The

PHILIPPINE ADMINISTRATIVE SYSTEMS

REFERENCE

For

TEACHING & RESEARCH

MAUGAN B. LIMBA
BBA; CGM; MPA; CSEE
Dean
College of Commerce and Public Administration
 Foreword

In recent years, the continuing erosion of public acceptance of

governance has awakened the interest of well-meaning citizens, such as
educators, students, and lay-men alike. However, the ramification of
government and governance remains a mystery to most people. The absence
of a more-or-less comprehensive reference on the discipline remains a
stumbling block to an easier and convenient understanding of the subject
matter.

Moreover, the new graduate curriculum includes this course on

Philippine Administrative systems where some books, readings, and
brochures on this field of academic interest can be found. Unfortunately,
however, a comprehensive reference material on the subject is unavailable.
Thus, this attempt to provide a relevant material toward this end.

The growing concern and increasing criticism of government has come

to a point where people in general and students in particular become more
concerned with the system. These concerns dictate the need to study and
become more aware of public administration in general and the system of
government in particular.

This reference material therefore aims to introduce the reader to the

basic discipline of administrative systems. There is, however, a deliberate
limitation of extensive discussion of some topics, considering that these are
more extensively covered in other courses in public administration. In
addition, some critical essays on administration are included in this original
edition. Hence, this paper allows the student a more focused glimpse into the
practical workings of governmental system and governance in the public
service. As a whole, it offers an insight into public administration as embodied
in the precepts and ideals of democratic governments.

Maugan B. Limba

Summer 2007
CCSPC
Cotabato City
 Acknowledgement

In the research and writing of this paper, some MPA

students have provided relevant and useful materials that
contributed to a more comprehensive coverage of the subject
area, especially Ms. Jihan C. Panda. Other Masteral students
also have contributed some materials, but have not been
included due to duplications of other available research
materials. Their efforts are hereby recognized.

Likewise liberty is taken in including research materials of

Doctorate students (Ph.D.-Public Administration) viz., Maguid T.
Macalingkang (Dean, Graduate Studies-MSU Maguindanao; and
Taugan S. Kikay (Executive Assistant to the President, CCSPC);

Foremost, however, are our thanks and gratitude to Dr.

Dingan C. Ali, CCSPC President for providing a management
climate conducive to research and learning; to Dr. Thelma F.
Villa, Vice President for Academic Affairs for her continuing
encouragement towards this end; and to Prof. Pinto A. Dalaten,
DPA; Prof. Dammang S. Bantala, Ph.D; Prof. Radzak A. Sam for
providing the necessary impetus and inspiration in this
continuing research endeavor.

m.b.l.
 TABLE OF CONTENTS

Title Cover. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .i.

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ii. . . . . .
Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iii. . . . . . .
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv .......

Part I 1
The Political Context of Public Administration1
The Study of Administration ………………………………………. 2
Scope and Nature of Public Administration ………………………………... 2
The Emergence of Public Administration ………………………………... 3
Theories and Concepts in Administration ……………………………….. 4
The Managerial Approach To Public Administration …………………..
4
Origin and Values ……………………………………………… 4
Organizational Structure ……………………………………………… 5
The Political Approach To Public Administration …………………………. 5
Origin and Values ……………………………………………… 6
Organizational Structure ……………………………………………… 7
Approaches To The Study of Public Administration………………….. 7
Constitutional-Legal Approach ………………………………………. 7
Structural-Descriptive Approach ………………………………... 7
Institutional Approach ……………………………………………… 7
Behavioral Approach ……………………………………………… 7
Systems Approach ……………………………………………… 8
Contingency Approach ………………………………………. 8
Politics and Administration Dichotomy ………………………………... 8
Judicial Authority …………………………………………………….. 8
Executive Authority ……………………………………………… 8
Administrative Authority ………………………………………. 10
The Proverbs of Administration ………………………………………. 10
Some Accepted Principles ………………………………………. 11
Specialization ……………………………………………… 12
Unity of Command ……………………………………………… 12
Span of Control ……………………………………………… 13
Organization By Purpose, Process, Clientele, and Place ……………
14
Decentralization and Political Power ………………………………………. 14
Conflict and Coalition ………………………………………. 15
Coalition of Executives ………………………………………. 15
 Confluence of Leadership and Representativeness …………………..
Representativeness and the Public Interest ………………….. 16
Paradox of Interests ……………………………………………... 16
Representative Bureaucracy ………………………………………. 17
14
15
Part II 16
The Philippine Administrative System: An Overview 17
16
The Central Government …………………………………………….. 17
The Autonomous Regions ………………………………………………… 18
The Provincial Government …………………………………………….. 18
17
The Municipal Government ……………………………………………. 18
17
The City Government ……………………………………………. 19
17
The Barangay …………………………………………………… 19
17
18
Part III 18
The Bureaucracy 20
19
Bureucracy: As An Organization of Government ……………………… 20
Bureaucratic Authority …………………………………………….. 20
Features of Bureaucracy …………………………………………….. 21
20
Elements of The Ideal Type of Bureaucracy ………………………… 21
20
Life Cycle of Bureaus ……………………………………………… 21
20
Types of Bureau Genesis ……………………………………………… 21
21
Dominance of New Bureaus By Advocates and Zealots …………… 22
21
Struggle for Autonomy ………………………………………. 23
21
Rapid Growth of Young Bureaus ………………………………... 23
21
Bureaucratic Personality and Structure ………………………………... 24
22
Bureaucratic Personality ………………………………………. 24
23
Structure of Bureaucracy ………………………………………. 24
23
Dysfunctions of Bureaucracy ………………………………………. 25
24
Structural Source of Over-conformity ………………………………... 26
24
Breaking Through Bureaucracy ………………………………………. 26
24
Persistence of the Bureaucratic Paradigm ………………………… 26
25
Unraveling the Bureaucratic Paradigm ………………………… 27
26
Formulating An alternative ……………………………….. 28
26
Toward A Fully Humanized Bureaucracy ……………………………….. 29
26
Other Bureaucratic Concepts and Theories ……………………………….. 30
27
Weber’s Rational Bureucracy ……………………………………… 31
27
The Crux of Bureaucratic Management ……………………………….. 34
28
Evolution and Development of Philippine Bureaucracy …………………. 37
30
39
31
34
37
39
 Two Major Features of Philippine Bureaucracy ………………….
The Services and The Bureau …………………………………… 39
The Ministry Model ……………………………………………… 40
Problems of Philippine Bureaucracy ………………………………………. 41
Characteristic Features of Philippine Bureaucracy ………………………… 42
The Philippine Civil Service System ………………………………………. 44
Historical Perspective ……………………………………………… 45
Growth and Development of the Philippine Civil Service ………………….. 46
Phase I – The Early Years ………………………………………. 47
Phase II – Period of Growth ………………………………………. 48
Phase III – Contemporary Civil Service …………………………. 49
Constitution and Statutory Provisions ……………………… 50
Civil Service Reforms …………………………. 50
Features of Contemporary Phil. Civil Service …………… 50

Part IV 51
The Administrative Structure 51
The Administrative State ……………………………………………… 51
Strengthening Urban Governance ………………………………... 52
Emerging Metropolitan Arrangement in The Philippines …………… 53
Metropolitan Governance: Mega-Urban Regions ………………….. 54
The Philippine Administrative Structure ………………………………... 54
Scope and Jurisdiction ………………………………………. 54
Public Administration Programs ………………………………... 56
Administrative Departments/Bureaus ……………………………….. 56
Policy Guidelines ……………………………………………... 57
Jurisdiction of the Departments ……………………………….. 57
Authority Delegation ……………………………………… 58
The Departments of Government ……………………………………… 58
General Government Sector ……………………………………… 58
Department of Budget and Management (DBM) …………………. 58
Department of Foreign Affairs (DFA) ………………………... 60
Department of Finance (DOF) ………………………………. 60
National Economic Development Authority (NEDA) ………….. 61
Office of the Press Secretary ………………………………. 61
Agriculture, Agrarian Reform and Environment Sector ………….. 61
Department of Agriculture ……………………………………… 62
Department of Agrarian Reform ………………………………. 63
Department of Environment and Natural Resources …………….. 63
Trade and Industry Sector ……………………………………… 64
64
 Department of Tourism ………………………………………
Department of Trade and Industry ………………………………. 65
Infrastructure and Energy Sector ……………………………….65
Department of Public Works and Highways 67
………………….
Department of Energy ……………………………………… 67
Department of Transportation and Communications 68
…………..
Education, Culture & Manpower Dev’t. Sector ………………………... 69
Department of Education ……………………………………… 69
Department of Labor and Employment 69
…………………………
Health and Social Welfare Sector ……………………………………… 69
Department of Health …………………………………………….. 70
71
Department of Social Welfare and Development …………………..
Defense Sector …………………………………………………… 71
Department of National Defense 72
………………………………..
Science and Technology Sector ……………………………………… 72
Department of Science and Technology 73
………………………...
Public Order and Safety Sector ……………………………………… 73
Department of Justice ……………………………………………….. 74
Local Government Sector …………………………………………….. 74
Department of Interior and Local Government 75
………………….
Cultural Communities Sector ……………………………………… 75
Inter-Governmental Relations ……………………………………… 76
The Executive Department ……………………………………… 76
The Legislative Department ……………………………………… 78
The Judicial Department ……………………………………… 79

Part V
83
Local Government, Decentralization, and Empowerment
The Nature and State of Local Government 83
………………………...
Local Government …………………………………………….. 83
Organization …………………………………………….. 84
Local Government Delineated ……………………………………… 85
Local Gov’t. As Territorial and Political Subdivision 85
…………...
Local Gov’t. As Legal Authority Providing Services 86
…………...
Salient Features and Distinction of Local Government ………………….87
Layers of Authority ……………………………………… 87
Field Organization and Local Government ………………………... 87
Local Government As General Purpose Authority …………………. 88
Local Government As Municipal Corporation 88
………………….
Local Autonomy and Related Concepts ………………………………. 89
90

92
 Regional Autonomy ……………………………………………..
Local Government’s Role in Supporting Strong Communities91 ……
Local Government in The Philippines ………………………………. 92
Historical Background ……………………………………… 93
Structure and Functions of Philippine Local Government …………..
94
Tiers of Local Government ……………………………………… 95
Services …………………………………………………… 96
Funds …………………………………………………………... 96
Special Local Government Units ……………………………………… 97
The IAD: An Approach To Development ………………………………. 98
Decentralization …………………………………………………… 99
Decentralization As A Concept ……………………………….. 100
Forms and Types of Decentralization ..……………………….
103
Administrative Decentralization and Political Power …………..
104
Decentralization: Hierarchy, Participation and Teamwork 104
…………..
Decentralization As A Concept and L. G. Strategy …………..
105
Decentralization and Development Administration …………..
106
Decentralization and Political Economy ………………………..106
Decentralization and Participatory Development ………………… 106
Decentralization and Power to The People ……………………….. 107
Community Empowerment ……………………………………... 107
Capacity Building …………………………………………………... 107

Part VI
Contemporary Issues and Problems 109
The Legislature …………………………………………………… 109
Presidential vs. Parliamentary System ………………………………. 109
Unicameral vs. Bicameral ……………………………………… 110
The Constitution: Electoral System & Political Parties …………..
110
The Electoral Process ……………………………………… 110
Electoral Reforms …………………………………………….. 111
The Presidency …………………………………………………… 112
Governance …………………………………………………… 112
Political Crisis: Lying, Cheating and Stealing ………………….
114
Executive Influence and Control ………………………………. 114
The Military and Uniform Services ………………………………. 114
Political Issues vs. Personality ……………………………………… 115
Political Parties …………………………………………….. 116
Party System …………………………………………………… 116
The Judiciary ………………………………………………………….. 117
117
 The Judicial System ……………………………………………………
Respect for The Law …………………………………………………… 118
The Bureaucracy ………………………………………………………….. 118
Centralization vs. Decentralization ……………………………….
118
Coordination …………………………………………………… 119
Graft and Corruption …………………………………………….. 119
Red-Tape and Inefficiency ………………………………………
120
Personnel Administration ………………………………………
120
Citizen’s Participation …………………………………………….. 121
Public Health System …………………………………………….. 121
Problems of the Administrative Services ……………………………….
122
Problem of Organization ………………………………………
122
Problem of Personnel …………………………………………….. 122
Problem Material …………………………………………….. 122
Problem Business Practices and Procedures ………………….
122

Part VII
Accessibility and Accountability 123
Administrative Accountability ……………………………………… 123
Why Access ? …………………………………………………… 123
Accessibility Displacement: A Function of Administrative Processes
123 ……
Administrative Accountability Checklist ………………………………. 124
Policy Formulation …………………………………………….. 124
Plan Implementation ……………………………………………. 124
Procedures …………………………………………………… 124
Evaluation …………………………………………………… 125
Policy of Disclosure …………………………………………………… 125
Accountability in the Public Service ……………………………………… 127
Accountability Defined …………………………………………….. 127
Administrative Accountability ……………………………………… 127
Public Accountability …………………………………………….. 128
Standard Criteria on Accountability ………………………………. 128
Norms and Standards ……………………………………… 129
Forms of Accountability …………………………………………….. 129
Dimensions of Public Accountability ……………………………………… 129
Accountability of Public Officers ……………………………………… 130
Varieties of Public Administration ……………………………………… 131
Accountability and Public Administration ………………………………. 132
Congruence ………………………………………………………….. 132
New Public Administration and Program Accountability ………………… 133
133

134
 133
134
Development Public Administration and Accountability …………………
135
Islamic View of Accountability ……………………………………..
135
People Participation and Governance ……………………………………...
Concept of Participation in Islam …………………………………….
New Concepts/Premises in Public Accountability ……………………….
136
Part VIII 136
The Financial System and Fiscal Administration136
Public Finance …………………………………………………… 137
Financial System and Monetary Policy ……………………………… 138
The Changing Role of Government in the Economy 138
…………………
The Role of Government in Public Finance ………………………………. 139
An Overview of Fiscal Policy ……………………………………………. 140
Fiscal Policy for Development ……………………………………………. 140
The Philippines As A Developing Country ………………………………. 141
142
Fiscal Policy and Sustainable Development ………………………...
Prioritizing Human Development ……………………………… 142
Reforming the IMF and The World Bank 143
………………………..
Increased Participation of NGO’s, PO’s and Citizens 143
………….
Philippine Fiscal Policy: Living in the Past ……………………….144
The Public Debt …………………………………………… 144
Public Expenditure – Policy and Problems ………………………. 145
Taxation: Direct and Indirect ……………………………………. 145
Developmental Problems of Less Developed countries (LDC’s) 145
…………
Poverty …………………………………………………………. 146
Lack of Capital ………………………………………………….. 146
Unemployment ………………………………………………….. 146
Inadequate Revenue …………………………………………… 150
Domestic Problems …………………………………………… 152
Philippine Expenditure Policies …………………………………….. 152
An Analysis ………………………………………………….. 152
Patterns of Public Expenditure …………………………………………… 154
Fiscal Policy and Budgeting ……………………………………. 155
Debt Servicing ………………………………………………….. 155
Fiscal control Mechanisms ……………………………………………. 156
The Budget and The Budget System ……………………………… 156
Expenditure Control ……………………………………………. 158
Types of Budget ………………………………………………….. 158
Philippine National Budgeting System ……………………………… 159
Budget concepts …………………………………………………..
 The Budget Process ……………………………………………
159
The Philippine Budget Components ……………………………………..
159
Budget Process in the National Government ………………...
160
Budget Process within the Department/Agency ………………...
161
Budget Control …………………………………………………..
165
Government Accounting ……………………………………………..
165
Objectives ……………………………………………………
165
Characteristics ……………………………………………………
166
Books of Accounts ……………………………………………………
167
Accounting for Appropriation, Allotment & Obligation …………………
167
General Principles …………………………………………….
167
Allotment System in the National Government …………………

Part IX
Values and Ethics in The Public Service 169
Code of Conduct and Ethical Standards ………………………………
169
Coverage …………………………………………………... 169
Reforms in the Public Administrative System ………………...
170
Salient Features/Characteristics of the Code ………………...
170

Operational Definition of 172 Terms

..........................
177
Bibliography ...........................
.............
 The
PHILIPPINE ADMINISTRATIVE SYSTEM

Part I
THE POLITICAL CONTEXT OF ADMINISTRATION
The Study of Administration

According to Woodrow Wilson, it is the object of administrative study

to discover first, what government can properly and successfully do, and
secondly, how it can do these proper things with the utmost possible
efficiency and at the least possible cost either of money or of energy. He
avers that unless we know and settle these things, we shall set out without
a chart or compass. Thus, in this context, Wilson proposed three pre-
conditions, viz.,

(1) To take some account of what others have done in the same line, that is
to say, of the history of the study;

(2) To ascertain just what is its subject matter; and

(3) To determine just what are the best methods by which to develop it, and
the most clarifying political conceptions to carry with us into it.

The science of administration is the latest fruit of that study of the

science of politics. However, the field of administration is a field of business
which is removed from the hurry and strife of politics. At most point it
stands apart even from the debatable ground of constitutional study. It is
part of political only as the methods of the counting house are a part of
society; only as machinery is part of the manufactured products. But is it
far above the dull level of mere technical detail by the fact that through its
greater principles it is directly connected with the lasting maxim of political
wisdom, the permanent truths of political progress. (Woodrow Wilson, cited by
J.M. Shafritz & A.C. Hyde, 1997)

Leonard D. White prefaced Chapter I (Administration and the Modern

State) of his book on public administration, with a quotation from one of the
contemporary management gurus, thus:
 “Management has gradually become a profession, Its tasks has
increased in difficulty, responsibility, and complexity, until today, it
touches all the sciences, from chemistry and mechanics to psychology
and medicine. It call to its service, therefore, men and women with tact
and ideals, with the highest scientific qualifications and with a strong
capacity for organization and leadership. It is employing lawyers and
doctors, accountants and artists, and by directing their professions, is
forming a supreme profession of its own, with all the implications
consequent upon such a line of progress of standards, qualifications,
apprenticeship, and technique.” (Oliver Sheldon ;Philosophy of
Management)

Scope and Nature of Public Administration

“Public administration is the management of men and materials in

the accomplishment of the purposes of the state.” This definition
emphasizes the managerial phase of administration and minimizes its
legalistic and formal aspect. It relates the conduct of government business
to the conduct of the affairs of any other social organization, commercial,
philanthropic, religious, or educational, in all of which good management is
recognized as an element essential to success. (Tendero.1993)

The objective of public administration is the most efficient utilization

of the resources at the disposal of officials and employees. These resources
include not only current appropriations and material equipment in the form
of public buildings, machinery, highways and canals, but also the human
resources bound up in the hundreds of thousands of men and women who
work for the state. In every direction, good administration seeks the
elimination of waste, the conservation of material and energy, and the most
rapid and complete achievement of public purposes consistent with
economy and welfare of the workers.

Public administration then, is the execution of the public business;

the goal of administrative activity the most expeditious, economical, and
complete achievement of public programs. Obviously, this is not the sole
objective of the state as an organized unit; the protection of private rights,
the development of civic capacity and sense of civic responsibility, the due
recognition of the manifold phases of public opinion, the maintenance of
order, the provision of a national minimum of welfare, all bespeak the
constant solicitude of the state. Administration, however, must be
correlated with other branches of government, as well as adjusted to the
immense amount of private effort which are expected to supplement public
enterprise. (Tendero.1993)
The Emergence of Administration

The role of administration in the modern state is profoundly affected by

the general political and cultural environment of the age. The laissez faire
school of social philosophy, demanding the restriction of state activities to
the bare minimum of external protection and police, created a situation in
which administration was restricted in scope and feeble in operation.
Officialdom was thought of as “necessary evil”, bureaucracy an ever-present
danger.

The industrial revolution and its many social, economic, and political
implications are fundamentally responsible for the new social philosophy
and the new concept of public administration. Thus, laissez faire has been
abandoned by philosophers and statesmen alike and a new era of collective
activity has been ushered in by the 20th century.

These new ideas involve the acceptance of the state as a great agency
of social cooperation, as well as an agency of social regulation. The state
therefore becomes an important means by which the program of social
amelioration is effected. “the power of the civil service is increasing” writes
an English scholar, “for the state has given up its old role of acting ( in
Lassalle’s phrase) as night watch-man, as a mere dispenser of justice in the
strictest sense of the word. Today, it acts on the theory that the good of the
individual and of society may be discovered by the process of social reason
and action, and be implemented through statutes.” Classics of Pub. Adm.;J.M.
Shafritz & A.C. Hyde, 1997)

Theories and Concepts In Administration

David H. Rosenbloom asserts that for some time the discipline of

public administration is plagued by weak or absent theoretical core.
Accordingly, this has led some to conclude, along with Robert Parker, that
“there is really no such subject as ‘public administration’. No science or art
can be identified by this title, least of all any single skill or coherent
intellectual discipline”

Others, including Frederick C Mosher, have considered it as a

“resource”, that public administration “is more an area of interest than a
discipline,” since this enables the filed to draw upon a variety of disciplines.
Still others, such as Herbert Kaufman and James Q. Wilson have argued
that public administration faces a serious and seemingly irresolvable
problem in continually seeking to maximize the attainment of mutually
incompatible values.
 Thus, contention of this discussion is that the central problem of
contemporary public administrative theory is that it is derived from three
disparate approaches to the basic question of public administration is. Each
of these approaches has a respected intellectual tradition, emphasizes
different values, promote different types of organizational structure, and
views individuals in markedly distinct terms. ( Classics of Pub. Adm.;J.M. Shafritz
& A.C. Hyde, 1997)

These approaches are conveniently labeled as “managerial’;

“political”; and “legal”. They have influenced one another over the years,
and at some points they overlap. Yet, their primary influence on public
administration has been to pull it in three separate directions. Furthermore,
these directions tend to follow the pattern of the separation of powers
established by the Constitution. Consequently, it is unlikely that the three
approaches can be synthesized without violating values deeply ingrained in
the country’s political culture

The Managerial Approach To Public Administration

a) Origin and Values

The civil service reform of the late 19 th century demanded that “the
business part of the government shall be carried out in a sound
businesslike manner. This idea was self-consciously and influentially
discussed by Woodrow Wilson in his essay on “The Study of
Administration.” thus, he considered public administration to be “a field of
business” and consequently, largely a managerial endeavor. He also set
forth the three core values of the managerial approach to public
administration. Accordingly, It is the object of administrative study to
discover -

1. First, what government can properly and successfully do;

2. Secondly, how it can do these proper things with the utmost possible
efficiency; and

3. Thirdly, at the least possible cost either or money or energy.

Thus, public administration was to be geared toward the

maximization of effectiveness, efficiency, and economy. However, its
essential value was captured by Simmons and Dvorin in the following
terms: “The ‘goodness’ or ‘badness’ of a particular organizational pattern
was a mathematical relationship of ‘inputs’ to ‘outputs’ Where the latter was
maximized and the former minimized, a moral ‘good’ resulted. Virtue or
‘goodness’ was therefore equated with the relationship of these two factors,
that is ‘efficiency’ or ‘inefficiency.’ Thus, mathematics was transformed into
ethics. (Arsenio Talingdan, Pub. Adm. in the Phil, 1966)

Organizational Structure

The managerial approach to public administration promotes

organization essentially along the lines of Max Weber’s “ideal-type
bureaucracy.” It stresses the importance of functional specialization for
efficiency. Hierarchy is then relied upon for effective coordination. Programs
and functions are to be clearly assigned to organizational units. Overlaps
are to be minimized. Positions are to be classified into a rational scheme
and pay scales are to be systematically derived in the interest of the
economy and motivating employees to be efficient.

Selection of public administrators is to be made strictly on the basis

of merit. They are to be politically neutral in their competence.
Relationships among public administrators and public agencies are to be
formalized in writing and, in all events, the public’s business is to be
administered in a smooth and orderly fashion.

The Political Approach To Public Administration

a) Origin and Values

This approach was perhaps most forcefully and succinctly stated by

Wallace Sayre:

“Public administration is ultimately a problem in political theory; the

fundamental problem in a democracy is responsibility to popular
control; the responsibility and responsiveness of the administrative
agencies and bureaucracies to the elected officials (the chief executives,
the legislators) is of central importance in a government based
increasingly on the exercise of discretionary power by the agencies of
administration.”

Unlike the origin of the managerial approach which stressed what

public administration ought to be, the political approach developed from an
analysis of apparent empirical reality. Once public administration is
considered a political endeavor, emphasis is inevitably placed on a different
set of values than those promoted by the managerial approach. “Efficiency,”
in particular becomes high suspect. As Justice Brandeis pointed out in
dissent in Myers vs. United States (1926):

“The doctrine of the separation of powers was adopted by the

Convention of 1787, not to promote efficiency, but to preclude the
exercise of arbitrary power. The purpose was, not to avoid friction, but
by means of the inevitable friction incident to the distribution of powers
among the three departments, to save the people from autocracy.”

Rather, the political approach stresses the values of

representativeness, political responsiveness, and accountability through
elected officials to the citizenry. Thus, one can find many examples of
governmental reforms aimed at maximizing the political values of
representativeness, responsiveness, and accountability within public
administration.

It is, however, important to note that the values sought by the

political approach are frequently in tension with those of the managerial
approach. For instance, efficiency in the managerial sense is not necessarily
served through sunshine regulations which can dissuade public
administration from taking some courses of action, though they may be the
most efficient, and can divert time and resources from program
implementation to the deliverance of information to outsiders.

b) Organizational Structure

Public administration organized around the political values of

representativeness, responsiveness, and accountability tends to be at odds
with the managerial approach to organization. Rather than emphasizing
clear lines of functional specialization, hierarchy, unity, and recruitment
based on politically neutral administrative competence, the political
approach stresses the extent and advantages of political pluralism within
public administration.

Thus, Harold Seidman urges that:

“Executive branch structure is in fact a microcosm of our society,

inevitably reflects the values, conflicts, and competing forces to be
found in a pluralistic society. The ideal of a neatly symmetrical,
frictionless organization structure is a dangerous illusion.”
 The basic concept behind pluralism within public administration is
that since the administrative branch is a policy-making center of
government, it must be structured to enable faction to counter-act faction
by providing political representation to a comprehensive variety of the
organized political, economic, and social interests that are found in society
at large.

To the extent that the political approach’s organizational scheme is

achieved, the structure comes to resemble political party platform that
promises something to almost everyone without establishing clear priorities
for resolving conflicts among them. Agency becomes adversary of agency
and the resolution of conflict is shifted to the legislature, the office of the
chief executive, inter-agency committees, or the court. Moreover, the
number of bureaus and agencies tends to grow over time, partly in response
to the political demands of organized interests for representation. This has
been widely denounced as making government “unmanageable”, “costly”,
and “inefficient.” However, Seidman argues that it persists because
administrative organization is frequently viewed as a political question that
heavily emphasizes political values. (David H. Rosenbloom, cited by J.M. Shafritz
& A.C. Hyde, 1997)

Approaches To The Study of Administration

Various approaches from different perspectives may be used in the

study of public administration. Changing situations and social relations in
society require government to assume additional responsibilities and play
newer roles. This require the setting up of a new public administration with
much broader content and using newer techniques to supplement those
employed by traditional versions. Some of these are the following: (Tendero,
1993)

(1) Constitutional-Legal - looks at the workings of government from the

point of view of the constitution, legislative enactments, the
administrative code, executive pronouncements, and court decisions
and legal opinions. This stresses the normative and political more than
the organizational and structural.

(2) Structural-Descriptive - views public administration from the standpoint

of organizational structure, functions, techniques, and procedures. This
approach looks at the bureaucratic structure as an organizational
arrangement of component elements, each performing functions and
roles. The structure is seen as a device for policy administration.
(3) Institutional Approach - this complements the structural descriptive
approach. It emphasizes the formal relationships among the three
branches of government on the basis of separation of powers theory
and the ways of keeping public administration responsible to the
elected branch and the public as clientele.

(4) Behavioral Approach - Aims at relating public administration and

policy with the situational context. Thus, it looks into the behavior of
individuals within the organization. It professes greater interest in
examining the nature of authority and leadership patterns since these
problems are affected by individual and group behavior.

(5) Systems Approach - This idea implies the happy ordering of

components and the integration of functions to achieve organizational
goals. This approach hopes to provide instruments that will help
administrators identify and assess problems and come up with
appropriate mechanisms to solve them.

(6) Contingency Approach - This approach believes that an organization

and its management should zero in on the specific situation since there
is no “best type” of organizational structure. What is best is that which
is appropriate in a given situation, hence structural variances are to be
expected. In short, organizational structure is contingent upon a given
situation.

Politics and Administration Dichotomy

There are three kinds of authorities, according to Frank J. Goodnow,
which are engaged in the execution of the state will, viz.,

(1) Judicial Authorities - these are those which apply the law in
concrete cases where controversies arise owing to the failure of private
individuals or public authorities to observe the rights of others;

(2) Executive Authorities - commonly refer to those which have a

general supervision of the execution of the state will; and

(3) Administrative Authorities - these refer to the scientific, technical,

and so to speak, commercial activities of the government, and which
are in all countries where such activities have attained prominence.
Some operative examples are:

a. The authorities which are attending to the scientific, technical, and

so to speak, commercial activities of the government, and which
 are in all countries, where such activities have attained
prominence.

b. Concerned primarily with carrying out their policies and orders as

they have been laid down.

c. Their personnel is made up largely of men whose tenure of office

does not depend on the rise and fall of political parties; they
embraced within the fold of what modern states call the “civil
service system”.

d. The legislature virtually dictates the structure of the administrative

machine by defining the number of departments, together with the
qualifications and powers and functions of departments’ heads;
and by creating the divisions and bureaus and offices, fixing their
duties, powers, and responsibilities and the salaries attached to
them.

As government becomes more complex, these authorities, all of which

are engaged in the execution of the will of the state, tend to become more
and more differentiated. The first to become differentiated are the judicial
authorities – in points of time and in terms of clarity. The latter is so
pronounced that lead many students to mark of judicial activities as a
separate power or function of government. (Classics of Pub.Adm.; J.M. Shafritz
& A.C. Hyde, 1997)

Hence, these differentiations show two distinct functions of

government provided by the formal governmental system. Conveniently,
these are designated respectively as Politics and Administration. Politics
has to do with policies or expressions of the state will, while administration
has to do with the execution of these policies.

The term politics is used here is the sense in which it is used by most
people in ordinary affairs and not its meaning attributed to it by most
political writers. Thus, the Century Dictionary defines politics as –

“....the act or vocation of guiding or influencing the policy of a

government through the organization of a party among its citizens –
including therefore not only the ethics of government but more
especially, and often to the exclusion of ethical principles, the art of
influencing public opinion, attracting and marshalling voters, and
obtaining and distributing public patronage, so far as the possession of
offices may depend upon the political opinions or political services of
individuals.”
 On the other hand, the Century Dictionary, explaining the definition
of administration by Block, speaks of it as –

“ the duty or duties of the administrator, specifically the executive

functions of government, consisting in the exercise of all the powers
and duties of government, both general and local, which are neither
legislative nor judicial.”

Generally, the function of politics consists in the expression of the will

of the state. Its discharge may not, however, be entrusted exclusively to any
authority or any set of authorities in the government. Nor , on the hand,
may any authority or set of authorities be confined to its discharge. The
principle of separation of powers in its extreme form cannot, therefore, be
made the basis of any concrete political organization. For this principle
demands that there shall be separate authorities of the government, each of
which shall be confined to the discharge of one of the functions of
government which are differentiated.

Actual political necessity, however, requires that there shall be

harmony between the expression and execution of the state will. Popular
government requires that it is the executing authority which shall be
subordinated to the expressing authority, since the latter in the nature of
things can be made much more representative of the people than can the
executing authority.

In other words, practical political necessity makes impossible the

consideration of the function of politics apart from that of administration.
Politics must have certain control over administration, using the word in the
broad senses heretofore attributed to them. That such relation must exist
between the two ultimate functions of government is seen when we examine
the political development of any state.

Thus, in the hope of preventing politics from influencing

administration in its details, the attempt is made to provide for the legal
separation of the bodies in the government mainly charged with these two
functions respectively which favors necessary control to develop extra-
legally. (Frank J. Goodnow, cited by J.M. Shafritz & A.C. Hyde, 1997 )

The Proverbs of Administration

 According to Herbert Simon, proverbs are used as a means of
rationalizing behavior that has already taken place or justify action that has
already been decided upon. Unfortunately, however, propositions expressed
by proverbs prove just too much. The fact is that they almost always occur
in mutually contradictory pairs. For instance, “Look before you leap!”, but
“He who hesitates is lost.”

Most of the propositions that make up the body of administrative

theory today share this defect since for almost every principle one can find
an equally plausible and acceptable contradictory principle. While the two
principles of the pair will lead to exactly opposite organizational
recommendations, there is nothing in the theory to indicate which is the
proper one to apply. Suggestions are, thus, presented as to how the
existing dilemma can be solved. (Herbert Simon, cited by J.M. Shafritz & A.C.
Hyde, 1997)

(1) Some Accepted Administrative Principles

Among the more common principles that occur in the literature of

administration are these:

a) Administrative efficiency is increased by a specialization of the task

among the group;
b) Administrative efficiency is increased by arranging the members of the
group in a determinate hierarchy (unity of command) of authority;

b) Administrative efficiency is increased by limiting the span of control at

any point in the hierarchy to a small number;

d) Administrative efficiency is increased by grouping the workers, for

purposes of control, according to (a) purpose; (b) process; (c)
clientele; and (d) place

Since these principles appear relatively simple and clear, it would

seem that their application to concrete problems of administrative
organization would be unambiguous and that their validity would be easily
submitted to empirical test. Such, however, seems not to be the case. To
show why it is not, each of the four principles just listed will be considered
in turn. (Herbert Simon, cited by J.M. Shafritz & A.C. Hyde, 1997)

1. Specialization.

Administrative efficiency is supposed to increase with an increase in

specialization. But is this intended to mean that any increase in
specialization will increase efficiency? If so, which of the following
alternatives is the correct application of the principle in a particular case?

a. A plan of nursing should be put into effect by which nurses will be

assigned to districts and do all nursing within that district, including
school examinations, visits to homes of school children, and
tuberculosis nursing.

b. A functional plan of nursing should be put into effect by which

different nurses will be assigned to school examinations, visits to
homes of school children, and tuberculosis nursing. The present
method of generalized nursing by districts impedes the development
of specialized skills in the three very diverse programs.

Both of these administrative arrangements satisfy the requirements of

specialization – the first provide specialization the place; the second,
specialization by function. The principles of specialization is, however, of no
help at all in choosing between the two alternatives. It appears that the
simplicity of the principle of specialization is a deceptive simplicity – which
conceals fundamental ambiguities.

For “specialization” is not a condition of efficient administration;

rather it is an inevitable characteristic of all group effort, however efficient
or inefficient that group effort may be. Specialization merely means that
different persons are doing different things – and since it is physically
impossible for two persons to be doing than same thing in the same place at
the same time, two persons are always doing different things.

The real problem of administration, then, is not to “specialize”, but to

specialize in that particular manner and along those particular lines which
will lead to administrative efficiency. Thus, administrative efficiency is
increased by a specialization of the task among the group in the direction
which will lead to greater efficiency.

2. Unity of Command

Administrative efficiency I supposed to be enhanced by arranging the

members in a determinate hierarchy of authority in order to preserve “unity
of command.” In one sense, this principle cannot be violated, for it is
physically impossible for a man to obey two contradictory commands.
Presumably, if unity of command is a principle of administration, it must
assert something more than this physical impossibility. Perhaps, it asserts
this: that it is undesirable to place a member in a position where he receives
orders from more than one superior. Corollary, Gulick explains, thus:

“…. In building a structure of coordination, it is often tempting to set

up more than one boss for a man who is doing work which has more
than one relationship.”

The real fault with this principle is that it is incompatible with the
principle of specialization. One of the most important uses to which
authority is put in an organization is to bring about specialization in the
work of making decisions, so that each decision is made at a point in the
organization where it can be made most expertly. However, if unity of
command is observed, the decision of a person at any point in the
administrative hierarchy are subject to the influence through only one
channel of authority; and if his decisions are of a kind that require expertise
in more than one field of knowledge, then advisory and informational
services must be relied upon to supply those premises which lie in a field
not recognized by the mode of specialization in the organization. (Herbert
Simon, cited by J.M. Shafritz & A.C. Hyde, 1997)

3. Span of Control

Administrative efficiency I supposed to be enhanced by limiting the

subordinates who report directly to any one administrator to a small
number. A proverb of administration may be quoted to show the
contradiction: “Administrative efficiency is enhanced by keeping at a
minimum the number of organizational levels through which a matter must
pass before it is acted upon.”

While this proverb is considered one of the fundamental criteria that

guide administrative analysis in procedures simplification of work, yet in
many situations the results are in direct contradiction to the requirements
of the principle of span of control, the principle of unity of command, and
the principle of specialization.
The dilemma is this: in a large organization with complex
interrelations among members, a restricted span of control inevitably
produces excessive red-tape, for each contact between organizational
members must be carried upward until a common superior is found. The
alternative is to increase the number of persons who are under the
command of each officer, so that the pyramid will come more rapidly to the
peak, with fewer intervening levels. This, too, leads to difficulty, where an
officer is required to supervise too many employees and his control over
them is weakened. Thus, both the increase and the decrease in span of
control has some undesirable consequences. Proponents of a restricted span
of control, however, suggest three, five, or even eleven as desirable number,
no explanation of what reasons. (Herbert Simon, cited by J.M. Shafritz & A.C.
Hyde, 1997)

4. Organization By Purpose, Process, Clientele, and Place

Administrative efficiency is supposed to be increased by this approach

and method. Just like the previous discussions, it is clear that this principle
is internally inconsistent, for purposes, process, clientele, and place are
competing bases of organization and at any given point of division, the
advantages of three must be sacrificed to secure the advantages of the
fourth.

For instance, if a city is organized on the basis of major purpose, then

all the physicians, all the lawyers, all the engineers, etc. will not be located
in a single department exclusively composed of members of their profession,
but will be distributed among the various city departments needing their
services. The advantages of organization by process will thereby be partly
lost.

Some of these advantage can be regained by organizing on the basis of

process within the major department. Thus, there may be an engineering
bureau within the public works department or the board of education may
have a school health service as a major division of its work. Similarly,
within smaller units there may be division by area or by clientele. For
example, the fire department will have separate companies located
throughout the city; while the welfare department may have intake and case
work agencies in various locations.

It may be objected than administration cannot aspire to be a

“science”; that by the nature of its subject it cannot be more than “art.”
Whether true or false, this objection is irrelevant to the present discussion..
the question of how “exact” the principles of administration can be made is
one that only experience can answer. But as to whether they should be
logical or illogical there can be no debate. Even an “art” cannot be founded
on proverbs. (Herbert Simon, cited by J.M. Shafritz & A.C. Hyde, 1997)

Decentralization and Political Power

(1) Conflict and Coalition

Sources of Conflict.
 It has long been recognized that much public policy is shaped largely
by clusters of bureaus, their organized clientele and legislative committees
and legislators specializing in each public function. – health, education,
welfare, etc. The argument, according to Herbert Kaufman, for
strengthening chief executives and their department heads vis-à-vis the
clusters are based chiefly on the need to offset the resulting fragmentation
of government by introducing sufficient central direction to unify the
policies and administration of these separate centers of power.

