DECENTRALIZATION

Marizel Go Reymund Flores Voltaire Jacinto Neil Hortillo

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Coverage
I. Definition, Philippine Constitutional
Provisions
II. Case Studies
A. Philippines Setting
B. Other Countries
III. Issues and Challenges

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 THE CONCEPT,
HISTORICAL ROOTS AND
THE LOCAL GOVERNMENT CODE 1991

1) Decentralization and Democratic Governance

2)Historical Background of Decentralization
3) The Local Government Code of 1991
4) The Local Government Structures
5) National-Local Relations
6) The Enabling Role of Local Government
7) The Models of Enabling Authority
 Decentralization and
Democratic Governance
Decentralization (Raul de Guzman)
- 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 national to local
governments.
Why governments decentralize? (Brillantes Jr., 2002)
- it hastens decision-making processes by decongesting central
govt and reducing red tape.
- it increases citizen participation, and empowers them thereby
leading to a more open and democratic govt.
 3 Major Forms of Decentralization
1) DECONCENTRATION
- involves the transfer of functions to lower level administrative units
designated by the central office.
- a management tool to decongest the central office and spare it from having
to act on matters that may best be addressed at the lower levels.
- administrative in nature.
2) DEVOLUTION
- involves the transfer of powers and authorities to lower level political or
local govt units.
- local govt has elected local executive, legislative body and has specific
taxing powers and jurisdiction over a certain defined area.
- political in nature.
3) DEBUREAUCRATIZATION
- involves the tranfer of powers and authorities
to its units not within the purview of the govt.
- transfer of such powers and authorities to
NGOs and POs, including the private sector, or
collectively referred to as “civic society”.
- to bring about good governance.
 HISTORICAL BACKGROUND OF DECENTRALIZATION IN THE
PHILIPPINES

Before 1521 local villages (barangays)of the Philippine archipelago that had been
existent even before the arrival of the Spaniards in 1521 (Laurel
1926) were for all intents and purposes autonomous territorial and
political units headed by a monarchical chieftain called the datu,
panginoo or pangolo (Ortiz 1996).
1521 arrival of Spaniards, creation of pueblos composed of poblaciones,
barrios and visitas.
1893 Maura Law, creation of tribunales municipales and juntas
provinciales.
1898 Malolos Constitution, “decentralization and administrative autonomy”.
1902 American occupation, incorporation of the city of Manila, Moro
Province, organization of provincial governments.
1935 Commonwealth period, local govt placed under general supervision
of the President.
1946 independence was granted.
 HISTORICAL BACKGROUND OF DECENTRALIZATION IN THE
PHILIPPINES

1959 first local autonomy act was enacted, also the Barrio Charter
Act.
1967 Decentralization Act of 1967.
1972 dictatorship under the Marcos regime.
1983 Local Govt Code of 1983.
1986 overthrow of Marcos, Freedom Constitution.
1987 promulgation of the 1987 Constitution which includes specific
provisions guaranteeing autonomy to local govts.
1991 a Local Govt Code was enacted.
 The Local Government Code of 1991 and
its Major Features
1) It devolves to the LGUs the responsibility for the delivery of
various aspects of basic services that earlier were the
responsibility of the national govt.
Basic services include the ff: health, social services,
environment, agriculture, public works, education, tourism,
telecommunications services, housing projects and other
services like investment support.
2) It devolves to local govts the responsibility for the
enforcement of certain regulatory powers.
3) It provides the legal and institutional infrastructure for the
participation of civil society in local governance.
4) It increases the financial resources available to LGUs.
- it broadens their taxing powers.
- provides them with specific share from the national wealth
exploited in their area.
- increases their share from the national taxes.

