Globalization and the

Philippine Government
Emphasis on Its Impact to the Commission on Audit (COA)
Republic of the Philippines
Three Branches of the Government
The Legislative Branch

According to the 1987

Constitution, legislative power
shall be vested in the Congress of
the Philippines, which shall
consist of a Senate and a House of
Representatives.
Congress is responsible for
making enabling laws to make
sure the spirit of the constitution
is upheld in the country and, at
times, amend or change the
constitution itself. In order to craft
laws, the legislative body comes
out with two main documents:
bills and resolutions.

The Batasang Pambansa in Quezon City is the

current base of the House of Representatives.
 The Executive Branch
It is composed by the President, Vice- President,
Cabinet Secretaries and the Local Government

Article VII, Section 1, of the 1987 Constitution vests

executive power on the President of the
Philippines. The President is the Head of
State and Head of Government, and functions as
the commander-in-chief of the Armed Forces of the
Philippines. As chief executive, the President
exercises control over all the executive
departments, bureaus, and offices.

The executive branch extends beyond the national

government. According to Article X, Section 4 of the
constitution, the President of the Philippines is
mandated to supervise local governments all over
the country. However, because of Republic Act No.
7160, otherwise known as the Local Government
Code of 1991, local governments enjoy relative
autonomy from the national government.
The Judicial Branch
Judicial power rests with the
Supreme Court and the lower
courts, as established by law (Art.
VIII, sec. 1 of the 1987
Constitution). Its duty is to settle
actual controversies involving
rights which are legally
demandable and enforceable (Art.
VIII Sec. 1 (2)).
The judiciary enjoys fiscal
autonomy. Its appropriation may
not be reduced by the Legislature
below the appropriated amount
the previous year (Art. VIII, Sec. 3).
The 1987 Philippine Constitution

The Constitution of the Philippines

("Fundamental Law of the Philippines") is
the constitution or supreme law of the
Republic of the Philippines. Its final draft
was completed by the Constitutional
Commission on October 12, 1986 and was
ratified by a nationwide plebiscite on
February 2, 1987.

Three other previous constitutions have

effectively governed the country in the past:
the 1935 Commonwealth Constitution, the
1973 Constitution, and the 1986 Freedom
Constitution. The earliest constitution
establishing a "Philippine Republic," the
1899 Malolos Constitution, was never fully
implemented throughout the Philippines
and did not establish a state that was
internationally recognized, due in great part
to the impending American occupation
during its adoption.
The 1987 Philippine Constitution
The Constitution contains
a preamble and eighteen
self-contained articles with
a section numbering that
resets for every article.
ARTICLE I. National Territory
ARTICLE II. Declaration of Principles and State Policies
ARTICLE III. Bill of Rights
ARTICLE IV. Citizenship
ARTICLE V. Suffrage
ARTICLE VI. Legislative Department
ARTICLE VII. Executive Department
ARTICLE VIII. Judicial Department
ARTICLE IX. Constitutional Commissions
ARTICLE X. Local Government
ARTICLE XI. Accountability of Public Officers
ARTICLE XII. National Economy and Patrimony
ARTICLE XIII. Social Justice and Human Rights
ARTICLE XIV. Education, Science and Technology, Arts,
Culture and Sports
ARTICLE XV. The Family
ARTICLE XVI. General Provisions
ARTICLE XVII. Amendments or Revisions
ARTICLE XVIII. Transitory Provisions
Commission on Audit (COA)

The Commission on Audit (COA) is

the Philippines Supreme Audit
Institution
Article IX- D of the 1987 Philippine
Constitution declared its
independence as a constitutional
office, grants it powers to audit all
accounts pertaining to all
government revenues and
expenditures/uses of government
resources and to prescribe
accounting and auditing rules,
gives it exclusive authority to
define the scope and techniques
for its audits, and prohibits the
legislation of any law which would
limit its audit coverage.
The Principal Duties of the Commission
Examine, audit and settle all accounts pertaining to the revenue and receipts of, and
expenditures or uses of funds and property owned or held in trust by, or pertaining to, the
government.

Promulgate accounting and auditing rules and regulations including those for the prevention
and disallowance of irregular, unnecessary, excessive, extravagant or unconscionable
expenditures, or uses of government funds and properties.

Submit annual reports to the President and the Congress on the financial condition and
operation of the government.

Recommend measures to improve the efficiency and effectiveness of government

operations.

Keep the general accounts of government and preserve the vouchers and supporting papers
pertaining thereto.

Decide any case brought before it within 60 days.

