Towards a Philippine Federalist Experience: An Inquiry into the Effects of a Federal System of Government in the Delivery of Basic Services

Abstract

There is an emerging movement calling federalization today. The farther one goes to the South, the greater the people accept and support the federal idea. A number of related studies and researches had been made in preparation for a possible federal transition, including a draft constitution and an official resolution advancing the federal cause. Academics and public officials backed with a considerable nationwide mass support are behind these efforts. Their demand revolves around two main objectives that Senator Aquilino Pimentel outlined. That is, it is by federalism where the promotion of economic development is faster and more equally distributed, secondly, it is by federalism that the age-old problem of Moro secessionism in Mindanao can be addressed adequately, squarely and completely. Parallel to the federalist idea is another school of thought which believes that decentralization measures, as espoused under the 1991 Local Government Code, should be fully implementing first. It argues that the provisions of the Code had not been fully utilized and optimized. Hence, there is therefore no need, as of yet, to take any more drastic step, such as federalism. It is in this context that this thesis shall anchor its foundations on: the idea that federalism is a good alternative system of government for the Philippines. The study will determine the relationship of federalism and the system of public service provision, one of the most critical problem areas in the country today. Federalism is the system of government where power is distributed among the independent states of a nation under the supervision of the central government as opposed to the unitary system, where power is firmly concentrated in the hands of a strong central government. The federal principle pertains to the method of dividing powers in such a way that the general and the regional governments are each within a sphere, coordinate and independent to each other. It is characterized by a tendency to substitute coordinating to subordinating relationships. This research works under the hypothesis that the interplay of local autonomy, fiscal autonomy and the local chief executive under a federal system can better address the problem. It is maintained, given stronger linkages and stronger power and fiscal foundations conferred to LGUs, and the heightened role of the local chief executive under a federal system, that policies and programs related to the delivery of basic services will be more locality-responsive, more accessible for a greater number of people. Local autonomy involves the devolution of powers to local government units, thus it is equated to political decentralization. Local fiscal administration is the conduct and management of the financial affairs and operations of provinces, cities, municipalities, and barangays. Fiscal autonomy therefore refers to the freedom of LGUs to conduct and manage their own financial affairs with minimum central government regulations. There are however, several arguments that can refute this study's assumptions. For instance, the contention that some regions and provinces are not developed enough to financially support itself, and that the local taxes and IRA shares of LGUs is not enough to finance local development operations, much more be financially independent. Especially in depressed areas, there is no strong and stable fiscal base to begin with. Also, there is the issue that development, more particularly the improvement of the quality of the delivery system under a federal government becomes highly dependent on the local chief executive's effort. This is based on the perception that local officials are not politically mature and experienced enough to hold the reigns of greater power and responsibility in a more complex governmental arrangement. Then, there is also the critical issue of revising the 1987 Constitution to change the current political order. These are just some of the arguments behind anti-federalist sentiments. On the other hand, there are also equally attractive arguments in favor of federalism, particularly when public service provision is concerned. Federalism highlights the role of the LGU and its constituencies in developmental efforts. This measure highly benefits the local government unit, especially the LGUs in far-flung areas dependent only on the insubstantial trickle down benefits for their own development. This situation often lead to retarded growth and mediocre policies and programs. Since federalism will change how policies and laws are enacted and executed, then it can arrange for closer and more open channels for citizen participation in policy-making, law-making and governance as a whole. The federal system of government affords to the people the choice to make a more proactive stance in charting their political, social and economic growth. Among the major findings of this research, include the discovery that the history of governance in the Philippines is one of an alternating pattern of centralization and decentralization. The level of centralism depends largely on the political, economic, and military interests of the political elite in power. Recent trends show, at least policy-wise, that there has been an increasing bias toward decentralization. In reality however, 'overcentralization' still prevails. Major decisions are still made in Metro Manila and in the few power centers, to the detriment of the marginalized majority. Backlogs in the bureaucracy are an indication that the central government is being plagued by small-town and provincial concerns that should be handled locally in the first place. Overcentralization result to LGU dependency on the national government. Notwithstanding constitutional and statutory provisions, the majority of the LGUs in the Philippines today are far from being self-reliant and self-sustaining partners of development as they were envisioned to be. Furthermore, it has been found that generally, the local government system in the country is one wrought of problems in funding and fiscal administration. Respondents observed that the LGU budget and revenue sources are not enough to sufficiently support local government operations, adversely affecting quality and quantity of basic services delivered. Although the Code provided for additional sources for revenue generation, other studies point out that the traditional means are still generally applied. Only a few LGUs with diligent local chief executives venture on practicing more innovative and productive means of fiscal administration and revenue generation. The primary barriers that would defeat the passage of the federal proposal is the fundamental trait to be aversive to change, not to mention the wariness of the Filipino people, understandably so, to be vigilant on the issue of charter change and the hidden motivations behind it. There is also the fact that the current political, economic and security conditions in the Philippines today is too erratic to sponsor an environment strong enough to withstand the initial destabilizing effects of the federalization process. Personally, given the advantages and disadvantages of both the unitary and the federal systems, the researcher believes that federalism can become a better system of governance for the Philippines, especially when the issue of the basic service delivery is concerned. Theoretically, federalism is a beautiful concept but the issue of the practicability of transforming the unitary system into a federal one at this point in time, is another matter. The question on whether federalism can function effectively in the Philippine setting given the context of the times is another important consideration. Federalism can be made to work, if and when, public officials, the people and all other sectors of the society make a conscious, collective and constant effort to make federalism work. Generally, given the merits and the demerits of applying the federal system, and the unsupportive and unstable conditions mentioned, the researcher recommends to continue working for full implementation of the provisions of the Local Government Code. But with the stipulation that while measures are being taken to address the problem of public service provision, with the short run solution of fully decentralizing first, federalization studies and federalization plans should continue and even be made to intensify. Thus, fully decentralize now, but federalize later. A transition period should ensue, first and foremost, to warrant a smoother, popularly accepted and less painful federalization process. The appropriate structures should be properly enshrined first. Continuous education and information campaigns should be done to fully define as well as to explain to the public officials and the people of their new and critical role in this massive national endeavor. The challenge of federalism is before us. Let us make a choice.