Debate on Federal Philippines A Citizen’s Handbook

Eduardo Araral, Jr.

Paul D. Hutchcroft
Gilberto M. Llanto
Jonathan E. Malaya
Ronald U. Mendoza
Julio C. Teehankee

CHAPTER 1. Background: Decentralization and the Local Government Code 1. What is Republic Act 7160 (Local
Government Code of 1991) and what is the motivation behind decentralization? 2. Has fiscal decentralization succeeded
or failed? What have we learned from over 25 years of decentralization? 3. How is federalism linked to decentralization?
CHAPTER 2. Rationale and Features of Federalism 4. Why pursue federalism? Why not just amend the local government
code? 5. What are the different models of federalism extant in the world today? 6. How do federal models differ? 7.
What lessons can be learned from the American, Canadian, and German federal models? 8. Which model of federalism
fits the Philippines? 9. Is federalism in the Philippines a “new” idea? 10. Which form of government fits the Philippines
best: presidential, parliamentary, or hybrid? Contents ix xiii xv 1 4 5 9 12 13 17 20 22 27 11. What are the perils of the
presidential system? 12. What are the advantages of the parliamentary system? 13. What are the possible weaknesses
of the parliamentary system? 14. The hybrid model with a strong presidency—was that not what Marcos wanted?
CHAPTER 3. Federalism Risks and Opportunities 15. Could federalism lead to a break-up of the country? 16. Will
federalism lead to more capture by political dynasties? Will dynasties proliferate even more under federalism? 17. Will
federalism lead to more corruption among local officials as what happened in ARMM in the 1990s? 18. What are the
specific risks of unintended consequences arising from federalism? 19. How can poorer states support themselves? 20.
How could we improve on the IRA under a new federal system? CHAPTER 4. Evidence for and Experience with
Federalism that Works 21. What are the conditions for federalism to succeed? CHAPTER 5. Day-to-Day Governance
under a Federal Government 22. Where will sovereignty reside: federal or state governments? Will there be state
constitutions and flags? 23. Who will control the police force? Can state or local governments set up their own police
force? 24. How will taxes be collected and divided? 25. What about the powers of cities? Should there be more
independent cities under federalism? What is the relationship between the regional governments and cities? 26. Which
functions of the national government will be devolved? Which functions will be retained and why? vi CONTENTS 31 34
36 37 45 46 49 51 52 55 60 69 70 71 73 73 27. How will national elections be conducted? 28. Who will preside over the
conservation and preservation of tangible and intangible legacies and heritage? 29. Is the Bangsamoro Basic Law (BBL)
subsumed intact under federalism? 30. What are the possible political divisions of the country under a federal system?
What factors could guide the formation of these divisions? CHAPTER 6. Federalism in Context: Laying the Foundations
for a Problem-Driven Process of Political Reform 31. What are the three major types of reform commonly considered by
those who are seeking to change a country’s political system? 32. Based on comparative experience, what major
principles are important to consider before embarking on processes of political reform? 33. How is one to define
whether—in comparative perspective—a country is relatively more centralized or decentralized? 34. It is commonly
asserted that the Philippines has long been a highly centralized country. Is this really true, based on the historical
record? 35. How does the Philippines compare with its neighbors in its degree of centralization or decentralization? 36.
If the ultimate goal is to give more authority and responsibility to lower levels of government, why is there a need for
central steering? Isn’t that contradictory? 37. If federalism requires strong institutional capacity at the national level in
order to ensure effective central steering, what are the institutional requirements of federalism at the subnational level?