Performs such other duties and functions as may be provided by law.
Vision

A credible, trustworthy and independent Supreme

Audit Institution; a vibrant partner in nation-building; a
bulwark of integrity and competence; an organization
of professionals with a culture of excellence; a
respected member of international organizations of
supreme audit institutions.
Mission

To carry out our constitutional mandate with the

highest degree of professionalism, competence,
integrity, teamwork and organizational
efficiency, and promote the people's trust in
government by upholding public accountability.
Globalization

Over many centuries, human

societies across the globe have
established progressively
closer contacts.
Recently, the pace of global
integration has dramatically
increased. Unprecedented
changes in communications,
transportation, and computer
technology have given the
process new impetus and
made the world more
interdependent than ever.
Globalization

Multinational Corporations
manufacture products in many
countries and sell to consumers
around the globe.
Money, technology and raw
materials move ever more swiftly
across national borders. Along
with products and finances, ideas
and cultures circulate more freely.
As a result, laws, economies and
social movements are forming at
the international level.
Globalization

Globalization is a process of
interaction and integration
among the people, companies,
and governments of different
nations, a process driven by
international trade and
investment and aided by
information technology.
This process has effects on the
environment, on culture, on
political systems, on economic
development and prosperity, and
on human physical well- being in
societies around the world.
Globalization

Globalization is not new,

though. In fact, many of the
features of the current wave of
globalization are similar to
those prevailing before the
outbreak of the First World War
in 1914.
Thomas Friedman has said that
today globalization is farther,
faster, cheaper and deeper
Factors Driving Globalization

I. Policies II. Technology

Policies have opened It has been the principal
economies domestically and driver of globalization.
internationally; Many Information technologies have
governments have opted free- given all sorts of individual
market economic systems, vastly economic actors- consumers,
increasing their own productive investors, businesses valuable
potential and creating myriad new tools for identifying and
new opportunities for pursuing economic opportunities,
international trade and including faster and more
investment; A defining feature of informed analyses of economic
globalization, therefore, is an trends around the world, easy
international industrial and transfer of assets, and
financial business structure. collaboration with far- flung
partners.
 Proponents of globalization argue that it allows poor countries
and their citizens to develop economically and raise their
standards of living, while opponents of globalization claim that
the creation of an unfettered international free market has
benefited multinational corporations in the Western world at
the expense of local enterprises, local cultures and common
people.
Two views of globalization: Davos View- seen from 10,000 feet
of new opportunity and aggregate growth; View from the
factory gate- where globalization is seen as a zero- sum game
in which jobs and opportunities in the fast developing world are
created at the expense of employment and the standard of
living.
The Philippines under Globalization

The Philippines became a member of the Asia Pacific Economic

Cooperation (APEC) which was established in 1989 with a total of 21
member countries.
APECs mission is to build a dynamic and harmonious Asia-Pacific
community by championing free and open trade and investment,
promoting and accelerating regional economic integration,
encouraging economic and technical cooperation, enhancing human
security, and facilitating a favorable and sustainable business
environment.
The APEC is essentially a discussion group, a group making
suggestions on what to do to advance international economic
integration.
The Philippines under Globalization

The creation of the WTO (World Trade Organization), which was

founded in 1994, is one major result of the discussion group and in
which the Philippines is a part of and signed agreements with since
1995.
The Philippines, a developing country has been adaptive of the
effects of globalization and has allowed major changes in its labor
and industry.
The country has been a recipient of foreign aids for international
calamity and assistance from foreign countries such as Japan,
Canada, United Kingdom, USA and Australia, multilateral
organizations, NGOs, private individuals and anonymous donors. In
2015 alone
The Philippines under Globalization

In 2015, a total amount of P17,233,297,910.67 foreign aid was

received by the country.
The Philippine government also receives foreign assistance through
loans to fund its various projects. Organizations such as the World
Bank and Japan Bank International Cooperation continue to provide
loan assistance to the country to fund government projects
concerning the agricultural sector, power generation and roads and
bridges development. These projects are recognized under
Participatory Irrigation Development Project (PIDP), Official
Development Assistance (ODA) Fund, Malampaya Fund, Agrarian
Reform Infrastructure Project (ARISP) and many others. The
Philippines Credit Rating is BBB (Standard & Poor's ).
The Philippines under Globalization

The Government relaxes restrictions on foreign investments.

