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================= ================= Has Revolution Now Become Necessary? ================= ================= ================= Filipinismo, the True Filipino Ideology ================= ================= ================= ================= ================= ================= Magna Carta of Social Justice and Economic Freedom ================= |
Magna Carta of Social Justice and Economic Freedom
THE IDEOLOGY OF JOINT RESOLUTION NO. 2For Country’s Sake By: Emmanuel Q. Yap
It is importantly fitting that we discuss in this article the political and economic ideology underlying the formulation of the principal provisions of House Joint Resolution No. 2 or the “Magna Carta of Social Justice and Economic Freedom,” which Mr. J. B. Laurel, Jr., in his capacity as Speaker of the House of Representatives, personally and assiduously championed until it was unanimously approved by the Sixth Congress and signed into law by President Ferdinand Marcos in August 1969.
A good reason for this is the fact that there is now a growing perception in some influential quarters that the mainstream ideology embodied in that policy measure has become more relevant and appropriate to the solutions for today’s national problems, especially when these problems are weighed in the context of fundamental changes now rapidly taking shape in the political and economic relationships among the nations of the world.
Speaker Laurel and his closest advisor, who helped him principally in the structural formulation of the Joint Resolution, were fully aware that the nationalistic content of the policy measure was fundamentally contradictory to the intention of very powerful international forces to integrate the Philippine economy into a global capitalist economic system. They also knew the painful repercussions that could befall persons who would not conform to the demands or impositions of that system. But at the same time they had a fair idea, as early as the beginning of the 1960s, that by the late 1980s (which is around this time) there would be a strong probability that that global system would develop serious internal contradictions and crises of enormous proportions which could do great harm to a Third World country like the Philippines, if its economy were not restructured towards industrialization.
So, as early as the 1960s, and even long before that, the basic political question already confronting our country was whether it would adhere to the postwar global capitalist system with it concomitant potential for self-destruction, or develop its own strategies for national industrialization and social justice as the means of preparing our country against the devastating effects of a foreseen worldwide economic crisis.
President Marcos opted to pursue the first alternative. After signing into law, he shelved the Joint Resolution. He would not even talk about it in private, as though the whole effort behind its formulation and passage had not occurred at all. He must have been put under very strong pressures coming from the economic status quo. It was at this juncture when anti-nationalist elements grew with great political power in the Marcos regime. It was at this time when the national economy was completely subsumed under impositions and prescriptions of the International Monetary Fund, the World Bank, and the institutionalized General Agreement on Tariffs and Trade.
When Speaker Laurel pushed for the promulgation of the implementing statutes prescribed in the Joint Resolution, overwhelming pressures were applied on him to desist from its determination. When he persisted, his closest advisor, the author, was forced out of office on the pretext that he was communist-inspired or a radical nationalist. The prevalent cultural milieu was developed in such a manner that any person or group of persons who opposed or did not conform to the politicies and strategies of the global capitalist system could be easily and effectively demobilized or marginalized by simply circulating fraudulent disinformation alluding to them as “leftist” or “socialist” or “radical nationalism.”
When it became finally clear that he really was fully committed to the implementation of the Joint Resolution, Mr. Laurel himself was toppled from the speakership on April 1, 1971, by the vote of the same members of the House of Representatives who earlier unanimously approved and passed that same Joint Resolution.
The Joint Resolution, as a matter of fact and record, had no communist or Marxist undertones. The real communists even labeled it as reactionary in character. It was just a simple plan that called for the industrialization of the national economy through the establishment of basic and integrated industries to be capitalized from savings of the Filipino people; it called on the Filipino to practice austerity and to restrain their extravagant consumption of luxury and non-essential imports so that valuable foreign exchange would be channeled for the establishment of manufacturing industries; it called for the protection of Filipino entrepreneurs so that they would not be displaced by foreign investors; it called for the encouragement of foreign investments to complement, but not supplant, Filipino capital; it called for profit-sharing for workers in order that the demands of social justice could be better served; it called on the government to plan the development of national economy based primarily on the exercise of private initiative; it called for the regulation of private ownership so that the inalienable right to private property would not be subverted by unjust and exploitative individuals; it called for the regulation of the financial system so that economic power would be channeled to the needs of Filipino citizens and the needs of Filipino citizens and the needs of industrialization; and it called for the population planning based on the individual’s religious beliefs. These objectives are no different from those that made other democratic and liberty-loving nations prosperous.
For championing an economic program based on enlightened nationalistic policies, Speaker Laurel was toppled and lost a historic battle. After his defeat, martial law was declared by Mr. Marcos to pave the way for the absorption of the Philippine economy into a global economic system whose very rules and policies are now destroying the American economy itself. Today’s social and economic problems are the fruits of the non-implementation of Speaker Laurel’s House Joint Resolution No. 2. Time, we are sure, will vindicate this unswerving and stubborn Filipino nationalist. -- EQY
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TEXT OF “THE MAGNA CARTA OF SOCIAL JUSTICE AND ECONOMIC FREEDOM”: AN UNAPPLIED POLICY
In response to many requests for copies of its specific provisions, especially from concerned countrymen who were only children at the time of its passage into a legislative measure with the force and effect of law, we are taking the liberty of publishing the full text of House Joint Resolution No. 2, otherwise known as the “Magna Carta of Social Justice and Economic Freedom,” which was unanimously approved by the Senate and the House of Representatives, during the Ninth Special Session of the sixth Congress in July, 1969, and signed by the President of the Philippines on August 4 of that same year. The reader can judge for himself whether his existing national policy merits serious concern by the present Government or deserves to be treated by its signatories as just as useless piece of toilet paper.