The arguments for new modes of participation by the public in these

centers rest on the conviction that hitherto excluded and unorganized
interests have little to say about decisions that affect them profoundly. But
it is most unlikely that the arguments of either kind will be warmly received
by those already in key positions in each decision center. They will resist
not simply out of abstract jealousy of their own power or stubborn
unwillingness to share their influence with each other, though these motives
will doubtless not be absent. They will oppose because, in addition, the
proposed reforms threaten whose values which the present arrangement
protect. (Herbert Kaufman, cited by J.M. Shafritz & A.C. Hyde, 1997)

Bureau chiefs and the organized bureaucracies perceive intervention

by political executives as the intrusion of partisan politics into fields from
which doctrine has for many years held that politics should be excluded;
they see jeopardy for the competence nurtured so carefully and painfully
against political distortion or extinction. So the champions of executive
leadership and the evangelists of expanded representativeness have many
obstacles to overcome before they have their respective ways.

(2) Coalition of Executives

To advance their cause, troubled chief executives at all levels,

all suffering similar frustrations, could conceivably make common cause
with one another. thus, the President may well find it strategically
advantageous to build closer ties with governors and big-city mayors than
was ever the case before. Congress would find it more uncomfortable to
resist presidential demands for creation of strong filed representatives with
jurisdiction over bureau field personnel if state and local officials in their
own home areas support the demands than if the President alone advances
them. (Herbert Simon, cited by J.M. Shafritz & A.C. Hyde, 1997)
Gubernatorial and big-city mayoral vexations spring from three
sources. (1) First, procedures in many inter-governmental programs are
irritatingly slow. It often takes months - sometimes more than a year, in
fact – to get decisions on projects and financing from national agencies,
partly because so much business is referred to higher authorities for
approval; (2) Second, procedures are often labyrinthine and uncoordinated,
so that it take specialists to keep track of terminal dates, filing of
applications for renewal of grants, compliance with accounting
requirements, etc.; and (3) Third, national grants for every specific
purposes encourage a tendency toward “a more or less independent
government of their own” on the part of functional specialists at all levels of
government who are only nominally under the control of their respective
chief executives. (Herbert Simon, cited by J.M. Shafritz & A.C. Hyde, 1997)

Hence, local government chief executives have reason to applaud the

introduction of national line agencies with authority to rationalize the
actions of national field personnel in the bureaus. For reasons of their own,
they may well find the “prefectoral” pattern of organization, which, as we
have seen, will suggest itself ever more insistently to the President,
coincides with their own preferences. Thus, congruence of presidential,
gubernatorial, and mayoral interests is not entirely speculative, but have
become realities in administration. (Herbert Kaufman, cited by J.M. Shafritz &
A.C. Hyde, 1997)

(3) Confluence of Leadership and Representativeness

An alliance of public chief executives is already taking place. At the

same time, groups clamoring for local control of administrative programs,
confronted with the suspicion and resentment of bureaucracies and their
interest group allies, will probably discover that they get their most
sympathetic hearings from chief executives, especially from big-city mayors.
For such groups can provide the executive with the counter-weights to
bureaucracies. They constitute an alternate channel of information about
administrative performance, reducing executive dependence on the
bureaucracies on the one hand and on the mass media (with their bias
toward the sensational) on the other.

However, it will be an uneasy, mutually wary relationship. To a neighborhood and

community association, the paradox of turning to remote chief executives in a quest for local
control will be disturbing. To chief executives, the risk of opening a Pandora’s box and
releasing uncontrollable disintegrative forces will give pause. Yet, each can gain so much
from an alliance with the other that it is hard to avoid the feeling that the attractions will
overcome the anxieties. (Herbert Kaufman, cited by J.M. Shafritz & A.C. Hyde, 1997)

Representativeness and the Public Interest

One fundamental principle of democratic government is the theory of

representation. This is the truism of the Lincolnian adage of “ a government
of the people, by the people, and for the people.” Thus, the quest and
agitation for representativeness through people-participation in the
decision-making process. Cluster groups in the country are at the forefront
of the agitation for power sharing, as observed by Pendleton Herring in the
early part of the 20th Century.

The purpose, however, of the democratic state is the free

reconciliation of groups interests and that the attainment of this end
necessitates the development of a great administrative machinery. Thus,
considering that public interest is as extensive and as diverse as the people
in a given society, the conflicting public interests are better served by a
humongous organization (such as a bureaucracy) that is capable to address
these multifarious needs.

Government today is largely a matter of expert administration.

Increasing authority and discretion are granted the executive branch. In a
word, our present bureaucracy has accumulated vast authority but it lacks
direction and coordination. But the official today finds himself largely
isolated except for the presence of those interests directly affected by the
consequences of his action. The public interest is the standard that guides
the administrator in executing the law.( Pendleton Herring, cited By J.M. Shafritz
& A.C. Hyde, Classics of Pub. Adm., 1997)

Paradox of Interest
However, Herring (1936) asserts that bureaucracy suffers from want of
hierarchical organization and personnel united by a harmonious concept of
government service. Yet a bureau of this type and nature arouses suspicion
and criticism of interest groups. Groups of citizens seeking to advance their
own interests or to protect themselves from the onslaught of rivals turn to the
government for aid. On one hand, these groups perceives government to serve
them, on the other hand they expect at least that government does not
interfere with their purposes.

Representative Bureaucracy

There is a distinction between “equal opportunity” (i.e. treating

everyone alike) and “compensatory opportunity” (i.e. helping the neediest).
While the former is still capable of rallying widespread support, the latter is
considered a slogan devoid of political appeal. Advocates of compensatory
opportunity have therefore felt obliged to pretend that equal opportunity
really implies compensatory opportunity. The issue of representative
bureaucracy has been dramatized by racial or class issues. How to share
status and goods to certain groups has become a challenge to
administration everywhere. Thus, the concept developed as argument for a
less-elite and less class-bound bureaucracy.

Part II
The Philippine Administrative System; An Overview

The administrative System of the Republic of the Philippines is

comprised of a central government and its territorial and political
subdivisions, which enjoy local autonomy: the provinces, cities,
municipalities and barangays (smallest administrative unit) and the
autonomous regions in Muslim Mindanao and the Cordilleras.

The Central Government

The Central government, headed by the President of the Republic, with

at least 18 Department Secretaries as her alter ego, exercises general
supervision over local governments.

It should be noted however, that the central government is not a

highly centralized system, but operates on the principle of de-
concentration or transfer of powers from the central/national level to
lower offices (regional, provincial) administratively.

The Autonomous Regions

The autonomous regions in Muslim Mindanao and the Cordilleras

which are comprised of provinces, cities, municipalities and geographical
areas sharing, among other things, common and distinctive historical and
cultural heritage and economic and social structures are provided legislative
powers within their territorial jurisdiction over matters pertaining to, among
other things, ancestral domain and natural resources; regional, urban and
rural planning development; and economic, social and tourism
development;

The Provincial Government

Although under the general supervision of the central government, the

provincial government enjoys a certain level of local autonomy (under the
principle of devolution or transfer of powers from the national government to
a political subdivision) and is entitled to an equitable share in the proceeds
of the utilization and development of the national wealth within its area.

There are also certain environment and natural resources-related

functions that have been devolved to the provincial governments pursuant
to national policies and subject to supervision, control and review of the
Department of Environment and Natural Resources (DENR), as follows:
enforcement of forestry laws limited to community-based forestry projects,
pollution control law, small scale mining law and other laws on the
protection of environment; and mini-hydro electric projects for local
purposes. The issuance of permits to extract sand, gravel and quarry
resources has also been given exclusively to the provincial governor,
pursuant to the ordinance of Sangguniang Panlalawigan or provincial
board, the provincial legislative body).

The Municipal Government

The Municipal government is also under the general supervision of

the provincial government. However, it also enjoys a certain level of local
autonomy (also under the principle of devolution) and is entitled to an
equitable share in the proceeds of the utilization and development of the
national wealth within its area (the share of local government units are
divided among the provinces/highly urbanized cities,
municipalities/component cities and barangays).

As in the case of the Provincial government, the municipal

government is also vested with certain environment and natural resources
related functions, pursuant to national policies and subject to supervision,
control and review of the DENR, as follows: implementation of community-
based forestry projects which include integrated social forestry programs
and similar projects; management and control of communal forests with an
area not exceeding fifty square kilometers; establishment of tree parks,
greenbelts, and similar forest development projects; solid waste disposal
system or environmental management system; and services or facilities
related to general hygiene and sanitation.

The City Government

The Highly Urbanized City is only subject to general supervision of

the national government (as opposed to the component city that is still
under the general supervision of the province), but also enjoys a certain
level of local autonomy (also under the principle of devolution) and is
likewise entitled to an equitable share in the proceeds of the utilization and
development of the national wealth within its area.
 As in the case of provincial and municipal governments, the highly
urbanized city is vested with certain environment and natural resources
functions, pursuant to national policies and subject to supervision, control
and review of the DENR, as follows: enforcement of forestry laws limited to
community-based forestry projects, pollution control law, small scale mining
law and other laws on the protection of environment; and mini-hydro
electric projects for local purposes; implementation of community-based
forestry projects which include integrated social forestry programs and
similar projects; management and control of communal forests with an area
not exceeding fifty square kilometers; establishment of tree parks,
greenbelts, and similar forest development projects; solid waste disposal
system or environmental management system; and services or facilities
related to general hygiene and sanitation.

The Barangay

The barangay is under the general supervision of cities/

municipalities but also enjoys a certain level of local autonomy (also under
the principle of devolution) and is likewise entitled to an equitable share in
the proceeds of the utilization and development of the national wealth
within its area. It is likewise vested with certain environment and natural
resources functions, pursuant to national policies and subject to
supervision, control and review of the DENR, as follows: services and
facilities related to general hygiene and sanitation, beautification, and solid
waste collection.(Noel Eusebio Oyardo Padilla, Development Management Officer V,
Planning and Policy Service, Department of Environment)

Part III
THE BUREAUCRACY
Bureaucracy As An Organization of Government
Bureaucracy refers to the systematic organization of men and tasks
into some kind of pattern that facilitate the achievement of group effort.
(Pfiffner & Presthus, 1952) while on the other hand, Webber defines it as a
system with components which includes men, offices, authority, and
processes for translating “community action” into rationally-ordered “social
action” (Tendero, 1993)

Yet according to Marshall E. Demeck, bureaucracy is that type of

hierarchical organization which is designed to coordinate the work of many
individuals in pursuit of large-scale administrative tasks.
 In such a system, authentic authority which binds the various levels
together, originates at the top and passes through the organization as
managers delegate it downward. By simplifying the complex organizational
structure, it is expected that a bureaucracy will attain efficiency, economy,
and greater reliability for its performance.

Ideally, however, it is characterized by technical specialization.

Technical skills and expertise require training and experience resulting in
specialization which ultimately makes for proficiency and professionalized
careership in government service. These optimize the possibility for carrying
out administrative functions in accordance with “calculable rules”
regardless of persons performing or affected by such functions.
Administration then becomes rational and depersonalized. Rules takes
precedence over personal feelings and emotions. Because of objective
standards, human irrationality is reduced to a minimum.(Tendero,1993)

(1) Bureaucratic Authority

As identified by Webber, there are three (3) types, viz.:

a. Traditional Authority establishes legitimacy of rulership as arising

from age-old practice handed down from generation to generation;

b. Charismatic Authority rests upon the individual personality of the

leader; his innate charm to inspire loyalty and devotion from
others; and

c. Legal-Rational Authority is established by rules, not necessarily

inflexible but capable of being changed rationally as situations
demand.

(2) Features of A Bureaucracy

a. Large and complex organization as measured by the big number of

people it employ;

b. Majority of those employed are performing semi-skilled and

unskilled works/jobs;

c. Relatively simple mass production technology is applied; and

d. Relatively simple product (goods and services) is produced.

Elements of The Ideal Type of Bureaucracy

a. A division of labor based upon functional specialization;

b. A well-defined hierarchy of authority;
c. A system of rules covering the rights and duties of positional
incumbents;
d. A system of procedures for dealing with work situations;
e. Impersonality of inter-personal relations; and
f. Promotion and selection for employment based upon technical
competence.

Life Cycle of Bureaus

(1) Types of Bureau Genesis

Bureaus are created in one of four different ways, according to

Anthony Davis. First, a bureaus can be formed for what Max Weber called
the routinization of charisma. A group of men brought together by their
personal devotion to a charismatic leader may transform itself into a
bureaucratic structure in order to perpetuate his ideas. Second, a bureau
may be deliberately created almost out of nothing by one or more groups in
society in order to carry out a specific function for which they perceive a
need. Many of the agencies in the federal government formed during the
New Deal years are of this type. Third, a new bureau can split off from an
existing bureau, as the Air Force did from the Army after World War II.
Fourth, a bureau may be created through “entrepreneurship” if a group if
men promoting a particular policy (such as communism) gains enough
support to establish and operate a large non-market organization devoted to
that policy.

All these geneses have three things in common: (1) The Bureau is
initially dominated either by advocates or zealots; (2) It normally goes
through an early phase of rapid growth; and (3) It must immediately begin
seeking sources of external support in order to survive. (Anthony Downs, cited
by J.M. Shafritz & A.C. Hyde, 1997)

(2) Dominance of New Bureaus by Advocates/Zealots

In a vast majority of cases, a bureau starts as a result of aggressive

agitation and action by a small group of zealots who have a specific idea
they want to put into practice on a large scale. This is true by definition of
 bureaus created through “spontaneous entrepreneurship”. Charismatic
leaders also qualify as zealots. They attract a small group of disciples who
eventually need to support themselves. This need tends to modify the
original group into some more informal organizations. In many cases, it
becomes a predominantly bureaucratic organization. thus, the Franciscan
Order can be considered a bureaucratic offshoot from the leadership of St.
Francis.

Almost every bureau formed by splitting off from an existing bureau is

initially generated by the zealotry of a few members of the existing
bureau. Some zealots are found in all bureaus – indeed, in almost all
human organizations. This is true because the personal characteristics
necessary for zealotry occur spontaneously in a certain fraction of any
society’s population.

This fraction is higher in modern societies than in tradition-oriented

societies, since the former encourage innovation in general. Also, the
proportion of zealots in a given bureau may differ sharply from that in
society as a whole, because some bureaus tend to attract zealots and
others to repel them. As a result the proportion of zealots in different
bureaus varies widely. Nevertheless, a certain number appear
spontaneously in every bureau.

Only in bureaus created out of nothing by external agents is there

initially no “small band of warriors” whose agitation has founded the
bureau. In this case, politician, existing bureaucrats or members of private
firms or unions have discerned the need for a new organization designed to
accomplish a specific purpose. They round up the legal authority to
establish this organization, select someone to run it, and give him an initial
set of resources like those formed around a nucleus of zealots. The ideas
upon which a new bureau is based have generally originated with some
group of zealots. In many cases, the leading proponents of these ideas are
immediately put in charge of the bureau. In any case, whoever is running a
bureau entrusted with a new function soon finds that his recruiting efforts
are most successful with men who have a proclivity toward their function –
including the zealots who started the idea, or their disciples. Moreover,
since the top administrator and his staff will normally be judged by their
success in carrying out this function, they also tend to become strong
advocates themselves. (Anthony Downs, cited by J.M. Shafritz & A.C. Hyde, 1997 )

(3) The Struggle for Autonomy

 No bureau can survive unless it is continually able to demonstrate
that its services are worthwhile to some group with influence over sufficient
resources to keep it alive. If it is supported by voluntary contributions, it
must impress potential contributors with the desirability of sacrificing
resources to obtain its services. If it is a government bureau, it must
impress those politicians who control the budget that its functions generate
political support or meet vital social needs.

Yet the survival of new bureaus is often precarious. Their initial

external sources of support are usually weak, scattered, and not
accustomed to relations with the bureau. The latter must, therefore, rapidly
organize so that its services become very valuable to the users. Only in this
way can it motivate users to support it. (Anthony Downs, cited by J.M. Shafritz
& A.C. Hyde, 1997)

(4) Rapid Growth of Young Bureaus

Few bureaus ever achieve such perfect autonomy that they are
immune from threats to their survival. However, a bureau can attain a
certain initial degree of security. This presupposes that it has become large
enough to render useful services, and old enough to have established
routinized relationships with its major clients. These minimal size and age
levels are referred to as the bureau’s initial survival threshold.

As a general rule, a bureau arrives at this threshold after a period of

rapid growth in both its size and the relative social significance of its
functions. this usually occurs in response to external environmental
conditions favorable in to the expansion of the bureau’s functions. For
example, the Army air Force grew extremely rapidly during World War II in
response to the need for military air power. This experience convinced
Congress that it should establish a separate Air Force. (Anthony Downs, cited by
J.M. Shafritz & A.C. Hyde, 1997)

Bureaucratic Personality and Structure

Bureaucratic Personality

A formal, rationally organized social structure involves clearly defined

patterns of activity in which, ideally, every series of actions is functionally
related to the purposes of the organization. In such an office there is
integrated a series of offices, or hierarchized statuses, in which inhere a
number of obligations and privileges closely defined by limited and specific
rules. Each of these offices contains an area of imputed competence and
responsibility. Authority, the power of control which derives from an
 acknowledged status, inheres in the office and not in the particular person
who performs the official role.

Official action ordinarily occurs within the framework of pre-existing

rules of the organization. the system of prescribed relations between and
among the various offices involve a considerable degree of formality and
clearly defined social distance between the occupants of these positions.
Formality is manifested by means of a more or less complicated social ritual
which symbolizes and supports the pecking order of the various offices.
Moreover, such formality, which is integrated with the distribution of
authority within the system, serves to minimize friction by largely restricting
(official) contact to modes which are previously defined by the rules of the
organization. (Robert K. Merton, cited by J.M. Shafritz & A.C. Hyde, 1997)

Structure of A Bureaucracy

The ideal type of such an organization is bureaucracy and, in many

respects, the classical analysis of bureaucracy is that by Max Weber. As he
indicates, bureaucracy involves a clear-cut division of integrated activities
which are regarded as duties inherent in the office. A system of
differentiated control and sanctions is stated in the regulations. The
assignment of roles occurs on the basis of technical qualifications which are
ascertained through formalized impersonal procedures, e.g. examinations.

Within the structure of the hierarchically arranged authority, the

activities of “trained and salaried” experts are governed by general,
abstract, and clearly defined rules which preclude the necessity for the
issuance of specific instructions for each specific case. The generality of the
rules requires the constant use of categorization, whereby individual
problems and cases are classified on the basis of designated criteria and are
treated accordingly.

The pure type of bureaucratic official is appointed, either by a

superior or through the exercise of impersonal competition – he is not
elected. A measure of flexibility in the bureaucracy is attained by electing
higher functionaries who presumably express the will of the electorate, i.e.,
a body of citizens or a board of directors). The election of higher officials is
designed to affect the purposes of the organization, but the technical
procedures for attaining these ends are carried out by continuing
bureaucratic personnel. (Robert K. Merton, cited by J.M. Shafritz & A.C. Hyde,
1997)

The Dysfunctions of Bureaucracy

 The transition to the study of the negative aspects of bureaucracy is
afforded by the application of Veblen’s notion of “trained incapacity”,
Dewey’s “occupational psychosis”, or Warnotte’s view of “professional
deformation”. Trained incapacity refers to that state of affairs in which
one’s abilities function as inadequacies or blind spots. Actions based upon
training and skills which have been successfully applied in the past may
result in inappropriate responses under changed conditions.

An inadequate flexibility in the application of skills, will, in a changing

milieu, result in more or less serious maladjustments. Thus, to adopt a
barnyard illustration used in this connection by Burke, chickens may be
readily conditioned to interpret the sound of a bell as a signal for food. The
same bell may now be used to summon the trained chickens to their doom
as they are assembled to suffer decapitation. In general, one adopts
measures in keeping with one’s past training and, under new conditions
which are not recognized as significantly different, the very soundness of
this training may lead to the adoption of the wrong procedures.

Dewey’s concept of occupation psychosis rests upon much the same

observations. As a result of their day to day routines, people develop special
preferences, antipathies, discriminations, and emphases. These psychoses
develop through demands put upon the individual by the particular
organization of his occupational role.

The concern of both Veblen and Dewey refer to a fundamental

ambivalence. Any action can be considered in terms of what it attains or
what it fails to attain. “A way of seeing is also a way of not seeing – a focus
upon object A involves a neglect of object B. However, in his discussion,
Weber is almost exclusively concerned with what the bureaucratic structure
attains: precision, reliability, efficiency. This same structure may be
examined from another perspective provided by the ambivalence – what are
the limitations of the organization designed to attain these goals.

Structural Sources of Overconformity

Such inadequacies in orientation which involve trained incapacity

clearly derive from structural sources. The process may be briefly
recapitulated, thus, (1) An effective bureaucracy demands reliability of
response and strict devotion to regulations; (2) Such devotion to the rules
leads to their transformation into absolutes – they are no longer conceived
as relative to a set of purposes; (3) this interferes with ready adaptation
under special conditions not clearly envisaged by those who drew up the
general rules; and (4) thus, the very elements which conduce toward
efficiency in general produce inefficiency in specific instances.
 Another feature of the bureaucratic structure tends to produce much
the same results. Functionaries have the sense of a common destiny for all
those who work together. They share the same interests, especially since
there is relatively little competition in so far as promotion is in terms of
seniority. In-group aggression is thus, minimized and this arrangement is
therefore conceived to be positively functional for the bureaucracy. However,
the esprit de corps and informal social organization which typically
develops in such situations often leads the personnel to defend their
entrenched interests rather than to assist their clientele and elected higher
officials. This illustrates the defensive informal in which tends to arise
whenever there is an apparent threat to the integrity of the group.

Breaking Through Bureaucracy

Persistence of the Bureaucratic Paradigm

The values of efficiency and impersonal administration along with

prescription for putting them into practice in government constituted a
compelling system of belief in the early 20th century. This system may be
termed, the bureaucratic reform vision. Unfortunately, it lost its hold on the
political imagination of the reform constituency once civil service and
executive budgeting had been put into place. As a belief system about public
administration, by contrast, the bureaucratic reform vision survived –
although not wholly intact. (Michael Barzelay w/ Babak J. Armajani, cited by
J.M. Shafritz & A.C. Hyde, 1997)

The following beliefs are among those embedded in the bureaucratic

paradigm that deserve close scrutiny:

a) Specific delegation of authority define each role in the executive branch.

Official carrying out any given role should act only when expressly
permitted to do so either by rule or by instructions given by superior
authorities in the chain of command. Employees within the executive
branch are responsible to their superiors;

b) In exercising authority, official should apply rules and procedures in a

uniform manner. The failure to obey rules should be met with an
appropriate penalty;

c) Experts in substantive matter, such as engineers, law-enforcement

personnel, and social service providers, should be assigned to line
agencies; while experts in budgeting, accounting, purchasing, personnel,
and work methods should be assigned to centralized staff functions;
d) The key responsibilities of the financial function are to prepare the
executive budget and to prevent the actual spending from exceeding
appropriations. The key responsibilities of the purchasing function are to
minimize the price paid to acquire goods and services from the private
sector and to enforce purchasing rules. The key responsibilities of the
personnel function include classifying jobs, examining applicants, and
making appointments to positions; and

e) The executive branch, as a whole, will operate honestly and efficiently as

long as the centralized staff functions exercise unilateral control over line
agencies’ administrative actions.

Unraveling the Bureaucratic Paradigm

Since the 1930’s intellectuals have criticized the idea that the formal
organization is the principal determinant of efficiency and effectiveness.
Some urged that control be viewed as a process in which all employees
strive to coordinate their work with others. Other voices criticized the idea
that the exercise of unilateral authority within hierarchies was a recipe for
good government. More argued that the meaning of economy and efficiency
within the bureaucratic paradigm was conceptually muddled.

Some raised concerns about the tendency of line agency employees to

adjust to staff agency’s administrative systems by becoming constraint-
oriented rather than mission-oriented. A few intellectuals also found
evidence for the proposition that the workings of some administrative
systems contradicted common sense. Many of these insights and arguments
have been incorporated into mainstream practitioner and academic thinking
about public management. Nonetheless, many of the beliefs of the
bureaucratic paradigm have escaped serious challenge.

The most important recent conceptual challenge to the bureaucratic

paradigm arising in the world of practice is the notion that government
organizations should be customer-driven and service oriented. A recurring
aspiration of public managers and overseers using these concepts is to solve
operational problems by transforming their organizations into responsive,
user-friendly, dynamic, and competitive providers of valuable services to
customer-clientele.

Thinking in terms of customer-clients and service helps public

managers and overseers articulate their concerns about the performance of
the government operations for which they are accountable. When
supplemented by analysis of how these concepts have been put into practice
in other settings, reasoning about clients and service helps managers
generate alternative solutions to the particular problems they have defined
as meriting attention. In many instances, the range of alternatives generated
 in this fashion is substantially different from that yielded by reasoning
within the bureaucratic paradigm. Thus, many public officials, alert to the
power of these conceptual resources in the contemporary United States, are
identifying those whom they believe to be their customers and are using
methods of strategic service management to improve their operations.
(Michael Barzelay w/ Babak J. Armajani, cited by J.M. Shafritz & A.C. Hyde, 1997 )

Formulating An Alternative

The concept of customer-driven service organization is thus a tool

used increasingly by public officials to define and solve their problems. At a
higher level of generality, this concept also provides many of the resources
needed to formulate a coherent alternative to the bureaucratic paradigm.
The outlines of this alternative and its mode of identifying and attacking the
vulnerabilities of the bureaucratic paradigm are already coming into focus.

The following paired statements highlight the main rhetorical battle

lines. However, to facilitate clearer and better understanding of these
alternatives, a matrix diagram is used in the presentation, thus:

a) A bureaucratic agency is focused on its own need and perspectives.

A customer-driven agency is focused on customer needs and
perspectives;

b) A bureaucratic agency is focused on the roles and responsibilities

of its parts. A customer-driven agency is focused on enabling the
whole organization to function as a team;

c) A bureaucratic agency defines itself both by the amount of

resources it controls and by the tasks its performs. A customer-
driven agency defines itself by the results it achieves for its
customers;

d) A bureaucratic agency controls costs. A customer driven agency

creates value net cost;

e) A bureaucratic agency sticks to routine. A customer-driven agency

modifies its operations in response to changing demands for its
services;

f) A bureaucratic agency fights for turf. A customer-driven agency

competes for business;
 g) A bureaucratic agency insists on following standard procedures. A
customer-driven agency build choice into its operating systems
when doing so serves a purpose;

h) A bureaucratic agency announces policies and plans. A customer-

driven agency engages in a two-way- communication with its
customers in order to assess and revise its operating strategy; and

i) A bureaucratic agency separates the work of thinking from that of

doing. A customer-driven agency empowers front-line employees to
make judgments about how to improve customer service and
value.

The fact that this kind of rhetoric is coming into common use
suggests that a new alternative to the bureaucratic paradigm – one that
builds on much prior practical and intellectual work, is now available. The
time is ripe, therefore, to define as carefully as possible what this alternative
is. Breaking through bureaucracy takes on this task. (Michael Barzelay w/
Babak J. Armajani, cited by J.M. Shafritz & A.C. Hyde, 1997 )

Towards A Fully Humanized Bureaucracy

The country cannot sustain structural reform efforts and the drive
towards a service orientation without addressing the human dimensions.
For much too long, the Philippine bureaucracy has been maligned and
taken for granted as hopelessly incorrigible.

Given this view, not enough attention and resources have been
devoted to addressing the lot of the ordinary government employee. As the
thinking goes, why waste taxpayers’ money on people who are marginally
useful, corrupt and inefficient? Thus, government employees tend to breath
life and perpetuate the stereotype.

There is therefore a pressing need to foster a caring bureaucracy -

one that takes care of its own even as it performs its role as servants of the
people.
Empowerment and Professionalization of the Bureaucracy:

Empowerment would mean the process by which employees are

equipped with relevant knowledge, skills, and attitudes thereby making
them more accountable for their decisions and actions in the workplace.
 Corollary to the empowerment concept, a more concrete mechanism
for empowering the bureaucracy is its professionalization. The objective of
professionalization efforts is to make the public servant more competitive
and at par with their private counterparts.

Civil servants, despite the supposedly tight controls of accountability

and the rhetoric of merit and fitness, have always been perceived to be
inferior to private workers in terms of quantity and quality of output,
trustworthiness and work ethic as a whole. However, the ultimate goal of
professionalization efforts is to evolve a dedicated, and committed workforce
who will render the best kind of service to the people. Professionalization
can be institutionalized through:

a) Imposing higher standards for recruitment, promotion and

retention of personnel;
b) Continuous improvement and updating of knowledge, skill, and
abilities;
c) Sharing of fruitful or gainful experiences; and
d) Revision or modification of compensation package, incentives and
rewards.

Other Bureaucratic Concepts and Theories

There is no way to avoid a certain level of bureaucracy in government;

how else could such functions as courts of law be administered without
some bureaucracy? But it shows in this book why the bureaucratic
approach must lead to disaster when applied to economic production and
distribution. He also shows why growing economic control inevitably leads
to greater control over all aspects of individuals' lives. It discusses why
young people are the primary victims of increasing bureaucracy, condemned
to start at the lowest rung of a ladder of bureaucratic rules and regulations
and deprived of the opportunity to shape their own lives. The result of too
much bureaucracy, is an overly rigid, inflexible system immune to any
attempts to reform or improve it. This classic work grows in importance with
each passing year!

The last century saw the perfection of the bureaucracy -- a form of

organization that has been enormously successful and is the result of
thousands of years of trial and error evolution. Max Weber outlined the key
characteristics of a bureaucracy:
  Specification of jobs with detailed rights, obligations, responsibilities,
scope of authority;
 System of supervision and subordination;
 Unity of command;
 Extensive use of written documents;
 Training in job requirements and skills;
 Application of consistent and complete rules (company manual); and
 Assign work and hire personnel based on competence and experience

Today, many of these principles seem obvious and commonplace.

However, they are all inventions --- organizations did not always have these
features. Today we also think of bureaucracies as inefficient, slow and
generally bad. In Weber's time, they were seen as marvelously efficient
machines that reliably accomplished their goals. And in fact, bureaucracies
did become enormously successful, easily out-competing other organization
forms such as family businesses and ad-hocracies. They also did much to
introduce concepts of fairness and equality of opportunity into society,
having a profound effect on the social structure of nations.

However, bureaucracies are better for some tasks than others. In

particular, bureaucracies are not well-suited to industries in which
technology changes rapidly or is not yet well-understood. Bureaucracies
excel at businesses involving routine tasks that can be well-specified in
writing and don't change quickly.

Weber's Rational Bureaucracy

At the turn of the century a sociologist named Max Weber began to

study the new forms of organization being developed for managing large
numbers of people in far-flung and complex activities. Since he was
German, he was very familiar with Moltke's development of the General Staff
(see course packet material on 19th Century Bureaucracies). Furthermore,
Germany had been an early leader in developing a civil service. At the same
time, German industry was beginning to adopt the organizational methods
developed in the United States. Surveying this scene, Weber attempted to
isolate the elements common to all of these new organizations.

Weber concluded that all these new large-scale organizations were

similar. Each was a bureaucracy. Today many of us regard bureaucracy as a
dirty word, suggesting red tape, inefficiency, and officiousness As we shall
see, bureaucracies can develop these features, especially if authority is
highly centralized. Weber's purpose, however, was to define the essential
features of new organizations and to indicate why these organizations
worked so much better than traditional ones. Let us examine the features
that Weber found in bureaucracies.

Above all, Weber emphasized that bureaucratic organizations were an

attempt to subdue human affairs to the rule of reason-to make it possible to
conduct the business of the organization "according to calculable rules." For
people who developed modern organizations, the purpose was to find
rational solutions to the new problems of size Weber saw bureaucracy as
the rational product of social engineering, just as the machines of the
Industrial Revolution were the rational products of mechanical engineering

He wrote:

"The decisive reason for the advance of bureaucratic organization has

always been its purely technical superiority over any former organization. The
fully developed bureaucratic mechanism compares with other organizations
exactly as does the machine with non-mechanical modes of production."
[Weber, 1946].

For Weber the term bureaucracy was inseparable from the term
rationality. And we may speak of his concept as a "rational bureaucracy"
But what were the features developed to make bureaucracies rational? We
have already met them: (1) functional specialization (2) clear lines of
hierarchical authority, (3) expert training of managers, and (4) decision
making based on rules and tactics developed to guarantee consistent and
effective pursuit of organizational goals.

Weber noted additional features of rational bureaucracies that are

simple extensions of the four just outlined, To ensure expert management,
appointment and promotion are based on merit rather than favoritism, and
those appointed treat their positions as full-time, primary careers. To
ensure order in decision making, business is conducted primarily through
written rules records, and communications.
Weber's idea of functional specialization applies both to persons within an
organization and to relations between larger units or divisions of the
organization.

We have already seen how this applied to Swift & Co. Within a Swift
packing plant, work was broken down into many special tasks, and
employees were assigned to one or a few such tasks, including the tasks
involved in coordinating the work of others. (Such coordination is called
administration or management.) Furthermore, Swift was separated into a
number of divisions, each specializing in one of the tasks in the elaborate
process of bringing meat from the ranch to the consumer. Weber argued
that such specialization is essential to a rational bureaucracy and that the
specific boundaries separating one functional division from another must be
fixed by explicit rules, regulations, and procedures.

For Weber it was self-evident that coordinating the divisions of large

organizations requires clear lines of authority organized in a hierarchy. That
means there are clear "levels of graded authority." All employees in the
organization must know who their boss is, and each person should always
respect the chain of command; that is, people should give orders only to
their own subordinates and receive orders only through their own
immediate superior In this way, the people at the top can be sure that
directives arrive where they are meant to go and know where responsibilities
lie.

Furthermore, hierarchical authority is required in bureaucracies so

that highly trained experts can he properly used as managers. It does little
good to train someone to operate a stockyard, for example, and then have
that manager receive orders from someone whose training is in advertising.
Rational bureaucracies can be operated, Weber argued, only by deploying
managers at all levels who have been selected and trained for their specific
jobs. Persons ticketed for top positions in bureaucracies are often rotated
through many divisions of an organization to gain firsthand experience of
the many problems that their future subordinates must face. [Recall how
Moltke rotated his General Staff officers through various regiments.]

Finally, Weber stressed that rational bureaucracies must be managed

in accordance with carefully developed rules and principles that can be
learned and applied and that transactions and decisions must be recorded
so that rules can he reviewed. Only with such rules and principles can the
activities of hundreds of managers at different levels in the organization be
predicted and coordinated. If we cannot predict what others will do, then we
cannot count on them.

Moltke had to be sure that staff officers faced with an unexpected

crisis would solve it as he would. To ensure that, officers had to be trained
in Moltke's tactical principles and rules. Similarly Gustavus Swift had to
know that his stockyards would not buy meat faster than his packing plants
could process it or that more meat would not be shipped than his eastern
refrigerators could accommodate, of course, it is impossible to spell out
detailed rules to fit all contingencies. Therefore, decision makers must be
highly trained and must report their decisions promptly and accurately to
their superiors.
 For a long time, Weber's rational bureaucracy model dominated social
science thinking about large, modern organizations. If organizations did not
operate quite as Weber had said a bureaucracy should, then the solution
was to bring them in line with the ideal bureaucratic procedures. However
by World War II, sharp criticism of Weber's ideas began to surface. social
scientists began to argue that Weber had ignored much of what really went
on in organizations-the conflicts, the cliques, and the sidestepping of rules
and the chain of command. The problem, according to Philip Selznick
1948,1957), lay in the fact that bureaucracies were not and could not be
like machines because they consisted of human beings. In the final
analysis, people will simply not imitate machines. (Based on "The
Organizational Age" by Rodney Stark in Sociology, 3rd Edition)

The Crux of Bureaucratic Management

The plain citizen compares the operation of the bureaus with the
working of the profit system, which is more familiar to him. Then he
discovers that bureaucratic management is wasteful, inefficient, slow, and
rolled up in red tape. He simply cannot understand how reasonable people
allow such a mischievous system to endure. Why not adopt the well-tried
methods of private business?

However, such criticisms are not sensible. They misconstrue the

features peculiar to public administration. They are not aware of the
fundamental difference between government and profit-seeking private
enterprise. What they call deficiencies and faults of the management of
administrative agencies are necessary properties. A bureau is not a profit-
seeking enterprise; it cannot make use of any economic calculation; it has
to solve problems which are unknown to business management. It is out of
the question to improve its management by reshaping it according to the
pattern of private business. It is a mistake to judge the efficiency of a
government department by comparing it with the working of an enterprise
subject to the interplay of market factors.

There are, of course, in every country’s public administration

manifest shortcomings which strike the eye of every observer. People are
sometimes shocked by the degree of mal-administration. But if one tries to
go to their roots, one often learns that they are not simply the result of
culpable negligence or lack of competence. They sometimes turn out to be
the result of special political and institutional conditions or of an attempt to
come to an arrangement with a problem for which a more satisfactory
solution could not be found. A detailed scrutiny of all the difficulties
involved may convince an honest investigator that, given the general state of
political forces, he himself would not have known how to deal with the
matter in a less objectionable way.

It is vain to advocate a bureaucratic reform through the appointment

of businessmen as heads of various departments. The quality of being an
entrepreneur is not inherent in the personality of the entrepreneur; it is
inherent in the position which he occupies in the framework of market
society. A former entrepreneur who is given charge of a government bureau
is in this capacity no longer a businessman but a bureaucrat. His objective
can no longer be profit, but compliance with the rules and regulations. As
head of a bureau he may have the power to alter some minor rules and
some matters of internal procedure. But the setting of the bureau’s
activities is determined by rules and regulations which are beyond his
reach.

It is a widespread illusion that the efficiency of government bureaus

could be improved by management engineers and their methods of scientific
management. However, such plans stem from a radical misconstruction of
the objectives of civil government.

Like any kind of engineering, management engineering too is

conditioned by the availability of a method of calculation. Such a method
exists in profit-seeking business. Here the profit-and-loss statement is
supreme. The problem of bureaucratic management is precisely the absence
of such a method of calculation.

In the field of profit-seeking enterprise the objective of the

management engineer’s activities is clearly determined by the primacy of the
profit motive. His task is to reduce costs without impairing the market value
of the result or to reduce costs more than the ensuing reduction of the
market value of the result or to raise the market value of the result more
than the required rise in costs. But in the field of government the result has
no price on a market. It can neither be bought nor sold.

Let us consider three examples.

A police department has the job of protecting a defense plant against

sabotage. It assigns thirty patrolmen to this duty. The responsible
commissioner does not need the advice of an efficiency expert in order to
discover that he could save money by reducing the guard to only twenty
men. But the question is: Does this economy outweigh the increase in risk?
There are serious things at stake: national defense, the morale of the armed
forces and of civilians, repercussions in the field of foreign affairs, the lives
of many upright workers. All these valuable things cannot be assessed in
terms of money. The responsibility rests entirely with Congress allocating
the appropriations required and with the executive branch of the
Government. They cannot evade it by leaving the decision to an
irresponsible adviser.

One of the tasks of the Bureau of Internal Revenue is the final

determination of taxes due. Its duty is the interpretation and application of
the law. This is not merely a clerical job; it is a kind of judicial function. Any
taxpayer objecting to the Commissioner’s interpretation of the law is free to
bring suit in a Federal court to recover the amount paid. Of what use can
the efficiency engineer with his time and motion studies be for the conduct
of these affairs? His stopwatch would be in the wrong place in the office
rooms of the bureau. It is obvious that—other things being equal —a clerk
who works more quickly is a more desirable employee than another who is
slower. But the main problem is the quality of the performance. Only the
experienced senior clerks are in a position to appreciate duly the
achievements of their aides. Intellectual work cannot be measured and
valued by mechanical devices.

Let us finally consider an instance in which neither problems of

“higher” politics nor those of the correct application of the law are involved.
A bureau is in charge of buying all the supplies needed for the technical
conduct of office work. This is a comparatively simple job. But it is by no
means a mechanical job. The best clerk is not he who fills out the greatest
number of orders in an hour. The most satisfactory performance is to buy
the most appropriate materials at the cheapest price.

