In the course of the new democratic revolution, prior to the nationwide seizure of political power, the revolutionary forces shall advocate national industrialization and shall take concrete measures to support the production and distribution of goods by Filipinos. These measures involve creating favorable conditions for the Filipino entrepreneurs as well as unfavorable conditions for the foreign monopoly capitalists. Immediately after the nationwide seizure of political power, the revolutionary state shall nationalize the capital and landed assets of the foreign monopoly capitalists, the bureaucrat capitalists, the big compradors and landlords. The state shall take the commanding heights of the economy by owning and running on behalf of the entire people the vital and strategic enterprises, the main sources of raw materials and the main lines of distribution.
The public sector of the economy shall also include the agricultural and industrial cooperatives. There shall also be joint state-private enterprises. At the same time, there shall be concessions given to national capitalists and other smaller private owners of the means of production. In a manner of speaking, there shall be a mixed economy but this shall not mean the negation of the socialist transformation of the economy. The people’s democratic republic shall build an independent and self-reliant economy led by a program of national industrialization and based on an agriculture that has undergone land reform.National industrialization shall break up the present colonial pattern of investments, production and trade based mainly on the export of agricultural and extractive raw materials, the importation of finished goods and capital, and the re-export of reassembled or repackaged imported manufactures.
The development of agriculture will make available a large amount of agricultural surplus, which used to be appropriated by a parasitic landlord class, to support the needs of industry. Agricultural growth will provide the food and raw material requirements of industry, increase the purchasing power of the rural population and thus expand the domestic market for consumer and producer goods.
Under the people’s democratic republic, raw materials such as logs, coconuts, sugar, metal ores and the like shall be processed locally. These primary products will undergo processing domestically.
Through planning, the state shall ensure the balanced and well- proportioned development of heavy industry as the leading factor, agriculture as the base of the economy and light industry as the bridging factor which produces immediately basic consumer goods for the entire people and the producer goods needed by agriculture. The state shall build basic and heavy industries producing base metals, basic chemicals, energy, petrochemicals, capital equipment and precision instruments. The development of these industries shall be programmed in accordance with the availability of resources and shall be at a rate that does not exploit the people, especially the peasant masses. Light industries in the following areas shall be given priority: food, beverage and dairy industries; aquaculture and fisheries; textile and garment industries; housing; agricultural equipment; water and sanitation systems; chemical and pharmaceutical industries; electronics and telecommunications; and shipping, railway and other transport systems. Monetary and fiscal policies shall be adopted to ensure the effective utilization of domestic savings and scarce foreign exchange for national industrialization, and agricultural cooperativization and mechanization.
The imperialist-controlled IMF and similar institutions shall not be allowed to dictate any economic policy. No foreign loans inimical to national interest and economic development shall be incurred.
The revenues of the state shall come mainly from the state enterprises, joint state-private enterprises and cooperatives. There shall be a progressive system of taxation applied on the private enterprises.
The state shall adhere to the strict policy of not engaging in unnecessary and unproductive projects. It shall maintain only an appropriate size of armed forces, supported by an active and dependable people’s militia and by the youth in military training, in order to safeguard and defend the state and the nation.
Trade and other forms of economic relations with all countries shall be promoted on the basis of equality and mutual benefit. The state, whenever possible, shall engage in barter or counter- trade with such countries as are willing and able to do so.
Foreign investments and loans shall be availed if these provide the country with the least costly access to needed technology, products and markets as defined by specific economic plans. These should not lead to a chain of “reforms” which take the country off the road of socialism and restore the economic and political power of the bourgeoisie.
High premium shall be given to the development of the country’s capabilities in science and technology. Towards this end, an appropriate amount of the national budget shall be allocated to scientific and technological research programs. These will be aimed at building up the country’s science and technology infrastructure: research and development in the basic and applied sciences; upgrading existing indigenous technologies; adapting technology advances in other countries and ensuring an adequate supply of skilled and competent scientific and technical human resources.
The state shall facilitate the access of economic enterprises to findings of scientific and technological research in order to translate these into greater opportunities for economic development, employment and higher incomes as well as for the general well-being of the people. The state shall stimulate the active participation of productive enterprises and people’s organizations in science and technology development. The state shall pursue a comprehensive and balanced national policy for the country’s natural resources and their all-round exploration, conservation and development. A healthy natural environment must be secured and improved. National industrialization shall be pursued with due regard to the protection and efficient utilization of the country’s renewable and non-renewable resource base. The state shall implement a policy of environmental protection, pollution control and sustainable development.
Economic planning shall be instituted to prevent destructive imbalances in the economy and to promote well-balanced growth among heavy industry, light industry and agriculture, and between capital accumulation and consumption. A proper mix between centralized, regional and local development shall be maintained so that the benefits of economic progress may be spread out geographically. Economic planning under the people’s democratic republic shall ensure the active participation of all democratic classes at various levels and shall take into account the domestic resource and technology base as well as the operations of the market. In the management of enterprises, there must be the participation of the cadres, workers and experts. At the same time, the cadres and experts must participate in work among the workers.
Cognizant of the key role played by human resources in building the economy, the new state shall promote the full development of the country’s human resources and discard the policy of exporting labor. Overseas Filipinos shall be encouraged to return to their motherland and contribute their knowledge, skills and resources to the speedy reconstruction and rehabilitation of the country.
With its rich and abundant natural resources and a large industrious and educated population, the country shall achieve economic and social progress once the fetters of imperialism, feudalism and bureaucrat capitalism are completely broken.