5) It laid foundation for the development and evolution of

more entrepreneurial-oriented local govts.
- to be more “businesslike” rather than traditional.
 Local Government Structures

- Administrative Regions
- Provinces
- Cities and Municipalities
- Highly urbanized cities (HUC)
- local chief executives and legislators are
elected
- Barangays: chairman, council, secretary and
treasurer
 SPECIAL FORMS OF LOCAL GOVT:

MMDA (Metropolitan Manila Devt Authority)

- performs area wide services in 13 cities and 4 municipalities.
ARMM (Autonomous Region of Muslim Mindanao)
- created by the Constitution which upholds the right of self
govt by the ethnic communities.
CAR (Cordillera Administrative Region)
- to provide more concentrated services to the special
mountain area.
 National-Local Relations

DILG (Department of the Interior and Local

Govt)
- general supervision over LGUs is exercised by
the President through DILG.
- legal and administrative supervision (Bureau of
Local Govt Supervision)
- technical assistance (Bureau of Local Govt
Devt)
- capability building (Local Govt Academy)
- close coordination exists between the financial
offices of the LGUs and the Dept of Finance.
- The Dept of Budget and Management
oversees the implementation of budgetary
requirements.
- external audit is done by the Commission on
Audit.
- personnel transactions are determined by
policies of Civil Service Commision.
- planning is guided by regional and national
devt plans and NEDA (National Economic Devt
Authority).
 The Enabling Role of Local Govt

- development of methods of doing things to respond most

effectively to the needs of the community (Legaspi, 2002).

- strengthening the capacity for self-governance within a local

community, using whatever resouces and channels (internal
and external) seem most appropriate (Clarke and Stewart,
1994).
Guidelines of Enabling (Hollis, Ham and Hambler)

1) Strategic orientation
- should have a grasp of the issues and concerns affecting the
community, so that activities are not fragmented.
2) Focus on determining an effective response
- should determine the various modes of carrying out such
strategies.
3) Setting standards and performance
- would ensure the achievement of goals and objectives to
improve public accountability.
4) Developing partnerships
- to work collaboratively with other existing public, private and
voluntary organizations and build long term relationships with
and among agencies.
5) Influencing, interpreting and implementing the regulatory
framework
- can influence the structure of regulation at the policy
formulation stage.
6) Encouraging access and involvement
- to provide access mechanisms and to involve the citizens in
decisions which directly affect them.
Models of Enabling Authority
(Leach, Stewart and Walsh, 1994)

- the adoption of these models presupposes a

strong role for local govt.
 Models of Enabling Authority

1) traditional bureaucratic authority

- strongly emphasizes the role of LGUs as a direct service provider.
2) residual enabling authority
- the role to provide those services which cannot by delivered by the
external market.
- “provider of last resort”
3) market-oriented enabling authority
- the role of in planning and coordinating local economic devt by
providing the necessary mechanisms and incentives through which
the local economy can thrive and flourish.
4) community-oriented enabling authority
- to meet the various needs, problems and concerns of the
community, citizens has to participate in decision-making
processes.
PHILIPPNE SETTING

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 Components of Decentralization
1. Political Decentralization
2. Fiscal Decentralization
3. Institutional Decentralization

07/19/13
 Powers Devolved
1. Delivery of various aspects of basic services to the local governments.
Most significant devolved services include health, agriculture,
environment and natural resources, social services and public
works funded by local funds.

2. Certain regulatory and licensing powers to local governments.

These include reclassification of agricultural lands, enforcement of
environmental laws, Inspection of food products and quarantine,

enforcement of National Building Code, operation of tricycles,

processing and approval of subdivision plans, and establishment
of cockpits and holding of cockfights.
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3.) It increases the financial resources available to LGUs by broadening
their taxing powers, providing them with specific share from the
national wealth exploited in their area, and increasing their automatic
share from national taxes.

4.) It lays down the policy framework for the direct involvement of civil
society, most specially NGOs and Pos, in the process of local
governance – some degree of debureaucretization. These openings for
civil society are meant to promote not only popular participation but
also local accountability and transparency.
5.) The code encourages the LGUs to be more
entrepreneurial by providing them with opportunities to
enter into joint ventures with the private sector, engage in
the BOT arrangements, float bonds, and obtain loans from
local private institution and the like.