It is therefore, as far as the management of government is concerned,

not correct to assert that time study, motion study, and other tools of
scientific management “show with reasonable accuracy how much time and
effort are required for each of the available methods” and that they therefore
“can show which of the possible methods and procedures require the least
time and effort.” All such things are quite useless because they cannot be
coordinated to the quality of the work done. Speed alone is not a measure of
intellectual work. You cannot “measure” a doctor according to the time he
employs in examining one case. And you cannot “measure” a judge
according to the time he needs to adjudicate one case.

If a businessman manufactures some article destined for export into

foreign countries, he is eager to reduce the man hours spent for the
production of the various parts of the commodity in question. But the
license required for shipping this commodity abroad is not a part of the
commodity. The government in issuing a license does not contribute
anything to the production, the marketing, and the shipping of this
commodity. Its bureau is not a workshop turning out one of the parts
needed for the finishing of the product. What the government aims at in
making exports depend on the grant of a license is restraint of export trade.
It wants to reduce the total volume of exports or the volume exported by
undesirable exporters or sold to undesirable buyers. The issuance of
licenses is not the objective but a technical device for its attainment. From
the point of view of the government the licenses refused or not even applied
for are more important than those granted. It would therefore not be to the
purpose to take “the total man hours spent per license” as the standard of
the bureau’s performance. It would be unsuitable to perform “the operation
of processing the licenses . . . on an assembly line basis.”

There are other differences. If in the course of a manufacturing

process a piece gets spoiled or lost, the result is a precisely limited increase
in production costs. But if a license application is lost in the bureau,
serious damage may be inflicted upon a citizen. The law may prevent the
individual harmed from suing the bureau for indemnification. But the
political and moral liability of the government to deal with these
applications in a very careful way remains nonetheless. The conduct of
government affairs is as different from the industrial processes as is
prosecuting, convicting, and sentencing a murderer from the growing of
corn or the manufacturing of shoes.

Government efficiency and industrial efficiency are entirely different

things. A factory’s management cannot be improved by taking a police
department for its model, and a tax collector’s office cannot become more
efficient by adopting the methods of a motor-car plant. Lenin was mistaken
in holding up the government’s bureaus as a pattern for industry. But those
who want to make the management of the bureaus equal to that of the
factories are no less mistaken. There are many things about government
administration which need to be reformed. Of course, all human
institutions must again and again be adjusted anew to the change of
conditions. But no reform could transform a public office into a sort of
private enterprise. A government is not a profit-seeking enterprise. The
conduct of its affairs cannot be checked by profit-and-loss statements. Its
achievement cannot be valued in terms of money. This is fundamental for
any treatment of the problems of bureaucracy.

Evolution and Development of Philippine Bureaucracy

Pre- Spanish Rule

The political structure prior to Spanish rule in the Philippines

provided the most rudimentary services to the people. This local institution,
known as the barangay, was headed by a chief called datu or rajah and was
assisted by a council of elders who were responsible for the maintenance of
internal peace and defense, tribute collection, and administration of justice.

Spanish Rule

A highly centralized colonial administration was superimposed on the

widely dispersed and community- based system of government. A civil
service was created whereby various functionaries performed integral
executive, judicial, and religious powers. The distinctive feature of this
bureaucracy was that it was a corrupt and non- career service.

Bureaucracy had five main department: (1) Army; (2) Navy; (3)
Justice; (4) Finance, and (5) Directorate General of Civil Administration

The American Period

The Americans had always claimed that it was their aim to give the
Philippines a modern and efficient civil service since the inefficient and
corrupt administrative system under the Spaniards was one of the causes of
discontentment and revolution among the Filipinos. 1900- Philippine
Commission passed Act for the establishment of an effective and honest
Civil Service in the Philippines (Act No. 5, Sept. 19, 1900). Under this law,
all position from the rank of bureau director or below were placed under the
civil service. There were Six Departments namely: Finance Justice, Public
Instruction, Interior, Agriculture and Natural Resources, and Commerce
and Communications.

The Philippine Commonwealth (1935)

1935 Constitution- Article XII of this constitution contained separate

provision on the civil service, stipulated that all branches and subdivisions
of the government were under the civil service.

-appointments should be made only according to merit and fitness to be

determined by competitive examinations.

- Three additional departments: National Defense, Labour and health, and

Public Welfare. Several bureaus ,offices and government corporations were
created

The Marcos Regime

1965
The executive branch of the government is composed of nineteen
ministries. These are Foreign Affairs, Finance, National Defense,
Agriculture, Natural Resources, Trade and Industry, Public Works and
Highways, Transportation, Social Services, Education and Culture, Labor
and Employment, Health, Public Information, Agrarian Reform, Local
government, Tourism, energy, Human Settlements and Youth and Sports
Development.

Two Major Features of The Philippine Bureaucracy:

a.
The staff services, and line and staff bureaus

b. The reorganization of planning and administration

1. The Services and the Bureaus:

* Integrated Reorganization Plan (IRP)- provides for the uniform

organization of staff services for the various ministries in order to assist it in
the performance of its function.

* Planning Service- responsible for providing the ministry with economic,

efficient, and effective services relating to planning, programming, and
project development.

Divisions:

Planning and Programming Division

Project Development and Evaluation division
Research and Statistics Division
Financial and management Services- provides the ministry with staff
advice and assistance on budgetary, financial and management
improvement matters.

Administrative Services- responsible for providing the ministry model with

economic, efficient and effective services relating to personnel, legal,
 assistance, information, records, supplies, equipment, collections,
disbursement, and security and custodial work.

Divisions:

Personnel Division
Legal Division
Information Division
General Services Division
Technical Services- to take charge of technical staff activities that are
unique to a ministry and which cannot be allocated to any other
service or bureau of the ministry

2. The Reorganization of Planning and Administration

a. Reorganization Planning- refers to the identification of the region as a

major unit for purposes of planning and development. It is designed to
develop other ‘growth poles’ in order to minimize migration to Metro
Manila.

b. Reorganization of Administration- refers to the process of transferring

governmental functions from the central offices of line ministries to the
regions. It involves the transfer of some administrative and substantive
powers and functions from central offices to regional offices in order to
facilitate field operations of the national government

The Ministry Model

This model is similar to the integrated field service model which is

used in case where a ministry or agency performs primary one major
function, for example, the MEC rendering educational service, or for
agencies rendering closely related functions, for example, the Ministry of
Health which provides medical services, environmental sanitation services,
and other related aspects of health.
* A direct line of authority exists between the agency head (the minister)
and the regional director.

* Administrative Culture During Aquino’s Administration

1986 snap election- lead to Aquino’s victory

* EDSA Revolution (People Power)- joint military- civilian effort that

ousted the dictator.
 * Revolutionary Government- the process of power consolidation and
political normalization their by abolished the Batasang Pambansa, and
nullified the 1973 constitution.

* Instituted the “Freedom Constitution”- through Proclamation No. 3 on

March 25, 1996 and empowered the president to reorganize the government

* Executive Order No. 1 signed into law on February 28, 1996 that
organized the Presidential Commission on Good Government (PCGG)
Purposes:

- To recover the ill-gotten wealth

- To cleanse the government of inefficiency and callousness and graft
and corruption.

Executive Order No. 5, a law signed on 12 March 1986- PCGG Reorganized.

Objectives

- To streamline the political structure of the government

- To reduce the bureaucracy to appropriate size necessary to make it
more responsive to public service

1987 CONSTITUTION

Provides that the Civil Service embraces all branches, subdivisions,

instrumentalities and agencies of the government, including government-
owned or controlled corporations with original charters.

R.A. No. 6656- Known as the reorganization act of 1987, laid down
the ground rules for restructuring the bureaucracy with a view towards
protecting the rights of public servants against arbitrary and unjust
dismissals.

Book V of Executive Order No. 292 or Administrative Code of 1987-

basis for the general provisions on civil service, its coverage, organization
and functions of the Civil Service Commission, interdepartment relations,
personnel policies and standards, right to self- organization, prohibitions,
leave of absence and miscellaneous provision
Problems of The Philippine Bureaucracy

1. Centralization - Concentration of power, decision, making, and control

over substantive and administrative matters in the hands of the central
government and national officials.

2. Decentralization - Deconcentration or devolution of power to the local

government units or to the regional offices.

3. Duplication and overlapping of functions which refers to a situation

whereby one organizational unit performs a task or a function already
performed by other unit; whereas Overlapping refers to the presence of
more than one capability for action within a given unit of a system.

4. Inadequate Coordination- lack of coordination between the central

planning office and the implementing departments.

5. Graft and Corruption- leads to the favoring of inefficient procedures, the

unfair and inequitable distribution of scarce public resources and the
leakage of reserve from the government coffer to private hands.

6. Red Tape and Inefficiency

A bureaucratic disease, failure or pathology characterized by

excessive devotion to formality, ritualized adherence to routine, technicism
or over-conformity in the pursuit or implementation of laws, policy, rules,
regulations, procedures, and so forth, leading to duplicative paper work,
delay, inaction, or other unreasonable requirements.

- Cumbersome and complicated procedures- the processing of papers

in government is unsystematic and time - consuming

7. Ineffective Administration of Public Enterprises- Public corporation have

been mismanaged, partly because of a lack of executive skill but partly also
because of a lack of cost consciousness.

8. The inadequacy of the Communication system

9. Problems in Personnel Administration

Characteristic Features of Philippine Bureaucracy
Given the scope and coverage of administrative operations, it is just
reasonable and not unusual that a bureaucracy is the type of organizational
structure adopted by the Philippine government. In the first place, the
scope of its coverage, the multiplicity of services and functions undertaken
and the size of manpower requirements necessitate a structure that is
ideally designed to cope up to these challenges and constraints. On the
basis of the issues and factors discussed previously, that type of structure
is a bureaucracy.

However, a closer look at Philippine bureaucracy indicate some

deviations from the ideal purpose. Some of its characteristics negate the
desirable features of an ideal bureaucratic organization. These are the
following:

a) Vulnerability to Nepotism - Underlying Philippine bureaucracy are

substructures of small kinship groups. Members of family groups by
consanguinity, by affinity, and by ritual kinship (or compadrazo) give
top priority to family loyalty. Within such groupings, all of them feel
that they are under obligation to help each other in a variety of ways.
(Leveriza, 2nd Ed.)

b) Perpetuation of the Spoils System - The passage of the Civil Service

Law (Executive Order 292) has set up, beside the classified service,
unclassified and temporary positions which have become convenient
instruments for the practice of nepotism, of patronage, and of
influence-peddling. Lately, however, Executive Order 292, as
amended, has put greater restrictions on nepotic appointments.

c) Apathetic Public Reaction to Bureaucratic Misconduct - The almost

daily publication of official misconduct become a part of the normalcy
in recent decades. The people looked upon the phenomenon as a
concomitant result of the increasing complexity of the government, a
method of political harassment, and a natural way of fulfilling political
promises to the unemployed and underemployed segments of the
population.

Recent events, such the popular People Power II Movement that

led to the ouster of a President perceived to have unashamedly tainted
his office with immoral and criminal conduct, augers well for thing to
come. There is the general feeling of hope for bureaucratic reforms,
since the citizenry have successfully exercised their fundamental
prerogative to choose who may govern the country
 d) Availability of External Peaceful Means of Correcting Bureaucratic
Weaknesses - Devices, such as constitutional rights and privileges,
freedom of speech, freedom of the press, freedom of assembly, civic
action have been used for rectifying the defects and misdeeds of the
bureaucracy.

e) Survival of Historical Experience - Centralized in organization, the

Philippine political bureaucracy was administered according to a civil
law system which the Spanish bureaucracy prescribed. Filipinos have
used this as the scapegoat for all the weaknesses of it own
bureaucracy. Likewise, the American “spoils system” has been a
prominent feature of the national bureaucratic landscape. This
happened when the American model with its organizational structure
and operational procedures, was adopted.

f) Non-special Typing of Bureaucrats - Filipino bureaucrats do not

comprise a clear-cut social class. Other occupational groups do not
look upon civil service as “a special calling” reserved for a special
class or group of persons with specific habits, skills, motives,
interests, prerogatives, values, and symbols to be consciously
pursued, promoted, protected, respected or assailed. Thus, Filipino
bureaucratic organization consists of persons with family
backgrounds, aspirations, educational training, and work
experiences.

g) Lack of Independence from Politics - Because of the absence of “class

consciousness” and a feeling of unity on the part of the Filipino
Bureaucrats and the stigma of post-World War II ill repute, the
bureaucracy’s Merit System was easily the subject of attack and
tampering by politicians. They worked through the legislative and
executive branches of the national government.

h) Essential Instrument of Social Change - In spite of its weaknesses, its

function in nation-building will be as big, as complicated, and as
demanding as the function of the whole society itself. Primarily, it will
have to be a tool for innovations.

On the basis of the preceding discussions, it appears that the

country cannot sustain efforts towards structural reforms and the drive
towards service orientation without addressing the human dimension. For
much too long, the Philippine bureaucracy has been maligned and taken for
granted as hopelessly incorrigible. In spite of its weaknesses, however, its
relevance usefulness in carrying our massive public administration policies
and programs, its all-too important function in nation-building will be as
big, as complicated, and as demanding as the function of the whole society
itself.

Given this view, not enough attention and resources have been
devoted to addressing the lot of the ordinary government employee. The
government employee tend to breath life and perpetuate the stereo-typed
“bureaucrat” as marginally useful, corrupt, and inefficient. Thus, there is a
pressing need to foster a caring bureaucracy – one that takes care of its
own even as it performs its role as servants of the people.

The Philippine Civil Service System

The term Civil Service, is a generic term referring to the body of men
and women employed by the government to carry out public services. They
are responsible for the administration of laws, policies and programs in
the bureaucracy. The scope and coverage of the civil service embraces all
branches, subdivisions, instrumentalities, and agencies of the government,
including government-owned or controlled corporations with original
charters. (C.S. Law & Rules, Implementing Book 5, E.O. 292)

Concomitantly, a central personnel agency is established to take

direct charge of the administration of the Philippine bureaucracy - the Civil
Service Commission. As such, the Constitution vests the CSC with special
independence as the central personnel agency of the government. Thus, it is
mandated to provide leadership in the recruitment, maintenance,
development, and retention of an efficient and effective workforce that is
truly responsive to the needs of the public. However, to understand better
the character of the Philippine Civil Service as it evolved through the
decades, a brief historical background on the development of the
bureaucracy is necessary.

Historical Perspective

The Philippine colonial past forms a large part of the history of the
civil service. Had it been allowed to take its own course, it could have
possibly led to the formation of an autonomous government and thus, a
largely indigenous civil service. It was then feasible since the internal
dynamics of nationhood were already there, such as: a) the presence of
social classes and their stratified roles; and b) the existence of “barangays”
which were then in the process of confederating themselves into a larger
political unit. (Civil Service Reforms in The Philippines: Patricia. A. Sto.
Tomas, CSC, 1991)

Spanish Colonial Period

As the first colonizing power, Spain’s most significant imprint, among

others, in the evolution of the Philippine Civil Service in its introduction of
the concept of centralism in government personified by the Governor-
General. His power and position made him the center of government
authority. Due to the numerous barangays scattered all over the
archipelago, centralism, as a concept grew more out of convenience to place
these autonomous political units under a single ruler – the Governor-
General.

The concept, however, was not perfect. At the organizational level, it

led to formalism; at the individual level, a highly personalized relationship.
These two traits, at that time, formed a part of the Filipino orientation
towards politics. Unfortunately, Spain’s decline as a colonial power, ushered
in America’s ascendancy.

The American Regime

Unlike the Spanish venture which was characterized by its religious

impulse, and the British experience which was distinguished by its
economic character, the American expansion was undertaken in the
absence of a constant purpose which may be said to constitute the colonial
objective. Being a newcomer in the colonial venture explains why there were
no established traditions or policies to guide America’s actions. Instead, the
policies adopted tended to be empirical, realistic, and flexible. The approach
was pragmatic as it were. In fact, there was considerable experimentation in
the approaches to policy-making and practices.

American colonialism, however, made a profound influence in the

formal institution of today’s Philippine Civil Service. The new colonialists
saw all the evils of centralism, of the union of the church and state, and the
use of force as a means of control. Thus, the creation of several power
centers of political authority or decentralization. The concept of checks and
balance was introduced; popular participation encouraged; Filipinization of
the government undertaken; efficiency, effectiveness, and the merit system
installed. To ensure control and dominance, the Americans exercised
thought control through colonial education by way of institutionalizing the
public school system.
The Japanese Interregnum

Japan’s imperial design and militarism has resulted in the temporary

disappearance of American colonialism from the scene. Japan attempted to
restructure the bureaucracy to suit its own colonial needs. Innovation were
introduced, such as giving corresponding credit to licensure (board)
examinations with civil service eligibilities. Eventually, Japan lost the war
and with it went its colonial dream. It did not take long for America to re-
assert its dominance since the Filipino mind was already in the American
mold. Thus, the continuing influence of the U.S. even to this day.

Evolution and Development of the Philippine Civil Service

The Civil Service System in the Philippines, as we know it today, is a

creation of the American regime in the country. It is generally considered to
be one of the beneficent legacies from that colonial experience and its image
as clean and prestigious during the American period continues to persist to
the present day. Its more checkered history during the days of the
independent republic is something that Filipinos accept or deplore and
explain. But this does not diminish the commitment to the original
philosophy and principles that were accepted early in the century. (Jose N.
Endriga; The Civil Service in the Philippines)

Phase I - The Early Years

Politically speaking, the contrast with the unlamented Spanish regime

was glaring. The separation of church and state, the completely secular
character of the latter, the political participation of the Filipinos in all levels
of government, were worlds apart from the Spanish system where the power
of the priests, the minimal participation of natives in government gave the
Filipinos practically no experience in running their own affairs.

Political Neutrality

The political institutions set up in the Philippines were in accordance

with the democratic and republican character of political institutions in the
United States. The administration of the colony was placed in the hands of a
non-political civil service. The civil service thus introduced represented a
favorable confluence of Filipino aspirations and American intentions. By the
time the system was introduced into the country, it was essentially a
“finished product, ” where efficiency, economy, and merit were not only
dominant values, but had engendered (offshoot of the Pendleton Act
controversies of 1883) the concept of political neutrality. All these were
incorporated into the Civil Service Act of September 19, 1900, for the
“Establishment and Maintenance of an Efficient and Honest Civil Service in
the Philippines.” (Endriga)

Characteristics

The system was, first of all, broad in coverage and centralized in

organization. It place under one system the classified personnel of all
divisions and organs of the insular, provincial, and municipal governments.
The Civil Service Board (later the Bureau of Civil Service) which had
administrative control of the system was an independent office under the
immediate supervision and control of the American Governor-General.

Additional commentaries to the established system is that its

advocates found the Philippine version superior to that of the American
style in two respects: It was free from the “spoils system”, and it had a much
broader coverage being applied to all positions in the civil administration of
the government. Moreover, civil servants enjoyed security of tenure,
attractive hours of work, generous leave privileges, and prestigious career.

However, as a matter of policy and practice, Americans were paid

higher salaries than Filipinos occupying the same positions. In fact more
Americans were occupying the higher positions in the civil service while the
lower ones were filled almost exclusively by Filipinos. This illustrates the
Republican ( party administration) policy of “A government of Americans,
assisted by Filipinos.” Thus, the American were placed in the role of tutors,
“to tech techniques and substance of expertise to subordinate Filipino
bureaucrats.”

Phase II – Period of Growth

Filipinization of the Bureaucracy

The most important reason for the transformation of the civil service
was the policy of “Filipinization” itself pursued by the Republican
administration. This had been effectively written into the Civil Service Law
itself and seemed to have been strictly adhered to in practice. Filipino
participation in the civil service was further increased after 1913.
Governor-General Francis Burton Harrison implemented the Democratic
policy of rapid Filipinization by way of forced resignations, reduction in pay
of the higher positions, abolition of certain positions, and the creation of
“conditions that were intolerable to many senior Americans in the service.”
By 1919, Americans constituted only six percent (6%) of the total
bureaucratic force. Hence, the situation resulted in what has been referred
to as “a bureaucracy of Filipinos, assisted by Americans.”

The Commonwealth Period

Despite all the changes that had occurred and the proof that Filipinos
are capable of the expectations of running their government, the situation
until 1935 was still a colonial one, with the natives still ultimately
accountable to their colonial rulers. In the latter years, however, the
Commonwealth period eventually gave the Filipinos greater control over
their own affairs. With greater number of Filipinos at the helm of the
government, skeptical expectations were rife. On the contrary, the period
witnessed the strengthening further of the principles of merit and political
neutrality.

The first manifestation is the inclusion of the civil service system into
the Constitution which was not provided for under the Tydings-Mcduffie
Law establishing the Commonwealth government. Another is the elevation
of the Bureau of Civil Service from second-class to first class with the
corresponding upgrading of the Office of the Civil Service to Commissioner
of civil Service with the rank of Undersecretary of Department. For his part,
President Manuel L. Quezon committed his administration to the principles
of an advanced civil service. Other highlights of this era include, but are
not limited, to the following:

* Act No. 177 (1937) Extended the civil service to all branches and
subdivisions of the government;
* Applied the principles of competitive examinations to all positions;
* Empowered the Civil Service Commissioner to institute disciplinary
measures;
* Reiterated the security of tenure concept; and
* Instituted safeguards to the merit system
* Creation of the GSIS (1936) - Institutionalized personnel insurance
and retirement;
 * Government Survey Board - Effectively assessed administrative and
organization resources;
* Position Classification System (1940)

Independent Republic

The emergence of the Two-Party system had a significant effect on the

civil service – vulnerability to partisan politics where party interests could
find accommodation (spoils system). By 1950, the Bell Commission
(requested by the Philippine Government) noted that all the positive gains in
the Commonwealth period were greatly eroded by the vicissitudes of the
Second World War.

One of the earliest initiatives was the establishment in the country of

the first school of public administration in 1952 (Institute of Public
Administration) in the University of the Philippines. The Civil Service Act of
1959 (R.A.2260), 1) amended, repealed or improved existing provisions of
the Civil Service Law and further strengthened the merit system; 2) provided
for measure for carrying out more effectively and economically the
requirements of the public service

Phase III – Contemporary Civil Service

Issues and Concerns

Since its formal establishment in 1900, the Philippine Civil Service

has been updating its objectives to suit the changing needs of the time.
Essentially, these objectives were beamed toward the following: a) to ensure
and promote the merit and fitness principle in the bureaucracy; and b) to
provide within the public service a progressive system of personnel
administration to ensure the maintenance of an honest, efficient and
progressive civil service.

Constitutional and Statutory Provisions

Three cardinal documents put in place the reorganization of the

present Philippine civil service system, viz., 1) The Integrated Reorganization
Plan (IRP) or Presidential Decree No. 1, September 24, 1972; 2) The 1973
Constitution; and 3) P.D. 807 or the Civil Service Decree of the Philippines
issued on October 6, 1975.
Civil Service Reforms

Through the years the Philippine government has been instituting

reforms in the civil service to maintain relevance and credibility in directing
the country’s growth and development. The latest of these attempts is a
policy direction for the professionalization of and humanizing the
bureaucracy towards preparing the civil service to the challenges of the new
millennium. This is expressed in terms of officials and employees meeting
prescribed standards and enhancing their accessibility, answerability, and
accountability. (C. Alma De Leon: Reinventing Philippine Bureaucracy)

Features of Contemporary Philippine Civil Service

1. Merit Protection
2. Position Classification
3. Constitutional/Legal Safeguards
4. Continuing Reforms
5. Categories of Positions -

Career Service:

a. Entrance based on merit and fitness

b. Opportunity for advancement
c. Security of Tenure

(1) Career Positions:

Open Career - needs prior qualification for appointment

Closed Career - scientific or highly technical
Career Executive Service – US, AS, Dept/Bureau Director,
Career Officers appointed by the President
Commissioned Officer & Enlisted men of the AFP
Personnel of Government Owned or Controlled Corporations
Permanent Laborers (skilled or semi-skilled)

(2) Levels of Positions:

 1st Level - Clerical, custodial, trades & crafts positions
nd
2 Level - Professional, technical & scientific positions
3rd Level - Position in the Career Executive Service
(4) Non-Career Positions:

Elected officials
Department Heads/Cabinet Rank (at the pleasure of the Pres.)
Chairmen & members of Commissions
Contractual personnel
Emergency/Seasonal personnel

Part IV
THE ADMINISTRATIVE STRUCTURE

The Administrative State

One of the most obvious features of recent writing on public

administration is its large volume and wide scope, together with an
increasing tendency to specialized, factual, and empirical studies. Much of
the specialization is in the functional aspect of administration, rather than
in its institutional aspects. The increasing global cooperation among nations
tends to affect administrative thinking. First, is that since crises usually
result in centralization and integration of authority, such effects is seen to
be strengthened further. Second, is in converse with the first, i.e. the
success of the movement to decentralize and democratize administration
depends upon the subsidence of threat to security of the state.

Herring (1936; cited by Shafritz & Hyde: 1997) asserts that

bureaucracy suffers from want of hierarchical organization and personnel
united by a harmonious concept of government service. Yet a bureau of this
type and nature arouses suspicion and criticism of interest groups.
However, Groups of citizens seeking to advance their own interests or to
protect themselves from the onslaught of rivals turn to the government for
aid. On one hand, these groups perceives government to serve them, on the
other hand they expect at least that government does not interfere with their
purposes. Thus, the new public administration has to expand its approach
especially on the social equity aspect as it deals with human beings living
together and whose interest and welfare are to be justly and fairly enhanced
and well-promoted

Strengthening Urban Governance

 The world is rapidly changing and growing. In the last 50 years alone,
the worlds population increased by almost three times its number from 2.5
billion to 6 billion. Although unprecedented growth and innovations have
transformed how people live and where they choose to live, these great
transformations have also brought (Metha & Buendia: 2004) increasing
poverty and inequality particularly, in urban areas of developing regions.
Unless, however, there is substantial intervention to counter the impacts of
rapid urbanization an globalization, the poverty and marginalization of the
urban poor will continue to manifest even at times of growth and
innovations.

There are several misconceptions of urban realities not fully captured

in economic or urban development studies, planning, and processes. It is
commonly perceived that 1) the urban poor do not contribute to national
development; 2) public expenditures are more concentrated in urban areas;
3) human security is less severe in urban areas; 4) there are more
employment opportunities in urban areas; and 5) the urban poor have more
access to basic services compared to rural areas.

These are misconceptions. They are perceived as mere recipients of

development, not partners to achieve development and their contribution
to the national gross domestic product is often ignored. Public expenditures
on urban areas is increasing, but concentrated more on public
infrastructure. There is also increasing poverty in urban areas strongly
manifested by expansion or mushrooming of informal settlements. Likewise,
access to basic services by the urban poor is inadequate or lacking.

Such challenges can be addressed by promoting organizations and

participation of the urban poor and similar stakeholders by involving them
in slum development. Policies and programs should promote their
participation in the formulation, financing, and implementation of local
development plans and projects, which build on the knowledge and
expertise of the poor themselves to improve their quality of human
existence.

Decentralization brings with it many challenges for metropolitan local

governments. Attempts have been made to provide insights and examples of
how some local governments around the world have responded to those
challenges from a governance perspective. The key conclusion is that there
is no one solution or single governance model, rather there are a range of
potential solutions or options which need to be selected and tailored to the
needs and motivations of each local government.
Emerging Metropolitan Arrangement In The Philippines

As Philippine cities become larger and ever more crowded, the country
is facing an urban crisis. The high rate of urbanization is placing huge
strains on both national and local governments. These authorities are
struggling to manage growth, to provide necessary levels of basic human
services, to maintain and expand infrastructure, to provide adequate
housing, to stimulate economic growth, and to protect the urban ecosystem.

Another serious challenge facing urban regions in the Philippines is

the fragmentation of the metropolitan governance process. ( Jerry P. Treñas;
2004). As urban development spills out across several municipal
jurisdictions and onwards into the countryside, existing institutional
arrangements for managing the metropolis have been insufficient. Local
government Units have tended to focus on development planning within
their own jurisdictions, but have hardly shown much regard for regional
growth management imperatives across the metropolis. Innovating new
institutional models in metropolitan governance that promote integrated
and coordinated approaches to planning and development is critical in
addressing the complex challenges of the country’s fast growing city regions.

The types of metropolitan arrangements that emerged in recent years

vary across the country. These ranges from the establishment of a formal
upper-tier governance structure within the metropolitan area (e.g. MMDA),
to the less formal consensus-based metropolitan development councils, and
finally to the establishments of a sub-regional development board
encompassing both urban and peri-urban regions (e.g. Metro Davao).
Except for the Metro Manila Development Authority, all the country’s
metropolitan arrangements are the result of locally-driven initiatives
emerging out of a desire to formalize inter-local government cooperation and
to improve the quality of urban life.

Metropolitan Governance: Mega-Urban Regions

For the start of the New Millennium, (Laquian: 1990) twenty-eight (28)
urban agglomerations have a population of eight (8) million or more. By this
time, however, there may be some substantial deviations from the data. Be
that as it may, all except six of these urban centers, are in developing
countries which gives evidence of such assertion that urban regions are
engines of economic growth. Most countries facing this dilemma have been
necessarily constrained to formulate and adopt pertinent strategies to
achieve a balance between the growth of these economic engines against the
negative social consequences of unrestrained urban explosion.
 Many countries tried several approaches to mega-urban regional
governance. In many cases, however, the system of governance is based on
urban function, viz., 1) allocation of primary authority; 2) coverage of
government structure; and 3) degree of centralization/decentralization of
power; and 4) the extent of citizen participation.

The Philippine Administrative Structure

Scope and Jurisdiction

Public administration or government covers a multitude of

responsibilities that can be briefly summarized into generally accepted
functions, such as 1) Protection; 2) Regulation; 3) Control; and 4) Service
Assistance. Public administration activities may, therefore, be classified into
four (4) broad categories, viz.: (Tendero, 1993)

1. Government activities undertaken to protect society as a whole. This

includes national defense; protective services such as the police, fire
protection, jail management; education; and environment.

2. Activities designed to provide assistance to economic and social groups.

3. Activities undertaken in the exercise of proprietary and corporate powers.

4. Activities undertaken to regulate business, manufacturing, trade and

commerce

(1) Public Administration Programs:

Types of programs undertaken public administration may be classified into

the following:

1. External - Includes foreign affairs activities on a government-to-

government basis:

a. Trade promotion and other economic linkages e.g., manpower

deployment;

b. Cultural and educational exchange activities of international

organizations,;

c. Activities of Commercial, Labor and Cultural Attaches, etc.

2. Regulatory - Concerned with activities intended to regulate the:

a. Operation of business enterprises, domestic or foreign;

b. Banking activities;
c. Practice of professions;
d. Quality control of products;
e. Standards specification;
f. Price control; and
g. Public convenience certification

3. Service Programs - refers to those activities directly administered by the

government which directly affect individuals and groups. These include
postal services; social security functions; medical care; government
insurance; social welfare; labor and such other direct service efforts of
government which involves, but not limited to, the activities of the
following:

a. Postal Service (now a quasi-judicial corporate entity

b. Social Security (SSS);
c. Government Insurance (GSIS);
d. Medical Care (Philippine Health Insurance Corp)
e. Housing (PAG-IBIG / HDMF);
f. Puericulture/Child-care Centers;
g. Physical & Mental Health Centers;
h. Social Welfare Services; and
i. Labor Welfare and Adjudication, etc.

4. Development Programs - these are generally designed to direct socio-

economic transformation efforts to build self-reliant communities ; and
develop geographical areas and regions through the formation of
development bodies or authorities.

5. Grants-in-Aid Programs - these are projects undertaken with subsidy

funds, partly or wholly, from external sources, Some are given without
strings attached, but most of these carry requirements and conditionality.

Some prescribe the program activity; others leave program plan and
implementation to the recipient country. Lately, however, grants are
administered directly by the donor organizations or countries. Some of these
donors are:
a. ODA (Overseas Dev’t. Assistance) of Japan
b. ESF (Economic Support Fund) of the U.S.
c. PAP (Philippine Aid Program)
d. JICA (Japan Int’l. Cooperation Agency), etc

Departments of Government (Administrative Components)

There is no constitutional nor statutory prescription as to the number

of departments in the executive branch of the Philippine government.
However, Functional distribution of work and performance of functions by
the executive have to be considered. Definitely, the control powers of the
President under Section 17, Article VII of the Constitution tasks him with the
responsibility to faithfully carry out the mandate of the law and empowers
him to finally decide the number of departments.(Tendero, 1993)

(1) Policy Guidelines:

In organizing departments, certain policy guidelines are observed.

Program planning and implementation must be in accordance with national
policies. To ensure economy and efficiency, to minimize duplication and
overlapping of activities, bureaus and offices of a department are grouped
on the basis of major functions.

There is decentralization of departmental functions in order to reduce

red-tape, free national officials of administrative details and relieve them of
routine local matters. There is delegation of appropriate authority to
subordinate officials, with decision-making made at a level closest to the
community clientele.(Adm. Code, 1987)

(2) Jurisdiction of the Department

The department possesses jurisdiction over bureaus, offices,

regulatory agencies and government-owned and controlled corporations
assigned to it by law. The administrative relationship of the department with
the sub-units and agencies over which it possesses jurisdiction are of three
(3) categories, viz.,:

a. Supervision and Control – this refers to the authority to direct

performance of duty; restrain the commission of acts; review, approve or
modify acts and decisions of subordinate units and officials; prescribe
standards, guidelines, and programs; and determine priorities in executing
plans and programs.

b. Administrative Supervision - This relates to the relationship between a

regular department and regulatory agencies. It means overseeing the
operations of these agencies to ensure efficient, effective, and economical
management, provided there is no interference in the activities of the
agencies concerned.

The department may require the agency to submit reports; conduct

management audit; performance evaluation and inspection to determine
compliance with policies, standards, and guidelines set by the department.
As a disciplinary measure and control mechanism, the department may
take appropriate action to require performance of official functions, rectify
violations and other abuses and similar kinds of mal-administration.

c. Attachment - This term applies to the lateral relationship between a

department and the attached agency or corporation for policy and program
coordination. The department is entitled to have a representative in the
corporate board of the agency, while the latter is required to come up with a
periodic report on the status of its programs and projects. Through the
department representative, general policies are outlined for the agency to
guide its internal policies. Internal operation, however, are a matter of
internal concern for the agency.

(3) Authority Delegation:

To implement plans and programs effectively, authority over and

responsibility for operations may be delegated to bureau and regional
directors. The extent of such delegation is circumscribed by the need for
economy, efficiency, and effective implementation of national and local
programs in accordance with policies and standards developed by the
department. The regional and field offices are the operating arms of the
bureaus. As counterparts of the bureaus in the region, they are directly
responsible to the bureau director for the operations they undertake.

The Departments of Government

There are two hundred sixty-eight (268) agencies composed of twenty-

one (21) administrative departments; one hundred nine (109) attached
entities; and one hundred thirty-nine (139) other agencies. For
administrative purposes, the twenty-one administrative departments
include the National Development Authority (NEDA) and the Office of the
Press Secretary.

These are grouped into eleven (11) sectors based upon mission or
purpose, overall programs and specific plans and functions of the agencies
concerned. The powers, function, and responsibilities of the departments
and component units are based on the provisions of the Administrative
Code of 1987, Agency and Program Targets, pertinent executive orders, and
other issuances of the President, Cabinet Resolutions, and department
orders.

(1) GENERAL GOVERNMENT SECTOR

The agencies involved in the development and maintenance of an

organization structure supportive of general governmental administration
include the following:

a. Department of Budget and Management (DBM)

b. Department of Finance (DOF)
c. Department of Foreign Affairs (DFA)
d. National Economic Development Authority (NEDA)
e. Office of the Press Secretary

1. Department of Budget and Management - Its two basic concerns have

to do with budget functions and control; and management services.

a) Constituent Offices:

1. The Budget Operations

2. The National Accounting and Finance Office

a) Line Bureaus:

1. National Government and Finance Bureau;

2. Local Government Accounting and Finance Bureau;
3. Government Corporate Accounting and Finance Bureau

2. Department of Foreign Affairs - The lead agency assisting the

President in the field of foreign relations guided by the paramount
considerations of national sovereignty, territorial integrity; and the right to
self-determination.
 Its powers and functions include: the conduct of relations with
other states; negotiate treaties and other agreements as authorized
by the President in coordination with other appropriate government
agencies; promote trade investments, tourism, and economic relations;
foster cultural relations and enhance positive image of the Philippines
abroad; protects and assists Philippine nationals abroad; performs legal
documentation functions; and provide information about events in other
countries which have a bearing upon Philippine national interest.

a) Department Units/Entities:

1. The Home Office which includes line/operations units which are

organized to take charge of the different geographic areas of the world such
as the following:

a. Office of ASEAN Affairs

b. Office of Asian and Pacific Affairs
c. Office of American Affairs
d. Office of European Affairs
e. Office of Middle Eastern and African Affairs

b) Attached Agencies:

a. Law of the Sea Secretariat

b. Inter-Agency Committee on Economic, Scientific,
Technical cooperation with Socialist Countries (SOCOM)
c. Inter-agency Technical Committee on Technical Cooperation
Among Developing Countries (IATC-TCDC)
d. Permanent Inter-Agency Technical Committee on ESCAP Matters
(PITCE)

2. The Foreign Service Establishment consisting of :

a. Fifty-two (52) diplomatic missions composed of Fifty (50) embassies

and
b. Two (2) United Nations missions;
c. One hundred three (103) consular posts with
d. Two (2) consular establishments headed by honorary consular
officers

a) Personnel Assigned to the Foreign Service Establishment:

a. Trade and Industry Attache

b. Labor and Employment Attache
 c. National Defense Attache
d. Tourism Attache
e. Agriculture Attache
f. Philippine National Bank
g. Bureau of Internal Revenue
h. Commission on Filipino Overseas
i. Commission on Audit

3. Service Offices and Councils assisting the line units which takes charge
of administering qualifying examinations for career foreign service officers:

a. Foreign Service Institute

b. Board of Foreign Service Examiners
c. Board of Foreign Service Administration

3. Department of Finance - This department is mandated to ensure sound

and efficient generation and management of the fiscal and financial
resources of government. Among its functions, are the following: reviews,
approves and manages all public sector debt, local and foreign; ensure that
borrowed funds are effectively used and obligations properly serviced by the
government; seeks to strengthen government capacity to generate its own
financial resources; supervises revenue operations of local governments to
make them less dependent upon national government funding; makes use
of different type of sourcing like revenues and operations, foreign and
domestic borrowing, and sale or privatization of assets; and supervision of
revenue collection, custody and management of government financial
resources, debt negotiation, servicing and restructuring.

a) Working Groups:

1. Policy Development and Management Services Group & Revenue

Operations Group -

b) Component Bureaus :

Bureau of Internal Revenue

Bureau of Customs

2. Corporate Affairs Group - and financial institutions including the assets

and privatization office. Oversees the operations of government corporations
3. Domestic Finance Group - Takes custody, including the management
and administration of government revenues.

a. Bureau of Treasury as the principal custodian of funds and

manager of the cash resources of government

b. Bureau of Local Government Finance which oversees local

government revenue administration and fund management,
including sourcing, collection mechanisms, credit utilization,
local taxation, and real property assessment

4 International Finance Group - Assists in the formulation of policy

guidelines for borrowing; international financial negotiations of new loans,
debt re-scheduling; ensures implementation of foreign-funded projects;
and compliance with debt repayment obligations

(2) AGRICULTURE, AGRARIAN REFORM and ENVIRONMENT SECTOR -

The basic concern of this sector is to achieve growth that is geographically
dispersed and demographically equitable.

