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PHILIPPINE DECENTRALIZATION
Denden Alicias
20 November 2005
Outline
What’s new in the 1991 Local
Government Code?
What functions/services were devolved
to local governments?
What are the powers of local
governments?
What are the institutional mechanisms
for citizens’ participation?
Philippine Decentralization
Devolution (Political Decentralization)
Powers and responsibilities are decentralized to elected
local governments
Transfer of responsibility, decision-making, resources and
revenue generation to local level that is autonomous and
independent from the devolving authority.
Started in 1992 when the Local Government Code
took effect
Push for decentralization came from:
Democratic transition
Pressure from international financial institutions/donor
agencies
What’s new in LGC?
More autonomy for Local Governments
Mechanism for people’s participation
People empowerment provisions
Mandatory consultations
Recall
Initiative and Referendum
Mandatory Public Hearings
Preferential treatment for the marginalized sector
Sectoral representation
Fishery rights of fisherfolks cooperatives/organizations
Preferential rights of cooperatives to operate/lease public
utilities and to construct, operate ferries, wharves, public
markets, or slaughterhauses
Local Government Units:
Provinces:
annual income of not less than 20M
(USD400,000), contiguous territory of at least
2,000 sq.km and population of not less than
250,000.
Municipalities (towns)
Annual income of 2.5M (USD50,000) contiguous
territory of at least 50 sq.km and population of
not less than 25,000.
Barangays (villages)
Contiguous territory; 2,000 inhabitants.
Cities
Highly urbanized cities
annual income of not less than 50M (USD1M),
and population of not less than 200,000.
Component cities: subject to general
supervision by the province
Autonomous regional government
(ARMM)
Created by special law
Inter-governmental relations
National Government
Barangay (Village)
What are the
Powers/Attributes of LGU’s?
Power to create, divide, merge barangays
(villages)
Delivery of basic services and facilities
Create own sources of revenues and wealth
Power of Eminent Domain
Corporate or Municipal Powers
Power to negotiate and accept grants and
donations
Power to reclassify agricultural lands
Sources of Local Government
Funds/Resources
Internally-generated:
Local taxes (business tax, real property tax)
Income from economic enterprise (e.g. public
market)
Fees and Charges
Externally sourced:
Share in Internal Revenue Allotment (IRA)
Share in Proceeds from National Wealth (mining,
forestry, fishery charges)
Loans, credits, bonds and B-O-T schemes
Grants
What Services were devolved
to LGUs?
Agricultural extension and on-site
research
Community-based forestry projects
Field Health and Hospital services and
other tertiary health services
Public works and infrastructure projects
funded out of local funds
What Services were devolved
to LGUs?
School building program
Social Welfare Services
Tourism facilities and Tourism
promotion and development
Telecommunication services for
provinces and cities
Housing projects for provinces and
cities
What were the spaces for
Citizen Participation?
Membership in Local Special Bodies
Local development councils
Local Health Boards
Local School Boards
Local Peace and Order Council
Local Prequalification, Bids and Awards Committee
Joint undertaking with LGU’s in
Delivery of basic services
Capability building
Livelihood projects
Development of local enterprise
Build-operate-transfer projects
What were the spaces for
Citizen Participation?
Mandatory Consultation
Mandatory Public Hearing
Recall
Initiative and Referendum
Local sectoral representation
Issues and Challenges
Fiscal problems
Budget deficit vs. IRA releases
Congressional Pork Barrel funds vs. LGU
development funds
Not enough funds for poor LGU vs.
surpluses of rich LGUs
Issues and Challenges
Elite capture of spaces for citizen
engagement
Risks of participation
Unfunded wish list
Cooptation vs. collaboration
Reforms as electoral capital