously })ursue a program of increased labor 11rJ(luctiv-
ity, together with measures to ass,we a fair sh::1re of econo-
mic reY':ards to labor.
The State Sh~lll accelerate agrarian reform and modern-
ization.
It shall give fn]] and continuing support to cooperatives.
In orc1el' to achieve the aforerr.entioned ob.iectives, the
follo'.'.'ing steps shall be '_mc1eli:aken \,:ithow deb:;:
1. Tl:e Government shall intensify its eiI'u~s ~o spI'ead
the principles of cooT:erati·.'e action amf)];.g' tl:e people, and
to train them in its practices.
2. Incentives shall be gi';en ',0 cooper:lti\'Es and to sma]]
and medium-scale e;-:ce,'pl·;.Ces. .-\ financi:.ll i:,stitution shall
be cl'eated, or existing O11':'S stl'en~thened, to provide ade-
quate cl'edit and fi!'.:'.l1cing' facilities exclllsiwly to these
enterprises.
3. Private corporations availing themselves of loan
funds, equity inv8stment, or incentives from the Govern-
ment shall be required to open their capital structure to
public participation.
4. In granting licenses, concessions, and franchises to
e~ploit, develop or utilize nat;,a'al resources or to establish
and operate public utilities, preference shall be given to
corporations, associations or entities not only on the basis
of the capital and managerial resources of the applicants
but also on the degree of dispersal of their ownership,
cooperatives and other applicants with greater public par-
ticipation being preferred.
059037
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5. The State shall foster profit sharing between capital
and labor in private enterprises.
6. The State shall take steps to prevent the branching
out of large corporate entities into activities unrelated to
their primary purpose in a manner that may have as a
consequence the domination of the economy by a few cor-
porations.
7. Congress shall, as authorized by the Constitution,
determine the size of private agricultural land Yihich per-
sons may O\vn.
8. Assistance shall be extended by the State to destitute
families deserving of such assistance.
E. FISCAL, MONETARY AND CREDIT BA8E FOR DEVELOPMENT
1. Monetary, credit and fiscal policies shall be employed
to provide adequate non-inflationary internal funds ror
pl'ivate and putLc investment, togethel' \vith e~10Llgh sup-
plementary fOl"ei'STI e:~(l:al'.ge; to channel the"e funds imo
their most pl'cdl1ctive lA.,'es; :mel to maintain relatively
stable lJl'ices, a';oid inthaion, encourage savi~1gs and pre-
vent distortion of investment,
2. Sound fiscal policy shall include an appropriate balance
of \vell admi:1istered, incentive-oriented, and equitable
taxation, both direct and indirect; the avoid~nce of Vlaste
in essential government e:~penditures; and the rational re-
sort to government deficits.
3. Sound monetary policy shall require the Central Bank
to maintain discipline ovel' banks, the treasury and itself,
and to impose adequate restraints on credit expansion,
while avoiding the economic stagnation which excessively
restrictive policies might produce, allowing realistic in-
terest rates and maintaining realistic foreign exchange
rates.
F. POLICY ON POPULATION
A high rate of population gro\vth poses grave social
and economic challenges. The State shall meet these chal-
lenges both by positive social and economic measures that
will increase the productivity of human work, so as to
promote economic rTO\vth, and hy progra;'" of family
059027
planning which respect the religious beliefs of the indi-
v,iduals involved, so as to increase the share of each Fili-
pino in the fruits of economic development.
G. RESTRUCTURING AND FINANCING THE EDUCATIONAL
, SYSTEM
Education shall aim to develop moral character, personal
discipline and civic conscience, and develop the attitude
among our youth and strengthen moral and ethical stand-
ards, It must also impart the skills, instill the attitudes
and spread the values that are essential to rapid and
sustained economic gro'wth and achieve the goals :=et forth
in this Joint Resolution. Steps shall be taken, therefore,
to restructure and give adequate and continuing support
to the national educational system to increase the 2c:.:momic
skills of our people through such r:1eans, among others, as
changes in the curricula of pubii~ and private schooLs tb:t
y;i!l emphasize scientific and tec::nological profes:sion:s,
n1c~nD.ge~.'ial Hild vocational si\il1s. :;-:2 c1.ignit~, . oi' labol\ and
the standard of excsllence thTou~h t::'8 Ci 2':2]op;l1(:nt of an
indigenous school system ad~lpted to the social c(Editions
and needs of the nation and to the goals ,oet forth in this
Resolution, and throu~'~1 appi'opri,lte iTI(:entin:;s such as
by granting loans and (;l'seits c12Si';ilSd t() ;)c:lie\e a levd
or :;-ro\'n:h in humar: capl.bili;::; t"at \vill ee"f~cti\'8ly em-
ploy and multiply the physical capiTal of the nation.
( '\
~.t
I-I, AGR~CULTURn.\ '·JD LX'-:D r:r;:::rOP\IE:--iT POLICY
i
The Government siudl actively plan and promote the
development of the agricultural ~ector, in harmony Ivith
the industrial sector in order to achieve increased agricul-
tural productivity and national seif-sufficiency in the basic
staples,
To attain these objectives:
1. Emphasis shall be placed on irrigation, water resource
development, the application of suitable scientific farming
methods, power utilization, and extension of liberal credit
faciliti es,
059037