1. Department of Agriculture - Its primary concern is the promotion of

agricultural growth. In pursuit of this goal, its efforts are dedicated to the
uplift of the quality of life, specially of the small farmers, fishermen, and
other rural workers. It envisions sustainable resource productivity, a
progressive rural economy with dynamic agro-industrial countryside
communities. This countryside thrust implements the principle of social
justice enshrined in the Constitution.

a) Line Bureaus:

1. Bureau of Animal Industry for the development and expansion of

livestock, poultry, and dairy industries; Quality standards in the
manufacture and sale of livestock, poultry, and allied industries are
prescribed by this bureau.

2. Bureau of Plant Industry aims at producing improved plant

materials; protection of agricultural crops from pests, and other plant
diseases; development and improvement of farm equipment and structure
related to plant industry; and the formulation of policies regarding plant
quarantine.
 3. Bureau of Fisheries and Aquatic Resources is responsible for the
management, development and proper utilization of fishery and aquatic
resources and undertakes studies on the economics of the fishing industry.

4. Bureau of Soils and Water Management renders assistance on

matters related to the utilization and management of soils and water
which includes water resource preservation, and rain-making projects for
watersheds and agricultural areas during prolonged droughts.

5. Bureau of Agricultural Research undertakes researches and

establishes linkages with research institutions, especially state colleges and
universities.

6. Agricultural Training Institute trains agricultural extension workers

and their clientele and communicates research results to farmers and
fishermen through appropriate training and extension activities.

Support services for policy and planning such as the regional offices
are set to provide frontline services to the clientele. Implementation and
monitoring of its programs as the provincial level is the responsibility of the
Provincial Agriculture and Fisheries Officer; and for the municipal and
barangay levels, that of the Municipal Agriculture and Fisheries Officer

b) Attached Agencies:

Philippine Coconut Authority (PCA)

National Food Authority (NFA)
Agricultural Credit Policy Council
Livestock Development Council
National Agricultural Fishery Council (NAFC)
National Nutrition Council
Philippine Administrative and Technical Committee for
Southeast Asia Fisheries Development Culture (SEAFDEC)

2. Department of Agrarian Reform - Coordinates the national reform

program to transform farm tenants and lessees into owner-cultivators
through the exercise of such general functions, as it provides leadership
in the development of support services to tenant-farmers, farm managers,
and other cultivators; and assist the financing, production, marketing, and
other aspects of farm management;
a) Line Bureaus:
 1. Bureau of Agrarian Legal
2. Bureau of Land Development
3. Bureau of Land Tenure Development
4. Bureau of Agrarian Reform Beneficiaries Development
5. Bureau of Agrarian Reform Information Education

3. Department of Environment and Natural Resources - this is the primary

agency of government for the sustainable development of natural resources
and ecosystems. Its tasks include sustainable development of forests
resources; optimal utilization of lands and minerals; efficient and socially
equitable use of resources; and effective environmental management. It
implements the mandate of the constitution to conserve and develop the
natural resources of the country.

It plays a significant role in addressing the issues of resource

depletion; environmental degradation; inequitable distribution and
allocation of lands and natural resources; upland poverty and continuous
influx of lowland migrants; tenurial problems in the public domain;
rationalization of forest-based industries; and small scale mining

a) Line Bureaus:

1. The Forest Management Bureau aims at the effective protection,

development, and conservation of forest lands, watershed areas, grazing
lands, and mangroves. It reforests and rehabilitates critically-denuded and
degraded forests; develops water resources and national parks; preserves
wilderness and game refuges, wildlife sanctuaries and ancestral lands;
propagates industrial tree plantations, tree and agro-industrial farms like
rattan, bamboo and other timber products.

2. The Land Management Bureau manages alienable and

disposable lands in the public domain and reclaimed lands, commercial and
industrial and urban properties which are not within the responsibility of
other government agencies.

3. The Mines and Geo-Sciences Bureau provides assistance to the

mining sector in the development of applicable technologies in geological
surveys and assessment of mineral resources; laboratory services for
geological, metallurgical, chemical, and rock mechanics; and assists in the
conduct of marine geological and geophysical exploration drillings. It
enforces mining laws to ensure compliance with safety standards for mining
operations.
 4. The Environmental Management Bureau is concerned with the
environmental quality standards for land, air, water, noise and radiation.
Assessment of the environmental impact of projects to ensure proper
disposal of solid and other toxic and hazardous wastes are enforced by this
bureau.

5. The Ecosystem Research and Development Bureau is engaged in

integrated research in the Philippine ecosystems and natural resources
aimed at developing the technologies supportive of its thrusts.

6. The Protected Areas and Wildlife Bureau is committed to the

conservation of wildlife and other protected areas like national parks,
wildlife sanctuaries and other sensitive environmental areas.

b) Attached Agencies:

1. Population Adjudication Board .

2. National Mapping and Resource Information Authority
3. Natural Resources Development Corporation
4. National Electrification Adm.

(3) TRADE and INDUSTRY SECTOR

1. Department of Tourism is the agency for the promotion of tourism as

a major socio-economic activity for generating foreign currency and
employment; spread tourism benefits to a wider segment of the population;
assure safe, convenient and enjoyable stay and travel of local and foreign
tourists.

(a) Line Bureaus:

1. Bureau of International Tourism Promotion

2. Bureau of Domestic Tourism Promotion
3. Bureau of Tourism Information
4. Office of Tourism Standards

(b) Service Units:

1.a Office of Tourism

1.b Office of Development Planning
1.c Tourism Coordination
2. Department of Trade and Industry - It is mandated to coordinate,
promote, and regulate trade, industry and investment activities. It is
committed to intensify private sector activity and sustain economic growth
through a socially responsible liberation and deregulation program and a
comprehensive growth strategy. It also aims at protecting Filipino
enterprises against foreign competition and trade practices.

(a) Working Groups:

1 Industry and Investment Group - (Board of Investments;

Bonded Export Marketing Board; Construction Industry Authority;
Council for Investment; and Export Processing Zone Authority)

2 International Trade Group - (Bureau of Export Trade

Promotion; Foreign Trade Service Corps; Bureau of International
trade Relations; Center for International Trade Expositions and
Missions; Garments and Textile Export Board; Philippine
International Trading Corporation; International Coffee Organization-
Certifying Agency; Philippine shipping Council; and Philippine Trade
Training Center)

3 Policy, Planning and Special Concerns Group - (Bureau of Import

Services; Cottage Industry Technology Center; Center for Labor
Relations Assistance; and Construction National Manpower Training
Council)

4 Administrative and Technical Services Group - (Bureau of

Patents, Trademarks and Technology Transfer; Financial Management
Services; Office of Legal Affairs; and General Administrative Services)

5. Regional Development - (Bureau of Domestic Trade Promotion;

Bureau of Trade Regulation and consumer Protection; Bureau of
Product Standards; and Bureau of Small and Medium Business
Development)
(4) INFRASTRUCTURE and ENERGY SECTOR

Goods and services provided include Infrastructure; Power;

Transportation and Communications. These provide the physical foundation
for the economy to operate efficiently. These responsibilities are carried out
by three (3) departments, viz.:

1. Department of Public Works and Highways is the engineering and

construction arm of the nation. It plans, designs and maintains and
operates infrastructure facilities like national highways, flood control, water
resources development systems and other public works.
Most of the field operations responsibilities of the department are
implemented by the regional offices set up in the different geographic
regions of the country, the district offices, and the engineering offices of the
city governments. There is a Project Management Office responsible for local
and foreign-assisted projects.

a) Technical Bureaus:
1. Bureau of Design
2. Bureau of Construction
3. Bureau of Maintenance
4. Bureau of Equipment
5. Bureau of Research and Standards

2. Department of Transportation and Communications is responsible for

the promotion, development and regulation of dependable and coordinated
networks of transportation and communications and postal services. These
are needed to enhance mobility and coordination of the constituent sectors
of the nation.

a) The Land Transportation Franchising and Regulatory Board with quasi-

judicial powers with respect to land transportation. It prescribes and
regulates routes and zones of operation of public land transportation
services. It is also responsible for the issuance of Certificates of Public
Convenience or permits for the operation of public land transportation

b) Line Offices:

Land Transportation Office

Air Transportation Office

3 Telecommunications Office

a) Attached Agencies/Corporations:

1 Metro Manila Transit Corporation

2 Philippine National Railways
3 Light Railway Transit Authority
4 Philippine Aerospace Development Corporation
5 Civil Aeronautics Board
6 Philippine Ports Authority
7 National Telecommunications Commission
8 Maritime Industry Authority
3. Department of Energy - Created by virtue of Republic Act 7638
(Department of Energy Act of 1992), this is the most recent department of
government. It is charges with the responsibility of carrying out programs
related to energy supply requirements of the country. This department
advises the President and the Cabinet on policies concerning energy.

It aims at pursuing a policy of intensive exploration, production,

management, and development of indigenous energy resources; encourage
participation of the private sector in energy resource development; integrate
and coordinate government policies to achieve self-sufficiency and enhance
energy and power productivity while maintaining the ecological balance of
the environment.

a) Operating Bureaus:

1 Energy Resource Development Bureau - is responsible for

formulating and implementing policies for developing and increasing
domestic supply of local energy sources like fossil fuels, nuclear fuels, and
geothermal resources; formulating programs for exploration, development
and extraction of local energy sources; provide consultative training and
advisory services to practitioners and institutions engaged in such activities;
and provide policy guidelines relative to the operation of service contractors.

2 Energy Utilization Management - is responsible for the formulation

and implementation of policies relative to economical transformation,
conversion, processing, marketing, and storage of petroleum, coal, natural
gas, geothermal and other non-conventional energy resources, like wind,
solar, biomas, among others; monitor sectoral energy consumption; audit
energy management advisory services and technology application projects
on utilization; formulation of an integrated rural energy program and an
operational plan for fuel, oil, and energy source allocation in the event of
critically low energy supply; coordinates with the Department of
Environment and Natural Resources on matters regarding environmental
standards and develops middle and long-term energy technology
development strategies in cooperation with the Department of Science and
Technology.

3 Energy Administration Bureau - assists in the formulation of

regulatory policies and set standards for the operation of government and
private sector entities involved in energy resource supply activities, whether
conventional or non-conventional. It formulates policies, guidelines, and
requirements relative to the operations of oil companies, dealers of
petroleum products, coal importing and distribution companies, natural gas
distribution companies, power producers and other suppliers of
conventional energy.

4 Energy Planning and Monitoring Bureau - assists in the

development and updating short, medium, and long-term energy plans;
assesses demand and supply options, including the impact of energy
policies upon the economy, the environment and the quality of life of the
people; reviews programs and plans for power development, local energy
source development and production and energy importation; reviews and
analyzes current patterns of energy consumption in relation to economic
growth and development performance; guarantees the restoration,
protection, and enhancement of the quality of the environment, public
health and safety.

b) Attached Agencies:

1 Philippine National Oil Company

2 National Power Corporation
3 National Electrification Administration

(5) EDUCATION, CULTURE & MANPOWER DEV’T. SECTOR

1. Department of Education - formulates, implements and coordinates

policies, programs and projects in the field of formal and non-formal
education at all levels. It supervises public and private educational
institutions; establishes and maintains an integrated system of education
relevant to the goals of national development.

a) Functional Bureaus:

1 Elementary Education
2 Secondary Education
3 Technical/Vocational Education
4 Tertiary/Higher Education
5 Non-Formal Education
6 Physical Education/School Sports

b) Attached Offices/Entities:

1 National Museum
2 National Library
3 Institute of Philippine Languages
 4 Instructional Materials Corporation
5 National Historical Commission

2. Department of Labor and Employment - is responsible for promoting

gainful employment opportunities and optimizing the development and
utilization of the Philippine labor force. It implements labor and social
legislation and regulates relations between worker and employer.

a) Operational Bureaus:

1 Bureau of Labor Relations

2 Bureau of Local Employment
3 Bureau of Women and Young Women
4 Bureau of Rural Workers
5 Bureau of Working Conditions

b) Attached Offices/Entities:

1 National Wages Council

2 Philippine Overseas Employment Administration
3 National Manpower and Youth council
4 Employees Compensation Commission

(6) HEALTH and SOCIAL WELFARE SECTOR

The efficient operation of the economy rests upon provision of health,

housing and other social services, and the performance of these fulfills not
only the humanitarian functions but also reinforces the collective effort to
pursue development goals.

1. Department of Health - Its primary function includes the promotion,

protection, preservation and restoration of the health of the people through
delivery of health services and goods. These are performed by the following:

a) Line Offices:

1 Office for Public Health Services takes charge of maternal and child
health, tuberculosis control, family planning, environmental health,
nutrition, dental health, malaria control, schistosomiasis control, control of
non-communicable and communicable diseases
2 Office for Hospitals and Facilities Services is responsible for hospital
operations and management, radiation health, hospital maintenance and
health infrastructure.

3 Office for Standards and Regulations has the following entities to

formulate and enforce regulatory policies and standards over the various
health services:

b) Bureaus:

1 Bureau of Research and Laboratories sets up policies for the

establishment, accreditation and licensing of laboratories, blood banks and
entities handling biological products.

2 Bureau of Food and Drugs prescribes general standards and guidelines to

check on the veracity of nutritional and medicinal claims of products being
advertised; enforce rules and regulations pertaining to food, drugs,
cosmetics, traditional medicine and household products.

3 Bureau of Licensing and Regulation issue licenses and regulates

hospitals, clinics, and other health facilities; sets standards to be used for
inspection and licensing.

4 The National Quarantine Office formulates and implements

quarantine laws and regulations through its field offices; supervises
rat-proof zones in international airports, and conducts examination of
aliens for immigration purposes.
5

c) Attached Entities:

1. Philippine Health Insurance Corporation (PhilHealth)

2. Philippine Children’s Medical Center
3. Dangerous Drugs Board
4 Philippine Heart Center
5. Philippine Lung Center
6. Kidney Institute

2. Department of Social Welfare and Development - Is mission is to

protect and rehabilitate the physically and mentally disabled and the
socially disadvantaged to restore them to effective social functioning and
participation in community affairs. The goal is to assure their well-being
and liberate the poor from deprivation.
a) Functional Bureaus:

1 Bureau of Emergency Assistance for relief and rehabilitation of

victims of natural calamities and social disorganization, including cultural
communities and other distressed and displaced person.

2 Bureau of Family and Community Welfare gives assistance to socially

disadvantaged families and communities including family planning and
outreach programs.

3 Bureau of Disabled Persons Welfare is engaged in disability

prevention and rehabilitation of the physically, mentally and socially
disabled.

4 Bureau of Women’s Welfare give special attention to the prevention

and eradication of all forms of exploitation of women like illegal recruitment
and prostitution.

5 Bureau of Child and Youth Welfare takes care of the abandoned,

abused, neglected and exploited children, delinquents, offender, street
children, and victims of prostitution.

b) Attached Entities:

1 Population Commission
2 Council for the Welfare of Children
3 National Nutrition Council
4 National Council for Disabled Persons

(7) DEFENSE SECTOR

To guarantee the sovereignty of the Republic of the Philippines, its

territorial integrity and the security of its people, three entities have been
established, viz.,:

1. Department of National Defense provides security, stability, peace and

order needed for economic growth and development. National security
encompasses not only politico-military but also socio-economic strength.

a) Entities:

Government Arsenal for the manufacture of munitions for the military

establishment and mobilization of civilian industry to augment its
production capacity in times of emergency;
2 Office of Civilian Defense for coordinating the various entities of the
national government, private institutions and civic organizations for the
protection of the civilian population and property in times of war or national
emergency;

3 Philippine Veteran’s Office administers the benefits to veterans and their

beneficiaries ; provides medical care and treatment; assistance to widows
and dependents and retired military personnel;

4 National Defense College of the Philippines develops national defense and

civilian leaders and selected private executives for effective participation in
the formulation of national policies;

5 Veterans Memorial Center provides medical and dental care to veterans

and their dependents; and

6 Armed Forces of the Philippines upholds the sovereignty of the state,

supports the constitution, defends the territory and provides national
security.

b) Service Commands:

a. Philippine Army
b. Philippine Navy
c. Philippine Air Force
d. Marine Corps
e. Coast Guard

(8) SCIENCE and TECHNOLOGY SECTOR

Science and technology are crucial to industrialization. Here, the

thrust is discovery and development of indigenous technologies and
adoption of the foreign to the local environment. The government supports
self-reliant scientific and technological capabilities needed for the productive
system of the country in the context of development goals.

1. Department of Science and Technology – has five Sectoral Planning

Councils for formulating policies and programs and strategies for science
and technology development and monitoring research projects.

a) Sectoral Planning Councils:

 1 Philippine Council for Industry and Energy Research and
Development
2 Philippine Council for Agriculture, Forestry and Natural Resources
3 Philippine Council for Health Research and Development
4 Philippine Council for Aquatic and Marine Research and
Development
5 Philippine Council for Advance Science and Technology research
and Development

b) Research Institutes:

1 Industrial Technology Development

2 Philippine Nuclear Research
3 Forest Products Research and Development
4 Food Nutrition Research
5 Philippine Textile Research
6 Advanced Science and Technology
7 Science Education
8 Science and Technology Information
9. Technology Application and Promotion
10. Philippine Atmospheric, Geophysical and Astronomical Services
Administration (PAG-ASA)
11 Philippine Volcanology and Seismology Institute (PhiVolcs)

(9) PUBLIC ORDER and SAFETY SECTOR

The state provides a mechanism to ensure a just and humane society

under the rule of law and a regime of justice, freedom, love, equality and
peace. Deprivation of life, liberty and property may be done only after due
exhaustion of the due process of law clause of the constitution.

1. Department of Justice is the legal counsel and prosecuting arm of the

government. It maintains a just and orderly society through effective, speedy
and compassionate administration of justice.

a) Operational Units:

1 Government Corporate Counsel provides legal services to the national

government and its functionaries and the government-owned-and controlled
corporations;
2 National Bureau of Investigation (NBI) for the detection, investigation and
prosecution of crimes;

3 Public Attorney’s Office to extend free legal assistance, representation of

indigents and poor litigants in criminal cases and in non- commercial civil
disputes;

4 Board of Pardons and Parole to conserve and redeem human resources

by granting parole, recommending pardon, probation and other forms of
executive clemency to qualified convicts and accords humane treatment to
prisoners;

5 Bureau of Corrections for the rehabilitation of prisoners;

6 Parole and Probation Administration for managing the parole and

probation system and supervising all parolees and probationers;

7 Land Registration Authority preserves and safeguards the integrity of

land titles through proper registration and other legal documents;

8 Bureau of Immigration provides immigration and naturalization regulatory

services and implements laws governing citizenship, admission and stay of
aliens;

9 Commission on the Settlement of Land Problems investigates and

arbitrates untitled land disputes involving small land owners and those of
indigenous cultural communities;

10 Office of the Solicitor General is an independent and autonomous office

attached to the department to act as the law firm of the Republic of the
Philippines. It prosecutes and defends government actions and policies,
including those of the public officers when sued in the exercise of their
duties.

a. Office of the Chief Prosecutor assists in the performance of powers and

functions of the department relative to the role of prosecution arm of the
government.

(10) LOCAL GOVERNMENT SECTOR

The local autonomy thrust has resulted in a responsive and

accountable local government structure instituted through decentralization.
Correspondingly, powers and revenues have been allocated to local
government units and given just share in national taxes and equitable share
in the proceeds of natural resources. Community empowerment forms part
of this mandate.

1. Department of Interior and Local Government is responsible for

performing the above-mentioned functions.
a) Operational Line Units:

1 Bureau of Fire Protection for the improvement and integration of

fire prevention and suppression services and the coordination of the
activities of fire operation centers;

2 Bureau of Jail Management and Penology for providing security to

prisoners and promoting their spiritual, social, and moral well-being;

3 Philippine National Police for coordinating and directing activities of

police units through the National Police Commission;

4. Local Government Bureau provides guidance to local units through

issuance of policy and program guidelines and standards; encourages
community and citizen participation in the political and social development
of the barangays;

5. Local Government Academy for the training of local government

officials to enhance their technical capabilities and prepare them to
effectively handle their duties and responsibilities under an autonomous
local government set-up; and

6. Philippine Public Safety College to train local government employees

to meet emergencies arising from natural and man-made calamities.

7. Regional Offices to assist local units in the performance of their

functions.

(11) CULTURAL COMMUNITIES SECTOR

National programs consider the rights of indigenous cultural

communities in order to preserve their culture, traditions and institutions.
The smaller ethnic and religious groups are also entitled to democratic
space.

a) Operative Structures:
1. Kalinga Special Development Authority aims to hasten the growth and
development of the Kalinga to enable inhabitants to actively participate in
the task of national development;

2. Office of Muslim Affairs aims to preserve the culture, traditions and

institutions of Muslim Filipinos with due regard for national unity. Bureaus
are established to cover areas of Muslim settlement, cultural affairs,
cooperative development, pilgrimage and endowment, and external affairs;
3. Office of the Northern Cultrual Communities for the preservation of the
traditions and institutions of the northern cultural communities;

4. Office of the Southern Cultural Communities for the preservation of the

traditions and institutions of the southern cultural communities with due
regard for national unity and development.

Inter-governmental Relations
The Executive Department

Article 6 of the 1987 Constitution restores the presidential system

with certain modifications. The president is elected by a direct vote of the
people for a term of six years and is not eligible for reelection. The president
must be a natural-born citizen of the Philippines, at least forty years of age,
and a resident of the Philippines for at least ten years immediately
preceding the election.

The president is empowered to control all the executive departments,

bureaus, and offices, and to ensure that the laws are faithfully executed.
Presidential nominations of heads of executive departments and
ambassadors are confirmed by a Commission on Appointments, consisting
of twelve senators and twelve representatives. The president may grant
amnesty (for example, to former communists, Muslim rebels, or military
mutineers) with the concurrence of a majority of all the members of
Congress and, as chief diplomat, negotiate treaties, which must be ratified
by two-thirds of the Senate.

The constitution contains many clauses intended to preclude

repetition of abuses such as those committed by Marcos. The president's
spouse cannot be appointed to any government post (a reaction to Imelda
Marcos's immoderate accumulation of titles and powers). The public must
be informed if the president becomes seriously ill (a reaction to the belated
discovery of numerous kidney-dialysis machines in Marcos's bedroom in
Malacañang).

The president is prohibited from owning any company that does

business with the government. And the armed forces must be recruited
proportionately from all provinces and cities as far as is practicable, in order
to prevent a future president from repeating Marcos's ploy of padding the
officer corps with people from his home province.

Constitutional safeguards also prevent the president from ruling

indefinitely under emergency powers. Martial law may be proclaimed, but
only for sixty days. The president must notify Congress of the institution of
martial law within forty-eight hours, and Congress can revoke martial law
by a simple majority vote. The president may not abolish Congress. The
Supreme Court may review and invalidate a presidential proclamation of
martial law. Of course, Congress can grant the president emergency powers
at any time.

The vice president has the same term of office as the president and is
elected in the same manner. The vice president also may serve as a member
of the cabinet. No vice president may serve for more than two successive
terms. The president and vice president are not elected as a team. Thus,
they may be ideologically opposed, or even personal rivals.

In 1991 the president's cabinet consisted of the executive secretary

(who controlled the flow of paper and visitors reaching the president), the
press secretary, the cabinet secretary, and the national security adviser,
and the secretaries of the following departments: agrarian reform;
agriculture; budget and management; economic planning; education,
culture, and sports; environment and natural resources; finance; foreign
affairs; health; interior and local governments; justice; labor and
employment; national defense; public works and highways; science and
technology; social welfare and development; tourism; trade and industry;
and transportation and communications. Cabinet members directed a vast
bureaucracy--2.6 million Filipinos were on the government payroll in 1988.

The bureaucracy in the late 1980s was overseen by a constitutionally

independent Civil Service Commission, the members of which were
appointed by the president to a single nonrenewable term of seven years.
Because the Constitution prohibits defeated political candidates from
becoming civil servants, bureaucratic positions cannot be used as
consolation prizes.

Two problems, in particular, have plagued the civil service: (1)

corruption (especially in the Bureau of Customs and the Bureau of Internal
Revenue); and (2) the natural tendency, in the absence of a forceful chief
executive, of cabinet secretaries to run their departments as independent
fiefdoms. Bribes, payoffs, and shakedowns characterized Philippine
government and society at all levels.

The Philippine Chamber of Commerce and Industry estimated in 1988

that one-third of the annual national budget was lost to corruption.
Corruption also occurred because of cultural values. The Filipino
bureaucrat who did not help a friend or relative in need was regarded as
lacking a sense of utang na loob, or repayment of debts. Many Filipinos
recognize this old-fashioned value as being detrimental to economic
development. A 1988 congressional study concluded that because of their
"personalistic world view," Filipinos were "uncomfortable with bureaucracy,
with rules and regulations, and with standard procedures, all of which tend
to be impersonal." When faced with such rules they often "ignore them or
ask for exceptions."

The Legislative Department

 The Philippines is unusual among developing countries in having a
strong, bicameral legislature. The constitution establishes a 24-seat Senate
and a House of Representatives with 200 elected representatives and up to
50 more appointed by the president. Senators are chosen at large, and the
twenty-four highest vote-winners nationwide are elected. Senators must be
native-born Filipinos at least thirty-five years old. The term of office is six
years, and senators cannot serve more than two consecutive terms.
House of Representatives members are elected in single-member
districts (200 in 1991), reapportioned within three years of each census.
Representatives must be native-born Filipinos and at least twenty-five years
of age. Their term of office is three years, except that those elected in May
1987 did not have to face the electorate until 1992. They may not serve for
more than three consecutive terms. In addition, President Aquino was to be
empowered to appoint to the House of Representatives up to twenty-five
people from "party lists." This stipulation was intended to provide a kind of
proportional representation for small parties unable to win any single-
member district seats.

However, Congress did not pass the necessary enabling legislation.

The president also is allowed to appoint up to twenty-five members from so-
called sectoral groups, such as women, labor, farmers, the urban poor,
mountain tribes, and other groups not normally well-represented in
Congress, "except the religious sector." Making these appointments would
have provided an opportunity for Aquino to reward her supporters and
influence Congress, but she has left most such positions unfilled. All
members of both houses of Congress are required to make a full disclosure
of their financial and business interests.

The constitution authorizes Congress to conduct inquiries, to declare

war (by a two-thirds vote of both houses in joint session), and to override a
presidential veto with a two-thirds vote of both houses. All appropriations
bills must originate in the House, but the president is given a line-item veto
over them. The Senate ratifies treaties by a two-thirds vote.

The first free congressional elections in nearly two decades were held
on May 11, 1987. The pre-martial law Philippine Congress, famous for
logrolling and satisfying individual demands, was shut down by Marcos in
1972. The 1973 constitution created a rubber-stamp parliament, or
National Assembly, which only began functioning in 1978 and which was
timid in confronting Marcos until some opposition members were elected in
May 1984. In the 1987 elections, more than 26 million Filipinos, or 83
percent of eligible voters, cast their ballots at 104,000 polling stations.
Twenty-three of twenty-four Aquino-endorsed Senate candidates won. The
lone senator opposed to Aquino was former Minister of Defense Juan Ponce
Enrile, her husband's former jailer and her one-time defender. Enrile was
seated as the twenty-fourth and final member of the Senate, after the
Supreme Court ordered the Commission on Elections to abandon plans for
a recount.

The new legislature was formally convened on July 27, 1987. The
leader of the Senate is the Senate president, who stands next in the line of
succession for the presidency after the country's vice president. Generally,
the Senate had a reputation as a prestigious body with a truly national
outlook, in contrast to the House of Representatives, which had more
parochial concerns.

At least three-quarters of those elected to the House were endorsed by

Aquino, but her influence was less than these results might seem to
indicate. She never formed her own political party but merely endorsed men
and women with various ideologies who, because of their illustrious family
names and long political experience, were probably going to win anyway.
Out of 200 elected House members, 169 either belonged to or were related
to old-line political families. Philippine politics still was the art of
assembling a winning coalition of clans.

Congress did not hesitate to challenge the president. For example, in

September 1987, less than two months after the new Congress convened, it
summoned the presidential executive secretary to testify about the conduct
of his office. The following year, Congress also rejected Aquino's proposed
administrative code, which would have conferred greater power on the
secretary of national defense.

The internal operation of Congress has been slowed by inefficiency

and a lack of party discipline. Legislation often has been detained in the
forty-three House and thirty-six Senate committees staffed with friends and
relatives of members of Congress. Indicative of the public frustration with
Congress, in 1991 the National Movement for Free Elections (NAMFREL) and
the Makati Business Club formed a group called “Congresswatch” to
monitor the activities of sitting congress members and promote
accountability and honesty.
The Judicial Department

The legal system used in the early 1990s was derived for the most
part from those of Spain and the United States. Civil code procedures on
family and property and the absence of jury trial were attributable to
Spanish influences, but most important statutes governing trade and
commerce, labor relations, taxation, banking and currency, and
governmental operations were of United States derivation, introduced at the
beginning of the twentieth century.
 Judicial power is vested in a Supreme Court and in such lower courts
as may be established by law. The 1981 Judicial Reorganization Act
provides for four main levels of courts and several special courts. At the
local level are metropolitan trial courts, municipal trial courts, and
municipal circuit trial courts. The next level consists of regional trial courts,
one for each of the nation's thirteen political regions, including Manila.
Courts at the local level have original jurisdiction over less serious criminal
cases while more serious offenses are heard by the regional level courts,
which also have appellate jurisdiction.

At the national level is the Intermediate Appellate Court, also called

the court of appeals. Special courts include Muslim circuit and district
courts in Moro (Muslim Filipino) areas, the court of tax appeals, and the
Sandiganbayan. The Sandiganbayan tries government officers and
employees charged with violation of the Anti-Graft and Corrupt Practices
Act.

The Supreme Court, at the apex of the judicial system, consists of a

chief justice and fourteen associate justices. It has original jurisdiction over
cases affecting ambassadors, other public ministers, and consuls, and over
petitions for injunctions and writs of habeas corpus; it has appellate
jurisdiction over all cases in which the constitutionality of any treaty, law,
presidential decree, proclamation, order, or regulation is questioned. The
Supreme Court also may hear appeals in criminal cases involving a
sentence of life in prison. Article 3 of the Constitution forbids the death
penalty "unless, for compelling reasons involving heinous crimes, the
Congress hereafter provides for it."

The Supreme Court also regulates the practice of law in the

Philippines, promulgates rules on admission to the bar, and disciplines
lawyers. To be admitted to the Integrated Bar of the Philippines, candidates
must pass an examination that is administered once annually. Professional
standards are similar to those of the United States; the Integrated Bar
Association's code borrows heavily from the American Bar Association's
rules. Some 30,000 attorneys practiced law in the Philippines in the
mid1980s , more than one-third of them in Manila. Counsel for the indigent,
while not always available, is provided by government legal aid offices and
various private organizations. Many of the private groups are active in
representing "social justice" causes and are staffed by volunteers.

Members of the Supreme Court and judges of lower courts are

appointed by the president from a list of at least three nominees prepared
by the Judicial and Bar Council for every vacancy. The Judicial and Bar
Council consists of a representative of the Integrated Bar, a law professor, a
retired member of the Supreme Court, and a representative of the private
sector.

Presidential appointments do not require confirmation. Supreme

Court justices must be at least forty years of age when appointed and must
retire at age seventy. According to Article 11 of the constitution, members of
the Supreme Court "may be removed from office on impeachment for, and
conviction of, culpable violation of the Constitution, treason, bribery, graft
and corruption, other high crimes, or betrayal of public trust." The House
has exclusive power to initiate cases of impeachment. The Senate tries such
cases, and two-thirds of the Senate must concur to convict someone. The
judiciary is guaranteed fiscal autonomy.

The armed forces maintain an autonomous military justice system.

Military courts are under the authority of the judge advocate general of the
armed forces, who is also responsible for the prosecutorial function in the
military courts. Military courts operate under their own procedures but are
required to accord the accused the same constitutional safeguards received
by civilians. Military tribunals have jurisdiction over all active duty
members of the Armed Forces of the Philippines.

The traditional independence of the courts had been heavily

compromised in the Marcos era. Because the 1973 constitution allowed
Marcos to fire members of the judiciary, including members of the Supreme
Court, at any time, anyone inclined to oppose him was intimidated into
either complying or resigning. None of his acts or decrees was declared
unconstitutional. The thirteen Marcos-appointed Supreme Court justices
resigned after he fled, and Aquino immediately appointed ten new justices.

The Philippines has always been a highly litigious society, and the
courts often were used to carry on personal vendettas and family feuds.
There was widespread public perception that at least some judges could be
bought. Public confidence in the judicial system was dealt a particular blow
in 1988 when a special prosecutor alleged that six Supreme Court justices
had pressured him to "go easy" on their friends. The offended justices
threatened to cite the prosecutor for contempt. Aquino did not take sides in
this dispute. The net effect was to confirm many Filipinos' cynicism about
the impartiality of justice.

Justice was endlessly delayed in the late 1980s. Court calendars were
jammed. Most lower courts lacked stenographers. A former judge reported
in 1988 that judges routinely scheduled as many as twenty hearings at the
same time in the knowledge that lawyers would show up only to ask for a
postponement. One tax case heard in 1988 had been filed 50 years before,
and a study of the tax court showed that even if the judges were to work 50
percent faster, it would take them 476 years to catch up. Even in the
spectacular case of the 1983 murder of Senator Benigno Aquino, the judicial
system did not function speedily or reliably. It took five years to convict
some middle-ranking officers, and although the verdict obliquely hinted at
then Chief of Staff General Fabian Ver's ultimate responsibility, the court
never directly addressed that question.

The indictment of former Minister of Defense Enrile on the charge of

"rebellion with murder" shows that the courts can be independent of the
president, but also that powerful people are handled gently. Enrile was
arrested on February 27, 1990, for his alleged role in the December 1989
coup attempt in which more than 100 people died. Because Enrile was
powerful, he was given an air-conditioned suite in jail, a telephone, and a
computer, and a week later he was released on 100,000 pesos bail. In June
1990, the Supreme Court invalidated the charges against him. A further test
of the court system was expected in the 1990s when criminal and civil
charges were to be brought against Imelda Marcos.

In 1991 Aquino agreed to allow the former first lady, who could not
leave New York City without the permission of the United States Department
of Justice, to return to the Philippines to face charges of graft and
corruption. Swiss banking authorities agreed to return approximately
US$350 million to the Philippine government only if Marcos were tried and
convicted. Marcos did not seem to be reluctant to face the Philippine courts.
(References: Allrefer.com/Country-Guide-Study/Philippines; Manila Times, October
13, 1990; Roman R. Dannung, (2004). The Politics Governance and Government with
Philippine Constitution; Florentino G. Ayson (1993). The Foundation of Political
Science: National Bookstore)
 Part V
LOCAL GOVERNMENT, DECENTRALIZATION AND
EMPOWERMENT

The Nature and State of Local Government

While activities and programs of national government such as foreign

relations, currency, and defense are essential to the lifeblood of its citizen,
equally important are services residents get from their immediate
communities and the larger local government. In the Philippines, however,
as in some other countries, even mundane problems of day-to-day living are
blamed on the national government, largely because the national
government indeed gets involved in certain aspects of local administration.
It is therefore useful to know about what local governments are, how they
relate to the national government, and what they can do or actually do for
people in a polity. (Proserpina Domingo-Tapales)

Local Government

The national government in the 1990s sought to upgrade local

government by delegating some limited powers to local subdivisions and by
encouraging people to participate in community affairs. Local autonomy was
balanced, however, against the need to ensure effective political and
administrative control from Manila, especially in those areas where
communist or Muslim insurgents were active. In practice, provincial
governors gained considerable leverage if they could deliver a bloc of votes to
presidential or senatorial candidates. Control over provinces generally
alternated between two rival aristocratic families.

During Marcos's authoritarian years (1972-86), a Ministry of Local

Government was instituted to invigorate provincial, municipal, and
barangay governments. But, Marcos's real purpose was to establish lines of
authority that bypassed provincial governments and ran straight to
Malacañang. All local officials were beholden to Marcos, who could appoint
or remove any provincial governor or town mayor. Those administrators who
delivered the votes Marcos asked for were rewarded with community
development funds to spend any way they liked.

After the People's Power Revolution, the new Aquino government

decided to replace all the local officials who had served Marcos. Corazon
Aquino delegated this task to her political ally, Aquilino Pimentel. Pimentel
named officers in charge of local governments all across the nation. They
served until the first local elections were held under the new constitution on
January 18, 1988. Local officials elected in 1988 were to serve until June
1992, under the transitory clauses of the new constitution. Thereafter,
terms of office were to be three years, with a three-term limit.
Organization

The 1987 Constitution retains the three-tiered structure of local

government. There were seventy-three provinces in 1991. The province was
the largest local administrative unit, headed by the elected governor and
aided by a vice governor, also elected. Other officials were appointed to head
offices concerned with finance, tax collection, audit, public works,
agricultural services, health, and schools. These functionaries were
technically subordinate to the governor but also answered to their respective
central government ministries. Lower ranking functionaries, appointed by
the governor, were on the provincial payroll.

Chartered cities stood on their own, were not part of any province, did
not elect provincial officials, and were not subject to any provincial taxation,
but they did have the power to levy their own taxes. As of 1991, there were
sixty-one chartered cities headed by a mayor and a vice mayor. The mayor
had some discretionary power of local appointment.

Municipalities were subordinate to the provinces. In 1991 there were

approximately 1,500 municipalities. At the lowest level, with the least
autonomy, were barangays, rural villages and urban neighborhoods that
were called barrios until 1973. In 1991 there were about 42,000 barangays.
 Various reorganization schemes have been undertaken to invigorate
local government. One of the most far-reaching and effective was the
creation of a Metro Manila government in the mid-1970s to bring the four
cities and thirteen municipalities of the capital region under a single
umbrella. Metro Manila is an example of what geographers call the
Southeast Asian primate city, a single very large city that is the center of
industry, government, education, culture, trade, the media, and finance No
other Philippine city rivaled Manila; all others were in a distinctly lesser
league. Continued rapid population growth meant that the boundaries of
Metro Manila were expected to expand in the 1990s.

During martial law, the provinces were grouped into twelve regions,
and that arrangement was continued in the Apportionment Ordinance
appended to the 1987 Constitution. Because these regions did not have
taxing powers or elected officials of their own, however, they were more an
administrative convenience for the departments of the national government
than a unit of genuine local importance. In 1991 approximately 90 percent
of government services were provided by the national government. Attempts
by Aquino to decentralize delivery of some services were resisted by
members of Congress because such moves deprived them of patronage.

The single biggest problem for local government has been inadequate
funds. Article 10 of the Constitution grants each local government unit the
power to create its own sources of revenue and to levy taxes, but this power
is "subject to such guidelines and limitations as the Congress may provide."
In practice, taxes were very hard to collect, particularly at the local level
where officials, who must run for reelection every three years, were
concerned about alienating voters. Most local government funding came
from Manila. There is a contradiction in the Constitution between local
autonomy and accountability to Manila. The Constitution mandates that the
state "shall ensure the autonomy of local governments," but it also says that
the president "shall exercise general supervision over local governments."
The contradiction was usually resolved in favor of the center.

Local Government Delineated

1. Local Governments as Territorial and Political Subdivisions In most

countries of the world at least two levels of government exist.