38. “If federalism is the answer, what is the question?” CONTENTS vii 76 77 77 78 81 84 87 90 93 97 100 102 1 CHAPTER
1 Background Decentralization and the Local Government Code 1. What is Republic Act 7160 (Local Government Code of
1991) and what is the motivation behind decentralization? The Local Government Code of 1991 is the enabling law that
transferred power, authority, and responsibility over certain governmental functions from the national (central) to local
government units. It gave flesh to the 1987 Constitutional mandate (Article 2, Section 25) that “the State shall ensure
the autonomy of local governments.” It intended to transfer the delivery of basic services and certain regulatory
functions to local governments, which were previously discharged by national (central) government agencies such as the
Department of Agriculture, Department of Health, Department of Social Welfare and Development, and others. It
broadened the taxing and borrowing powers of local governments and provided them with a higher share of the
national taxes through a fixed sharing formula. In addition, through a grant system, the Local Government Code also
provided local government units with a share in revenues from *This section was written by Gilberto M. Llanto, PhD. 2
DEBATE ON FEDERAL PHILIPPINES national wealth within their respective territorial jurisdiction (e.g., natural gas,
mineral reserves). The Local Government Code of 1991 introduced a sweeping change in intergovernmental structures,
powers, and fiscal rules by: (i) raising significantly the transfers to local governments; (ii) making the system rules-based;
(iii) mandating as automatic its fund release; and (iv) expanding local taxing and borrowing powers (Diokno 2012;
Manasan 2005; Llanto 2012). The chief motivation behind decentralization is to make the government more responsive
to local and regional development. It brings government closer to the people, making it more accountable and
responsive to local governance and development needs. The invoked principle is that vesting local governments with
sufficient autonomy would enable them to steer local development better than the central government. It arises from
the conviction that local governments have a comparative advantage in identifying and delivering the best bundle of
public goods and services to local areas (Llanto 1998, 6). The local governments are in a better position to: (i) decide on
the supply of appropriate quantity and quality of specific local services to local constituents and (ii) target sectors that
should benefit from certain development programs (Manasan 1992, 3). Oates’s (1972) decentralization theorem states
that “each public service should be provided by the jurisdiction having control over the minimum geographic area that
would internalize the benefits and costs of such provision.” While the justification for decentralization is largely on
allocative or efficiency grounds, there are also political arguments in its favor (Tanzi 1995, 297). McLure (1995, 208)
highlights the “principle of subsidiarity” that he interprets as increasing CHAPTER 1 3 the local people’s influence over
government decisions affecting them. Previous attempts toward local autonomy had not been as comprehensive and
definite as RA 7160, which could be considered as a landmark legislation in the country. A centralized political-
administrative structure has been in place since the Spanish and American colonial periods and has persisted in the post-
independence period, despite the passage of several laws that intended to provide local governments with greater
autonomy. A bit of history from Brillantes and Moscare (2002, 2–3) will clarify this point. In 1893, the Spanish colonizers
enacted the Maura Law, which President Jose P. Laurel called “Spain’s belated and half-hearted tribute to Filipinos’
ability in self-government.” While the Maura Law included the establishment of tribunales, municipales, and juntas
provinciales, a centralized regime still prevailed. The American occupation of the Philippines in 1902–1935 saw the
promulgation of a number of policies promoting local autonomy. However, a highly centralized political-administrative
structure persisted. During the Commonwealth period (1935–1946), local governments were placed under the general
supervision of the Philippine president. In 1959, the first local autonomy act (Republic Act 2264) was enacted, providing
city and municipal governments with greater fiscal, planning, and regulatory powers; it also somewhat broadened their
taxing powers. The Barrio Charter Act (Republic Act 2370) transformed the “barrio” (presently called “barangays”) into
quasi-municipal corporations governed by an elective barrio council. Furthermore, the Decentralization Act of 1967
(Republic Act 5185) increased the financial resources available to local governments to enable them to discharge their
functions more effectively. The movement 4 DEBATE ON FEDERAL PHILIPPINES toward greater local autonomy suffered
an extreme setback with the declaration of martial law in 1972. Nevertheless, even under authoritarian rule, the Local
Government Code of 1983 (Batas Pambansa Bilang 337), which reiterated the state’s policy to guarantee and promote
local autonomy, was promulgated. After authoritarian rule ended in 1986, the Local Government Code of 1991 was
enacted under the auspices of the 1987 Constitution (Article 10, Section 3): “The Congress shall enact a local
government code which shall provide for a more responsive and accountable local government structure through a
system of decentralization.” 2. Has fiscal decentralization succeeded or failed? What have we learned from over 25 years
of decentralization? The past twenty-five years have provided us with a rich experience in fiscal decentralization. Here is
a summary of the findings of economists who have studied this topic (Diokno 2012; Llanto 2012; Manasan 2005): t
Decentralization is supposed to yield substantial social welfare gains in terms of better delivery of local public goods and
services and improved local governance and accountability. The evidence shows mixed results. t There is a cautionary
note that generally there have been no sharp improvements in local public service delivery. One study noted a
deterioration in local public service delivery. On the other hand, there is anecdotal evidence of significant improvements
in local public service delivery in major urban centers. In fact, certain awards such as the Galing Pook award and others
were given in recognition of exemplary local service delivery. t Under the Local Government Code, the local
governments have been given significant resources such as internal revenue allotment (IRA), conditional grants, and
CHAPTER 1 5 taxing powers. However, local tax assignment scores low in fiscal autonomy. More revenue-productive
taxes are retained by the central government, even as the LGC of 1991 seriously constrains the power of local
governments to set local tax rates. Thus, the link between local expenditure and local taxing powers is weak. t There is a
mismatch between the assignment of revenues (local revenues plus IRA) and the assignment of expenditure
responsibilities to the different levels of local government. This is a factor behind the inefficiency in delivery of local
goods and services. t However, many local governments have not fully exploited their local taxing powers and have
become more dependent on IRA. They substituted the IRA for raising local taxes, which is an unpopular policy decision,
especially for local officials with an intention to maintain themselves in office. t Local budget planning could be done
more effectively, because the amount of resources (IRA) could be known in advance. The local governments can use a
mix of local taxes, IRA, and conditional grants to fund their budgetary plans. t There is a creeping re-centralization of
health and social welfare functions because of the significant involvement of the national government in delivery of local
public goods. Local autonomy has definitely improved, but the national government has retained significant influence
over local government performance. 3. How is federalism linked to decentralization? Rapid urbanization, population
growth in a diverse archipelagic geographical set up, greater access to information, and rising expectations have created
pressures for better public 6 DEBATE ON FEDERAL PHILIPPINES service delivery, so greater local autonomy seems to be a
logical pathway. The basic issue in fiscal decentralization is “one of aligning responsibilities and fiscal instruments with
the proper level of government” (Oates 1999, 1). Decentralization has been a grand experiment in providing local
constituents with better public goods and services delivery and a greater voice in matters of governance and policy.
