LOCAL GOVERNMENT

AND
DECENTRALIZATION
a) Local Autonomy and
Decentralization
b) Local Government Reforms and
Development
c) Prospect of Federalism in the
Philippines
■ The imperative to transfer powers, functions,
responsibilities, and accountabilities to local
governments through a process of
decentralization has been central to the value
to encourage citizen participation and deepen
the democratization process.
■ In the Philippines, Republic Act
7160, commonly known as the
Local Government Code of 1991
(LGC), was enacted.
■ The code has been considered as a
landmark, far reaching, and the most
radical piece of legislation in the history
of the Philippine politico-administrative
system.
■ It devolved significant functions, powers,
and responsibilities to the thousands of local
governments in the country that have long
been operating under a highly centralized
regime (Brillantes 2003, 2002, 1998).
 REPUBLIC ACT 7160
■ transform LGUs into self-reliant communities
and active partners in nation-building by
giving them more powers, authority,
responsibilities and resources
 REPUBLIC ACT 7160
■ hopes to achieve economic development at
the regional and local levels by giving LCE
more freedom in carrying out their programs
that are suitable in their areas
STRUCTURE OF LOCAL GOVERNMENT
SYSTEM IN THE PHILIPPINES
 NUMBER OF LOCAL
GOVERNMENT UNITS
 DECENTRALIZATION
■ Decentralization generally refers to the
systematic and rational dispersal of power,
authority and responsibility from the
center to the periphery, from top to lower
levels, or from the national to local
governments. (Brillantes, 1996)
FORMS OF DECENTRALIZATION
DECONCENTRATION transfer of functions to lower level
administrative units designated by
the central office

DEVOLUTION transfer of powers and authorities

to lower level political and local
government units.

DEBUREAUCRATIZATION transfer of some public functions

and responsibilities, which
government may perform, to private
entities or NGOs
a) LOCAL AUTONOMY
AND
DECENTRALIZATION
 THE EVOLUTION OF LOCAL
AUTONOMY
Pre-Hispanic In the pre-Hispanic societies, the chieftain of native
settlements exercised executive, judicial, and
Societies legislative powers assisted by a Council of Elders. Th e
monarchial chieftain, called the datu, panginoo, or
pangulo, headed an autonomous territorial and
political unit.