At the upper level is the sovereign nation, or the government of the

whole country. A sovereign national government charts its own affairs and
commands recognition from other nations. Below the nation are the
governments of the parts, which levels may vary according to the political
pattern and historical experience of each nation.
 In Federal governments like the United States, Canada or India, there
are second layers of government described as “quasi-sovereign” states
(sometimes called provinces) which have some aspects of sovereignty but
are otherwise subordinate to the nation. These states supervise units which
can be described as “infra-sovereign” local government (Humes and Martin
1969), those which do not have any aspect of sovereignty. In unitary states
like the Philippines the supervision over local governments is done by the
national government, as there is no intervening layer of government between
the sovereign nation and the local units.

Thus from the point of view of the local units, the central government
in a federal government are the states or the provinces. In unitary systems,
the central government is the nation as a whole. The element of
subordination appears in any definition of local government. By nature, local
government are subordinate entities, having no inherent powers and must
look up to the higher governmental level for delegation of authority.

The United Nations defines local governments as “political

subdivisions of a nation or state” (UN 1962); some authorities refer to them
as “parts” of the government of a nation or state ”of a country,” non-
sovereign communities… with “subordinate status,” governments which are
“below the central or senior government.”

Another element in the definition of local governments is the

territorial boundary of their governance. They are, in the words of the
International Union of Local Authorities, “geographic subdivisions.” Other
authorities say they operate in a “restricted geographic areas, dealing with
those matters which concern the people living in a particular locality.”

Two important elements therefore found in any definition of local

government:

(1) the presence of a higher authority; and

(2) territorial boundary.

2. Local Governments as Legal Authorities Providing Services While local

governments do not have inherent powers, they do have legal authority to
exercise their powers.

The UN qualifies that local government are “constituted by law.” They

possess “the rights and the necessary organization to regulate their own
afdfairs” (UN 1962). These affairs are determined in each local government
unit by a body of officials who are locally elected or selected. These officials
determine the manner and scope by which services can be provided for the
inhabitants of the area, within the boundaries provided by law.

In some areas, local governments perform more functions while in

others they perform less. The actual extent of local self-determination or
local autonomy depends on delegated authorities and on local capability. It
is not uncommon to find, in the same nation or state, little uniformity in the
exercise of local powers within the same degree of delegation of authority.
Much of the deviation occurs because of dissimilarities in local resources
and capabilities.

Some central governments allow greater authority to local

governments to perform their activities. For example, in some states in the
United States of America, home rule cities have more discretion in policy
determination and implementation. By contrast, many Third World
countries have highly centralized systems, such that even trivial decisions
are elevated to higher authorities rather than resolved at the level of local
governments. However, even in centralized countries like the Philippines,
the extent to which local governments exercise authority delegated to them
varies according their capabilities.

Salient Features and Distinctions

1. Layers of Local Authority Within the subordinate local governments

exists hierarchy of authority. Except in Switzerland and very few countries
(Humes and Martin 1969), there are at least two tiers of local government.
The intermediate units of local government coordinate services in a larger
area and supervise lower levels of local authorities. These are variously
called provinces, countries, prefectures, changwat, or special structures
such as regional or metropolitan governments.

Below them are the basic units of local government, those performing
services for people who live together in a community. These are the cities,
municipalities, townships, districts, panchayat, tambon, etc. they perform
services which include sanitation, protection of lives and property, and
provision of public utilities. In a few countries, a lower and smaller form of
local government constitutes the sub-municipal level, typified by the
barangays in the Philippines, the parishes in the United Kingdom, and the
mahalle in Turkey.
 The International Union of Local Authorities (IULA) noted that the
number of tiers of local governments depends on geography, population,
number of basic units, and degree of centralization (Humes and Martin
1969). The Philippines’ several layers may be attributed to its geographic
peculiarities, centralist experience, and the historical basis of its barangays.

The UN prescribed at least two levels of local governments - at the

lower level, to assume a sense of community where direct citizen
participation in services is possible; at the higher level, to cover the largest
area from which most technical services can be provided efficiently (UN
1962). In some countries, another layer of local government appears - the
sub-municipal units where actual face-to-face relationships exist which
make for greater participation. In the Philippines, these are the barangays.

2. Field Organization and Local Government Although a distinctive element

of local government is territorial boundary of operation, local governments
should not be confused with field units of the national governments. Field
offices perform specific governmental functions in designated areas, and the
nature of their delegated functions is administrative (Fesler 1949). Local
governments perform a number of services, and the authority they exercise
is political in nature. These political powers include the power of legislation
through locally elected or selected councils which also exercise the power of
taxation. Field offices perform functions and exercise supervision through
the issuance of administrative orders.

The heads of field offices are appointed, generally by the head of the
national agency or ministry. To them are delegated certain powers, like the
appointment of subordinate field employees and budget accountability. On
the other hand, local government officials, as earlier mentioned, make
political decisions, like earmarking revenues for different projects for the
public good. These decisions generally take the form of ordinances.

This is best illustrated in the case of the Philippines. Major agencies

of the government have field offices in the regions but no area government
exists to coordinate diverse services, except in these special areas:
Metropolitan Manila, the Cordilleras, and the predominantly Muslim areas.

3. Local Governments as General Purpose Authorities Another useful

distinction is between local governments and special purpose authorities.
Local governments may be distinguished from special purpose authorities in
terms of function. Special purpose authorities perform only one (or limited)
function. Some have elective members like the School Boards in the U.S.A.;
others have appointive members, like the national police operating in local
areas. Local governments, on the other hand, perform multiple functions.
Most of them have elective Councils while others have appointive
representatives of the central government. Examples of the latter are the
French arrondissements or districts.

4. Local Governments as Municipal Corporations Local governments are

municipal corporations. According to US Judge Dillon, a municipal
corporation has the following characteristics:

A municipal corporation in its strict and proper sense, is the body

politic and corporate constituted by the incorporation of the inhabitants
of a city or town for the purpose of local government thereof. Municipal
corporations . . . are established by law partly as an agent of the state to
assist in the civil government of the country but chiefly to regulate
and administer the local internal affairs of the city, town or district
incorporated (Quoted by Sinco and Cortes 1955:23-24).

A municipal corporation has governmental (public) and private

(corporate or proprietary) functions. In the Philippine context, Sinco and
Cortes said that a local government performs dual roles: (1) as an
instrumentality of the national government, and (2) as a local government.
The enactment of ordinances is a local governmental function; the
implementation of a national law within the local territory is its function as
an agent of the state (Sinco and Cortes 1955: 37). Thus, Congress by law
creates local government units, although plebiscite among the affected
residents is a prerequisite before actual operation. Similarly, Congress may
alter boundaries, with local consent.
Local Autonomy and Related Concepts

Local autonomy is the degree of self-determination exercised by a

local government unit vis-à-vis the central government. To attain local
autonomy, a necessary prerequisite is decentralization.

However, to understand better the concept of local autonomy, a

cursory reading of a corollary concept of local government (Brillantes, et al:
1988) is necessary. There are, essentially, two major concepts of local
government. The first (traditional and legal) views local government as a
political subdivision of the national government, excluding the field offices of
line agencies geographically located within the jurisdiction of local
government units. The second refers to the geographic area where all
government units, including the field offices of line agencies of the national
government, are considered as part of the local government.
 In many countries, territorial governments antedated the nation-state.
The emergence of central governments (Tapales: 1993) weakened the
strength and sovereignty enjoyed by the city-states. In contemporary times,
local governments continue to exist. Their relative strength s depend on the
nature of central government policies. It is, in a way, a manner of dividing
power by area or territory. Ylvisaker pointed to liberty, equality and welfare
as rationale for local government where on the governmental and individual
level, local government promotes liberty by “providing additional and more
readily available points of access, pressure, and control;” promote equality
by providing for wide-scale participation and festering, on the part of the
government, “responsiveness and flexibility;” provides welfare, or service in
terms of assuring “that demands will be heard and that needs will be
served.”

Maddick, according to Tapales, points out that the creation of local

government units is “advantageous for the promotion of rural development.”
One reason is that it can “overcome sectoral divisiveness of separate
government agencies. Local governments also provide a better
understanding of the relationship between the desired project objectives and
the resources available to implement them. In the process of mobilizing local
resources, they also promote participation of the people.

Unfortunately, however, Pierce explains the potentially inconsistent

tasks of local government, thus: On the one hand, local governments are to
act as the vehicle of local democracy, providing services responsive to local
needs and conditions. On the other hand, local governments must
constitute the local branch of the nation-state administrative apparatus,
executing state policies in key policy areas.

The choice between centralization and decentralization involves the

determination of whether the promotion of development should be the main
responsibility of the central government, or whether the lower levels f
government and non-government institutions and groups should be more
directly involved in the development effort. It thus require the determination
of whether local governments have the administrative and financial
capability to cope with the added responsibilities for the development
functions that may be entrusted to them.

Regional Autonomy

By the 1990s, Philippine nationalism had not fully penetrated two

regions of the country inhabited by national minorities: the Muslim parts of
Mindanao and the tribal highlands of northern Luzon. Some Muslims and
hill tribes people did not consider themselves Filipinos, although they were
citizens. Muslim separatism has a very long history. The Spaniards,
Americans, and Japanese all had difficulty integrating the fiercely
independent Moros into the national polity, and independent governments
in Manila since 1946 have fared little better . The Moro insurgency has
waxed and waned but never gone away. Enough Muslims participated in the
1987 elections to elect two of the twenty-four senators, but continuing land
disputes were major factors preventing reconciliation between Christians
and Muslims in Mindanao.

The grievances of tribal groups, such as the Ifugao and Igorot, in

northern Luzon were of more recent origin, having been stoked by ill-
considered Marcos administration dam-building schemes that entailed
flooding valleys in the northern Luzon cordillera where the tribal groups
lived. When Aquino came to power, she was confronted with a Moro
National Liberation Front demand for separation from the Philippines, and a
Cordillera People's Liberation Army allied with the New People's Army.
Aquino boldly negotiated a cease-fire with the Moro National Liberation
Front, and her constitutional commissioners provided for the creation of
autonomous regions in Muslim parts of Mindanao and tribal regions of
northern Luzon.

Article 10 of the Constitution directed Congress to pass within

eighteen months organic acts creating autonomous regions, providing that
those regions would be composed only of provinces, cities, and geographic
areas voting to be included in an autonomous region. Congress passed a bill
establishing the Autonomous Region in Muslim Mindanao with Cotabato
City designated as the seat of government, and Aquino signed it into law on
August 1, 1989.

The required plebiscite was set for November 19, 1989, in thirteen
provinces in Mindanao and the island groups stretching toward Borneo. The
plebiscite campaign was marred by violence, including bombings and
attacks by rebels. Aquino flew to Cotabato on November 6, 1990, to formally
inaugurate the Autonomous Region in Muslim Mindanao. She had already
signed executive orders devolving to the Autonomous Region in Muslim
Mindanao the powers of seven cabinet departments: local government; labor
and employment; science and technology; public works and highways;
social welfare and development; tourism; and environment and natural
resources. Control of national security, foreign relations, and other
significant matters remained with the national government.

Because many of the provinces to be included actually had Christian

majorities, and because the Moro National Liberation Front, dissatisfied
with what it perceived to be the limitations of the new law, urged a boycott,
only four provinces (Tawi Tawi, Sulu, Maguindanao, and Lanao del Sur)
elected to join the Autonomous Region in Muslim Mindanao. Cotabato City
itself voted not to join. So, a new capital had to be identified. In 1991
Maranaos, Maguindanaons, and Tausugs were disputing where the capital
should be. Indications were that the government of the autonomous region
would not have supervisory power over local government officials.

Congress passed a similar law creating a Cordillera Autonomous

Region, but in a referendum held in five provinces (Abra, Benguet,
Mountain, Kalinga-Apayao, and Ifugao) on January 29, 1990, autonomy
failed in all provinces except Ifugao. The reasons for rejection were thought
to be fear of the unknown and campaigning for a no vote by mining
companies that feared higher taxation. In 1991 the Supreme Court voided
the Cordillera Autonomous Region, saying that Congress never intended
that a single province could constitute an autonomous region.

Local Government’s Role in Supporting Strong Communities

In Australia, as elsewhere, central governments have moved towards

market driven approaches to infrastructure and service provisions, and
individual advancement rather than community advancement. (Ruth
Speilman: 2004). This has the effect of people becoming consumers rather
than citizens and universal access to public services are shifting to more
targeted approaches with the effect of further marginalizing some groups in
the community. Hence, despite the available evidence that social capital
makes a real difference socially and economically, and the existence of
government policies which emphasize community-building, governments do
not yet systematically consider the impact of policies on social capital.

Local government’s role is to point out to other levels of government

what impacts their policies are having at the local level. What local
government can do also needs to be seen in the context of income
generation through taxes being mostly at the national and state levels. Local
councils have played a planning and coordination role rather than a service
delivery one, whereas the stat has a long history of service delivery as well
as planning.

Social capital and community capacity-building can, therefore be seen

in terms of communities ameliorating a market-driven approach or in terms
of responding to government policy and its impacts. Councils, thus, may
engage in both, through local level community activities as well as through
efforts to have an impact on government policy at the other level.

Local Governments in the Philippines

 Local government has been defined as a “political subdivision of a
nation or state constituted by law, which has substantial control over fiscal
affairs including the power to impose taxes, the governing body of which is
elected or appointed. (UN in de Guzman & Tapales: 1973) also it is “a set of
rule-making and rule-enforcement activities binding upon a set of
collectivity. (Cahill & Friedman: 1964) Sometimes, they are referred to as a
“municipal corporation”.

There are, essentially, two major concepts of local government. The

first, views local government as a political subdivision of the national
government, excluding the field offices of line agencies geographically
located within its jurisdiction. This is the traditional and legal concept of
local government. The second refers to the geographic area where all
government units, including the field offices of line agencies, are considered
as part of the local government. (de Guzman, Reforma, & Panganiban: 1987)

As in the case of the bureaucracy in general, developing countries face

a dilemma as to whether centralization or decentralization is the best or
most appropriate institutional arrangement to adopt for local governments.
There are two equally attractive but seriously conflicting alternatives. The
first argues that since development require unity of vision,
comprehensiveness of planning, societal coordination of effort, rational
allocation of resources to meet competing needs, and speed in policy
decision-making, the powers of government must be centralized. On the
contrary, the second alternative counters that the crucial issue of
development is the generation of widespread initiative, effort, and social
responsibility throughout the society and, thus, political/governmental
powers must be decentralized.

However, the choice between centralization and decentralization

involves the determination of whether the promotion of development should
be the main responsibility of the central government or whether the lower
levels of government and non-government institutions and groups should be
more directly involved in the over-all development effort. It also involves the
delineation or the proper allocation of powers and functions in the planning
and implementation of development programs and projects between central
and lower levels of government and non-governmental institutions. It
requires the determination of whether local governments have the
administrative and financial capability to cope with the added
responsibilities for the development functions that may be entrusted to
them. (de Guzman, Reforma, & Panganiban: 1987)

Historical Background
 Historical accounts show ancient community governments headed by
the Datu who exercised executive, legislative, and judicial powers, often
upon consultation with a Council of Elders. Pre-Spanish barangays were
wellorganized. They had the Datu who took charge of government, the
panday (blacksmith) who took care of technology, forming the tools
domestic activities to tools for work. The babaylan took charge of the
cultural and scientific aspects of life, e.g., rituals, medicine, astronomy
(Salazar 1989). Arcellana (1954) categorically stated that the barangays
were not local governments, but rather had the status of city-states. This
have been substantiated by the foregoing definitions.

Centralization became a weapon of the Spaniards in colonizing the

country. At first, they awarded parcels of lands to favored persons who
assisted them in the pacification of the islands. Later, they created cabildos
(cities), pueblos (municipalities), and provincias (provinces) which is
ascending hierarchy, assisted the Spaniards in Manila in fully colonizing the
country. The barangays were reduced into barrios, and the Datus were
demoted into Cabezas de Barangay, whose only function was to assist the
higher levels of government in collecting tribute (De Guzman and Tapales
1973). Thus, the sovereign and powerful barangays became the lowest rung
in the ascending order of governmental power.

While the Philippine Republic organized by Aguinaldo and Mabini

gave more attention to the local units, autonomy could not be given the
local governments because at that time, it was important to retain the unity
of the islands. Thus, centralism remained (Laurel 1924).

The Americans who robbed the Filipinos of victory against the

Spaniards continued the convenient system of centralization introduced to
the country by the Spaniards. Provincias were renamed provinces, cabildos
cities, and pueblos municipalities, keeping the hierarchical chain of
command from Manila undisturbed.

Centralism, therefore, while a foreign imposition, thrived in the

Philippines for centuries, and was kept intact by the Philippine government
after political independence in 1946. the constitution of 1935 mentioned
local government in only section; VII Sec. 10 provided that “the President
shall exercise general supervision over local governments as may be
provided by law.” Until 1972, the President and the Congress determined
the relationship between the national and local governments by statutes
and executive orders and they were interpreted by the Courts in ways
befitting the temper of the times and those of the justices (De Guzman and
Tapales 1973).
 Martial Law from 1972 strengthened the President’s powers over local
government, despite an article in the Constitution of 1973 and the creation
of a Department of Local Government and Community Development by
virtue of Presidential Decree No. 1. By presidential decree, President Marcos
created and abolished office, rapidly changing the relationship between the
local and national governments.

After people power in 1986, government became more responsive to

the lower units of government. The 1987 Constitution provided for special
forms of local government in response to ethnic peculiarities in Muslim
Mindanao and the Cordilleras. Moreover, Congress passed the Local
Government Code of 1991 which has far-reaching effects in national-local
relations because it provided for devolution of powers and services.

Structures and Functions of Philippine Local Government

Although the Local Government Code of 1991 provides for the

devolution of powers, the Philippines remains a unitary state. As such, local
government are creatures of the national government. The national
government by law creates, merges, or abolishes local government units,
endows them with powers within their jurisdictions, and determines
national-local government relations.

The first Local Government Code (enacted in 1983 by Batas

Pambansa 337) provided for criteria to be used in creating local units.
Before 1983, there were no criteria except 500 population for barrios, such
that Congress and the President abused their power of creation.

The Code now provides for the following criteria: for the province, land
area of at least 2,000 sq, kms. As certified by the Lands Management
Bureau, population of not less than 250,000 as certified by the National
Statistics Office, and income of at least P20 million, as certified by the
Department of Finance; for the city, at least P20 million income, land area of
at least 100 sq. kls., and population of150,000; for the municipality, the
minimum income is P2.5 million, the population requirement is 25,000, and
the land area should at lest be 50 sq. kls.; for the barangay, the only
criterion is population of at least 2,000. however, barangays in Metropolitan
Manila should have a minimum population of 5,000.
While these local units may be created by law, the Code mandates
that the residents of areas affected by the creation should approve the
measure in a plebiscite. The Code mandates also that the creation of the
local unit “shall not reduce the land area, population and income of the
original unit or units at the time of the creation to less than the prescribed
minimum requirements” (Sec.8).
Tiers of Local Government.

In the Philippines there are several levels of local authority. The

province is the intermediate unit, providing supervision to the
municipalities and component cities under it, and performing services for
the national government. The basic units of local government, or those
performing services for people who live together in a community are the
cities and municipalities. The Philippines is one of the few countries with a
sub municipal unit, the barangay, which provides the opportunity for face-
to-face interaction among the people.

Before the first Local Government Code, all cities were autonomous
from the province. BP (Batasang Pambansa) 337 classified cities into two:
component cities and highly urbanized cities. Highly urbanized cities are
those considered viable enough to perform their functions and services, and
thus allowed to retain their autonomy from the province. The new Code
provides the following criteria: at least 200,000 inhabitants and P50 million
income. Residents of highly urbanized cities do not vote for municipal
officials. Component cities are under the direct supervision of the provinces.

Officials. Each local government unit has a set of executive and

legislative officials. At the provincial level, the officials are the elected
Governor, Vice-Governor and members of the Sangguniang Panlalawigan.
The cities and municipalities each have a mayor and members of the
Council (Sangguniang Bayan for the municipality and Sangguniang
Panlungsod for the city). They are all elected for a term of three years.

In addition to the elected officials, there are ex-officio members: the

local presidents of the league of barangays, the presidents of local
federation of the Sangguniang Kabataan (Youth Council), and presidents of
the federation of Sanggunian Members. The Code also provides for three
sectoral representatives: one from the women, one from the workers
(agricultural or industrial, depending on the area), and one from special
sectors (indigenous groups, urban poor or disabled).

The Vice-Governors and Vice-Mayors are presiding officers of their

respective Sanggunians. Inspired by the omnibus law on cities passed as
early as 1959 which vested the Vice-Mayor with the function of presiding
over the Council, the ex -officio responsibility is considered as a means by
which the local chief executive may be able to concentrate on the task of
administration.
 There are appointive officials. For the province, these are: the
Secretary to the Sanggunian, Treasurer, Assessor, Accountant, Budget
Officer, Planning and Development Coordinator, Engineer, Health Officer,
Civil Registrar, Administrator, Legal Officer, Agriculturist, Social Welfare
and Development Officer, Environment and Natural Resources Officer,
Information Officer, Cooperatives Officer, Population Officer, Veterinarian,
and General services Officer. However, not all positions are required to be
filled; the Environment Officer, Population Office, Architect, and General
Services Officers are optional. Similar positions are provided for cities. There
are less for the municipalities, with more optional officers. Although the
Code does not provide for the rationale for making certain positions optional
or mandatory, the lesser income and area of municipalities are one good
reason. Moreover, degree of urbanization is also a factor; for instance, urban
municipalities do not need agriculturists.

Services.

Basic units of government provide for sanitation, operate markets,

and other utilities. The Local Government Code devolves to all local units
the administration of five basic services: agriculture, health, social welfare,
maintenance of public works and highways, and environmental protection.
What this means is that the appointment of persons performing these
services in their local areas is now done by the local chief executives. Their
salaries are also paid from local funds. Before the Code, local units were
mainly serviced by extension personnel of the national government through
their regional offices; the Code abolishes the regional offices of those whose
services have been devolved.

Funds

Local governments are authorized by law to impose certain taxes to

support their activities. However, their main source of revenue is the
internal revenue tax, which is shared by the national government with
them. The Code raises their share of these taxes from 20 percent to 40
percent. It also modifies the sharing schemes by providing for the following:
34 percent to the municipalities, 23 percent to the cities, 23 percent to the
provinces, and 20 percent to the barangays. Internal revenue allotments
(IRA) are also divided according to other criteria: 50 percent by population,
25 percent by area, and 25 percent in terms of equal sharing. Barangays
did not share from the IRA before.

Local units impose the real property tax, and much depends on their
assessment and collection efficiency. Assessments depend on the type of
land. They also tax business. Cities and municipalities impose the
amusement tax. Barangay clearance is now needed before permits can be
given by the cities and municipalities for businesses.

Special Local Government Units

Two types of special local government units exist in the country: the
Autonomous Region in Muslim Mindanao (ARMM) and the Metropolitan
Manila Development Authority (MMDA).

The ARMM is covered by RA 6734, the organic act creating it. The
intention of the Act was to provide a form of government which would
respond to the special needs in the predominantly Muslim areas. It provided
for a Governor and an Assembly as well as a cabinet for the ARMM.

However, since the Local Government Code provided that the people
affected by their localities should agree to such change through a plebiscite,
the ARMM law was subjected to such an exercise. Unfortunately, only four
provinces - Sulu, Tawi-Tawi, Maguindanao and Lanao del Sur agreed to the
inclusion of their territories within the ARMM. Despite the non-inclusion of
Cotabato City, it still serves as ARMM capital because the law provided for
that. ARMM therefore covers non-contiguous areas, and has its capital
elsewhere. Nonetheless, it continues to serve as a special regional
government for the areas covered by ARMM, now including Basilan Province
and Marawi City, which voted for their inclusion during the 14 August 2001
Plebiscite.

Despite what some critics say about the defects in the implementation
of the ARMM organic act, that special LGU exists as envisioned by the Act
today. This is not so for the special LGU covering Metropolitan Manila. The
Metropolitan Manila area was placed under the Metro Manila Commission
(MMC) in 1975 by virtue of Presidential Decree No. 825. The MMC was
headed by a Governor (then First Lady Imelda R. Marcos), who was assisted
in her tasks by a Deputy Commissioner. The Commission was comprised of
appointed persons who performed the MMC’s tasks for the thirteen (13)
municipalities and four cities comprising Metro Manila. MMC acted like a
province over the seventeen (17) LGUs of Metro Manila. It received
contributions from them for services performed by the MMC, such as
garbage disposal, traffic management, flood control, and zoning.

After EDSA I, the MMC was dissolved and through Executive Order
No. 392 by the Metro Manila Authority (MMA). However, MMA proved to be
ineffective mechanism because its organizational structure was such that
the chairmanship rotated among the Metro Manila Mayors. MMA was again
replaced by the Metropolitan Manila Development Authority (MMDA), which
was established by Republic Act No. 7924. The MMDA governing board
represents also the 17 cities and municipalities. Added to the membership
are the Presidents of the Metro Manila Vice-Mayors League and of the Metro
Manila Councilors League. To make the MMDA stronger, the Chairman of
the Board is appointed by the President of the Republic of the Philippines.

MMDA assumed similar functions over Metro Manila-development

planning, transportation and traffic management, solid waste disposal, flood
control and sewerage management, urban renewal, health and sanitation,
pollution control, and public safety. Because the various LGUs perform
most of the functions, MMDA takes care of metro-wide services.
Perhaps, the strength and viability of Metro Manila LGUs has made
governance for the metro region more complicated, and must have prompted
the filing of House Bill No. 115 by Metro manila Congressmen led by
Representative Magtanggol Gunigundo of Valenzuela City. In lieu of the
MMDA, the bill seeks to establish a regional development council.

The IAD: As An Approach to Development

Related to administrative decentralization is the Integrated Area

Development (IAD) approach which focuses (De Guzman & Padilla: 1985,
162)on the spatial dimension of coordinating, planning, and implementation
of rural development programs and projects within a specific geographic
area. Multi-disciplinary in approach and multi-sectoral in operation, IAD is
aimed toward accelerating economic growth in the depressed areas, and in
the process, extensive participation is induced as the benefits to be derived
therefrom should be equitably distributed.

By definition, (Muslim: 1982, 127) IAD as a holistic approach implies

“strategic intervention of seeking to integrated or enhance the integration of
programs and projects in an area by considering functional linkages,
resource utilization, access to basic services and local participation in the
planning and implementation process in a manner consistent with national
and regional goals and objectives.

The IAD approach is an attempt to reconcile the ultra-sophistication

of comprehensive planning with the crudeness of the traditional single-
project approach. It is typified as a pragmatic, problem-oriented,
dynamically flexible and combines a futuristic framework as an outgrowth
rather than a precedent of immediately implementable short-range
programs.
Decentralization

Decentralization refers to the process of dispersing decision-making

closer to the point of service or action; brings government closer to the
people although there is no fixed code or formula as to how much authority
and how far that authority is going to be pushed down; in short, meaning, it
is power-sharing.

In centralization, power and decision-making are concentrated in the

center or at the top echelon. Policy formulation, planning and
implementation are the exclusive prerogative of the center of power and
authority. Such a situation gives rise to anxieties and false expectation
from the clientele public – the people at large.

While administrative-bureaucratic reforms have taken place and

continue to do so, government today is still largely a matter of expert
administration. Increasing authority and discretion are granted the
executive branch. In a word, our present bureaucracy has accumulated vast
authority but it lacks direction and coordination. Administrative officials
today find themselves largely isolated except for the presence of those
interests directly affected by the consequences of their official actions. In a
way, the public interest is the standard that guides the administrator in
executing the law , or so it seems.

At the other side of the spectrum, decentralization (De Guzman &

Padilla: 1985, 167) allows the lower levels to decide on issues that concerns
them directly. As such, decentralization democratizes the political system
while at the same time ensuring that governmental actions are responsive to
the needs of the people. As it hastens the decision-making process it
facilitates the administration of government programs and expedites the
delivery of public goods and services. Decentralization also accelerates
development.

Decentralization As a Concept

A school of thought may theorize that local authorities have to be

strengthened (De Guzman & Padilla:1985,158) in order to ensure the
effective operationalization of decentralization and local autonomy. This
may imply that local authorities should be prepared for the assumption of
increased powers and responsibilities and performance of additional
functions, which is what is envisioned in the advocacy of political
decentralization.

The other proposition may be propounded thus: that decentralization

can be an effective strategy toward strengthening the local institutions and
accelerating development in the local areas. The government has been
pursuing a decentralized approach to development and has adopted the
forms and strategies of decentralization described above. Thus, two theories
can be deduced: (1) Local authorities should be strengthened and local
development enhanced, in order to effectively implement decentralization;
and (2) Local authorities are strengthened and local development
accelerated through decentralization.

As a concept, decentralization may be defined as the dispersal of

authority and responsibility and the allocation of powers and functions from
the center or top level of government to the lower levels, from the central
government to regional bodies or special purpose authorities, or from the
national to sub-national levels of government. According to this definition,
decentralization may take the form of administrative decentralization, or
“Deconcentration, ” in which a national department or central government
agency shares its responsibility with, and delegates authority to its field
offices to perform certain governmental functions and services.

Decentralization may also take the form of “devolution” or political

decentralization, which is the transfer of authority and power from the
central government to the local governments to perform certain
governmental functions and services. Political decentralization involves the
granting of authority and powers to the provincial, city and municipal
governments to manage their own affairs, which process, in a way, partakes
than nature of what is commonly referred to as local autonomy.

Form and Type of Decentralization

Decentralization comes in two forms (a) deconcentration and (b)

devolution. Deconcentration is administrative in nature; it involves the
transfer of functions from the national office to the regional and local offices.
Devolution, on the other hand, connotes political decentralization, or the
transfer of powers from the central government to local government units.
Siedentopf makes a clear distinction between these two forms of
decentralization:

Deconcentration means the redistribution of administrative

responsibilities only within the central government “agency,” while
devolution “is the strengthening or creation of independent levels and units
of government.” In devolution, local governments are “perceived to be
separate levels over which central authorities exercises less or no direct
control” (Siendentopf 1987:16).

For instance, the Local Government Code of 1991 (Republic Act 7160)
devolved to local governments the administration of five basic services
heretofore conducted by the national government - health, agriculture,
maintenance of public works and highways, social welfare and
environmental protection. The Local Tax Code (Presidential Decree 231)
earlier provided local councils the authority to impose taxes to raise the
revenues needed for their projects, within the ambit of the law. On the other
hand, to the branches of the Bureau of Internal Revenue and the local
treasury offices is de-concentrated the function of tax collection.

An autonomous local government is one which has attained a

measure of decentralization, or devolution. This involves greater taxing
powers, as well as greater prerogative to determine priorities in the
administration of certain services or the earmarking of resources.

The extent of autonomy varies according to the policies of the central

government units as well as to the capability of respective local government
units to exercise devolved powers. For instance, the central government may
authorize local units to levy certain taxes, but the ability of the local units to
tap these services and to fund activities from these new sources depends on
their availability in the community. The real property tax, for example, may
yield million of pesos in Makati, but only a few thousands in an entirely
rural area with unproductive land.

Advocates of local development have argued, in recent years, for

decentralization “to be effected on a selective basis considering the disparity
in the levels of administrative and financial capabilities of the local units”
(UN 1962:5). This entails assessment of the resources, leadership potentials
and administrative capabilities of the different levels of local government,
which would be the basis for determining the powers, functions and services
to be devolved to them.

Thus, national development is a goal achieved through an effective

partnership between the central and local governments, each one
performing a service as an aspect of a function which it can adequately
perform. For instance, the central government may analyze and integrate
data, provide guidelines and standards of performance, grant subsidies,
provide technical assistance, and install a system of control. The local
governments, for their part, may provide data inputs, identify local needs,
initiate project proposals, provide counterpart funds, translate plans into
action, provide operating personnel, stimulate local participation, and
assess program impact (UN 1962).

Developing countries, however, face a dilemma as to whether

centralization or decentralization (Brillantes, et al: 1988, p. 236) is the best
or the most appropriate institutional arrangement to adopt. The first
alternative argues that since development requires unity of vision,
comprehensiveness of planning, societal coordination of effort, rational
allocation of resources to meet competing needs, and speed in policy
decisions, the powers of government must be centralized. The second
alternative counters that the crucial issue of development is the generation
of widespread initiative, effort, and social responsibility throughout the
society and, thus, political/governmental power must be decentralized. In
short, these alternatives refer to no less than the distribution of power in
society. Hence, the first advocates strong, centralized government; the
second, citizen power and decentralized system of governance.

The choice between centralization and decentralization involves the

determination of whether the promotion of development should be the main
responsibility of the central government, or whether the lower levels f
government and non-government institutions and groups should be more
directly involved in the development effort. It thus require the determination
of whether local governments have the administrative and financial
capability to cope with the added responsibilities for the development
functions that may be entrusted to them.

Participation in development means that citizens take part, are

involved, and share in the development process. Instead of being mere
objects of development, they are actors (Briones: 1988) who play key roles
and determine the success or failure of a development project. This covers a
range of modes. One of the earlier studies on participation in Philippine
development identifies six modes of participation.

The first mode involved only the educated and moneyed people in the
community without the participation of the “grassroots” or the beneficiaries.
The second mode is one in which the people or beneficiaries are asked to
legitimatize or ratify projects identified as formulated by the government. In
the third mode of participation, the people are consulted about the project,
but they do not actually participate in the planning and management of
projects. In the fifth mode, the people or the beneficiaries are represented in
the highest policy making body of the agency; and finally in the sixth mode,
the representative of the people control the highest policy making body of
the agency.
 In this context, The 1987 Constitution (Sec. 15, Art. XIII) provides that
“the State shall respect the role of independent people’s organizations to
enable the people to pursue and protect, within the democratic framework,
their legitimate and collective interests and aspirations through peaceful
and lawful means. (E.A. Co: 2002) Through this provision, people’s
organizations can be instrumental in enabling the people to meaningfully
participate and effectively intervene in the formulation and implementation
of decisions that directly affect their lives.

Administrative Decentralization and Political Power

Political Power is the ability of the leader to persuade subordinates to

pursue a particular course of action that they otherwise not have been
selected; or the capability to exercise influence over the behavior of others.

The earliest political institutions at all levels can be interpreted as

reactions against executive dominance. Later, extreme reliance was placed
on representative mechanisms. By the middle of the 19 th century,
widespread disillusionment with our political institutions gave impetus to
efforts to take administration out of politics by lodging it in independent
boards and commissions together with the introduction of the merit system.

Discontent on the part of various groups is the dynamic force that

motivates the quest for new forms. As pointed out by Kaufman (1969),
different segments of the population, such as farmers, fisherfolks, cultural
minorities, etc., feel differently disadvantaged by governmental machinery
operation at any given time, thus agitate for structural changes to improve
their position.

Some groups feel resentful because they consider themselves not

adequately represented; some feel frustrated due to dissipation of policy
decisions owing to political biases or technical incompetence of
bureaucracies; others by feel thwarted by lack of leadership. Thus, at
different points in time, enough people will be persuaded by one or the other
of these discontents to support remedial action, such as, increased
representativeness; better and politically neutral bureaucracies; or stronger
chief executives, as the case may be. The most sweeping expressions of the
unrest over the lack of representativeness is the growing demand for
decentralization.

The quest for representativeness centers primarily on administrative

agencies which make a far greater number of decisions affecting individual
citizens in intimate ways. Cluster groups in the country are at the forefront
of the agitation for power sharing. But, the movement is not confined to
public agencies only; it reaches into colleges and universities where
students, often by direct action, have been asserting a claim to participation
in the policies off these institutions. Even the Church has caught on the
movement. (news items invariably focus on certain individuals or church
groups trying to influence government policies) Yet, it is the government
sphere where the tendency has the widest endorsement. Some professional
groups working with government raised questions about the compatibility of
large units of government with the principle of democracy where citizen
participation is reduced to nothing more than voting in elections.

In response, troubled chief executives at all levels made common

cause with one another. Local government executives suffer vexation from
three sources, viz., 1) Procedures in many intergovernmental programs are
irritatingly slow; 2) These procedures are often labyrinthine and
uncoordinated; and 3) National grants for every specific purposes
encourage a tendency toward “a more or less independent government of
their own.” Thus, the President find it strategically advantageous to build
closer ties with governors and city mayors, where the latter benefits from
presidential support in terms of program funding.
Decentralization: Hierarchy, Participation, and Teamwork

In response to the pressure for accelerated decision-making, Alvin

Toffler suggests two alternatives: One way is to attempt to further
strengthen the center of government in the desperate hope of outrunning
the acceleration of complexity; the other is to begin reducing the decision
load by sharing it with more people, allowing more decisions to be made
“down below” or at the “periphery” instead of concentrating them at the
already stressed and malfunctioning center.

Decentralized institutions (Ronald Contino:1988) have a number of

advantages. First, they are far more flexible than centralized institutions:
they can respond quickly to changing circumstances and customer’s needs:
Second, decentralized institutions are more effective than centralized
institutions; Third, Decentralized institutions are far more innovative;
Fourth, decentralized institutions generate higher morale, more
commitment, and greater productivity.

Decentralization As a Concept and As Local Government Strategy

A school of thought may theorize that local authorities have to be

strengthened (De Guzman & Padilla:1985,158) in order to ensure the
effective operationalization of decentralization and local autonomy. This
may imply that local authorities should be prepared for the assumption of
increased powers and responsibilities and performance of additional
functions, which is what is envisioned in the advocacy of political
decentralization.

The other proposition may be propounded thus: that decentralization

can be an effective strategy toward strengthening the local institutions and
accelerating development in the local areas. The government has been
pursuing a decentralized approach to development and has adopted the
forms and strategies of decentralization described above. Thus, two theories
can be deduced: (1) Local authorities should be strengthened and local
development enhanced, in order to effectively implement decentralization;
and (2) Local authorities are strengthened and local development
accelerated through decentralization.

As a concept, decentralization may be defined as the dispersal of

authority and responsibility and the allocation of powers and functions from
the center or top level of government to the lower levels, from the central
government to regional bodies or special purpose authorities, or from the
national to sub-national levels of government. According to this definition,
decentralization may take the form of administrative decentralization, or
“Deconcentration, ” in which a national department or central government
agency shares its responsibility with, and delegates authority to its field
offices to perform certain governmental functions and services.
Decentralization may also take the form of “devolution” or political
decentralization, which is the transfer of authority and power from the
central government to the local governments to perform certain
governmental functions and services. Political decentralization involves the
granting of authority and powers to the provincial, city and municipal
governments to manage their own affairs, which process, in a way, partakes
than nature of what is commonly referred to as local autonomy.

Decentralization and Development Administration

Developing countries face a dilemma (Brillantes, et al: 1988, p. 236)

as to whether centralization or decentralization is the best or the most
appropriate institutional arrangement to adopt. The first alternative argues
that since development requires unity of vision, comprehensiveness of
planning, societal coordination of effort, rational allocation of resources to
meet competing needs, and speed in policy decisions, the powers of
government must be centralized. The second alternative counters that the
crucial issue of development is the generation of widespread initiative, effort,
and social responsibility throughout the society and, thus,
political/governmental power must be decentralized. In short, these
alternatives refer to no less than the distribution of power in society. Hence,
the first advocates strong, centralized government; the second, citizen power
and decentralized system of governance.

In contrast to centralization, wherein power and decision-making are

concentrated in the center or at the top echelon, decentralization allows the
lower levels (De Guzman & Padilla: 1985, 167) to decide on issues that
concerns them directly. As such, decentralization democratizes the political
system while at the same time ensuring that governmental actions are
responsive to the needs of the people. As it hastens the decision-making
process it facilitates the administration of government programs and
expedites the delivery of public goods and services. Decentralization also
accelerates development.