Here, then, is the exact text of that Joint Resolution:
House Joint Resolution No. 2. (As finally approved by the Sixth Congress at its NINTH SPECIAL SESSION)
Introduced by the Special Committee on Social and Economic Planning
JOINT RESOLUTION ESTABLISHING BASIC POLICIES TO ACHIEVE ECONOMIC DEVELOPMENT AND ATTAIN SOCIAL JUSTICE
WHEREAS, despite progress in certain areas of the national economy, there is urgent need to accelerate boldly and resolutely the social and economic development of the country;
WHEREAS, the effective solution of the country’s economic and social problems requires a clear understanding between Congress and the Executive, on the one hand, and the people, on the other hand, on the basic policies that shall govern the national endeavor towards economic and social 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 House of Representatives of the Philippines in Congress assembled:
To promulgate the following policies that shall govern the country in its efforts to bring about social and economic development.
A. PARAMOUNT OBJECTIVES OF ECONOMIC POLICY
The sound and balanced development of the economy on a self-sustaining basis, with emphasis on basic and integrated 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 providing direction to, and coordination of economic activities through national planning and maintaining conditions that create a favorable climate for investment 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 dictates.
Thus, every encouragement shall be given by the Government to Filipino businessmen and investors to establish and operate basic and integrated industries essential to change the structure of our economy, substantially minimize our dependence on imports of raw materials, semi-processed goods and machinery and equipment, alter the quality and increase the value our exports, provide greater wages, and achieve a higher rate of economic growth. In arriving at national decisions affecting the establishment, dispersal and location of such industries, the State shall be guided by what is socially and economically desirable than what is merely profitable.
Industries in accepted areas of priority shall be accorded liberal credit facilties, and the proper industrial financing institution shall be provided with sufficient funds and authority to satisfy their financial and credit needs specifically and exclusively.
However, if the private sector is unwilling or unable to undertake them despite the financial assistance and encouragement offered by the State, the State shall assume pioneering functions particularly in the vital areas which have not been adequately developed.
For this purpose, through an appropriate and effective state development institution, the government shall vigorously push through a program of industrial and agricultural pioneering and development, dispersed through the different regions of the country; amd to this end, the State shall establish the required infrastructure including security, transportation and communication facilities, and a supply of power at reasonable cost throughout the country.
Since the role of Government is to supplement not to supplant, 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 national interest.
The Government shall channel its assets and effort to areas of determined priority and to activities that will contribute to genuine economic and social development, giving priority to economic development.
Within 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 maximum 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 measures, and foreign markets for these products and others that can be produced at competitive cost shall be fully explored and developed.
In granting these incentives, priority shall be given to industries that have the potential for full and complete integration, and to enterprises owned by Farmers’ Associations and Cooperatives, and the State shall promote the establishment of enterprises, with dispersed ownership of such magnitude and resources as will enable them to operate efficiently and compete effectively specially in foreign markets.
Marketing and distribution shall be granted special incentives, 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 comprehen- sive, integrated and resolute approach by the Government and the people together. accordingly, there shall be a national economic development authority with powers to plan and coordinate the nation’s economic activities.
A. NATIONAL COMMITMENT TO AUSTERIY AND SELF-RELIANCE
Austerity and self-reliance are among the keystones to progress and national greatness. Conspicuous consumption and the ostentation of wealth are
an assault on the social conscience and should be avoided by all for they are censured by the whole nation.
The disposition of the nation’s foreign exchange shall be subjected to a rigorous system of priorities and the importation 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 70% of the capital of which is owned by Filipinos. agricultural subsidies shall be granted primarily to commodities essential to the life of the people.
B. COMMITMENT TO SOCIAL JUSTICE AND ECONOMIC DEMOCRACY
The inequities in the distribution of the nation’s income constitute serious impediments to the attainment of social justice as ordained by the Constitution and foment of social unrest and dissatisfaction.
The State shall take steps to enlarge and develop the middle class, prevent unwarranted monopolies, and reconcile conflicts between the welfare of consumers, entrepreneurial incentives and the earnings of labor. It shall vigorously pursue a program of increased labor productivity, together with measures to assure a fair share of economic rewards to labor.
The State shall accelerate agrarian reform and modernization.
It shall give full and continuing support to cooperatives.
In order to achieve the aforementioned objectives, the following steps be undertaken without delay:
1. The Government shall intensify its effort to spread the principles of cooperative action among people, and to train them in its practices.
2. Incentives shall be given to cooperatives and to small and medium- scale enterprises. A financial institution shall be created, or existing ones strengthened, to provide adequate credit and financing facilities exclusively to these enterprises.