In a sense, the code encourages them to be less reliant on the

national government instead generate their own resources but still the
President has the authority to exercise general supervision over the LGU
delegated to the DILG – the successor of the pre – martial department of
local government and community development
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Decentralization:
The Philippine
Experience

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 Best Practices
1. Inter-local cooperation: MIGEDZI(Metro-Iloilo
Guimaras Economic Development Council Iloilo and Guimaras

2. GPook (poverty reduction program, population

health and environment program) and LGLA Concepcion, Iloilo

3. Bond Flotation for Tourism Development:

the Boracay-Aklan Provincial Bond Caticlan, Aklan

4. Implementing a fiscal management system Gingoog City

5. Tax mapping, Computerization Santa Rosa, Laguna

6. Taking Care of People & Environment Negros

7. Oriental Saving the Marikina River Marikina City

8. Acquiring a Complete Equipment Pool Muñoz, Nueva Ecija

9. Floating Bonds for Low Cost Housing Victorias, NegrosOcc

10. Improving the Productivity Naga City

11. Lote Para sa Mahirap: LandBanking San Carlos City

12. Eco-Walk for the Environment Baguio City

13. Health Insurance Project Guimaras Province

Reinventing the Local School Board
Mayor Jesse Robredo
Naga City
 LSB: ROBREDO
In Naga City, the code provides for an eight-man LSB
that is chaired by the city mayor, co-chaired by the
schools division Superintendent, and made up of the
following members:
1. the chair of the education committee of the
Sangguniang Panlungsod (city council),
2. the city treasurer, a representative of the
Sangguniang Kabataan (youth council),
3. duly elected representatives of the city PTA league,
the city teachers‘ organization, and the non-
academic personnel of city public schools.
A local school board (LSB) is a special body
created by virtue of Republic Act No. 7160.
Its main duty is to allocate the Special Education
Fund (SEF) to meet the supplementary needs
of the local public school system.
The SEF is an additional 1% levy that is collected
together with real property taxes paid to the
local government.

07/19/13
 The LSB Reinvention Advocacy
 Synergeia Foundation, focused its work on and defined its mission as
promoting local government-led systemic education reforms at the
community level.
-= highly adaptable and flexible approach to education governance reforms in
the context of existing Philippine laws governing the public school system
--Synergeia Foundation plays a critical integrative role in formulating and
developing a social reform product that is essential, relevant and even
long-overdue.
---More specifically, the foundation successfully identified the best local
communities that can pilot the education governance reforms anchored
on the LSB.

07/19/13
 Synergeia Foundation
----supplied the technical expertise in drawing out and
developing the model, templates and systems in education
governance from among its project sites: a unique strength
that combines development theory with real-world practice.

---set up a functional “learning circle” of, and organized regular

events for local education governance advocates. This
support programs facilitated the exchange of ideas and
experiences that enable program managers and team leaders
to resolve common problems and identify probable pitfalls in
project implementation.

--documented and disseminated these models to facilitate

scaling up, advocacy and evaluation work.

07/19/13
Implementation strategies In terms of project
implementation, Synergeia practises what it
preaches: decentralized service delivery
through on-site, hands-on and LCE-led
practical learning activities

07/19/13
 People’s Participation in Saving
the Community
The barangay of Talba, in Centrral Luzon,
Philippines, with a population of 779 families
or 4,674 people is situated along a river
through which lahar from Mt.
Pinatubo had flowed
The Barangay Disaster Coordinating Council had
different committees with no members and the
barangay officials did not know how to
operationalize the structure
07/19/13
The NGO was requested and established a
community-based group to assist in the
training and setting-up of a disaster
management group in the community,
Barangay Disaster Response Organization

07/19/13
Among the first activities of the community's
disaster mitigation plan was the sandbagging
of the area along the river's route and the
construction of "uplifted“ walk path, which
was also made of sandbags, for the residents.
The sandbags along the shoreline were intended
to slowdown the flooding of the area in case a
rampaging lahar flow strikes the village.

07/19/13
Resources of the community like privately-
owned small boats, jeeps and a truck were
used to move the village's population to
safety.
At the evacuation center, the Barangay Disaster
Response Organization members augment the
national government's health personnel in the
delivery of services to the survivors of lahar
rampage
07/19/13
Resources of the community like privately-
owned small boats, jeeps and a truck were
used to move the village's population to
safety.
At the evacuation center, the Barangay Disaster
Response Organization members augment the
national government's health personnel in the
delivery of services to the survivors of lahar
rampage
07/19/13
The organized community were easily mobilized
for action by the officials in support of
requests made to the resettlement officials.
The peoples organization and the local
authorities complemented each other in the
acquisition of services, ensuring of the safety
and welfare of the members of the
community