Decentralization and Political Economy

Many are the issues on what goes wrong with a highly centralized
system of economic planning and decision-making in the context of a
developing country. First of all, without strong local institutions and
organizations, it would be difficult for the centralized government to
undertake distributional, equity, and regional development schemes. More
often than not, without these strong institutions, regional and rural
schemes can easily be manipulated by powerful local politicians or bigwigs
to further their own ends. More obvious would be the corruption and abuse
of power (e.g. Marcos and Duvalier to Ceaucescu) that a centralized
government can be capable of
Decentralization has been one of the key policies in many developing
countries (Joseph Y. Lim:1990) whose objectives are to foster efficiency,
generate local participation in national development, stir-up market forces,
and to eradicate red-tape that usually accompanies a top-heavy and over-
centralized bureaucracy. This need for decentralization has come about due
to the perceive over-centralization and over-bureaucratization of the central
government and its bad effects on resource allocation and incentive
generation.

Decentralization and Participatory Development

Participation in development means that citizens take part, are

involved, and share in the development process. In stead of being mere
objects of development, they are actors who play key roles and determine
the success or failure of a development project.

This covers a range of modes. One of the earlier studies on

participation in Philippine development (Leonor M. Briones: 1988) identifies
six modes of participation: The first mode involved only the educated and
moneyed people in the community without the participation of the
“grassroots” or the beneficiaries. The second mode is one in which the
people or beneficiaries are asked to legitimatize or ratify projects identified
as formulated by the government. In the third mode of participation, the
people are consulted about the project, but they do not actually participate
in the planning and management of projects. In the fifth mode, the people
or the beneficiaries are represented in the highest policy making body of the
agency; and finally in the sixth mode, the representative of the people
control the highest policy making body of the agency.

Decentralization: Power To The People

Decentralization is not a brand new agenda for policymakers

worldwide. It is now said to be taking place (Paralejas: 2002) in a different
and more favorable political context, but the goals of decentralization have
not been achieved because of varied and complex reasons. The arguments
is that the objectives of decentralization programs are tough and almost
impossible to achieve. The local elites have monopoly of the decentralization
programs and that so often, increased power has been devolved only to
certain privileged individuals at the sub-national level under
decentralization laws.

Community Empowerment

Community empowerment is one of the ideal societal objectives in

both developing and modern countries. Community empowerment can
likewise be easily fashionable among political sociologists, because it is a
legitimate concern in the determination of the bases of power and political
democracy. Political mobilization, social movements or the study of the use
of power, are all either valid components or issues in the realm of
empowering communities.

In the eyes of regional planners, a community is a territorially

organized spatial unit at small intermediate scales, where development is
perceived as an integral process of widening opportunities of individuals and
of social groups to mobilize the full range of their capabilities and resources
for their common benefit in social, economic and political terms.
(Stohr:1982)

In spite of these positive experiences in LGU-civil society groups’

partnership, many units still lag behind, and are stuck in the “old” form of
governance. In some areas, participation begins and ends with the
accreditation of NGOs for inclusion in the local special bodies or the LGU-
NGO relationship ceases and becomes dormant and inactive. While many
people pin hopes on local sectoral representation as the mechanism for
people’s participation, this instrument of local democracy remains a
promise. (Co: 2002)

Capacity-Building

Assessing , improving, and accommodating various degrees of local

capacity has become more and more important as decentralization policies
transfer larger responsibilities as well as budgets from national to local
governments. (Hae-Jeong Park: 2004) Measuring local capacity can be
difficult and the debate over quantifying it has often been motivated by
political concerns as well as technical considerations about the local
government’s ability to provide services.

Uphoff has suggested that there are four fundamental functions that
organizations must be able to do in order to reach their objectives (World
Bank: 2003). These functions are : 1) decision-making, including planning
and evaluation; 2) resource mobilization and management; 3)
communication and coordination; and 4) conflict resolution. In view of
this perspective, local capacity could be defined as the extent of ability
which local governments organize themselves to perform the four functions
and provide basic services to their residents.

Capacity-building, for local governments to perform these functions,

is necessarily supported by the central government, but it should not be a
supply-driven endeavor that provides the same support package to widely
varying local jurisdictions. Demand-driven, capacity-building, considering
the differences among local governments, is likely to contribute to
successful decentralization and effective delivery of services.

PART VI
CONTEMPORARY ISSUES AND PROBLEMS

The Legislature

In any society, the legislature performs the important function of

deliberating on policies for the polity and passing them in the form of
statutes (legislation). Also, it performs the function of clarifying public
issues with the intent that the electorate may more intelligently form their
duty, and formulating ideals so the electorate may know what it is they
politically want.(Jordan,1930:) Although legislatures perform essentially the
same purely legislative functions anywhere, other functions depend on the
political histories of each country.

Presidential vs. Parliamentary System

In a presidential system, legislative control is exercised through

congressional committee hearings, action on executive proposals, including
the budget, and through the power of investigation. Thus, the deliberation
on policy and the subsequent passage of laws are purely legislative
functions. Beyond these, for politically developed countries, the legislature
serves as an effective check on the powers of the Chief Executive.

In a parliamentary system , the major function of the popular

chamber is ‘the supervision and control of the cabinet, Legislative control is
exercised through questions addressed to the ministers, amendments or
rejection(s) of government bills and votes of “no confidence” that compel the
ministers to resign.(Jordan,1930: in Catilo & Tapales, 1987)

To solve its myriad problems, the Philippines needs a strong political

leadership. It is not convincing that a leader presiding over a potentially
fragile parliamentary majority would be better equipped to get things done
than a chief executive with a popular mandate. In addition, for a
parliamentary system to work, there is a need for an institutional framework
with a functioning electoral system and strong political parties. Compared
with other democracies, both the electoral and party systems of the
Philippines are feeble and in dire need of reform.

Hardly anyone remembers today that in 2001 the political parties

agreed at a summit to enact legislation aimed at creating strong platform-
based and publicly financed political parties. Up to this day, nothing
practical has come of it. This shows that the political class is really not
genuine in its desire to strengthen the political parties as democratic
institutions. Hence, it is debatable, also, whether a shift from the
presidential to a parliamentary system would improve the political situation.
While it would strengthen parliament, it would at the same time weaken the
executive. (The Nation, Bangkok : June 15, 2005)

Unicameral vs. Bicameral

The unicameralists argue that it is necessary to simplify the legislative

machinery in order to increase its efficiency, to allocate responsibility more
easily, and to effect economy in the government. Moreover, they contended
that a bicameral legislature would contain a vestige of aristocracy, with the
members of the Senate feeling that they were greater and more important
that those of the lower house. It is furthered argued that under a
unicameral system, all legislators are of equal rank, hence is viewed as a
more democratic form of legislative structure.

On the other hand, the bicameralists contend that a unicameral body

might be prone to abuse of power. It is pointed out for example that a most
dangerous power is vested in the National Assembly in the matter of
impeachment as it acts as a prosecutor and judge at the same time.
Moreover, the bicameralists aver that the Senate is composed of members
elected at large, thus its represents the people, not special interests, such as
the intellectual aristocracy, the capital, the church, etc. (Ramirez, 1969: in
Catilo & Tapales, 1987)

The Constitution: The Electoral System and Political Parties

Elections form an integral part of the ‘dynamics of politics and the

complex process of governance.’ Viewed in the context of the relationship
between the government and the electorate, elections uphold the sovereign
will of the people over their government. As such, elections have come to be
regarded as the hallmark of democracy. It is through elections, especially
held at regular intervals, that the government ‘gives primacy to the element
of consent by the governed to be expressed manifestly if only to clothe the
exercise of authority by the government with legitimacy.’ (Tancancgo & de
Guzman:1986)

The Electoral Process

Based on observations of lections in several countries over the

years, nowhere else is there so complicated and tedious procedures as in
the Philippines. "We have not changed the electoral system, the manner of
conducting our elections since the first municipal elections in 1898," says
Damaso G. Magbual, deputy secretary general of Namfrel, confirming what
every observer of Philippine elections will note: The process is complex,
time-consuming, and regarding the usage of technology archaic, not to say
primitive.

The mere dimension of the logistical exercise on election day is

mind-boggling. While Namfrel has sent out no less than 300,000 volunteers
to assist in a parallel quick-count, tens of thousands of additional poll
watchers populated the voting centers. In some precincts, there are more
watchers and volunteers than actual voters. Officials and voters alike could
be heard complaining about erroneous voters' lists. While the election
commission has been said to be mainly responsible for this sorry state of
affairs, there is also a lack of political will to push ahead with the long
overdue modernization process. Certain political forces are more than
content with the antiquated manual system, as this offers them familiar
opportunities of manipulation not available in technologically advanced
schemes.

Ninety days of campaign period is a long time or, even arguably, too
long. Parts of the country's administration have been basically put on hold
in the past three months. Considering the enormous challenges facing the
country, it is no wonder if it would not be better to shorten the official
campaign period as in other countries. Anyway, the campaign is virtually
void of serious political content. (Ronald Meinardus:2005;MNS.com)

Electoral Reforms

The Senate sounded the call for the resignation of the incumbent
commissioners of the COMELEC after getting the report of the Blue Ribbon
Committee finding the commissioners and the members of the Bids and
Awards Committee (BAC) criminally liable for awarding “an egregiously
fraudulent” contract to Mega Pacific Consortium. With Senate joining the
Supreme Court , the COMELEC has earned the dubious distinction of not
only getting a public censure, but also having its top officials labeled as
crooks by two of the government’s highest institutions. (Editorial,
PDI:12/15/05)

There is also a lack of political sincerity regarding electoral reform:

today’s turmoil is basically a consequence of the inadequacies of the
electoral system. Had the 2004 elections been computerized and not
conducted through what observers at the time described as an “archaic”
system of manual counting, today’s allegations of cheating and rigging
would simply be baseless.
It is disturbing, but also revealing, that hardly anyone is campaigning for
election reform today. This leads to the conclusion that many in the political
class seem content with an outdated electoral system that is not only open
to manipulation but also extremely destabilizing. (The Nation, Bangkok :
6/15,/05)

The Presidency

Governance
 These days, the political class in the Philippines is too preoccupied to
be concerned about governance. Everyone’s attention is focused on what
one commentator has termed “the worst crisis any administration” has ever
experienced. The opposition is orchestrating turmoil and openly calling for
the ouster of the President. To achieve this goal, the president’s foes have
discharged various poisonous attacks

On a more general note, this situation exposes a fundamental

weakness of the Philippine political system and its institutions. The issue of
the legitimacy of the electoral results of May 2004 stands at the center of
the political turmoil. Up to this very day, the opposition has not conceded
defeat, insisting the president only won because of massive cheating. With
all legal efforts exhausted, the opposition has politicized the struggle. A
heterogeneous cluster of individuals and groups reaching from the far left to
the far right is confronting the president. Their only common characteristic
is an aversion to the president. They have neither produced a rallying figure
capable of replacing the president, nor have Party-List Representatives -
Those who, as provided by law, shall be elected through a party-list system
of registered national, Regional, Sectoral parties or organizations they come
up with a program of government. The anti-Arroyo coalition is a negative,
one-purpose campaign. (Ronald Meinardus:2005;MNS.com)

However, most observers agree the situation today is not ripe for yet
another popular uprising. While many Filipinos are unhappy with the
president, who is very unpopular, the outrage needed for a political
explosion seems to be missing. “People are either weary of protests or
apathetic to it all,” says one observer. As is often the case in extra-
constitutional processes, the call for “people power” does not stem from the
“people”, but from self-appointed leaders without a popular mandate.
(Ronald Meinardus:2005;MNS.com)

Poor governance is not only an issue with the Philippine public, the
media and the opposition. The quality of government (or the lack of it) and
its detrimental effects for society are dealt with in a recent survey published
by the World Bank entitled Governance Matters IV. Governance Indicators
1996-2004. The study evaluates the governments of 209 countries and rates
their performance in six governance related fields: human rights, political
stability, government effectiveness, regulatory quality, the rule of law and
finally the control of corruption.

For the Philippines, the report contains only bad news. Compared
with 2002 and 1998, the scores in all six categories went down in 2004. The
drop was particularly sharp regarding the rule of law and political stability,
where this Southeast Asian nation is ranked in one category with countries
like Zimbabwe, Uzbekistan and Haiti. To be more specific, some problems in
administrative governance are valid issues to consider, viz., graft &
corruption; undue favoritism; nepotism; cover-up; incompetence;
inefficiency; unethical behavior; and lack of integrity.

The World Bank report’s main point is that governance has a direct
impact on the economy. In short: Good governance is a precondition for
economic advancement and higher living standards - and not the other way
around. The message for the politicians is clear: if they want to improve the
economic conditions of their constituents - and one would want to assume
that this is the ultimate goal of all political forces - then they must start
with bringing their house into order politically. In this regard, the political
class in the Philippines still has a very long way to go. (MNS.com:2005)

The Office of the President of the Philippines has always been viewed
with awe, because of the immense powers that are vested in it. It is
therefore a given that the presidency has traditionally occupied center stage
in Philippine politics.

It is the President who is the chief administrator in the charge of

running the government and who determines the foreign policy of the
country. There are some scholars of Philippine history and political science
who argue that all presidents of the Philippines from Aguinaldo to Marcos
and Aquino (may also include all subsequent presidents) has tried to
“personalize” the Office of the President. It is within this context that all
presidents have been accused of trying to be dictators.

However, based on historical survey, it can be concluded that such a

notion of a historically dominant president may be mistaken. The review has
shown that only four (4) presidents actually tried to dominate the Office of
the President and they exhibited dominance in varying degrees: Manuel L.
Quezon, by the strength of his towering personality; Elpidio Quirino, by the
exigency of the Communist threat; Ramon Magsaysay, by his charismatic
appeal to the masses; and Ferdinand E, Marcos, by his intellect and
“messianic complex.” (Brillantes, Alex Jr.:1987)

Executive Influence and Control

Contemporary political events tend to show that how a chief

Executive’s exercise of political power of the Office of the President is
bringing changes in the government structure, especially the legislature.
The effective checks and balances between the President and Congress are
eroded by the brutal and raw coercive power exerted by the President on
party members controlling the lower house.
 This is seen as another dictatorship is in the making. Fortunately, the
Senate still maintains a semblance of opposition, though sometimes
perceived as only a token gesture. Gradually, however, the legislature is
slowly reduced from its role of critic and balancer to a rubber-stamp
institution consenting to the President’s wishes. (Catilo & Tapales: 1987)

Political Crisis: Lying, Cheating, and Stealing

Some observers of Philippine affairs view political crises in this

country as a permanent phenomenon.. To understand the underlying
factors of the crisis besetting the Arroyo presidency, one must consider the
ramifications of the ouster of her predecessor. Estrada and his political
allies have still not accepted the 2001 fait accompli and continue to see
themselves as the legitimate rulers. (Ronald Meinardus, MNS.com )

Following allegations that her husband, son and brother-in-law are

entangled in corrupt practices involving illegal gambling, audio recordings
surfaced that, according to the opposition, substantiate claims that the
president cheated her way to power in the May 2004 elections. Add these ,
documented promises and commitments unfulfilled that led to the charges
of lying and you have a recipe for destabilization.

Future historians will probably come to the conclusion that the most
important factor benefiting the president was the political apathy of the
masses. While survey after survey has documented that a majority of
Filipinos are unhappy with the incumbent and wouldn’t mind seeing her
quit today rather than tomorrow, only a small minority is willing to go to the
streets and join protest rallies. “People power has become an impotent
weapon for ousting a widely reviled President,” said a leading columnist in
September shortly after presidential allies in the House of Representatives
effectively squashed the impeachment process. (The Korea Times: 12/6/05 )

The Military & Uniform Services

This administration is going to be remembered for making a mockery

of the democratic institutions that are indispensable in a strong republic.
However, Anna Marie Pamintuan, a columnist in the Philippine Star daily,
says, “were partly to blame for our failure to strengthen the institutions
needed for a stable and functioning democracy”.

No one has to be reminded that a president shouldn’t confuse being

commander in chief of the Armed Forces (including the Police), with being a
kind of shogun in command of a private army. Our constitutional set up
precisely requires officers above a certain rank to be vetted by the
Commission on Appointments of Congress, which also exercises the power
of the purse over the Department of National Defense, the Armed Forces,
and the Department of Local Government (to which the Philippine National
Police belongs). However, what we are seeing is an administration that has
built a legal wall around itself, permitting only an occasional and grudgingly
allowed, glimpse of what’s going on behind those walls. (Sketches,
PS:12/14/05

When the Senate asked for the testimony of a number of military

officers concerning ISAFP and allegations that PGMA’s conversations were
tapped, the officers did not show up. Executive Order 464 issued by the
President, was invoked. In the absence of a court decision to the contrary,
the President’s order may be presumed to be legal and constitutional. But
what is legal and constitutional is not necessarily what is right.

In any other country, allegations of such serious and stunning breach

of national security, involving no less than the tapping of the
communications of the head of state, would have shaken the military
establishment to its very foundations. That is not happening here, Instead,
the Armed Forces (including the PNP) and the President seem to have
entered into a partnership to stonewall all efforts to obtain answers. This, in
itself, serves to underline the importance of Congress’ oversight powers and
of its inquiries. There are times when the presidency and the military need
to be saved from themselves. (Editorial,PDI:12/14/05)

Political Issues vs. Personality

A distinctive feature of elections in the Philippines is, to use the

term ,the tremendous personalization of the contest. Apart from very few
exceptions, all candidates campaigned solely for themselves. Their name,
their face, their individual success was all they cared for. One consequence
of this personalization is the practical irrelevance of political parties in the
electoral process.

It was not at all easy to explain how come the official spokesman of
the military could go on record saying that the elections were "generally
peaceful," when, at the same time, reports came in saying more than 100
people had been killed in politically motivated violence. To be fair, the
spokesman said this against the background of fears of a Madrid-like major
terrorist assault before or during elections here. Very fortunately, this did
not materialize. Still, the bloody toll of elections remains an ugly scar on the
overall democratic process in the Philippines. (Ronald
Meinardus:2005;MNS.com)
Political Parties

The existence of political parties is one of the manifestations of a

representative democracy. They are among the most essential instruments
of a democratic government since they effect the mobilization of the
electorate which is vital to the selection of government officials necessary in
running the affairs of government. (Ayson & Aligada-Reyes: 2000)

While there is no uniform definition of a political party, authors agree,

however, that a party may be distinguished from other types of
organizations in that it constitute a group of individuals whose primary
objective is to attain control of the government through the electoral
process. Like the electoral process itself, it constitute one connecting link
between diverse groups in society and members of the electorate attempting
to achieve organized political action. Significantly, political parties as well as
to party systems provide for a frame of reference with which to describe
party functions in relatively abstract terms, i.e., a) people-party relationship;
and b) party-government relationship.

In the first, (people-party) the party is viewed as an institution in

society that stands between the public, specifically the electorate, and the
government. It plays a dependent role in that it is constantly and heavily
influenced by existing social forces, such as traditional values, political
culture, or social cleavages as it operates within the political system. Also, it
plays an intervening role in this type of relationship where it serves as the
conduit of demands from the people to the various branches and
instrumentalities of the government.

In the second, (party-government) the party is seen as the

independent variable where its goals and actions (through platforms,
programs or criticisms) may integrate, control, direct, or shape the
configurations of the society in which the party exists. In both relationships,
its role and functions are interrelated with each other. (Tancangco &
Brillantes: 1987)

Party System

In a One-Party State System only a single party exists in the state

where such party is integrated with the government and thereby becomes
the political machinery of the state. No opposition is allowed to challenge
the hegemony of this single party in the control of the government since it is
the instrument by which totalitarian regimes, or dictatorships eliminate
opposition to the monopoly of power.
 Under the Two-Party System are two major parties with nearly equal
membership and political strength. Around them are minor or third parties
none of which is able to establish a nation-wide base of party strength to
win national election for the top leadership of the land. In this system, one
of the major parties conducts the affairs of government while the other
plays the role of fiscalizer and critic of the policies and actions of the party
in power. Meanwhile, the minor or third parties serve as critics of the major
parties. The latter act as propaganda bodies or pressure groups which
influence the formulation of policies.

The Multi-Party System is a scheme of party alignment in which there

are several parties in a state, each with its own membership, identity or
label, ideology, programs, and policies. It is, however, observed that the
effect of the Philippine Constitution of 1987 pertinent to the party systems,
is that it militates more favorably to the establishment of a multi-party
system because it encourages the growth of political parties. (Ayson &
Aligada-Reyes: 2000)

The Judiciary

Inevitably, the application of general rules of to particular acts or

conduct of individuals opens itself to dispute, honest or otherwise, as to
whether the specific act in question is a proper instance or particularization
of the general classification that the law makes. Such disputes must be
settled authoritatively. Further, general laws will, in many respects,
necessarily be vague and indeterminate. The uncertainty must be resolved
and proper meaning of the statute clarified definitely.

In modern societies, the tasks of settling disputes regarding the

appropriate application of a law, or clarifying the true meaning or scope of
an indeterminate statute, and of adjudicating upon claimed violations of a
rule, are entrusted to judges – men trained and skilled in the law.
(Bacungan & Tadiar: 1987)

The Judicial System

As a whole, the Philippine judicial system has not worked fast

enough. The late Chief Justice Fred Ruiz Castro told lawyers that “justice
will always remain a sterile abstraction unless ways and means are
discovered to achieve it with dispatch in every case in the shortest time
possible, and at the lowest cost. (Castro:1976) Further, he warned lawyers
that “docket congestion is a large, formidable, and menacing enemy. In the
same vein, Chief Justice Enrique M. Fernando deplored the number of
piled-up cases and called on the judiciary to exert the most determined
efforts to reduce the increasing backlog of cases. (quoted by Batalla:1980)
The issue on the success of the judicial system seems to depend on such
sub-issues as, the following: a) adequate number of judges; b) efficiency in
the disposition of cases; c) improvement of the judicial structure and
procedural rules; and the availability of extra-judicial settlement of
disputes.

Respect For The Law

Whether this is enough to mobilize the Filipino masses is

questionable. To be successful, the least the kind of movement some
armchair revolutionaries are dreaming of should do is produce a joint
political blueprint for a better future. The lack of such a blueprint enforces
the widespread suspicion that the whole commotion is less about political
direction and principles than it is about personal ambitions. Both side of
the fence, i.e., The administration on one hand and the opposition on the
other, applies the law to suit each side/s agenda.

To raise the constitutional question during this delicate time is

premature. The problem is not the constitution, but a lack of respect for the
basic law. It is debatable, also, whether a shift from the presidential to a
parliamentary system would improve the political situation. While it would
strengthen parliament, it would at the same time weaken the executive.
(Ronald Meinardus:2005;MNS.com)

The Bureaucracy

The central role of the bureaucracy is the accomplishment of what the

government wants to do. Increasingly, it is asked to perform functions that
markedly affect the lives and influence the future of Filipinos. The term
“bureaucracy” is used to mean the departments, bureaus, agencies, and
instrumentalities of the government.

Essentially, the bureaucracy provides continuity in the government

system when top leadership changes. In some respects, the bureaucracy
becomes the fourth “branch” of the government, because of its stabilizing
and preserving role when top leaders enter and leave the political scene.
However, the idea of a “development-oriented” bureaucracy has emerged
recently, thus a sense of mission to serve the people needs to be advocated
among bureaucrats. Yet, as in any organization it has its ample share of
problems, issues and concerns, some of which are discussed, as follows –
Centralization vs. Decentralization –

The concentration of power, decision-making, and control over

substantive and administrative matters in the hands of the central
government and national officials (especially under martial law), have led to
delays in the implementation of development programs and projects.

Among the specific manifestations of increasing central control over

local affairs are a) the scope and extent of presidential power over local
officials; b) the integration of police, jail, and fire protection services; c) the
centralization of regulatory powers over buildings and tourist-oriented
establishments; d) the central direction in the planning and
implementation of development programs and projects; and e) the
proliferation of departments/agencies having supervision over different
aspects of local affairs.

The situation may be improved through dispersal of power from the

center through meaningful decentralization, either be Deconcentration or
Devolution. (de Guzman, Brillantes, et.al:1987)

Coordination

Coordination is the process whereby the efforts of the individual

components (members) in a group or organization are harmonized in the
order to attain a common objective or purpose. It is the process (de
Guzman:1980) of inducing cooperation among the concerned agencies
essentially through coordination. By and large, the problem of coordination
occurs at various levels of government. It may be interdepartmental as well
as intra-departmental. Moreover, the problem of coordination has always
existed at the field level. It has been described as a perennial issue in the
field of public management. (de Guzman, Brillantes, et.al:1987)

However, the lack of coordination between the central planning office

and the implementing departments, especially in program areas where two
or more agencies are involved or where certain functions have to be
performed, is not without reasons. For instance, the sheer magnitude of
tasks in government is discouraging; the nomenclature confusing; and the
variety or kinds of units with their multiplicity of divergent programs
awesome, hence the difficulty of coordination. In addition, multiple
participation of all sectors of society in government makes for problems in
coordination. Moreover, the people within the administrative branch have
no one single boss where the former must graciously receive orders and
must account faithfully to their many bosses. (Talingdan:1966)
Graft and Corruption

The increasing problem of graft and corruption was recognized even

by the prominent members of past political leadership. The study of the
College of Public Administration of the University of the Philippines on
negative bureaucratic behavior pointed out that graft and corruption in the
Philippines has strongly affected development efforts negatively. It stated
that … corruption leads to the favoring of inefficient producers, the unfair
and inequitable distribution of scarce public resources and the leakage of
reserve from the government coffer to private hands. Less directly, but no
less perniciously, corruption leads to loss of public confidence in
government. (Carino & de Guzman:1979)

Further, the report confirmed the existence of the systemic form of

corruption in many agencies. Under systemic corruption, negative
bureaucratic behavior is done not only by individual civil servants working
singly to get a fast break, but by a group of people at all levels of the
hierarchy whose corruption parallels the regular administrative process,
depending on the person’s level of responsibility and position in the
hierarchy and led by a high ranking official regarded as “untouchable.”
(Cariño & de Leon: 1983)

Red-Tape and Inefficiency

In this context, red-tape is defined as ‘a bureaucratic disease, failure

or pathology characterized by excessive devotion to formality, ritualized
adherence to routine, technicism or Overconformity in the pursuit or
implementation of laws, policies, rules, regulations, procedures, etc. leading
to duplicative paper work, delay, inaction, or other unreasonable
requirements.’ (Reyes & de Leon:1983)

In red-tape, procedures followed may be cumbersome and

complicated which slows down paper processing. Filing systems are
disorganized and files and other documentary records accumulate over long
periods of time without a disposal policy and system. Forms multiply and
seem unrelated to precise objectives. Hence, the unsystematic and time-
consuming processing of government papers is often derogatorily referred to
as “bureaucratic.” (de Guzman, Brillantes, et al:1987)

Personnel Administration -
 Among the perennial issues in Personnel Administration obtaining in
the bureaucracy include : a) proper staffing of various agencies at both the
national and local levels; b) violations, distortions or non-observance of the
merit and fitness principle in recruitment and promotion; c) low salary scale
of civil servants; and d) frequent transfer or re-shuffling of personnel, and e)
nepotism. (de Guzman, Brillantes, et al:1987)

Citizen’s Participation

While the principle that people should participate in governance in

order to share the benefits of development has received universal
recognition and acceptance, however, such principle has yet to be
meaningfully implemented, in only because certain vital elements of
development have been obscured, if not set aside. Only recently that the
concept of social equity was added to economic growth in defining
development.

The recognition of the people’s right to self-esteem and freedom can be

best operational zed by the people’s participation in governance. Leadership
selection and policy-making are critical areas in which people must
participate. It is in these political areas where the generation, allocation,
and distribution of resources required in development are made with the
force of law. (de Guzman, Brillantes, et al:1987)

Public Health System

The Philippine General Hospital was so named , because “it will be

destined principally for the use of the Filipino people. The PGH is only a
health care institution. It was the cradle of a social experiment in health
care, where it basically served as a training ground of doctors and nurses.
Its socialist orientation was inspired by its model, the great Hamburg
Eppendorf Hospital in Germany. Thus was born the Filipino version of a
limited, socialized health care program dedicated to the community more
than to making profits.

However, by the 1970’s it had become evident that this socio-medical

experiment was serving citizens of rich countries more than the Filipinos,
whose taxes were subsidizing the education and training of medical
workers. A review of the medical policies and programs revealed an alarming
brain drain of medical workers and an unbalanced distribution of heal care
workers in the country.

By the 70’s, more than 50% of Filipino doctors were making an

exodus to the US and other rich countries. In the country, the concentration
of the remaining health care workers in the urban areas left about 70% of
Filipinos in the rural areas without adequate medical services – not much
better than the appalling vacuum of public health care services at the turn
of the century. In a paper at the centenary colloquium, Dr. Galvez-Tan
presented a graphic picture of the irony. His paper say, “There is nothing
new about the issue of nurses migrating to developed countries, because for
the past several decades, we have been the number one ‘exporter’ of nurses
to the world. What is new, however, is the phenomenon of doctors becoming
nurses.” (Amando Doronila, PDI: 12/10/05)
Problems of The Administrative Services

(1) Problems of Organization

Determine the structural character or organization of the service or

services by means of which the work of administration is to be performed.

(2) Problems of Personnel

They make provision for the manning of this organization with

personnel and the determination of the conditions under which such
personnel will give their services.

(3) Problems of Material

They must provide for the material equipment required by this

organization for the performance of its duties or fix the condition under
which such material will be acquired.

(4) Problems of Business Practice and Procedures

Decision has to be reached regarding the methods that will be

employed in operating the services.
 PART VII
ACCESSIBILITY AND ACCOUNTABILITY

Administrative Accessibility

Access denote: (Webster New Collegiate Dictionary 1974 in Alfiler, 1979)

 Permission, liberty or ability to enter, approach, communicate with or

pass to and from.

 Freedom or ability to obtain or make use

 A way or means

 The action of going to or reaching

or reaching

Why Access?

As early late 60s until mid 70s, there is in the world a serious concern
for administrative capability of administrative systems in the developing
nations. This concern is based on the argument that for these nations to
make optimum use of their limited resources vis-à-vis the numerous claims
made upon them, there must be a capable and competent which can
convert the resources inputs into goods and services efficiently and
effectively (UN, 1969; Caiden, 1973; in Alfiler, 1979)

Accessibility Displacement: A Function of Administrative Processes

Accessibility may also be displaced by:

 Organizational structures which are not flexible and responsive to
client’s needs as they become set and rigid because of hierarchical
control;

 Procedures which routinize everything to simplify decision making

process for counter personnel;

 To individual client’s needs;

 Undue emphasis on resource allocation for administrative infrastructure

rather than on client service;

 An evaluation scheme which ignores the problem of accessibility

because it does not jibe with the interest of the organization.

Administrative Accessibility Checklist

1. Identification of the problem, and particular target clientele.

2. Thorough client analysis in terms of:
a. homogeneity
b. interest group
3. Administrator deliberate effort to get client participation.
4. Adequate time, resources, and facilities for client participation.
5. Extent of client involvement in the formulation of objectives.
6. Objective specifically and operationally address client problem.
7. Project/organization have multiple goals.

Policy Formulation
 Organization/project provide strategy.
 Client alternatives.
 Policy consider; client need, characteristics, economic, political power,
etc. vis-a-vis population
 Extent of cost

Plan Implementation

A. Organizational Structure:

> Flexible and directed to solution of client-defined problem.

> Proximity of field office to client
> Authority and responsibility of field officials to accommodate client.
B. Resources:

 Convenience of service to client.

 Client expenses versus Administrative infra.
 Flexibility in manpower during peak hours.
 Qualified personnel in frequent contact with client.
 Stress the need for boundary personnel to be service-oriented.

C. Procedures: Simplicity of procedures.

 Administrative requirements.
 Specialization for efficiency consideration.
 Public information system.
 Monitoring process.
 Flexibility of procedures.
 Project data/information collection

D. Evaluation:

 Performance standard (quality and quantity).

 Evaluation scheme measuring target client accessibility to the
service.
 Distinction between accessibility and program/project outcome.
 Management systematic check of administrative processes and
accessibility displacement.

Policy of Disclosure

SECTION 1. Subject to reasonable conditions prescribed by law, the State

adopts and implements a policy of full public disclosure of all its
transactions involving public interest.
SECTION 2. It is the responsibility of heads of departments, offices, and
agencies to establish measures and standards that will ensure transparency
of and openness in public transactions in their respective offices, such as
biddings, purchases, other financial transactions including contracts,
status of projects, and all other matters involving public interest.

They shall establish information systems that will inform the public
the following:
 (a) Policies, rules, and procedures;
(b) Work programs, projects, and performance targets;
(c) Performance reports; and
(d) All other documents as may hereafter be classified as public
information

Such information shall be utilized solely for the purpose of informing

the public of such policies, programs and accomplishments, and not to
build the public image of any official or employee or to advance his own
personal interest

SECTION 3. Every department, office or agency shall provide official

information, records or documents to any requesting public, except if:

a) Such information, record or document must be kept secret in the

interest of national defense or security or the conduct of foreign affairs;
b) Such disclosure would put the life and safety of an individual in
imminent danger;
c) The information, record or document sought falls within the concepts of
established privilege or recognized exceptions as may be provided by law
or settled policy or jurisprudence;
d) Such information, record or document comprises drafts of decisions,
orders, rulings, policy decisions, memoranda, etc
.

It would disclose information of a personal nature where disclosure

would constitute a clearly unwarranted invasion of personal privacy;**
It would disclose investigatory records compiled for law enforcement
purposes, or information which if written would be contained in such
records, but only to the extent that the production of such records or
information would:

(i) interfere with enforcement proceedings,

(ii) deprive a person of right to a fair trial or a impartial adjudication,

Disclose the identity of a confidential source and, in the case of a

record compiled by a criminal law enforcement authority in the course of a
criminal investigation, or by an agency conducting a lawful national security
intelligence investigation, confidential information furnished only by the
confidential source, or unjustifiably disclose investigative techniques and
procedures; or

It would disclose information the premature disclosure of which

would in the case of a department, office or agency which regulates
currencies, securities, commodities, or financial institutions, be likely to
lead to significant financial speculation in currencies, securities, or
commodities, or significantly endanger the stability of any financial
institution; or

In the case of any department, office or agency, be likely or

significantly to frustrate implementation of a proposed official action, except
that subparagraph

Shall not apply in any instance where the department, office or

agency has already disclosed to the public the content or nature of its
proposed action, or where the department, office or agency is required by
law to make such disclosure on its own initiative prior to taking official
action on such proposal.

SECTION 4. Every head of department, office and agency shall establish

information systems and networks that will effect the widest possible
dissemination of information regarding the provisions of the code, and the
policies and programs relative thereto. (RA 6713), Code of Conduct Ethical
Standards for Public Officials and Employees

Accountability In The Public Service

Accountability - means ‘to be called account”, “to be responsible for”,

one’s acts or omissions. Accountability is the obligation to prudently
exercise assigned or imputed authority and to be responsible for one’s acts
or omissions to a superior power (Agabin and Agno, 1992)

Accountability is a central problem for governments which are, or

claim to be, democratic (Carino, 1983); Jaime Tadeo (1991) and Concom
observed that public officers and employees act as if they are the masters
when in fact they are really the servants of the people. Related to this is the
observation of Jose Nolledo (1991) that in public service, many employees
graduate from the state of “pauperism” to “millionarism” and that they
exhibit their corruption by living in palatial homes and riding in flashy
automobiles, living far beyond their legitimate income.
Administrative Accountability

Responsibility and accountability are terms that are often confused

and are frequently used synonymously. Responsibility, from the French
responsable, means liable to respond, answerable. In common parlance, it
implies an accountability or answerability to a person or body imposing a
task or duty. If responsibility has to be accepted (not imposed) and if this
acceptance creates an obligation to perform, to do something, there is an
implicit answerability or accountability. (Bittel and Ramsey, 1995)

Administrative Accountability refers to the need for the appointed

officials of the local and national bureaucracy to answer to the political
leaders and the public when they are unable to deliver programs and
services funded and authorized by the former. Public Administration in The
(Victoria A. Bautista P. F. Jardiniano)

Administrative Accountabilities are as follows:

(a) Accountability for Official Time

Working Hours :

(1) Elective Officials (Exempted); (2) Keeping Time Record: (3) Regular
and Special Holidays: (a. Regular Holiday; b. Nationwide Special Day; c
Local Special Days; d. Pretermission of Holiday)

Policy on Government Working Hours:

(1) Forty-Hour Workweek; (2) Flexible Working Hours; l (3) Use of

Bundy Clock and Other Records of Attendance; (4) Overtime Services; (5
Under-time; (6) Habitual Absenteeism: 7) Administrative Sanctions

(b) Compensation and Benefits of Local Officials

(c) Leaves and leave Privileges
(d) Accountability for Personnel Actions
(e) Vacancy in Local Government Offices
(f) Termination of Service in LGUs
(g) Recall of Elective Local Officials
(h) Accountability for Public Records

Public Accountability
 Public Accountability is the accountability of public officers and
employees to the people. This means that public officers who are invested
with public trust exercise their powers and functions as servant of the
people, and they are held responsible to the people, through their immediate
superiors, for their acts and omissions during the performance of their
functions (Agabin and Agno, 1992)

Accountability is related to a legal locus of responsibility while

responsibility associated with a personal moral quality without necessarily
relating it to status and power; a public/ private organization must be
accountable to the organization and to society in general to insure good
governance.

Accountability is often synonymously which such concepts as

answerability, blameworthiness, liability and other terms associated with
the expectation of account-giving; (www.yahoo.comwww.google.com)

Standard Criteria on Accountability

In order to understand better the term accountability (Carino, 1983)

pushed four (4) standard questions central to accountability:

> who is considered accountable?

> to whom he is accountable?
> to what standards or values is he accountable?
> by what means is he accountable?

Norms and Standards:

1. Commitment to public interest

2. Professionalism
3. Justness and Sincerity
4. Political neutrality
5. Responsiveness to the public
6. Nationalism and Patriotism
7. Commitment to democracy
8. Simple living

Forms of Accountability
1 .Financial Accountability – Stems from the philosophy that public officers
are mere custodians or stewards of the funds that accrue to the
government.

2. Compliance Accountability – is the responsibility of the public public

officer for adherence to laws, rules and regulations in the performance of his
functions.

3. Results Accountability – looks at the accomplishment of mission by

public officers and is concerned with whether the objectives and programs
and plans of the government are achieved

4. Managerial Accountability – Is concerned with the efficiency and

economy in the use of public funds, resources and manpower.

6. Process Accountability – emphasizes procedures and methods of

operations and focuses on the black box inside systems which transform
inputs. This type of accountability, recognizes that some goals may not be
measurable directly and surrogates, representing how goal-directed activity
may performed, are used instead.

Dimensions of Public Accountability

1. Traditional - This type of accountability centers on the regularity of

fiscal transactions and faithful compliance and adherence to legal
requirements and administrative policies. The criteria for evaluating the
officials concerned are set by controls external to the person responsible.
Likewise, the test involves determining if an act is within the provisions of
laws and regulations governing the agency; and if the person or persons
who perform it have the authority to do so.

2. Managerial - Its main concern is on the efficiency and economy in the

use of public funds, property, manpower , and other resources. This type of
accountability recognizes more than just compliance, for it also focuses on
the input aspect. It further suggests constant concern in avoiding waste and
unnecessary expenditures as it promotes judicious use of public funds and
resources. Technically, it is supported by programs which weed out red-tape
to government procedures and substitute less costly alternatives to existing
practices.

3. Program - It deals with the results of operations. In this context,

accountability relates to the property or units as well as individual workers
whose collective activities make up for a successful and effective program.
Where accountability cannot be pinpointed accurately and realistically, the
measure or gauge utilized is the overall effect of the series of activities or
program. As this is a variation of the managerial accountability, the
responsibility here is in the orchestration of office and or agency activities.