Executive Order (EO) 184 of Pres. Aquino, published on June 5, 2015,
identifies economic activities open to Philippine businesses and sets
limits in the participation of foreign firms. Such as,
Removal of foreign ownership restriction on lending firms, investment houses
and financing companies; and
Jobs open only to Filipinos has been reduced to cover pharmacy, radiologic and
X-ray technology, criminology, forestry and law.
This in turn improved the Foreign Direct Investments (FDI) of the
country which increased by P138,618 Million in the fourth quarter of
2015.
The Philippines under Globalization

Policy Reforms also led to consistent build-up of foreign exchange

reserves which sat at $80.6 billion at the end of November 2015-
enough to cover over 10 months of import payments of services and
income.
Government spending primarily on infrastructure and capital outlay
(CO) rose to P81.8 billion in the second quarter of 2015 which was
37.3 percent higher than last year of the same quarter. According to
the DBM, this was mainly due to infrastructure development
requirement under the Department of Public Works and Highways.
The country also sustained consumption growth due to substantial
remittances from overseas Filipino workers (around $20 billion) and
low inflation.
The Philippines under Globalization

The IT Business Process Outsourcing industry has contributed

significantly to output and employment.
The government also passed critical reform laws on competition
policy, liberalizing the banking system, as well as managing and
improving transparency of tax incentives. The government was able
to strengthen universal health insurance and sustained its
conditional cash transfer program which covers millions of poor
families and has been designed to improve the education and health
status of the poor.
 Strategic Plan
PILLAR/
THRUST AREA GOAL OBJECTIVE
Integrity and Independence To enhance the credibility, integrity and independence of the Instill integrity as a way of life in COA
Commission on Audit in carrying its mandate To develop and implement a more efficient and effective mechanism for
objective handling of complaints against COA personnel
To strengthen fiscal autonomy

Organizational efficiency To establish an efficient and effective organization and To strengthen the organizational capability of COA
management system in COA To enhance the quality, timely delivery, and effectiveness of audits of
COA
To upgrade existing infrastructure facilities and equipment
Professionalism and technical To maintain a highly competent and professional human To update / enhance and implement policies, guidelines, standards and
competence resource to ensure the efficient and effective delivery of strategies on recruitment, promotion, retention of competent staff
mandated services To provide needs-based professional staff development.
To actively participate in trainings, capacity building and knowledge
sharing activities in international organizations (INTOSAI, ASOSAI,
ASEANSAI and others)
Strategic partnerships/ linkages To increase the publics awareness and enhance inter-agency To enhance relations with the media, stakeholders and the public in
relations as regards COAs role in ensuring transparency, general
accountability and good governance To improve inter-agency relations of COA with regard to mutual
assistance and exchange of complete, necessary and timely information
with government agencies such as DBM, NEDA, BTr, AMLC, DOF and CSC
To strengthen COAs efficiency in documenting / gathering legal evidence
to ensure successful prosecution of cases
To enhance citizen participation in the public audit process and
institutionalize Citizens Participatory Audits (CPAs)
The Current Actions undertaken by COA

Policy reforms such as the adoption of Integrated Results and Risk Based
Audit Approach;
Joint Action with the Department of Finance (DOF) and DBM to implement
the Philippine Financial Monitoring System (PFMS);
Adoption of the International Public Sector Accounting Standards (IPSAS)
as the standard to be used in accounting for government transactions on
local, national and corporate sector;
Revision of outdated Government Accounting and Auditing Manual
(GAAM);
Formulation of a system to facilitate performance of audit functions;and
Intensified trainings on Code of Ethics and formulation of personnel policies
targeting ethical conduct;
Others

Globalization created opportunities for COA employees to enjoy

scholarships offered by universities from other countries and
acquisition of licenses/ certificates recognized by the international
community;
Membership in International Organizations such as the INTOSAI and
ASOSAI which helped the COA to improve its organizational
efficiency through adoption of best practices;
Competitiveness of the organization is continually tested through
competing against other audit institutions to become the external
auditor of UN organizations; and
Foreign assignment opportunities for employees such as FBGAS.
Conclusion

Globalization has created opportunity for the Philippines to progress

and develop in line with the challenges it posed for the country.
Though, many studies which dig deeper on the effects of
globalization for the country dismissed that the Philippines is too
amateur to face the worldwide environment, we can say that
globalization is one of the reasons for whatever we as a country
experiences right now, may it be good or bad. This new era of intense
global community has imposed greater responsibility, opportunity
and threat for the government to keep up with the pace. This in
return, COA as its Supreme Audit Institution holds a very important
role of keeping track with the activities of the government and serve
as the beacon of hope for the Filipino community that the
government is functioning for the betterment of its people.
Thank
you!