07/19/13
Issues and Challenges
• Global Forces and Local Government in the
Philippines, - Dr. Alex Brillantes

• Kinship and Achievement: Women in Local

Politics – Dr. Proserpina Tapales

• Decentralization: Power to the People or to the

Local Elite– Cynthia Paralejas

• Local Administration and the Rent Allocating

State: Problems on the Autonomy of the Local
Government –Bootes Esden
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Issues and Challenges
• The Language of Change: Learning from Local
Innovations in a Decentralized Setting – Ma. Ernita
Joaquin

• Towards a Federal Republic of the Philippines with

a Parliamentary Government by 2010 – Jose
Abueva

• Federalization: An Idea Whose Time Has Come –

Aquilino Pimentel, Jr.
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A. Global Forces and Local Government
in the Philippines, - Dr. Alex Brillantes
Three Global Forces
1. Advancement in Telecommunication
2. Regional Groupings for Trade and Commerce
3. Environmental Degradation

Local Govt Must Address the ff. Issues

1. Adequate Preparedness to deal with local and int’l partners
2. Close partnership with national govt to synchronize plans
3. Strengthen community and private sector partnership
4. Establish policies to mobilize local fin’l resources
5. Promote sustainable development
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A. Global Forces and Local Government
in the Philippines, - Dr. Alex Brillantes
Local Leaders should be:
• Champions of sustainable development
• Legislators should enact laws to address issues for sustainable
development
• Managers that plan guide strategies in accord with
sustainable development
• Advocates for the creation of business climate that supports
sustainable economic growth
Critic
1. The paper did not expound on the defn of sustainable devt
2. The paper made mention of three factors but only focused
on the last which is environmental degradation.
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 B. Kinship and Achievement: Women in
Local Politics – Dr. Proserpina Tapales

A Study was made regarding the rise of Women Leaders in Philippine

Politics since Pres. Corazon Aquino. These were the findings:
1. Significant increase in the # of women entering politics in 1998-
2001 as compared to the previous period of 1992-1995 because
of the breakers.
2. Women elected officials come from political families
3. Women political leaders are mostly not uninitiated. Many have
previously held local political positions
4. Women political leaders are generally satisfied with their jobs
and large number had the intention of running again esp. those
who were thought to be breakers
5. Most of these Women political leaders would encourage other
women to run for public office 44
 B. Kinship and Achievement: Women in
Local Politics – Dr. Proserpina Tapales

Good qualities of Women Political Leaders

1. Dedication
2. Honesty
3. Humanity
4. Compassion
5. Efficiency

Critic
1. The study only asked Women Political Leaders, it did not
asked other respondents of their view of women leaders
2. The study did not examined the undesirable qualities of
women leaders 45
C. Decentralization: Power to the People
or to the Local Elite– Cynthia Paralejas

Decentralization Problems arise in countries with a long history

of :
1. Colonization
2. Underdevelopment
3. Patron-Client relationship or feudal system

Local Elite – are the local warlords who intends to perpetuate

themselves in power because of vested personal interest
rather than the intent of good governance.
Thus, Decentralization breeds worst problems if you give more
power to the ruling elite – irresponsible politicians who can
harm democracy and development
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C. Decentralization: Power to the People
or to the Local Elite– Cynthia Paralejas
1. Harm democracy – citizen participation is downplayed
2. Harm Development – distribution of development are tainted
with motive of patron-client relationship
Pimentel “Mere devolution of power, personnel and resources are not
enough. There must be competence, integrity and vision for the
modernization of localities and their constituents.”

Critic:
1. The author did not offer concrete means to address the issue she
raised.
2. One solution to the problem being adopted is that the more
vigilant ruling party chooses a competent leader among its ranks
Training in good governance should be made prerequisite to party
membership. 47
D. Local Administration and the Rent
Allocating State: Problems on the Autonomy
of the Local Government –Bootes Esden
Local Government Autonomy – “Enhanced freedom of the
peripheral units of an organization or system.” (Ocampo).
“The ability of the local government for self-government.”
(Brillantes)

Rent – benefits from the Central State received by a particular group

which is some form of preferment i.e. logging cosncession, import
license, etc.