4. Social This system recognizes a variant program accountability. The

main inquiry lies on whether the administrative policies and activities
generate confidence and are regarded as desirable social ends. The main
question, however, is - “Is the program responsive to the needs of the
people?”

Under this aspect, it is not only a question of whether the results are
beneficial to society or not. Rather, is it tailored to the specific needs of the
people ? - should be the proper query. For there are programs designed on
the assumption of needs, yet are not actually called for, hence of no priority
value.

5. Process - This type zeroes in on procedures and methods of operations.

It also refers to the system which transforms inputs into outputs. Moreover,
process accountability recognizes that some goals may not be measured
directly and this shows how goal-oriented activities may be performed or
utilized instead.

The notion of public accountability has substantially changed.

However, much is still expected of the accountable official since his
responsibility is not on the individual tasks, but for a related set of
functions which are further grouped into projects and programs

Accountability of Public Officers

Public office is a public trust. Public officers and employees must at

all times be accountable to the people, serve them with utmost
responsibility, integrity, loyalty, and efficiency, act with patriotism and
justice, and lead modest lives (Article X1, Section 1)

Accountability is a central problem for governments which are, or

claim to be, democratic (Carino, 1983). Jaime Tadeo (1991) and Concom
observed that public officers and employees act as if they are the masters
when in fact they are really the servants of the people. Related to this is the
observation of Jose Nolledo (1991) that in public service, many employees
graduate from the state of “pauperism” to “millionarism” and that they
exhibit their corruption by living in palatial homes and riding in flashy
automobiles, living far beyond their legitimate income.
Efficient Operations Include:

> Holding the costs constant while increasing the benefits.

> Holding the benefits constant while decreasing the cost.
> Increasing the costs at a lower rate than benefits.
> Decreasing costs at a lower rate than benefits,

Economical operation is the elimination or reduction of needless cost.

Thus, economy and efficiency, as they both pertains to reduction or
elimination of costs are equivalent meaning (Herbert 1982 in Carino 1983).

The Varieties of Public Administration

To further understand why the concept of accountability has altered,

it would be useful to review changes in Public Administration theory over
time. Each of the four varieties of PA offers a distinct emphasis and relates
to the people and the society in different way.

They may be identified as: “traditional public administration”,

“development administration”, “new public administration”, and
“development
public administration”.

1. Traditional Public Administration – The main emphasis of traditional PA is

maintenance. The role of public servant was to implement decisions made
elsewhere by policy makers who were not in the bureaucracy. It had a set of
prescriptions laid down by engineers and managers who were obsessed by
the search for the best way.

2. Development Administration – is the variety that gained currency when

colonies got political independence and set their sights on the development
of the economy following the example of the West. The main task of DA is
the search for theories that can describe and explain the management of
economic growth. With the Western experience as the model, DA become
involve in looking for tools that can improve the planning process and the
performance of staff functions.

3. New Public Administration – was in the seventies in a USA of restive

scholars who found traditional PA largely irrelevant to a turbulent
technological society crying for equity and social justice……New PA
advocates project management and the modular organization in lieu of the
bureaucracy. It either moved away from economics to philosophy, or sought
the blending of both.
4. Development Public Administration – the fourth is what (Carino, 1983)
called for want of a better term, DPA. The product of the 1980s, DPA is
similar to NPA in its emphasis on the goals of social justice, equity and the
certainty of the human person, and is akin to DA in its focus on the
problem of the third world than the USA. DPA advocates do not choose
between equity and growth but view continued productivity as the base
upon which basic needs would be provided for everyone in the society and
benefits would be distributed in a more equitable way.

Accountability and Public Administration

The discipline of PA has changed overtime both as a response to the

changing currents of thoughts within the social science community as well
as to the events in the country and world which press on both our
understanding of the discipline and on its practice.

Traditional accountability practically demands the doctrine of the

politics-administration dichotomy, where the decisions are made outside the
bureaucracy and compliance is compelled all through the hierarchy but its
ultimate arbiter in bodies external to the bureaucracy like the legislator and
the courts. Rules and procedure are set elsewhere and are rigid, thus
requiring the check on performance on a line-by –line and strict peso-
centavos accounting.

Congruence of Administration and Accountability

Despite its congruence with most of the traditional accountability, the

first variety of Public Administration has encouraged the start of managerial
accountability through its emphasis on the economy and efficiency of
organization. This was carried over into Public Administration . A number
of management tools developed under the DA period still tended to focus on
inputs and the staff functions. Most the tools were developed in the USA
but their capability to a third world country at the first stages of
development was hardly addressed. The techniques were regarded as
capable of being useful regardless of social conditions.

New Public Administration and Program Accountability

In a sense, New PA sounded the call for the stress on effectiveness of

government activities while also underscoring the shift of development goals
from simple economic growth to more humanely appropriate objectives. The
techniques of program accountability fit the first thrust of new PA.
Comprehensive auditing is a major tool here but it was not a tool for
program accountability in the Philippines until the COA regarded it as one
of its main functions in 1975. Even comprehensive auditing, however, does
not fully encompass what the New PA wants since it is largely confined to
internal operations and does not evaluate agency performance in terms of
its effect on the community and the society.

Development PA and Process Accountability

Process accountability has a lot in common with DPA. DPA features

the reacceptance of the necessity of bureaucracy as long as it is reoriented
to include the participation of client and recipients in the process of
administration, and the decentralization of decision making to local areas.
Process accountability has practically the same building blocks. Living with
the bureaucracy, it seeks to involve both central and local units and their
constituents in the decisions for which the implementing units would then
be responsible.

Islamic View of Accountability

Accountability is vital concept to management. It establishes that

managerial leaders are held answerable for the stewardship and well being
of everything that is carried out under their jurisdiction. . . . . Clarifies and
empowers the tasks of managers and those they manage. The Qur’an:
provided the following verses: (Noor, 2002)

“Every person is accountable for what he earns, for no bearers of a

burden bears the burden of others.” (Al-An’am, 6:164)

“For me is my work and for you is your work, you are not responsible
for what I do and I am not responsible for what you do.” (Yunus, 10: 41)

“Whoever adopts the righteous way, his righteous conduct will be

for his own good, and whoever goes astray, his deviation shall bring it
consequences on him. No bearer of a burden will bear the burden of
another.” (Al-Israa, 17: 15)

People Participation in Governance

 Decentralization generally refers to the systematic and rational
dispersal of power, authority, and responsibility from the center to the
periphery, from the top to the lower levels, or from national to local
government units (De Guzman and Reforma, 1993) In the light of
decentralization, and democratization, the Local Government Code of 1991
provide venues and opportunities for people to participate local governance.
They are:

 Local Sectoral Representative

 Local Special Bodies
 Local Initiative
 Referendum and plebiscite
 Recall
 Election
 People Power

Decentralization as a strategy for reform efforts shall consider some

challenges ahead: Stiftung (2000) stressed management quality, standards
and effectiveness solely depend on culture. Things improve only when
culture improves. The root cause of our ailment is a decadent, fragmented
and divisive culture. Good governance and good management can not
sustain in an unhealthy culture of status quo, mismanagement and
resistance to change. Other challenges include: (Local Government Code
1991)

> Training capacity

> Performance indicators
> Total quality management
> Professionalization and corporatism
> Simplification of rules and procedures
> Citizen charters
> Devolution
> Corruption, integrity and ethics

Recent conceptualizations, however, have expanded the meaning of

the term of developing alternative mechanisms for the delivery of basic
services traditionally undertaken by bureaucratic organization.
Concept of Participation in Islam

“
Help ye one another who are in righteousness and pious deity. Help not one
another unto sin and transgression but keep your duty to Allah. Lo! Allah is
severe in punishment” (Quran V:2_

“ It is part of the mercy of Allah that you deal gently with them. Where
you serve or harsh-hearted, they should have broken away about you: So
pass over (their faults ) and ask for (Allah’s) forgiveness for them and consult
them in affairs (of the moment). Then when you have taken a decision, put
your trust to Allah. For Allah loves those who put their trust on Him.” (Surah
Al-Imran 3:59)

New Concepts/Premises on Public Accountability

1. The citizen is holding public officials and employees to a higher degree

of accountability;
2. The public must know what each office, government agency,
instrumentality is accountable or responsible for (transparency);
3. The management of each agency must set forth clear-cut areas of
accountabilities pursuant to their respective mandates;
4. Periodic public reporting of accomplishments and accountability status
will be a matter of administration policy;
5. Accountability is both individual and collective. Yet it is the essence of
the administrator’s job that efficient and effective service deliver is
consistently rendered to clients by his personnel. He has greater load of
accountability due the amount of government accounts under his care or
stewardship;
6. Accountability cannot exist if there is no prior authority given. When
authority is granted, then corresponding responsibilities and relationships
also ensue. Hence, job or service accountability will have the four elements
aforementioned;
7. Definite expectations, standards, norms and performance targets must
be formulated in order to serve as bases for periodic performance appraisal
and accountability monitoring;
8. The organization/management climate whereby employees are accepted,
respected and valued as assets can be created using democratic principles
and processes. The legal, social, moral, and ethical accountabilities and
obligations of all personnel in the workforce shall be clarified. Thus, it is
imperative for administrators to utilize their positions, power, and authority
constructively in ways that enhance or enable the workforce to accomplish
goals efficiently and effectively; and
9. Management by Objectives coupled with Performance Audit shall be the
main strategy for accountability monitoring. Peer groups or collective
accountability per division and the total organization shall be responsible
for meeting or achieving target results or outputs for a particular period.

Part VIII
THE FINANCIAL SYSTEM AND FISCAL ADMINISTRATION

Public Finance

Public Finance is one area of study in economics … which can be

considered as synonymous to government finance, public economy or the
economics of the public households, is that part of economics which
deals with the revenue and expenditure patterns of the government and
their various effects on the economy. In other words, public finance id
the study of the economic aspects that arise in the operations of the
public budget (Romualdez et. al.,1973)

Financial Systems and Monetary Policy

In developed nations, monetary and financial policy plays a major

direct and indirect role in government efforts designed to expand economic
activity in times of unemployment and surplus capacity and contract that
activity in times of excess demand and inflation. Basically, monetary policy
works on two principal economic variables: (1) the aggregate supply of
money in circulation; and (2) the level of interest rates.

The money supply (currency plus commercial bank demand deposits)

is thought to be directly related to the level of economic activity in the sense
that a greater money supply induces expanded economic activity by
enabling people to purchase more goods and services. This in essence is the
monetarist theory of economic activity. Its advocates argue that by
controlling the growth of the money supply, governments of developed
countries can regulate their nation’s economic activity and control inflation.
(Todaro) i

On the other side of the monetary issue are the Keynesian

economists, who argue that an expanded supply of money in circulation
increases the availability of loanable funds. A supply of loanable funds in
excess of demand leads to lower interest rates, Since private investment is
assumed to be inversely related to prevailing interest rates, business people
will expand their investments as interest rates fall and credit becomes more
available. More investment in turn raises aggregate demand, leading to a
higher level of economic activity (more employment and a higher GNP).

Similarly, in times of excess aggregate demand and inflation,

governments pursue restrictive monetary policies designed to curtail the
expansion of aggregate demand by reducing the growth of the national
money supply, lowering the supply of loanable funds, raising interests, and
thereby inducing lower level of investment and, it is hoped, less inflation.
(Todaro)

Public fiscal administration generally refers to the formulation,

implementation, and evaluation of policies and decisions on taxation and
revenue administration; resource allocation, budgeting and public
expenditures; public borrowing and debt management; and accounting and
auditing. As a system, it includes the environment, structures, systems
processes, and personalities involved in formulating, implementing and
evaluating fiscal policy. Here, fiscal policy refers to the mix of policies on
taxation, expenditures and borrowings for the achievement of government
objectives. (Magtolis-Brionesii)

The above attempt at a comprehensive definition describes any public

administration system, especially those with mixed economies involving two
sectors – the public sector and the private sector. The current consensus,
however, is that public fiscal administration systems in less developed
countries (LDC’s), while visibly patterned after those of industrialized
countries, are actually different. One obvious differences is in goals and
objectives. The obsession for and preoccupation with development
(whatever its interpretation) as the overriding goal makes fiscal systems of
LDC’s different in more ways than one.

Other obvious differences are in levels of economic development,

historical experience, the scars and traumas of colonization, and politico-
economic relationships which are maintained even after an LDC is
purportedly independent. Thus, for LDC’s, public fiscal administration as
defined above is quite relevant and applicable, with the added phrase that
development is the ultimate goal. (Magtolis-Briones) iii

The Changing Role of Government in the Economy.

The role of public finance in the as change substantially. In its very

early stages the acceptable principle was that government should keep
its expenditures at the lowest level possible…an economy that works
under basically free enterprise system generally strives to attain the
following goals and objectives.

1. To strengthen economic freedom – it is the responsibility of the

government to provide framework within which consumer choice is
respected, competition is maintained, and where free market can
operate.

2. To promote overall economic efficiency – efficiency of the economic

system as a whole…balanced and responsive production, with the
supply of each commodity or services geared to the effective demand
of consumes.

3. Promote economic growth – improvement in standard of living

through an increase in per capita real income
4. Promote economic stability – maintenance of an acceptable rate of
economic growth – without generosity substantial involuntary
unemployment, on the other hand, and upward and downward
movements in the general price level, on the other.

5. To improve economic security – the development of various private

and government institutions and programs for the transfer of income
from those able to earn to chose unable or less abele to earn.The Role
of Government in Public Finance

The Role of Government In Public Finance

1. Allocation function – it has to determine what goods and services are

to be produced,
methods of production involved, who is going to pay, by now much for
such goods and services.

2. Distribution function – relates to the determination and attainment of

a “proper” state of income distribution.

3. Stabilization function – concern with maintaining a high level of

resource utilization, that is full employment of all factors of
production, and stable value of money.

The concept of full employment (Beveridge, 1945) Romualdez 1973) –

refers to the state in which the number of vacant job is always greater
than the number of unemployed men, not slightly fewer jobs.

An Overview of Fiscal Policy

(Techniques and Issues)

Evidence of government influence on our day to day living is far-

reaching. The construction and maintenance of roads and bridges,
communication and power facilities both for home and industrial uses,
education and health services, peace and order, and fire protection are
traditional fields of activity which the is expected to engage in. The
influence of government does not, however end here. Subsidies are given
to consumer items. Protection is afforded to new industries in the form
of, among others, high tariff rates on competing articles, the level of
money supply, the interest and discount rates, and other monetary
variables are influences so as to attain tight or easy credit as particular
situation calls for. (Romualdez et al., 1973).
 In this paper, there are two major parts to be discussed: first, public
finance and government budgeting. Before discussing government
budgeting, it is necessary to delve a little of public finance in order to
shed lights why government must raise revenue through taxes, fees and
charges, provide incentives for the business sector, etc. The second part
is focused on government budgeting. In short, how the allocate
resources.

Fiscal Policy for Development

Whereas financial policy deals with money, interest, and credit

allocation, fiscal policy, on the other hand, focuses on government taxation
and expenditure (thus, revenue-generation and budgeting). Together, they
represent the bulk of public sector activities. Most stabilization attempts
have concentrated on cutting government expenditures to achieve budgetary
balance. But the burden of resource mobilization to finance essential public
developmental efforts must come from the revenue side. Public and
domestic borrowing can fill some savings gaps. In the long run, it is the
efficient and equitable collection of taxes on which governments must base
their development aspirations. In the absence of well-organized and locally-
controlled money markets, most developing countries have had to rely on
fiscal measures to stabilize the economy and to mobilize domestic resources.
(Todaro)

According to Gerardo P. Sicat, the economic Czar of the Marcos

Regime, fiscal policy can promote economic development. Taxation is a
powerful weapon – the power to tax includes the to withdraw or alter the
tax, Hence, disposable incomes of persons and corporations can be altered
by the level of taxation. The same is true for public expenditure, but in a
different way. An expenditure can increase the income of a sector and
therefore it raises the level of aggregate activity. Levels of spending, be they
national or sectoral, including the timing in which they are made, can
therefore have significant effects on the rate of economic growth.

An effective fiscal policy should be able to do the following: (1) act as a

counter-cyclical device to promote stability; (2) raise or maintain a high level
of national savings; (3) promote a high level of public investment; (4) provide
incentives to increase the rate of private investment; (5) act as a means of
non-inflationary financing of development activities; (6) manage the public
debt well; and (7) provide a fairly equitable distribution of the burden of
taxation and the benefits of public expenditure to society as a whole. (Sicat)
iv
Public Fiscal Environment: A Case of the Philippines (Prospects for Fiscal
Policy in the 21st Century)
The Philippines As A Developing Country

More and more people are accepting the fact that development
strategies which have worked for industrialized countries may not
necessarily be applicable once transplanted to LDC’s. Theories, strategies,
and techniques have to be tailored to the specific conditions of particular
LDC’s. the Development Decades which produced innumerable studies on
the development process have totally changed earlier outlooks on
development.

Many LDC’s, especially before the start of the Development Decades,

had mechanically adopted fiscal policies of industrialized countries mainly
on the assumption that these would work because these were successful
earlier. Also, lending fiscal policymakers were educated and trained in the
industrialized countries which, at that time, only had their experiences to
offer as examples. In more than one instance, these exercises resulted in
disaster. Hence, effort is therefore made to look into the specific application
of fiscal policy strategies for LDC’s. (Magtolis-Briones) v

Fiscal Policy and Sustainable Development

The “lost” decade of the eighties (80’’s) was characterized by the global
debt crisis and massive environmental degradation. In the process, concepts
of development have been profoundly changed. Thus, the decade of the 80’s
saw the emergence of the concept of sustainable development. Increasing
concerns about the state of environmental destruction, the lingering debt
crisis and the escalation of poverty in both rich and poor countries impelled
scholars and distinguished national and international leaders to rethink
concepts of development and search for new approaches to global and
national problems. (Briones & Baulita) vi

In the words of Jon Pronk and Mahbubul Haq (1991:1), “The call for
sustainable development is not simply a call for environmental protection.
Instead, it implies a new concept of economic growth – one that provides
fairness and opportunity for all the world’s people, not just the privileged few,
without further destroying the world’s finite natural resources and carrying
capacity.

It is a process in which economic, fiscal, trade, energy, agricultural,

industrial, and all other policies are so designed as to bring about
development that is economically, socially, and ecologically sustainable. This
means that current consumption cannot be financed for long by incurring
economic debts that others must pay. This also means that sufficient
investment must be made in the education and health of today’s population
so as not to create a social debt for future generations. Furthermore, natural
resources must be used in ways that do not create ecological debt by over-
exploiting the carrying and productive capacity of the earth. All postponed
debts mortgage sustainability – whether economic debts or social debts or
ecological debts.”

The concept of sustainable development has wide-ranging

implications for fiscal policy and the traditional priorities associated with it.
Since it calls for a shift toward fiscal policy which will finance sustainable
development, changes in revenue sources and priorities in expenditures are
called for.

The call is to desist from revenue sources which will deplete and
destroy the environment and to give priority to expenditures for the healing
and nurturing of the environment, as well as to the needs of the people,
without compromising the requirements of future generations. Thus,
developing countries are discouraged from wantonly destroying their forests,
mineral and aquatic resources in order to raise revenue. The link between
environmental degradation, debt and poverty are now increasingly
recognized. The call is to give priority to people and nature over and above
the payment of unjust debts, especially those tainted with fraud.

The Earth Summit in Rio (de Janeiro) did not cover agreements on the
environment alone, moreover fiscal issues were vigorously debated. A debt
treaty was proposed, calling for substantial reduction of the debt of
developing countries in order to free resources for sustainable development.
Its logic requires a major shift to priorities in expenditure for the
environment and for social development. Such priorities are not necessarily
reflected in current fiscal policy where the largest single item of expenditure
is for debt servicing. (Briones & Baulita) vii

Prioritizing Human Development

Because of the emphasis on economic growth, people are largely left

out. It has been shown time and again that economic growth may not
necessarily bring about a better quality of life for the people. Income
distribution and reduction of poverty may not follow in the wake of
economic growth. Thus, the need for more meaningful measures of
development became equally urgent. The UNDP came out with its first
Human Development Report in 1990.

Human development is described as the process of enlarging the

range of people’s choices – increasing their opportunities for education,
health care, income, and employment, and covering the full range of human
choices from sound physical environment to economic and political
freedoms
Implementing human development requires massive funding and re-
ordering of priorities. In order to reverse the massive outflow of resources
from poor countries to rich countries and make available resources for
human development, the UNDP has proposed a major reduction of debts by
official donors and commercial banks. Another UN institution, the UNICEF,
has proposed that the debt service burden of the Philippines be reduced by
selective repudiation of fraudulent debts. The UNDP also suggested
reduction of military spending to generate resources for human
development. Other areas of prioritization include reduction of prestige
projects, halting capital flight, and reducing corruption. (Briones & Baulita)
viii

Reforming The IMF and The World Bank

The IMF and the World Bank are decidedly the two most powerful
shapers of fiscal policy in developing countries. The pervasive involvement of
the IMF in Philippine fiscal policy has resulted in more than twenty (2)
stabilization programs for the Philippines with another one in the works,
especially designed for the (new) administration.

With the onset of the 80’s and 90’s, criticism against hese two
heretofore venerable and untouchable institutions escalated. This time, the
loudest demands emanated from the international NGO fora which criticized
in great detail and precision the manifold sins and shortcomings of these
two institutions. In the UN system, the most persistent calls for reform
emanate from such credible institutions such as the UNDP, the UNICEF,
the UNESCO, the UNCTAD, and the UNCHR.

The clamor for reforms within the IMF and the World Bank could
mean redirection of expenditure priorities, channeling of unproductive
expenditures to sustainable human development and substantial action on
the pervasive debt burden. (Briones & Baulita) ix

Increased Participation of NGO’s, People’s Organizations and Citizens

Fiscal policy is initiated by the executive and legitimized by the

legislature through the appropriation bill and other related measures.
Negotiations with the IMF are claimed as the executive prerogative of the
debt managers. Thus, details of stabilization programs are made public only
after signing of letters of intent. Public participation is minimal.
 The detonation of the global debt crisis with its corresponding impact
on people has generated much attention on fiscal policy, particularly debt
policy and management. NGO’s and people’s organizations are demanding
in increasing numbers that they be consulted and that their voices be
heard. As bearers of the debt burden, they are insisting that alternative
strategies and options be considered by their governments.

In the Philippines, the clamor for public discussion of the debt issue
has been taken up by the legislature which has taken the cue from
organizations like the Freedom from Debt Coalition. In other countries,
religious organizations, as well as sectoral groups are taking a stance on
fiscal policy. No less than His Holiness, the Pope, has joined the fray and
issued several encyclicals on the matter. (Briones & Baulita) x

Philippine Fiscal Policy: Living In The Past

The framework for changes in fiscal policy in the 21 st Century are

already evident in developments which are now taking place in many parts
of the world. Interestingly, these are not isolated phenomena, but are global
events which are impelled primarily by the need to assure the survival of the
human race and Mother Earth itself. Necessarily, these developments have
fiscal policy implications. (see Kyoto Protocol)

However, it seems that Philippine fiscal policy has not yet entered the
nest decade of the new millennium. It is still entangled in the practices of
the seventies (70’s). The clarion call, led no less by the United Nations
agencies, is for the reordering of priorities in the allocation of government
resources, particularly finance. Unfortunately, up until now, Philippine
fiscal policy is only part of an overall framework of stabilization programs.
The priorities of stabilization programs are the same everywhere: full
payment of the debt burden, regardless of whether loans are actually
benefited the people or not, and drastic reduction in levels of government
expenditure. In other words, a regime of austerity for those who are already
poor.

The Public Debt

The public debt includes the following: the direct borrowings of the
national government, whether domestic or external; The debts of all local
governments and government agencies which are controlled by political
bodies; and the debts of government corporations whether domestic or
foreign which are guaranteed by the national government.
 Thus, it is clear that the public debt can be a direct liability of the
government or only a “contingent” liability. A direct liability is a direct
borrowing. A contingent liability is a guarantee to stand by the indebtedness
of another borrower, such as when the government guarantees the debt of
the National Power Corporation or of the Development Bank of the
Philippines. Another distinction is that of an internal debt which is one that
is owed to a country’s residents. An external debt is a foreign debt. (Sicat) xi

A government resorts to borrowing in order to finance its operations

or those entities owned by it. The borrowing authority can also be passed
on to other instrumentalities of the government, which then undertakes to
borrow on the basis of their charters or objectives.

Public Expenditure: Policies and Patterns

The expenditure system is the government’s fiscal arm in producing,

allocating, and distributing social goods and services. Studies on the impact
of government expenditures show a relatively strong influence on
production, consumption, trade and prices, among others. That is. The
expenditure activities of the government have certainly a potent influence on
which track the economy should follow.

Properly managed public expenditures can contribute much to

economic growth, e.g., through increasing income levels and generating
additional employment. In developing countries, expenditure policies are
designed and executed according to the development objectives and
strategies. A well-formulated set of expenditure policies, firmly implemented
could serve as a solution to so-called developmental problems which throttle
the development process. As in the case of developing countries, the
Philippines features a social structure of extreme class disparity and
poverty. The majority of the people belong to the lower income strata, a large
segment of which is below the poverty line. The elimination of poverty and
the reduction of inequalities between these two classes by a redistribution of
income and wealth are therefore urgent considerations of its expenditure
policies. (Magtolis-Briones) xii

Taxation: Direct and Indirect

Typically, direct taxes, those levied on private individuals,

corporations, and property, make up 20% of 40% of total tax revenue of
most LDC’s and range from 12% to 20% of their GNP. Indirect taxes, such
as import and export duties and excise taxes (purchase, sales, and turnover
taxes), comprise the major source of fiscal revenue.

Taxation in developing countries has traditionally had two purposes.

First, tax concessions and similar fiscal incentives have been thought of as
a means of stimulating private enterprise. Such concessions and incentives
have typically been offered to foreign private investors to induce them to
locate their enterprises in the less-developed country. Such tax incentives
may indeed increase the inflow of private foreign resources, but as
discovered, the overall benefits of such special treatment of foreign firms is
by no means self-evident.

The second purpose of taxation, the mobilization of resources to

finance public expenditures, is by far the more important. Whatever the
prevailing political or economic ideology of the less developed country, its
economic and social progress depends largely on it government’s ability to
generate sufficient revenues to finance an expanding program of essential,
non-revenue-yielding public services, such as health, education, housing,
etc.

Developmental Problems of LDC’s

An expenditure policy could be understood better within the context

of the development efforts and problems of a country. It is believed that in
the formulation of developing policies, western economic precepts should
not be readily copied or applied in Third World countries because of the
differences in economic, political, and cultural characteristics between them
(LDC’s) and the western countries (HDC’s). Because of such differences , a
western fiscal policy as applied to industrialized countries may induce the
desired economic effects, but if used by developing countries produces a
different set of results, more often aggravating the problem it addresses. For
one, the western compensatory principle and pump-priming of the economy
by developing country governments have not produced the desired economic
effect on their economies. (Magtolis-Briones) xiii

(1) Poverty

Unlike developed countries, the third World nations are confronted by

numerous, interrelated problems which obstruct the development process.
These problems have to be addressed by any expenditure policy of a
developed country. As in the case of the Philippines, most developed
countries feature a social structure of extreme class disparities and extreme
poverty. The majority of the people belong to the lower income strata, a large
segment of which is below the poverty line. The elimination of poverty and
the reduction of inequities between these two classes by a redistribution of
income and wealth are therefore urgent considerations of developing
countries expenditure policies.

(2) Lack of Capital

Capital accumulation, another developmental problem, is needed by

developing countries to finance investment and development projects. But
in these societies, per capita income is low and a greater part of it is used
to cover basic necessities. Hence, the rate of savings is low. Worse, those
who have the capacity to save utilize such savings in unproductive
investments.
(3) Unemployment

With low capital formation and investments, there are not enough
economic activities to provide jobs for the growing labor force. Because of
unemployment, the labor force is less productive. With the low level of
productivity, the level of income is low. These interrelated problems which
from a vicious cycle require an expenditure policy for capital formation that
takes into account the labor and income factors.

(4) Inadequate Revenue

Another major problem of a developing country is the inadequacy of

revenues due to low revenue performance and low tax capacity of the
economy., The inadequacy of revenues in these countries severely limits the
ability of each government to finance its expenditure programs. More often,
it is forced to resort to foreign borrowings increasingly, thereby falling into a
“debt trap.”

Expanding on this, Michael P. Todaro classify these development

problems of LDC’s as follows:

Domestic Problems:

1. Environment

Environment is a very broad concept. Everything that affects an

organism during its lifetime is collectively known as its environment. By and
large, it refers to a complex of physical, chemical, and biotic factors which
affect the growth of plants and animals, including man. In a broader sense,
it is the aggregate of all external conditions and influences affecting the life
of an organism or population especially man.

In general, there are two types of environment, viz.:

a. Natural or Physical - the surroundings are mostly nature-given

b. Cultural or Social - the surroundings are mainly the results of man’s
work.

Categories of Environment

a) Population explosion is the rapid increase of population brought about

by advanced knowledge in medical science and technology.
b) Pollution is the contamination of air, water, and land with the
introduction of impurities which are harmful to man and other desirable
organisms. Smoke pollutes the air; improper disposal of sewage and liquid
wastes pollutes the water; and junk cars and improper disposal of garbage
pollutes the land.

c) Depletion of natural resources increase with the increase in population

and the establishment of more factories. Uncontrolled mining and
deforestation by logging activity are some major causes.

d) Agricultural production cannot increase indefinitely. According to

Malthus, population grows by geometric progression, while food supply
increases only arithmetically. Improper land use and destructive practices
contribute much to soil erosion, such as the rampant use of chemical
fertilizers.

e) Industrialization is the process of change from an agrarian and handcraft

economy to one dominated by industry and machine manufacture. It
involves the mechanization of labor and dependence on inanimate sources
of energy the use or more raw materials for the production of more goods
and services.

2. Sustainability is the desirable condition that allows society-

 To meet the needs of the present generation without compromising

the ability of the future generation to meet their needs;
 Not to exceed the (carrying) capacity of the environment and natural
resources and the capacity of the air, water, and land environment to
assimilate waste;
  To integrate environmental consideration in socio-economic policy
and decision-making;
 Undergo a process of change which is democratic, equitable, and one
which the beneficial effects are long-lasting, continuing, and
permeates every member of society; and
 Integrate harmoniously a sound and viable economy, responsible
governance, social cohesion; harmony, and ecological integrity to
ensure that development is a life-enhancing process.

Hence, sustainable development is a process in which economic,

fiscal, trade, energy, agricultural, industrial, and all other policies are so
designed as to bring about development that is economically, socially, and
ecologically sustainable. In short, current consumption cannot be financed
for long by incurring economic debts that others must pay.

3. Factor endowment refers to the neoclassical model of free trade. Which

postulates that countries will tend to specialize in the production of the
commodities that make use of their abundant factors of production (land,
labor, and capital). They can then export the surplus in return for imports of
the products produced by factors which with which they are relatively less
endowed. The basis for trade arises because of differences in relative factor
prices and thus domestic price ratios as a result of differences in factor
supplies. (Todaro)

Difference factor endowment is a condition where factors of production

have been distributed unequally among nations. Different countries differ in
size and quality of capital, both physical and intellectual, and the natural
land, minerals, climate, etc.(Simon Kusnetz, 1963, as cited by Villegas and
Aviola, 1997)

Foundations are organizations that distribute private wealth for the

public good, usually by making grants to other non-profit organizations and
individuals engaged in social welfare, educational, charitable, or religious
activities. Some private foundations use the words fund, trust or endowment
in their names

4. Population Change and Migration

Population change need to be understood in terms of the reproductive

rate (birth rate or natality) and the death or mortality rate. As long as the
birth rate is greater than the mortality or death rate, there is population
growth. The change, either an increase or decrease in population is the
difference between the birth rate and death rate.
 Reproduction - a distinction is made between fecundity and fertility.
Fecundity refers to the capacity of an individual to reproduce, while fertility
refers to the actual productive performance.

Mortality - is expressed in terms of the crude death rate, i.e., the

number of deaths per 1000 per year of the total population

Migration refers to the movement of people from one place to another

on a more less permanent basis. If the population is defined in a
geographical area, the immigration and emigration in an area must be
considered. Immigration is where people move out from one country to
another; while emigration takes place where people move from one place to
another within the same country.

The population situation cannot be understood chiefly in terms of

birth deaths. The movement of people into a region (immigration) or away
from a region (emigration) are crucial factors of population change.

5. Poverty and Inequality refers to the disparity in the distribution of

income (levels) and problems of poverty in developing countries Under an
economic system of free enterprise, or the market system which rests upon
an assumption of perfect competition in attaining an optimum allocation of
resources and, therefore an optimum distribution of income, the
imperfections of the market have led to inequality. (Todaro) xiv

Optimum
Allocation
Of
Resources
Perfect Market
Competition Imperfections
Inequality

Inequality of Income Levels

6. Savings and Capital Accumulation

Savings refers to that portion of disposable income not spent on

consumption by households plus profits retained by firms. They are
normally assumed to be positively related to the level of income, either
personal or national. Savings rate varies as to the needs of the society,
individual, family, corporate or institution. Some who have more money
that they need for consumption may not make sacrifice by giving up part of
their income. The time preference of different savers differs with the amount
of income received and the amount ordinarily spent out of income. (Todaro)
xv

Capital , in economic terms, generally refers to all productive assets,

or the stock of goods and money from which further goods and money are
produced. In the words of economists David Ricardo and Adam smith, it is
the “produced means of production.”

Capital Accumulation refers to the increase in the stock of real capital

(not investment in fixed assets). To increase the production of capital goods
necessitates a reduction in the production of consumer goods. Economic
development depends, to a large extent, on the rate of capital accumulation.
(Todaro)

7. Structural Instability occur where there is a weak relationship between

labor and capital. This problem gain a momentum in destabilizing the rate
of development in so far as economic and social development is concerned.
The relationship of the labor sector and capitalist sector must be
strengthened to come with a relationship where both sectors will be
improved so that sustainable development be possible

Philippine Expenditure Policies

Even in the sixties (60’s), government objectives were already centered

on three basic areas: 1) stability; 2) poverty alleviation; 3) and dynamic
economic growth. However, the government was careful not to indulge in
excessive expenditure. The program for economic expansion then relied
more on increased private investments. This partly explains the relatively
higher budgets for social development especially from 1956 to the late 60’s.
Nevertheless, priority was given to projects which aimed to attain self-
sufficiency in food production and increased employment and income.

The period 1971 to 1986 highlights the huge increases in

expenditures for economic development. This, however, does not necessarily
imply that before the Marcos years, economic development was less
important., but during the Marcos Era, economic development ( as partly
seen in how rapid the number of government owned and controlled
corporation has grown during this period) has assumed a more aggressive
role in economic development. Top priority projects were on infrastructure
and agriculture. Infrastructure, being the lifeblood of development got the
highest budget appropriation among various sectors. It included projects
like construction and maintenance of feeder roads, bridges, and power
plants, which are considered vital to development. This was in line with the
government’s objective of countryside development and redistribution of
income and wealth. (Magtolis-Briones) xvi

The expenditure system is the government’s fiscal arm in producing,

allocating, and distributing social goods and services. Studies on the impact
of government expenditures show a relatively strong influence on
production, consumption, trade and prices, among others. In effect the
expenditure activities of the government have certainly a potent influence on
which track the economy should follow. Thus, in developing countries,
expenditure policies are designed and executed according to the
development objectives and strategies

As a developing country, the Philippines features a social structure of

extreme class disparity and poverty. The elimination of poverty and the
reduction of inequalities between these classes by a redistribution of income
and wealth are therefore urgent considerations of the expenditure policies.

Needless to say, the country’s development goals are taken into

account in the expenditure policies which are aligned to the strategies of the
development thrusts. Philippine expenditure policies throughout the various
administrations could be summarized as pursuing the following basic
strategies:

1. Redistribution of Income and Wealth/Balanced Development

2. Economic Development
3. Stability
4. Countryside Development

1. Redistribution of Income and Wealth/Balanced Development

Because of the gross disparities in the level of socio-economic

development in the country’s various regional areas and among social
classes, the expenditure system should make available government services
to areas or sectors where public goods and services are insufficient or not
available.. the expenditure system is theoretically geared for the
minimization, if not eradication of poverty and the most effective and
efficient distribution of basic social services.

2. Economic Development
 Increased government spending is also a means of providing
employment to the people. Jobs are created not only by those generated by
government projects, but also by those sectors providing goods and services
to the government. Allocation of funds would be given priority to economic
services lime expanded infrastructure programs, investment and other
outlays for capital formation.

The government would want to have a sustained cash outlay for

infrastructure to serve as a counter-cyclical policy measure to cushion the
effect of recession and keep the buoyancy of the economy. Infrastructure as
a component of capital outlays is considered an imperative prerequisite for
economic development. For the accomplishment of self-sufficiency in food, it
is the policy to further intensify the nationwide food production program to
meet the needs of the growing population and to lessen the effects of
inflation.

3. Stability

Philippine expenditure policy considers preparedness and sufficient

flexibility in reacting to sudden economic changes , both in local and
international scene. Hence, it pursues expansionary measures as a means
to combat the recessionary pressures spawned by world-wide economic
events and to maintain whatever growth momentum is attained in previous
periods. (Magtolis-Briones) xvii
4. Countryside Development

High priority is given to projects that promote integrated regional

development. This makes viable the full utilization of labor and the resource
potentials of the rural areas. It is also intended to resolve regional
disparities. Moreover, the resulting availability of employment opportunities
helps curb the problem of migration.

An Analysis

Public spending, ideally should move in tandem with public revenues

as spelled out in the budget. In short, government expenditure should take
into serious consideration the available resources and the allowable deficit
spending. In the Philippines, the growth of public spending for the last
decade far exceeded the growth of revenues, thus, budget deficit becomes
almost inevitable.
 Demographically, the constant increase and growth of the population
require the opening of new lands and spaces. The need to improve the new
territories; the increasing demand for international relations and the
pressures of globalization, bring about increasing demands for government
expenditures. Other factors, such as currency exchange rate fluctuations,
rising costs of goods and services, and adverse climatic conditions
contribute to uncontrolled increase in public spending.

Patterns of Public Expenditures

Fiscal Policy and Budgeting

The Philippine experience in fiscal policy and budgeting is typical of

that of a developing country. The main objective is to conduct government
fiscal affairs in a manner that will promote economic stability in the short
run and sustain moderate economic growth in the long run. This means
adopting either expansionary or contractionary fiscal policies whenever
appropriate in response to the needs of the times.

As in previous years, the general pattern of government spending was

prescribed by the Medium Term Philippine Development Plan operating
during the period. Three successive five-year development plans , from the
Marcos Era through the Aquino Administration up to the beginning of the
Ramos Regime, reserved as broad bases for the annual expenditure budgets
that were prepared and implemented during the decade. Invariably, the
plans called for the following expenditure policies, viz., (1) expansion of
capital investment to build up the productive base of the economy; (2)
provision of adequate funds to maintain infrastructures and other service
facilities; (3) encouragement of greater financial independence and efficiency
among state-owned enterprises; (4) streamlining of government’s
administrative machinery; and (5) delegation of greater authority and
responsibility to local governments in the implementation of projects.