Spanish The colonial governments of the Spanish colonizers

consolidated autonomous villages into pueblos
Colonial Period (towns), cabildos (cities), and provincias (provinces).
(1521-1902) They enacted the Maura Law 1893.
1st Philippine In 1898, the Malolos Constitution introduced
“decentralization” and “administrative autonomy” by
Republic under instituting localized law-making bodies through the
Malolos municipal and provincial assemblies. Local officials were
Constitution then elected on a popular basis.
American A number of policies were promulgated promoting local
autonomy; however, because of security considerations,
Occupation local affairs had to be under the control of the Americans.
(1902-1935)
Commonwealth Local Governments were placed under the general
supervision of the President following the provision
Period (1935- embedded in Article VII Section II of the 1945
1946) Constitution.
• President, by statute, could after the jurisdictions of
local governments and in effect, create or abolish them
• President Quezon preferred to appoint the chief officials
of cities
 • In 1959, the first local autonomy act (RA 2264) entitled “An
Post-war Era Act Amending the Laws Governing Local Governments by
(1946-1972) Increasing their Autonomy and Reorganizing Provincial
Governments was enacted.
• In the same year, the Barrio Charter Act (RA 2370) sought to
transform the barrios, the smallest political unit of the local
government system, into quasi-municipal corporations by
vesting in them some taxing powers..
• The “Decentralization Act of 1967” (RA 5185) further increased
the financial resources of local governments and broadened
their decision-making powers over administrative (mostly fiscal
and personnel) matters.
The imposition of martial law in 1972, which abolished local
Marcos Regime elections and vested in the dictator the powers to appoint local
(1972-1986) officials who were beholden to him, was a great setback for the
local autonomy movement. The 1973 Constitution rhetorically
committed itself to a policy of “local autonomy.” The Local
Government Code of 1983 (Batas Pambansa Bilang 337)
reiterated the policy of the state of local autonomy.
Post Marcos • 1987 constitution was promulgated. It
Era (1986- included specific provisions guaranteeing
present) autonomy to local governments.
• The Republic Act 7160 also known as
the Local Government Code of 1991 was
enacted.
 The State‘s policy on local autonomy is principally stated
in Section 25, Article II and Sections 2 and 3, Article X of
the 1987 Constitution which read as follows:
■ ARTICLE II
- Sec. 25. The State shall ensure the autonomy of local governments.
■ ARTICLE X
- Sec. 2. The territorial and political subdivisions shall enjoy local autonomy.
- Sec. 3. The Congress shall enact a local government code which shall
provide for a more responsive and accountable local government structure instituted
through a system of decentralization with effective mechanisms of recall, initiative,
and referendum, allocate among the different local government units their powers,
responsibilities, and resources, and provide for the qualifications, election,
appointment and removal, term, salaries, powers and functions and duties of local
officials, and all other matters relating to the organization and operation of the local
units.
- Sec. 3. The Congress shall enact a local government code
which shall provide for a more responsive and accountable
local government structure instituted through a system of
decentralization with effective mechanisms of recall, initiative,
and referendum, allocate among the different local
government units their powers, responsibilities, and resources,
and provide for the qualifications, election, appointment and
removal, term, salaries, powers and functions and duties of
local officials, and all other matters relating to the organization
and operation of the local units.
 DEVOLUTION UNDER THE LOCAL
GOVERNMENT CODE OF 1991
■ The LGC devolved powers and functions including the
delivery of basic services; responsibility to enforce
regulatory powers; power to increase financial
resources by broadening their taxing powers, shares
from internal revenues, and the exploitation of
national wealth; legitimization of participation for civil
society in local governance; and authority to engage
in entrepreneurial and development activities.
 1. DELIVERY OF BASIC
SERVICES
■ Health (field health and hospital services and other
tertiary services) and social services (social welfare
services)
■ Environment (community-based forestry projects)
and agriculture (agricultural extension and on-site
research) projects and public works undertakings
(locally funded)
■ Education projects (school building program)
■ Tourism activities (facilities,
promotion, and development)
■ Housing
■ Telecommunications services and
housing projects (for provinces and
cities); and other services like
investment support
 2. RESPONSIBILITY TO ENFORCE
CERTAIN REGULATORY POWERS
■ Reclassify agricultural lands
■ Enforce environmental laws
■ Inspect food products and imposing
quarantines
■ Enforce a national building code
■Operate tricycles
■Process and approve subdivision
plans
■Establish cockpits and holding
cockfights
 3. INCREASE FINANCIAL
RESOURCES OF LGUs
■ Broadens their taxing powers
■ Provides them with a specific share in the national
wealth exploited in their area (e.g., mining,
fishery, and forestry charges)
■ Increases LGU share in the national internal
revenue taxes, i.e., internal revenue allotments
[IRAs] from a previous low of 11% to as much as
40%
 4. LEGITIMIZE PARTICIPATION FOR
CIVIL SOCIETY IN LOCAL GOVERNANCE
■ Allocates to NGOs and POs specific seats in local
special bodies which include local development
councils, local health boards, and local school
boards
■ Promotes local accountability and answerability
through recall and people’s initiative
 5. AUTHORIZE ENTREPRENEURIAL
AND DEVELOPMENT ACTIVITIES BY
LGUs
■ Provides the foundation for LGU to enter
into build-operate transfer (BOT)
arrangements with the private sector,
float bonds, obtain loans from local
private institutions
 LOCAL GOVERNMENT
FINANCE
■ The LGC provided three main sources of revenue for the
LGUs. These include
(1) locally generated revenues from local tax and non-tax
sources;
(2) the IRA fiscal transfers, shares from the exploitation of
national wealth, and other grants; and
(3) external sources such as loans/borrowing, issuance of
bonds, and private sector participation.
■ Local governments are given the authority to levy and collect local
taxes (real property and business taxes) and non-taxes such as fees,
user charges, and receipts from economic enterprises.
■ Real property and business taxes are their main income sources.
However, tax assignment varies from each level of local government—
provinces, city, municipal, and barangays. Cities assume all taxing
powers of both the provinces and municipalities.
b) LOCAL GOVERNMENT
REFORMS AND
DEVELOPMENT
 LOCAL GOVERNANCE
REFORMS
■ The Department (Ministry) of the Interior and Local
Government (DILG) is mandated to monitor the
implementation of decentralization in the Philippines;
thus, it continues to craft and design a sustainable
strategy that will deepen devolution in the
Philippines and develop and strengthen the
capacities of local governments.
 ACCORDING TO THE STUDY
CONDUCTED BY BRILLANTES, LLANTO,
ALM and SOSMENA (forthcoming 2009)

■ There are 10 identified reform areas to

strengthen and deepen decentralization in the
Philippines.
 FINANCIAL INTER-LOCAL CLARIFYING LOCAL
RESOURCE COOPERATION GOVERNMENT
AND INTER-LGU POWERS AND PERSONNEL
AND
REFORMING ALLIANCES FUNCTIONS ADMINISTRA
THE IRA -TION

REFORM AREAS TO
NATIONAL LOCAL
STRENGTHEN GOVERNMENT
LOCAL DECENTRALIZATION PERFORMANCE
RELATIONS IN THE PHILIPPINES MEASUREMENT