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2. The Government shall encourage and support agricul-
tural cooperatives, and shall establdsh a carefully planned,
well-organized national mad;:eting network.
3. The total electrification of the Philippines on an
area coverage basis with reference to rural areas shall be
among the prime objectives of the economic program and
shall be given adequate financing, subsidy, or such other
incentives as'" may be. needed. In realizing these objectives,
the primary instruments shall be electric coopel'atives.
4. The Government shall immediately implement a thor-
ough-going progr3.m of land survey, classification, and
titling in order to hasten the rational utilization of the
land l'esources of the nation.
1. RESOURCES CONSERVATW:--;
The State shall yigorously implement the constitutional-
policy of resource cOl1ser':ation, by :.Hlopting the folloy;ing
measures, among othel's:
1. The State shall require those engaged in large-scale
exploitation of agi']cuitural, timber, mineral anel other na-
tur~d resources to est~lblish the industries that will process
these resources inte fl11ished products, and shall furnish
such assistance as m~l'- be neceS2al7 to enable the licensees
or concessionaires to comply with this requirement,
2, Forest conservation and l'erorestzetion, as \H,ll as river
and flood conti'ol, shall be expanded and efIiciently Pl'O-
grammed.
3. The minimum and maximum areas of forest conces-
sions and their minimum and maximum duration shall be
established by statute to prevent the exploitation of un-
economic size units, avoid short-term leases and encourage
the planned development and rational utilization of forest
resources.
4. Areas suitable for grazing shall be systematically
'conserved and developed to enable the nation to attain
self-sufficiency in meat and dairy products.
5. Marine, fresh \vater and wildlife resources shall be
conserved.
059037
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6. Comprehensive studies ~or the rapid development of
water resources throughout the nation for industrial, agri-
cultural and individual use and as sources of industrial
. power shall be undertaken immediately.
• 7. Tourist attractions shall be preserved and developed
0
in order that both Filipinos and foreigners may have a
{ better understanding of 'our historic, cultural and natural
heritage. The State shall pursue the promotion and dev-
elopment of both international and domestic tourism with
equal vigor and constancy,
J. CONSERVATION OF Cl'LTURAL HERITAGE
The cultural and historical heritage of the people shall
be conserved and enriched; and the elements of our cul-
ture and traditions that will help attain the goals set forth
in this Resolution shall be empl1asized, cultivated and dis-
seminated among all sectors of our society.
K. CO:'DII~:\IENT TO ECOi\O:\lIC INDEPE:t\DENCE
Foreign investment is welcome to assist in the economic
development of we naeion. It shall not, ho\\"ever, be al-
lowed to dominate the economy or any of its strategIc
areas.
Foreign borrowing by both tj1e public and private sec-
tOl'S shall be preferred to forei~p in':estment and shall be
m-ailed of and utilized exclusively for truly pi'oductive
purposes.
To increase the participation of Filipinos in the econo-
11 my, the following principles shall be observed:
1. National treatment shall be accorded to foreigners
only by law, not by treaty.
2. Efforts shall be undertaken to place all aspects of
the distributive trade in the hands of Filipinos,
3. All new institutions performing financial functions
shall be owned and controlled by Filipinos. Foreign finan-
cial institutions already operating shall be required to in-
corporate under Philippine law and bring in actual capital
for their operations; or to take such other steps as will
provide adequate protection for their depositors and cred-
059037
 11
10
Finally passed by the Senate on This Joint Resolution, which
itors, and eliminate undue competitive advantages over
July 2, 1969. originated in the House of Rep-
Filipino banks.
resentatives, was finally passed by
4. Government financial and credit institutions shall
the same on July 3, 1969.
grant loans and extend credit only to, and guarantee the
obligations only of, Filipinos or domestic corporations at
least seventy per cent of the capital of which is owned and
controlled by Filipinos. The State shall determine, by
statute, the minimum portion of loanable funds of private
f.nancial and credit institutions, derived or generated from j}
Philippine sources, that shall be used exclusively in grant- INOCENCIO B. P~EJA
ing loans and extending credit to Filipinos, and shall Secretary of the/Honse of
require that a portion thereof be made available to small oW Represe.n. talivdfl'"
.'-]. ,y ~
businessmen now shut off from nonnal sources of credit.
5. Industries vital to national security shall be regulated
~!;t- <---........
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.
as businesses affected with the public interest. Steps
shall be taken to place them under the control of Filipinos.
L. cmlMITME~T' TO FOREIGN POLICY BEFITTl:\G A
SOv'EkEIGN REPUBLIC
, FERDIKAXD E. =-IARCOS
1. Foreign policy shall be a fundamental instrument of !
economic development consistent with the princi,Jles of the
I
President of the Philippines
05GO
Cl,ar-;:er of the United Nabons. o
2. Regional cooperation compatible with the national
interest shall be promoted to ensure understanding and
collaboration with our neighboring countries.
3. Efforts shall be exerted to establish trade relations. ~

with as many countries as possible and to maintain bal-

-anced trade with each of them.
4. Foreign economic policy shall strive toward diversi- '"
fication of the country's sources of imports and of markets
for its export products.
Approved,

/
~th .;!jL-
J. B. LAUREL, JR.
Speaker of the House of
Representative~
05G037