Actual expenditures, however, were greatly influenced by domestic

political and social developments, as well as by developments in the world
economy. For instance, in the 80’s, the national government felt obligated to
rehabilitate private companies on the brink of collapse due the fall in
commodity prices and the softening of the world market. However, the
assassination of Senator Benigno Aquino in 1983 immediately plunged the
economy into a crisis forcing the government to impose strict foreign
exchange controls, devalue the Philippine currency and raise domestic
interest rates to unprecedented levels. Thus, the crisis necessitated a
refocusing of government expenditures away from long-term projects to
more short-term concerns, such as the servicing of debt which has
dramatically gone up due to the high interest rates and grant of wage
increases to somewhat cushion the purchasing power of government
workers from the bite of record inflation rates. (Boncodin)

In 1986, the new government under Corazon C. Aquino prioritized

the budget to stress short-gestating employment-generating projects for
rural communities. Also in that year, government assumed the so-called
non- performing assets of government financial institutions and absorbed
liabilities, mostly foreign loans associated with such assets. This accounted
for the sizable increase in government spending in that year and in
succeeding years.

Again, in 1989, the threat of a forthcoming slowdown in industrial

economies once more redirected government’s attention to the support of
export industries, the liberalization of rules on the entry of foreign
investments and the promotion of rural-based agro-industries. The budget
for 1989 reflected the boost given to the trade and industry sector in that
year. Then, in 1990, the Gulf (Oil) Crisis, the devastating earthquake and
the drought combined to increase government spending, particularly on
subsidies and relief operations, almost automatically and compelled
government to enforce harsh cost-reduction measures even on essential
expenses to prevent the deficit from deteriorating completely. Altogether, the
unanticipated events of the decade left their marks on the behavior and the
composition of government expenditures, oftentimes veering away from the
path prescribed under the Philippine Development Plan and from the
expenditure program approved for the year.

Debt Servicing

The most controversial component, however, of government spending

since 1986, is debt servicing. The debt burden, defined as interest and
principal payments of national government domestic and foreign loans,
including advances made to service guaranteed debts of state enterprises,
has undoubtedly substantially reduced the capability of the government to
undertake development projects in the past several decades. Unfortunately,
the debate has clouded some very relevant issues which could not be
ignored. For one thing, the debts, when incurred, were used for various
public purposes and assumed to be spent as such. Thus, the payment of
debt is nothing but a financial transaction since said amount had
previously been spent for a productive purpose under a prior year’s budget.
In this sense, the debt burden problem is basically a “cash management
issue” rather than a budget or expenditure concern.
 There is no escaping the fact, however, that the payment of debt
strains scarce government resources and is therefore highly political. In the
Philippines, between thirty to thirty-five percent (30% - 35%) of national
government’s disbursements are used for servicing debt. Furthermore, at
least one-fourth of said payments were for loans that supported projects
that have gone sour and are, therefore, a clear drain on the budget. In
addition, approximately eighty-five percent (85%) of foreign debt payments
were for loans incurred prior to 1986. Because the projects originally funded
by said foreign loans are not in a position to contribute to the generation,
directly or indirectly, of foreign exchange, there is a further, even more
critical, drain on economic resources.

Finally, in the Philippines, the distinction between domestic and

foreign debt servicing is important in view of the criticality of domestic
monetary policy in the overall fiscal performance. Contrary to general
perception, the Philippine debt problem is more of a domestic debt problem
than a foreign one. In 1990, some two-thirds of national debt service
expenditure was paid to domestic creditors; only one-third went to pay
foreign creditors. This was because, the government was compelled to
borrow heavily from the domestic market since 1985 to tide the Treasury
over seasonal fluctuations in revenue collections and loan remittances that
fund generally predictable levels of expenditures.

This, plus a host of factors including the continued speculation in the

external market which drove interest rates upwards and the adoption of a
policy withdrawing Central Bank papers from the market to ensure greater
marketability of Treasury bills and avoid competition between Central Bank
and Treasury issues, resulted in a near quadrupling of national government
domestic indebtedness between 1985 and 1990, from P 79.9 billion in 1985
to P 304.5 billion in 1990. the foreign debt of the national government, on
the other hand, barely increased from about $6 billion in 1985 to about $ 7
billion in 19990

Fiscal Control Mechanisms

Fiscal management is the composite of those activities and operations

to generate revenue, make these available, and see to it that funds are
wisely, lawfully, effectively, and efficiently spent. What government units
and entities require are limitless, yet money needed to carry out what
should be done is not always available or forthcoming. Hence, the
importance of operating on the basis of a plan and using appropriate control
mechanisms
Efficient financial organization requires –

1. A budget system for the planning of balanced expenditures and revenues;

and

2. A system of control and audit for proper custody of funds;

(1) Budget and the Budget System

A budget is a detailed financial program in which anticipated

expenditures and anticipated revenues, including receipts from borrowings,
are itemized and exactly balanced. It is prepared in advance of the fiscal
year to which it applies.(Leveriza, 1990)

The budget is the centerpiece of expenditure matters, the making of

which is followed by the formal act of appropriation. On the basis of
legislative authority, executive supervision of expenditures is performed. The
fact that it is a tool for planning and implementing programs and projects
makes it a control device which defines and specifies what should be
accomplished within a stipulated framework of time; how these should be
done; and monitors its effects on the performance of bureaucracy and on
society as a whole.(Tendero, 1993)
The budgeting system includes the all-comprehensive process, as well
as the laws, rules, and practices observed by the government in planning
and carrying out its financial program. In addition, , in its final stages, a
budgetary system involves an audit of all fiscal accounts to determine with
what outlays, previous appropriations have been spent.(Leveriza, 1990)

(2) Expenditure Control

1. Prevent Misappropriation of Funds - This requires review and approval

by administrative officials of the line or operating agency of all requests for
money releases and budgetary allotments, vouchers and similar papers
before payments are made so that expenditures are in accordance with
policy and law and not irregular, unnecessary, excessive, extravagant and
unconscionable

2. Ensure Wisdom and Propriety of Expenditure - Claims for payment from

public funds must be established on the basis of its legality, prudence and
reasonableness.
3. Implement Prospective Policy - Proactive administration inhibits
governmental units from directly transacting and negotiating money matters
sicne such kind of transaction is officially channeled through the
Department of Budget and Management in the form of budget estimates.

4. Prevent Deficits - While insufficient monetary resources may compel

government to incur deficits, periodic monitoring of performance is
necessary to determine compliance with expenditure conditionalities,
especially in the case of borrowed funds. However useful is fiscal
supervision and control, it should not unduly interfere with agency
prerogative to carry out programs mandated by the constitution and the
laws. Thus, review for purposes of control should not dampen the initiative
of line units to plan and implement for as long as these plans have been
approved by those authorized to do so.

(3) Types of Budget

1. As To System:

a. Planning-Programming Budget System (PPBS) – integrates the various

contributing factors to an overall management process. It provides the
mechanisms that integrate the various functional aspects of program
management., viz., planning, programming, and budgeting. Likewise, it gives
assurance that the budget will help achieve desired agency results.

The unit head defends the budget, explains its contribution to the
realization of agency goals, develops a cost projection for each program and
submits this to top management which review the program and decides on
the final budget allocation.(Tendero, 1993)

b. Zero-Based Budgeting (ZBB) - is a process which requires the budget

estimates to be evaluated on a zero-base approach rather on the
incremental approach, as is customarily done, where only new activities and
additional outlays have to be justified.(Leveriza, 1990)

In the ZBB type, the agency justifies the entire appropriation request for the
fiscal year as if the programs are entirely new, instead of justifying only the
increase requested above the previous year’s appropriations. Thus, the
agency is obligated to defend all programs every year and rank these in
terms of priority using the ratio between cost and benefit criterion. This
provides top management to re-evaluate the need for on-going programs,
compare these with the proposed and the prioritized for implementation.
(Tendero, 1993)
2. As To Approach:

a. Performance Budgeting - is a management-oriented system of budgeting

which measures the actual or estimated results, in terms of benefits
accruing to the public and their unit costs.(Leveriza,1990)

It is likewise called lump-sum budgeting or program budgeting which

spells out functions, activities and projects. It may allow transfer of funds
from one organizational unit to another, between work activities and objects
to be spent for. This gives tremendous discretionary powers to
administrators which could result in juggling of funds. While it shows what
is being done, there is difficulty in identifying what work units perform or
not perform, since most of its common concern is the overall performance of
the agency.(Tendero, 1993)

b. Line-Item Budgeting - is also termed object of expenditure type. This

consists of a detailed listing of every position filled. This gives the
legislative body tremendous discretion to strike our or to approve
individual items. On the other hand, it is rigid in the sense that
whatever has been earmarked to be spent for an item cannot be set
aside for another item, i.e. the funds appropriated may not be
transferred from one category of expense to another; no transfer from
personal services to rental of buildings; nor from purchase of
equipment to payment of salaries, etc.(Tendero, 1993)

3. As To Governmental System

a. Presidential - is based on the principle of separation of powers, It is a

budget in which the initiative and responsibility in the preparation is
vested on the President, while the approval of the fiscal measures of the
government is given to Congress.

b. Congressional or Parliamentary - is based on the principle of Cabinet

or responsible government. A Parliamentary government is one where
the political power resides in the Parliament as a whole. Under this
system, the initiative in preparing the fiscal plan rests with the Prime
Minister who is responsible for the nation’s financial policy. The
Parliament merely analyzes, discusses or criticizes the budget as
initiated by the head of government.

Philippine National Budgeting System

 Budgeting is the process of systematically relating the expenditure of
funds to the accomplishment of planned objectives. Basically, the budgeting
system in the Philippines follow the Performance Budgeting approach.
(Leveriza, 1990)

This approach is a management-oriented system of budgeting which

measures actual or estimated results, in terms of benefits accruing to the
public and their unit costs. On the other hand, Zero-Base Budgeting is a
process which requires the budget estimates to be evaluated on a zero-base
approach rather than on the incremental approach, as was customarily
done, and where only new activities and additional outlays have to be
justified.

Budget Concepts

The concept of national budgeting system in the country are, as follows:

1. Concept of Balance - Expenditures shall not exceed receipts or

resources.

2. Concept of Fiscal Control - No money shall be paid out of the treasury

except in pursuance of an appropriation. This is covered by a
Constitutional provision.

3. Concept of Obligation - This is analogous to private law of obligation and

written contract. An obligation is a legal act of a duly authorized official
or representative which binds the government to an immediate or
future payment from funds of the government for specific purposes.

4. Concept of Appropriation - An appropriation is a legislative authorization

for a department or agency to obligate the government for specified
purposes.(Leveriza, 1990)

(2) The Budget Process

The budget process is a cycle of sequential and interrelated budget

activities recurring regularly within a specific time frame called fiscal year. It
is complex not only because of complexity of governmental activities but
also because new fiscal objectives are established each year requiring
several fiscal years to work out properly.(Leveriza, 1990)
 Accordingly, it requires –

1. The formulation of the budget that supports national development plan

and reflects the objectives and strategies of the Plan;

2. The preparation of the budget within the context of the total resources of
the government, including revenues and receipts, expenditures and
borrowings of national and local government units, including government-
owned and controlled corporations;

3. The preparation of the annual budget as an integral part of a long-term

plan and long-term budget program;

4. The specification of multi-year requirements in each stage of the budget

process;

5. The preparation of the budget at the regional level, consolidation and

review at the department level, taking into consideration the goals, plans
and requirements of the regional offices in the interest of full government
response to local thinking and initiative; and

6. The implementation and timing of major development projects which

may affect the infrastructure program, debt ceilings, domestic credit,
balance of international payments and the determination of expenditure
levels to ensure observance of established fiscal, monetary, international
payment, and other constraints.

The Philippine Budget Process Components

(1) Budget Process in the National Government:

1. Budget Preparation - budgetary power is vested on the President

with the task of preparing the national budget based on existing and
proposed revenue measures and submitting it to the Congress within
thirty (30) days from the opening of each regular session. It has two
phases, viz.: (1) budget policy formulation and preparation of estimates,
and (2) review and consolidation into the budget document for
submission to the Congress;(Leveriza, 1990)

2. Budget Authorization - is the legislative authorization of the budget

which is governed by Sec. 22, Art. VII of the Constitution. This involves a
detailed review of the budget proposal in accordance with the Rules of
the Congress and made by the standing committees of the Congress
with jurisdiction in the particular field of legislation and their eventual
inclusion in the appropriations bill sponsored by the Committee of
Appropriations of the House of Representatives and Committee on
Finance of the Senate.

3. Budget Execution - covers the operational phase of budgeting. It is

concerned with control of releases, allotment of appropriations, and
incurrence of obligations. Fixed plans for the use of appropriated funds
are adopted and budgetary controls put in force to direct and limit the
spending of funds according to plans. However, control over
expenditures is exercised by the Commission On Audit.

4. Budget Accountability - As chief Executive who has control powers

over all departments, bureaus, and offices, the President is immediately
and legally accountable to the Congress for the program of government
and likewise responsible for all he does in more important issues, like
the national budget. Specifically, budget accountability consists of the
preparation and submission of the following: (1) Financial and Physical
Report of Operations; (2) Actual Cash Disbursements and Unpaid
Obligations; and (3) Actions of the Commission On Audit.

(2) Budget Process Within Departments/Agencies:

1. Planning - Involves the establishment of the performance objectives

within specified guides and limits of the national government. To achieve
broad participation in planning the department budget, it requires a high
degree of coordination and integration at all levels of the organization
from the President down to the lowest employee of the operating unit of
the Department.

2. Estimating - It is the part wherein the amount of resources required

to carry out the plan is determined and the cost thereof is fixed Basic
estimates are prepared at the Bureau/Regional level. The division chiefs
and other supervisors are instructed to prepare materials for detailed
schedule and to draft justification statements for their portion of the
work of the unit.

3. Reviewing - is the ascertaining that the basic objectives, resources

requirements, and costs of the budget plan are accurate and conform to
overall guides and limits. Units concerned make detailed analyses and
recommendations of the proposed budget pointing out places where
estimates are not realistic or do not conform to previously determined
limits by national policy.
4. Operating - is that part during which action is taken to accomplish
established objectives within the resources approved by the Congress. As
approved by the congress, the budget thus becomes the principal
controlling instrument governing program operations.

Budget Control

It is the exercise of control by responsible officials and employees

in relation to the budget and is an indispensable activity in the operating
phase of the budget process. This occurs when appropriate action is
taken to assure conformity to predetermined plans and policies. Such
action includes the determination of the activities of the government and
the conditions under which its operations are conducted.(Leveriza, 1990)

To carry out its assigned role in the control process, the

Department of Budget and Management (DBM) prescribes the following
systems:

1. System of allocating funds - to assure that expenditure proposals

conform to the budget law, the appropriations act, and national policies
and plans;

2. System of reporting - to obtain from the department’s current data

on operations that are related to approved budget plans for analysis and
review of the Department of Budget and Management;

3. System of management control - adequate to establish internal

control over both expenditures and work accomplishments to timely
decisions may be made when necessary to keep operations in line with
approved plans.

(1) Preparation of Estimates

General sources of government income:(Tendero, 1993)

1. Tax Revenue - includes income tax, profit tax, property tax, tax on
domestic goods and services, tax on international trade and transactions.
Sales, tax, value added tax (VAT), selective excises on goods, selective
taxes on services, licenses and permits are examples of tax on domestic
goods and services.

2. Non-Tax Revenue - are of six kinds, viz:

a. Operating and service income are those derived from the operations
of the national and local government and government corporations in the
exercise of administrative and regulatory functions;

b. Income from public enterprises and investments is made up of

interest income received for the use of financial assets dividends; net
rent for the use of government land and royalty for the use of copyrights
and patents owned by the government;

c. Miscellaneous income includes all non-tax revenues not classified

under other categories such as sale of goods and merchandise
confiscated, waste materials; inventory adjustments and gains on
exchange rate;

d. Capital revenue is income derived from the sale of capital assets

like buildings, equipments, machines, land, and intangible assets like
patent, copyright, and trademark;

e. Grants include non-repayable transfers received from other levels of

government, private sector or international institutions. Reparations,
gifts and donations for specific projects and programs, general budget
support and specific budget support; and

f. Borrowings includes domestic and foreign debts, regardless of

source, whether in cash or in kind.

(2) Appropriations and Obligations

These are estimates and projections of what the departments and

agencies incur or expect to incur and includes the following: (Tendero,
1993)

1. New general appropriations as provided for in the General Fund,

Fiduciary Fund or Special Account in the General fund;
2. Supplemental appropriations which are stand-by appropriations
authorized by Congress apart from the programmed appropriations for a
given fiscal year. These impose additional obligations to priority
programs but may be implemented only when revenue collection exceed
targets;

3. Automatic appropriations are expenditures authorized by specific

laws such as R.A. 660 for retirement and insurance premiums of
government employees; E.O. 229 for the Comprehensive Agrarian
Reform Program (CARP);

4. Continuing appropriations are those obligations provided for under

specific laws such as E.O. 182 or the Public Works Act for Multi-year
Infrastructure Projects and Unobligated Releases for capital outlays
under R.A. 6683 and R.A. 6831;

5. Budgetary adjustments refers to the consequences of the approval of

certain laws such as the Salary Standardization Law (R.A. 6758),
reorganizations and other requirements of the law.

In The Within The

NATIONAL GOVERNMENT DEPARTMENT/AGENCY

Budget Preparation: preparation of 1. Planning: establishing performance

budget estimates objectives within specified guidelines
and limits
a. Department of Budget and
Management

b. Department/Agencies 2. Estimating: determining amount

of personnel, materials, services, and
facilities required to pay for them

Budget Authorization: legislative

Authorization of the budget 3. Reviewing: ascertaining that
basic objectives, resources
requirements, and peso amounts
Budget Execution: allotment of Are accurate and conform to over-all
Appropriations and incurrence of guides and limits.
Obligations

Budget Accountability: Reporting on 4. Operating: accomplishing ap-

actual performance against plans Proved objectives within the amounts
provided by Congress
 START
STOP

BUDGET
PREPARATION

END
Of
PROGRA
LEGISLATIVE M
Yes AUTHORIZATION

BUDGET
No Approve a ACCOUNTABILITY
d

No
BUDGET
EXECUTION
VETO

Yes

Yes
a
 Budget Process Flow Chart

Government Accounting

Government Accounting encompasses the process of analyzing,

recording, classifying, summarizing and communicating all transactions
involving the receipt and disposition of government funds and property
and interpreting the result thereof.

Objectives of Government Accounting

1. To produce information concerning past and present condition

2. To provide a basis for guidance for future operations
3. To provide control of the acts of public bodies and offices in the
receipt, disposition and utilization of funds and property.
4. To report on the financial positions and results of the operations of
government agencies for the information of all persons
concerned.

Characteristics of Government Accounting

1. Accounting Rules and Regulations – Government accounting is strictly

on
laws, rules and regulations

2. Budgeting – In government accounting, there is much emphasis on

budgetary requirements. Because of the presence of budgetary accounts
and adjusting this accounts, government accounting stresses on
budgetary regulations and requirements.

3. Books of Accounts – In the national government accounting, the

following
sets of books of accounts are maintained. Surplus accounts maintained
by
Commission on audit, National Cash Accounts maintained by Bureau
Treasury and Agency Books
4. Accounts
a. Current surplus – it is the difference between the current assets
and
b. Current liabilities Expandable resources and available for
appropriation
c. Invested surplus – it is the difference between fixed assets and
d. Fixed Equity…not available for appropriation.

5. Basis of accounting for Income and Expenditures – accounting for

revenue is on cash basis while accounting for income and other sources
is on cash or accrual basis. Accounting for expenditures is strictly on
accrual basis which is reflective of legislative budgetary accounting
requirements

6. Negative entries–when errors are committed, erroneous entries are

again but in the negative so that when totals are obtained, the
erroneously entered are automatically removed

7. Financial Reports – The financial reports in government accounting

which are the basis of management decisions and plans are the Trial
Balance and financial statements.

8. Recording Procedure –Transactions are recorded in the books of

original entry, or Journals. There are transactions which are very
common and routine, thus special journals are used to facilitate and
simplify recording. The special journals and ledgers used in each system
of government accounting are as follows:

Requisite Book of Accounts

1. National Government
Journals:
a. Cash Receipts Journal (CRJ)
b. Cash Disbursement Journal (CDJ)
c. Check disbursement Journal (CkDJ)
d. General Journal (GJ)
e. Cash Journal (CJ)

Ledgers:
1. General Ledger (GL)
2. Subsidiary Ledger (SL) for
3. Cash
4. Receivables
 5. Inventories
6. Investments
7. Property, Plant and Equipment
8. Construction in Progress
9. Liabilities
10. Income
11. Expense

2. Local Government
a. Provincial/City Treasurer’s Journal of Collection and
Deposits
b. Municipal Treasurer’s Journal of Collection and Deposits
c. Treasurer’s Journal of Cash disbursement
d. Treasurer’s Journal of Check Issued
e. Treasurer’s Journal of Bill Rendered

3. Government Corporations
a. Sales Register
b. Cash Receipt Book/Register
c. Cash disbursement/Register
d. Check Register

All these sectors however use the journal voucher for recording in
the General Journal transactions which are non-recurring as well as the
adjusting and closing entry.
.

Accounting for Appropriations, Allotment and Obligations

General Principle

1.1. No money is paid of the Treasury or depository except in pursuance

to an appropriation law or other specific statutory authority.
1.2. Government funds shall be spent only for public purposes
1.3. Allotments are released to the agencies on a comprehensive basis
allocated on a quarterly requirements
1.4. The accrual basis of accounting for expenditures is followed in the
sense that expenses whether paid in cash or in account pass the
obligation accounts, or obligation accounting
1.5. All transaction pertaining to appropriation, allotments and
obligations are properly recorded in the relevant books of
accounts.
Allotment System in the National Government

At the start of each year, the Department of Budget and

Management (DBM) releases Allotment Release Order (ARO) to the
agencies on the basis of the work and financial plan prepared by them
based on the appropriation law. Release order is a formal document
issued by DBM to the head of the agency containing the authorization,
conditions and amount of an agency allocation. The document may be
the ABM, where the amount of allocation not needing clearance is
indicated, or the Special Allotment Release Order (SARO) ,where the
release of which is subject to compliance with specific law or regulations
or is subject to separate approval or clearance by competent authority.

The Allotment Release Order is recorded in the COA Surplus Books

as well as in the agency books by journal vouchers. In addition, upon
receipt of the approved ABM and ARO, the Budget Officer/Head of the
Budget Section shall record the allotment in the respective registries
through the Allotment and Obligations slip (ALOBS). Separate registries
shall be maintained for four allotment classes by
Program/Project./Activity (P/P/A).

1. Registry of allotment and Obligations-Capital Outlay (RAOCO)

2. Registry of Allotment and Obligations-Maintenance and Other
Operating Expenses (RAOMO)
3. Registry of Allotments and Obligations-Personal Services(RAOPS)
4. Registry of Allotment and Obligations-Financial Expenses (RAOFE)

Program refers to the functions and activities necessary for the

performance of a major purpose for which a government entity is
established, while a project is a component of a program covering a
homogenous group of activities that resulting the accomplishment of an
identified output.

On the basis of allotment received, the agency enters into contracts

or commits itself to purchase goods and services necessary for the
implementation of its programs and projects. The agency is authorized
to incur obligations only in the performance of activities which are in
pursuits
of its functions and programs authorized in appropriation acts/laws
within
the limit of ARO.
 Obligation refers to a commitment by a government agency arising
from anact of a duly authorized official which binds the government to
the immediate or eventual payment of a sum of money. Obligations shall
be taken up in the registries through the ALOBS prepared/processed by
the Budget section.

The Budget Officer/Head of the Budget section shall certify to the

availability of allotment and such is duly obligated by signing in the
appropriate box of the ALOBS. On the other hand, the
Accountant/Head of accounting section shall certify to the correctness
and validity of obligations, and availability of funds. Both Budget and
Accounting sections shall coordinate in the filling up of the Obligations
in their respective copies of the ALOBS.

Part IX
VALUES AND ETHICS IN THE PUBLIC SERVICE

The citizen’s demands for better public service has enlarged the
responsibility of public officials. In assuming public responsibilities, they
are mainly governed by the values and ethics of public administration
and by their individual morality. Added to this is their perception of the
social reality that surrounds them.(Leveriza, 1990)

Values and ethics are essentially personalistic, but they also guide
and influence human behavior in organizations. Hence, they are
expected to be interrelated with each other, not conflicting. The
responsibility of the public official is clearly defined in his job
description. He encounters certain difficulties in making certain moral
choices applicable to his situation. He must consider the context of the
social milieu in making his decisions. Thus personal values may come to
grips with public ethics.
Values and Public Service

In improving public service, values become important factors, since

they are “beliefs of central importance to which an approbation or a
moral sentimental worth is attached”. They can both be barriers to
development and prime factors in facilitating development.(Aresnberg &
Niehoff, 1965)

The values of public administration is the sum of the values of the

people in a society it serves. It changes rapidly as do the people’s values,
which change in reaction to development in society. But there is one area
over which public administration has no control. When a society is
divided, public administration will find it had to establish its values and
relate them to the people’s needs.

Sometimes, it requires changes in the bureaucratic structure itself.

Oftentimes, the problem is on its conservative public officials who are
wary in accepting new ideas for fear of destroying the status quo. Thus,
they offer resistance to innovations. Another thing is the varying
standards used to measure them. Taking all things in consideration, it
highly probable that nor change, whether in process or in structure, can
take place, until and unless the values of the people are concomitantly
changed

Code of Conduct and Ethical Standards

(1) Coverage: These rules shall cover all officials and employees, viz.,:

1. Elective Officials 5. Career & Non-Career Employees

2. Appointive Officials 6. Military Service Personnel
3. Permanent Employees 7. Police Personnel
4. Temporary Personnel

Rule II - Reforms on Public Administrative Systems

Republic Act No. 6713, otherwise known as the Code of Conduct

and Ethical Standards for Public Officials and Employees, enacted on
February 20, 1989 took effect on March 25, 1989 laid down sweeping
reforms in the bureaucracy. Accordingly, the Code duly considered some
socio-cultural and historical background of the Filipino nation. Some of
these considerations refer to the Code of Kalantiao and others; various
laws as applied to homogenous groups; and foremost is the felt need for
reforms in the public service.

Salient Features/Characteristics

1. Universal in Scope - it covers all types and classes of worker in the

government, career or non-career; official or mere rank-and-file;
permanent or temporary; seasonal, casual or contractual; regardless of
compensation.

2. Comprehensive in Essence - it refers to the evaluation of all human

values, be it the individual or group; personal or organizational;
communal or societal.
3. Reformative in Approach - its provisions serves as guide for
government bureaucrats and functionaries in their official conduct and
in the discharge of their public duties and obligations. The aim is
preventive, rather than curative. Hence, it emphasizes reform rather
punishment.

4. Balanced in Concept - the provisions of the Code give equal

treatment for the evaluation of official conduct and behavior, i.e., there is
a commensurate sanction for every misconduct committed by the public
official and employee.

Rule III - Focuses on reforming the public administrative systems by

way of the promulgation of relevant factors affecting the public service.

Rule IV - Concerned with transparency of transaction and access to

information mandating the state to adopt and implement a policy of full
disclosure of all transaction involving public interest.

Rule V - Refers to the grant of rewards and incentives to officials and

employees who have demonstrated exemplary service and conduct based
on their observance of the norms of conduct laid down in Section 4,
above.

Rule VI - Spells out in detail the duties of public officials and

employees vis-à-vis the services rendered to the clientele-public.

Rule VII - Refers to the public disclosure of business interests and

financial connection/holdings by way of a mandatory filing of a
Statement of Assets and Liabilities and Net Worth

Rule VIII - Refers to the authority and jurisdiction on the review and
compliance procedures on official statements duly accomplished.

Rule IX - This prescribes the grounds for administrative disciplinary

action in addition to those prescribed under existing laws, such as those
in E.O. 292 or Omnibus Rules Implementing Book V of the
Administrative Code.

Rule X - Prescribes the penalties for specific violations of this Code.

Rule XI - Refers to the requirements, functions, and coverage of free

voluntary service (without pay) of persons in the government.
Rule XII - Refers to persons in the government who render free
voluntary service

Operational Definition of Terms

Accountability - is a concept which implies responsibility and obligation to
answer or explain acts and performances to some persons superior to or
occupying higher positions in the hierarchy of the organization. It suggests
imposition of penalties and sanctions for violation of duties and obligations
and betrayal of trust reposed upon those who have been entrusted to
perform certain tasks.(Tendero, 1993)

Administration - refers to the composite of those activities and processes

concerned primarily with the means for carrying out government programs
and policy objectives. (Tendero, 1993)

Amortization - refers to the gradual payoff of a loan principal (Todaro)

Asian Development Bank (ADB)- a regional development bank founded in

1964 whose major objective is to assist the development of Asian nations
through the provision of loans and technical assistance. (Todaro)

Balance of Payments - a summary statement of a nation’s financial

transactions with the outside world. See also current account, capital
account, and cash account. (Todaro)
Black Market – a situation in which there is illegal selling of goods at prices
above a legal maximum set by the government, caused by excess demand at
established prices.

Brain Drain – refers to the emigration of highly educated and skilled

professional and technical manpower from developing to developed
countries.

Budget - is a detailed financial program in which anticipated expenditures

and anticipated revenues, including receipts from borrowings, are itemized
and exactly balanced. It is prepared in advance of the fiscal year to which it
applies.(Leveriza, 1990)

Bureaucracy - refers to the systematic organization of men and tasks into

some kind of pattern that facilitate the achievement of group effort. (Pfiffner
& Presthus, 1952)

- Webber defines it as a system with components which includes men,

offices, authority, and processes for translating “community action” into
rationally-ordered “social action” (Tendero, 1993)

Capital Account – the portion of a country’s balance of payments that shows

the volume of private foreign investment and private grant and loans that
flow into and out of a country over a given period, usually one year

Central Bank – the major financial institution responsible for issuing

currency, managing foreign reserves, implementing monetary policy, and
providing banking services to the government and commercial banks.

Centralization - refers to the process of formulating and defining national

policies and objectives by the government of the center (central /national
government).(Tendero, 1993)

Debt Burden - as interest and principal payments of national government

domestic and foreign loans, including advances made to service guaranteed
debts of state enterprises.(Boncodin)

Decentralization - refers to the process of bringing down the decision-

making powers down the levels of the hierarchy of organizations
(government) (Tendero, 1993)

Deconcentration - implies delegation of authority by the national

government through administrative orders, instructional memoranda and
other issuances describing the defining what field units should perform and
how these should be performed. There is only delegation of functions and no
transfer of authority and power. (Brillantes, 1990)

Departmentalization - is the work distribution activity by grouping together

related tasks and assigning these to individuals under the direction and
overall guidance of a director or manager. (Dessler, 1982)

Development – includes the modernization of institutions, whether economic

or non-economic, ways of thinking toward efficient production for rational
consumption and better quality or way of life. (Sicat)

Devolution: - refers to political decentralization which entails the transfer

of power and authority and resources from central to local level. (Local Gov’t
Code, 1991)

Economics - is a scientific study which deals with how individuals and

groups in society make choices towards the satisfaction of wants. (Sicat)

Economic Growth – refers to the long-term increase in the capacity of a

nation to produce a diversity of goods and services for its population (Sicat)

Efficiency - Technically, efficiency is the ratio of output over input;

productive with less or minimal waste. Hence, it means productive efforts or
services at a minimum cost or utilization of resources. Public service
delivery system operates on the basis of utilization of governmental
resources.

Governance - is the manner in which power is exercised in the management

of a country’s economic and social resources for development. (ADB 2002);

the exercise of economic, political, and administrative authority to manage

a country’s affairs at all levels and comprises the mechanisms, processes,
and institutions through which citizens and groups articulate their
interests, exercise legal rights, meet obligations and mediate differences.
(UNDP 1997);

- method of managing public affairs in a particular manner, fosters

continuous relationships and partnerships among all the member of the
society; or

- the process whereby elements in society wield power and authority,

influence and enacts policies and decisions concerning public life, economic
and social development. (ASEAN Review of Public Administration, 1990)
Government: - refers to that institution or aggregate of institutions which an
independent society makes and carries out those rules of action which are
necessary to enable men to live a social state; or which are imposed upon
the people forming that society by those who possess the power or authority
of prescribing them.(Black, Legal Dictionary)

Ideology: - refers to a set of doctrine or body of thoughts or opinions of a

group of people. (World Book Enc., 1999)

- the combined doctrines, assertions and intentions of a social or political

movement.(World Book Enc., 1999)

- an elaborate, close-woven and far-ranging structure of attitudes as part or

element of the environment of society.(Agnus Campbell, 1978)

Integrity - The term denotes the idea as “unimpaired condition or quality

of being complete and undivided”. It also means, the state of being solid or
soundness. Hence it connotes strength of character partaking the nature of
incorruptibility.

Institutions - are ways of doing and thinking and refers to organizations of

society or parts of it and to the attitudes of people related to economic and
non-economic activity. (Sicat)

Justice - It means “fairness and equity”. However, the dictionary defines its
as “righteousness; quality of conforming to law; principle or ideal of just
dealing; right action”

Loyalty - Of all the mandated public service values, loyalty is the most
misconstrued, thereby leading to improper behavior and conduct in
government. To be precise, the term means fidelity, faith, or the tied that
binds a person to an idea or someone. In public service, the object of loyalty
is, and must be, the idea, organization, or institution and not and never be
the person. What the constitution contemplates is loyalty to those
institutions which is the government and to all the ideals it stands for. In
this sense, fidelity is “to the office and not to the official; to the authority of
the person, and not to the person in authority; to the service and not to the
public servant.”

Management: - an integrating process by which authorized individuals

create, maintain, and operate an organization in the selection and
accomplishment of its aims. (Bittel & Ramsey)
- the process of designing and maintaining an environment in which
individuals, working together in groups, efficiently accomplish selected
aims. (Koontz & Weirich,)

- is a set of activities directed at the efficient and effective utilization of

resources in the pursuit of one or more goals.(David Van Fleet)
Modest Lives - is the modeling of proper behavior and life-style of civil
servants that can stem the tide of disenchantment and disillusion of the
people with the government, thereby helps in stabilizing Philippine society
and government.

Patriotism - By tradition and convention, the term means love for or

devotion to one’s country, its ideals, and the aspirations of its people.

Privatization: - Involves the withdrawal of government from those areas of

activity of society where private enterprise are shown to be more efficient
and effective. (Tendero, 1993)

Public Administration - Public administration is the management of men

and materials in the accomplishment of the purposes of the state. Public
administration then, is the execution of the public business (Leonard D.
White)

- is a cooperative group effort in a public setting that covers all three

branches (Legislative, Executive, & Judiciary) and their interrelationships
that has an important role in the formulation of public policy, and is thus, a
part of the political process. (Nigro & Nigro, 1992)

- concerned with the systematic study and improvement of government

capacity and practice in forming policies, making decisions, implementing
them and securing the desired results. It ranges over the political,
economic, social, and cultural circumstances, aspects, and effects of
government management and policy. (CSC Exec. Letter, 1995)

Public Office is both a duty and a position of great importance in a

government bureaucracy. It is a right, an authority, and a duty created,
conferred and fixed by law for a certain period of time or enduring at the
pleasure of the appointing power. (Black’s legal Dict.) Thus, an public officer
is invested with some portion of the sovereign functions of government to be
exercised for the benefit of the public. (Leveriza, 1990)

Public Service - is that aspect of service by government institutions, offices,

agencies, bureaus and or instrumentalities exercising sovereign functions
such as regulation, protection, and control for and in behalf of the public, in
contradistinction to those for proprietary purposes.
Public Service Values - as representatives or alter egos of the government
they represent, government employees are judged by the people by their
action or behavior in their discharge of the mandate of their offices which
serve as bases for the efficiency and effectiveness of the government they
represent.

Responsibility - the dictionary defines its as the moral, legal or mental

burden; an accountability. It also means the quality or state of being
responsible for something or someone. But in larger sense, the term
connotes reliability or trustworthiness.

System of Public Administration - refers to the composite of all laws,

regulations, practices, relationships, codes and customs that prevail at
anytime, in any jurisdiction for the fulfillment and execution of public
policy.

Theory - a statement of relationship between two or more variables.

Trust - refers to confidence or reliance on the character, strength, and or

ability of something or someone.

Values - refers to perceptions of individuals, organizations and societies of

the desirable ways or mechanisms to achieve goals and objectives. (Tendero,
1993). But on a more specific case, it means the harmony or consistency in
what an individual thinks, feels and does of a particular issue or idea.
Hence, in the behavioral sciences, it involves the cognitive, the affective, and
the psycho-motor responses of an individual relative to someone or
something.

Bibliography
Readings:
Patricia A. Sto. Tomas: Building A Better Bureucracy; 1989
Jose N. Endriga: Stability, Issues and Problems in Development; 1990
Patricia A. Sto. Tomas: Civil Service Reforms in the Philippines; 1991
The Civil Service Law and Rules; 1994
Corazon Alma G. De Leon: Reinventing the Philippine Bureaucracy Toward The Year
2000And Beyond; 1996
Book of Readings; Vol III: Proserpina Doming-Tapales/Alex Brillantes, Jr.; Center for
Local and Regional Governance, U.P. 2002
Book of Readings, Vol III - Concepts and Practices In Decentralization); U.P., 2002

References
Executive Order No. 292: Implementing Book V: Administrative Code of 1987
Handbook of Information on The Philippine Civil Service; 1976
Classics of Public Administration, J.M. Shafritz & Albert C. Hyde, 4 th Ed., 1997
Nature and Dimension of Public Service: Abdul S. Aguam; Development Administration
Journal; Vol. II, 1-2, MSU, 1982
The Nature And State of Local Government: Proserpina D. Tapales;
Introduction To Public Administration In The Philippines - A Reader; Victoria A.
Bautista, et al., 2nd Ed., U.P.; 2003
Decentralization: A Concept And As A Local Development Strategy
Decentralization, Local Government Institutions and Resource Mobilization; Raul P. de
Guzman & Perfecto L. Padilla; 1985
Devolution and Empowerment - The Local Government Code of 1991 and Local
Autonomy in The Philippines: Proserpina Domingo-Tapales
Decentralization, Participatory Development and The Role of NGO’s: Leonor M. Briones
Decentralization and Development Administration In A Unitary State: Empowerment
and Development of Whom – Rizal Buendia
Decentralized Government-From Hierarchy to Participation and Teamwork: Ronald Contino
Local Government Assistance Program - Associates in Rural Development Project Paper,
1994
Decentralization and Good Urban Governance: Alex B. Brillantes, Jr., et al ; (Papers
and Proceedings: 3rd International Conference on Decentralization; U.P. 2004)
Local Government In The Philippines: Concepts and Practices In Decentralization- Edna E.A. Co;
Local Government in The Philippines: Decentralized Democratic Governance Under The
Local Government Code-
A Governmental Perspective: Alex B. Brillantes, Jr.; (Local Government in The Philippines):
Decentralization - Power To The People, or To The Local Elite?: Cynthia G. Paralejas;
Participatory Governance - The Philippine Experience: Proserpina Domingo-Tapales;
Public Administration in The Philippines: Victoria A. Bautista
Public Accountability of Local Officials and Employees: P. F. Jardiniano
Leonor Magtolis-Briones: Philippine Public Fiscal Administration;
Michael P. Todaro: Economic Development, 7th Ed. 2001
Philippine Fiscal Policy: Living in The Past: Briones & Arlene B. Baulita; (Pub. Adm. By 2000,
1995,
The Philippine Constitution (1987)
Local Government Code 1991
Decentralization Towards Democratization: Raul P. De Guzman and Mila Reforma,
R.A. 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees)
Pacifico A. Agabin and Lydia N. Agno, Public Accountability, Institute of Government and
Law Reform, UP Law Center, 1992
J. M. Juran, Bureaucracy, a Challenge to Better Management (New York, 1944), p. 75.
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