Thesis: Rent-allocating State allocates available surplus or rents based

on political and not based on economic or socio-cultural
considerations 48
D. Local Administration and the Rent
Allocating State: Problems on the Autonomy
of the Local Government –Bootes Esden
• Rent-seeking behavior is present everywhere but thrives more in
developing countries because of the presence of greater
marginality.
Analysis:
1. High dependence on Central Govt for allocation or IRA hampers
local autonomy and devt.
2. This dependence is nurtured by Central Govt in exchange for
support from local leaders. Local leaders don’t want to increase
revenue through taxation because it is unpopular
Critic:
1. The author generalizes that State and local leaders act for vested
interest and self-preservation – Public Choice Theory
2. It did not make mention some best practices in local governance
where creative means were employed to generate local revenue 49
E. The Language of Change: Learning
from Local Innovations in a Decentralized
Setting – Ma. Ernita Joaquin
The paper examines the various achievements and Local Best
practices in the implementation of Decentralization, specifically
winners in the Gawad Galing Pook. And she further categorizes
these best practices as follows:
1. The Way in Which Local Government Influences Local Issues
2. The Issue of Democracy for Local Government
3. The Delivery of Service by Local Government
4. The Way in Which the Local Government Views the Public
5. Local Government Being More Honest and Providing People
with More Information
Critic:
Extreme sense of citizenship where NGOs and partylist groups may
push for their vested interest to the detriment of the silent
majority 50
F. Federal Republic of the Philippines
With Parliamentary Govt - Jose Abueva

Good Governance – effective and efficient policy making and

implementation under the rule of law depends on: Effective
political institutions; Political will of competent leaders; Support of
private sector and civic society.
Our country is beset with problems of underdevelopment and
ineffective Governance because of Weak and Ineffective Political
Leaders and Over Centralized and Ineffective Unitary System

Structural Reforms - change the 1987 constitution

1. Vertical Restructuring – from present centralized unitary system to
a decentralized federal system that focus on national affairs
2. Horizontal Restructuring – separation of powers between the exec
and legislative s unified and coordinated in a parliamentary sys51.
F. Federal Republic of the Philippines
With Parliamentary Govt - Jose Abueva
Goals of this Reform:
1. Promote cooperative relationship between legislative & exec.
2. Ensure stability and continuity in governance
3. Ensure accountability in governance
4. Promote a more cohesive and disciplined political parties
• National Presidential Elections are costly and candidates are
beholden to sponsors and business tycoons.
• Prime Minister can easily be replaced by a vote of no confidence by
the members of Parliament
Critic:
There is no mention in the article of any study done measuring the
benefits of the change from presidential to parliamentary form or
the initial hurdles and birth pains of such reform 52
G. Federalization: An Idea Whose Time
Has Come – Aquilino Pimentel, Jr.

Benefits of Decentralization – Local Govt Code of 1991 led to the

improvements of road, schools, health services, agriculture and
social welfare services.

Federalism is the natural development of a more intensified and

serious implementation of decentralization.

Local Government Units wants at least 50% of the taxes and

revenues collected from central government.

Main Objectives:
1.Speed up economic development
2.Lay down the basis for a just and lasting peace in Mindanao
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G. Federalization: An Idea Whose Time
Has Come – Aquilino Pimentel, Jr.
Establishment of 10 Federal States
Luzon: Northern Luzon, Central Luzon, Southern Tagalog
Bicol Area
Visayas: Eastern Visayas, Central Visayas, Western Visayas
Mindanao: Northern Mindanao, Southeastern Mindanao,
Bangsamoro Federal State

•We should learn from other nation states in Europe, South America,
North America, Australia, and Africa

Critic:
The Author did not mention the additional cost and additional taxes
to the citizens of the Federal State.
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Summary

• Decentralization has many benefits in terms of governance and

economic development as evidenced by Gawad Lingkod Pook Award
• The pitfalls of Decentralization is mainly due to the seeming lack of
competence of the local politician (ruling elite) whose vested
interest is further perpetuated by the additional power given to
them by Decentralization
• The natural developmental course of the Decentralization is the
establishment of a Federal State because it addresses the issues of:
1. Rapid economic development in the region and in impoverished
areas
2. Strengthening of Political parties that would choose and train
local leaders
3. Provide a resolution to the armed conflict in Mindanao
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