CAPACITY PEOPLE POLITICAL

PARTICIPATION
FEDERALISM
BUILDING CONCERNS
REVIEW OF THE LOCAL GOVERNMENT
CODE OF 1991 AND ITS
IMPLEMENTATION
■ Gains and Successes of
Decentralization
Included among the highly credible awarding bodies
are the Galing Pook Foundation, Local Government
Leadership Awards (LGLA), Gawad Pamana, Clean
and Green, Lingkod Bayan, Magsaysay Awards, and
Konrad Adenauer Medal of Excellence.
■ Grassroots empowerment and greater citizens’
participation in the communities.
■ Greater Involvement of Civil Society and People’s
Organizations and the Private Sector in Policy-making
and in the Management of Public Affairs.
■ The Rise and Strengthening of Inter-local
Cooperation Through the Establishment of Leagues
of Local Government Units and Elective Officials.
■ Consciousness on the Rights of Local
Government Units and Greater
Transparency.
■ Recognition of Best Practices of LGUs
■ Anti-Poverty and Development Initiatives are
systematically being launched at the Local
Levels.
THE CHALLENGES TO LGUs:
■ The problem in the Absorptive Capacities of
LGUs has not matched the demands of
responsibilities entrusted by the Code.
■ Many Local Governments continue to be
dependent on their shares of the Internal
Revenue Allotment.
■ The Financial Capacities of LGUs leave much
to be desired.
■ The National Government continues to hold
and control the bulk of productive sources of
revenue even in the Post-Code period.
■ There is a wide disparity in the distribution of
government personnel between the national
government and the LGUs.
■ The poverty incidence has not been contained.
c) PROSPECT OF
FEDERALISM IN
THE PHILIPPINES
 FEDERALISM
■ Under this principle of government, power and
authority are allocated between the national
and local government units, such that each
unit is delegated a sphere of power and
authority only it can exercise, while other
powers must be shared.
 TYPES OF FEDERALISM
■ Dual Federalism is the system of having separate but
equally powerful branches and levels of government, in
which the state and national levels would both have a lot of
power to balance each other out.
■ Creative Federalism was the type of federalism that
shifted more power towards the national government by
bypassing state governments and allowing the federal
government to have direct control over statewide programs.
■ Cooperative Federalism is the approach where
all the levels of government work together
cooperatively to achieve and solve common
problems.
■ New Federalism evolved with the election of
Ronald Reagan in the 1980s. In this progression
of federalism, more power was returned to the
state in an effort to even out the balance of
strength between the national and state
governments.
■ Fiscal Federalism is the usage of funds from
the federal government to the states in order
to support a national program.
■ Judicial Federalism allows the court to
decide where the power of government goes;
either to the state or to the central
government.
■ Progressive Federalism is a recent form of
federalism employed by the Obama
administration which allows the states to have a
greater control over issues normally reserved for
the national government.
■ Contemporary Federalism is the type of
federalism occurring in modern times,
accommodating the shifting relationships between
nation and state, growth of the fiscal nature of
federalism, and debating ideas on the limit of the
national government's power
 The Philippine Federalism
Agenda: Issues and Challenges
■ What is the nature and character of the Federal
system suited for the Philippines, given existing
conditions?
■ What will be the nature of the relationship between
the federal government and member states?
■ How will power and authority between the
proposed Federal Government and the
envisioned States be allocated and shared?
■ What are these powers?
■ How will these compare with those provided
under R.A. 7160 or the Local Government
Code of 1991?
■ Will a Federal system reduce the poverty
incidence of lagging communities?
■ Will the presidential system be retained?
■ Will we have a Unicameral or Bicameral
Legislative Body?
■ Will a Federal system contain political
dynasties?
■ Will this system be effective in curbing
criminality, especially transnational (or “trans-
state”) criminal activities such as the illegal
drug menace, kidnap for ransom syndicates,
and terrorism, among many others?
■ Can we have better governance and can
corruption be contained?
 PDP LABAN
MODEL OF
FEDERALISM
■ Two constitutionally established orders of
government primarily accountable to its
respective electorate.

– Federal Government
– Regional Government
■ The Regional
Governments
– Creation of more
politically and
economically effective
administrative structure
based on 11 regions
with its own regional
government
 DIVISION OF POWERS
FEDERAL POWER CONCURRENT POWER REGIONAL POWER

- Concerns the entire - Establish local

nation - Enforce Laws governments
- Foreign Policy - Establish courts - Regulate interstate
- Declaring War - Collect Taxes trade
- Printing of Money - Provide for public
safety
 Semi-Presidential System of
Government
■ PDP Laban proposes a hybrid system of
Government
■ Will have both President and Prime Minister
having key powers
■ People will vote for the political parties
 The President
■Head of State
■Directly elected by the people
■Responsible for national defense and
foreign policy
 The (Optional) Vice President
■ There is no need for the position of Vice President
but the position can be retained if this is the wish of
Filipino people
■ If the position of the VP is retained, the following is
proposed:
– The vote for the President is also a vote for the VP
– The VP will serve as presiding officer of the
senate
 The Prime Minister
■ Head of Government
■ Elected by the House of Representatives and
formally appointed by the President
■ Responsible for domestic and economic policy
 Transitioning Proposals
■ The shift to the federal system shall happen within
a three-year period with each state/region adopting
its own administrative laws and structure
■ Deconcentration of national agencies to
states/regions
■ Passage of new election laws and comprehensive
political reforms act including an anti-dynasty law,
issuances, decrees and orders previously enacted
and adopted shall be in full force and effect.
■ LGUs shall continue to receive automatically their
IRA share from the federal government
■ LGUs shall have jurisdiction over its natural
resources but can co-share the utilization,
development, exploration with the federal or state
government
■ There shall be one national police force. The state
may organize civil defense forces for disaster risk
reduction and management
THANK YOU!