3. Private corporations availing themselves of loan funds, equity invest- ment, or incentives from the Government shall be required to open their capital structure to public participation.
4. In granting licenses, concessions, and franchises to exploit, develop or utilize natural 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 participation being preferred.
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 corporations.
7. Congress shall, as authorized by the Constitution, determine the size of private agricultural land which persons may own.
8. Assistance shall be extended by the State to destitute families deserving of such assistance.
E. FISCAL MONETARY AND CREDIT BASE FOR DEVELOPMENT
1. Monetary, credit and fiscal policies shall be employed to provide adequate non-inflationary internal funds for private and public investment, together with enough supplementary foreign exchange; to channel these funds to their most productive uses; and to maintain relatively stable prices, avoid inflation, encourage savings and prevent distortion of investment.
2. Sound fiscal policy shall include an appropriate balance of well administered, incentive-oriented, and equitable taxation, both direct and indirect; the avoidance of waste in essential government expenditures, and the rational resort to government deficits.
3. Sound monetary policy shall require the Central Bank to maintain discipline over 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 interest rates and maintaining realistic foreign exchange rates.
F. POLICY POPULATION
A high rate of population growth poses grave social and economic chal- lenges. The State shall meet these challenges both by positive social and economic measures that will increase the productivity of human work, so as to promote economic growth, and by programs of family planning which respect the religious beliefs of the individuals involved, so as to increase the share of each Filipino in the fruits of economic development.
Education shall aim to develop moral character, personal discipline and civic conscience, and to strengthen moral and ethnical standards. It must also impart the skills, instill the attitudes and spread the values that are essential to rapid and sustained economic growth and achieve the goals set 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 economic skills of our people through such means, among others, as changes in the curricula of public and private schools that will emphasize scientific and technological professions, managerial and vocational skills, the dignity of labor, and the highest standard of excellence through the development of an “indigenous school system” adapted to the social conditions and needs of the nation and to the goals set forth in this resolution, and through appropriate incentives such as by granting loans and credits designed to achieve a level of growth in human capability that will effectively employ and multiply the physical capital of the nation.
The Government shall actively plan and promote the development of the agricultural sector, in harmony with the industrial sector, in order to achieve increased agricultural productivity and national self-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 facities.
2. The government shall encourage and support agricultural cooperatives and shall establish a carefully planned, well-organized national marketing 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 cooperatives.
4. The Government shall immediately implement a thorough-going program of land survey, classification, and titling in order to hasten the national utilization of the land resources of the nation.
The State shall vigorously implement the constitutional policy of resource conservation, by adopting the following measures, among others.
1. The State shall require those engaged in large-scale exploitation of agricul- tural, timber, mineral and other natural resources to establish the industries that will process these resources into finished products, and shall furnish such assistance as may be necessary to enable the licenses or concessionaires to comply with this requirement.
2. Forest conservation and reforestation, as well as river and flood control shall be expanded and efficiently programmed.
3. The minimum and maximum areas of forest concessions and their minimum and maximum duration shall be established by statute to prevent the exploitation of uneconomic-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 water and wild-life resources shall be conserved.
6. Comprehensive studies for the rapid development of water resources throughout the nation for industrial, agricultural and individual use and as sources of industrial power shall be undertaken immediately.
7. Tourist attractions shall be preserved and developed 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 development of both international and domestic tourism with equal vigor and constancy.
The cultural and historical heritage of the people shall be conserved and enriched; and the elements of our culture and traditions that will help attain the goals set forth in this resolution shall be emphasized, cultivated and disseminated among all sectors of our society.
K. COMMITMENT TO ECONOMIC INDEPENDENCE
Foreign investment is welcome to assist in the economic development of the nation. It shall not, however, be allowed to dominate the economy or any of strategic areas.
Foreign borrowing by both the public and private sectors shall be preferred to foreign investment and shall be availed of and utilized exclusively for truly productive purposes.
To increase the participation of Filipinos in the economy, 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 financial institutions already operating shall be required to incorporate 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 creditors and eliminate undue competitive advantages over Filipino banks.
4. Government financial and credit institutions shall grant loans and extend credit only to, and guarantee the obligations only of, Filipinos or domestic corporations at least 70% 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 financial and credit institutions, derived or generated from Philippine sources that shall be used exclusively in granting loans and extending credit to Filipinos, and shall require that a portion thereof be made available to small businessmen now shut off from normal sources of credit.
5. Industries vital to national security shall be regulated as businesses affected with public interest. Steps shall be taken to place them under the control of Filipinos.
REPUBLIC
1. Foreign policy shall be fundamental instrument of economic development consistent with the principles of the Charter of the United Nations.
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 “balanced” trade with each of them.
4. Foreign economic policy shall strive toward diversification of the country’s sources of imports and of markets for its export products.
Approved.
Signed into law by:
President Ferdinand E. Marcos On August 4, 1969
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Home | From the Soldiers | The Struggle for Change | Withdrawal of Support | The Armed Forces | The Nation | Issues and Concerns -------------------------------------------------- From the People | Soldiers of the People | About Us | Links --------------------------------------------------
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