However, as mentioned earlier, it has produced mixed results. An emerging consciousness among the people is that
government should be more responsive and accountable. Two schools of thought have emerged with respect to
improving local governance and accountability: (i) fix the current decentralization under a unitary system by introducing
significant amendments to the Local Government Code of 1991 (LGC 1991); and (ii) shift to greater local autonomy via
federalism with local self-government as a cardinal principle. Both decentralization under a unitary system and
federalism have vertical power-sharing systems. However, a distinct difference is that while in the former, vertical
power sharing would be at the behest of a central government through a law enacted by the legislature, such as the
Local Government Code of 1991, it would be constitutionally mandated in the latter. The core of the debate centers on
the issue of how much political and economic power should remain at the center and how much should devolve to the
local level, and the guarantees that the local level would have in order to retain the politically determined assignment of
governmental powers, functions, and responsibilities. In the case of decentralization under a unitary system, the
guarantee is a law enacted by Congress, while for the latter, the ironclad guarantee is provided by a country’s
constitution. The maintained hypothesis CHAPTER 1 7 of a federalist structure is that it will enable local governments
(states, provinces, cities, municipalities) freed from extensive central government control to respond better to local
development and governance needs. It can also create a scope for different forms of self-government that will match
unique local circumstances and aspirations. References Brillantes, Alex B. Jr., and Donna Moscare. 2002.
“Decentralization and Federalism in the Philippines: Lessons from the Global Community.” Discussion paper presented
at the International Conference of the East West Center, 1-5 July, Kuala Lumpur, Malaysia. Diokno, Benjamin E. 2012.
“Fiscal Decentralization After 20 Years: What Have We Learned? Where Do We Go from Here?” The Philippine Review of
Economics 49, no. 1 (June): 9–26. Llanto, Gilberto M. 1998. “Fiscal Policy: Some Difficult Policy Choices.” PIDS Policy
Notes 98, no. 1 (February). ———. 2012. “The Assignment of Functions and Intergovernmental Fiscal Relations in the
Philippines Twenty Years After Decentralization.” The Philippine Review of Economics 49, no. 1 (June): 37–80. Manasan,
Rosario G. 1992. “Fiscal Decentralization and the Local Government Code of 1991.” PIDS Development Research News
10, no. 5 (September–October). ———. 2005. “Local Public Finance in the Philippines: Lessons in Autonomy and
Accountability.” Philippine Journal of Development 32, no. 2: 31–102. McLure, Charles Jr. 1995. “Revenue Assignment
and Intergovernmental Fiscal Relations in Russia.” In Economic Transition in Eastern Europe and Russia: Realities of
Reform. Palo Alto: Hoover Institution Press, Stanford University. Oates, Wallace E. 1972. Fiscal Federalism. New York:
Harcourt Brace Jovanovich. 8 DEBATE ON FEDERAL PHILIPPINES ———. 1999. “An Essay on Fiscal Federalism.” Journal of
Economic Literature 37, no. 3 (September): 1120–49. Tanzi, Vito. 1995. “Fiscal Federalism and Decentralization: A
Review of Some Efficiency and Macroeconomic Aspects.” Annual World Bank Conference on Development Economics.
Washington, D.C.: The World Bank.
THE PRO AND CON ARGUMENTS ON FEDERALISM Artemio D. Palongpalong INTRODUCTION Not a few scholars in the
country, particularly in academe, including those who are in government service and in politics, have expressed
preference for the setting up of a federal structure of government in the Philippines. But the idea is confronted by many
questions, specifically referring to the perceived stumbling blocks, constraints, and the strength (or lack of it!) of the
Philippine State which, according to those who oppose it, would render it not feasible. But both federalists and the
unitarists support a more effective and efficient government service; both believe their respective system is appropriate
for the country. Another frequently debated issue is the parliamentary form versus presidential form of government,
which in the context of the Philippines, must be resolved, too, after the issue of federal versus unitary form is finally
settled. So far, observations on how government service is conducted, point to the aspect of implementation as one big
weakness of the current government system. Good laws have been passed. However, those still await their
implementation by effective and selfless administration. Two extreme developments in the context cited above may be
mentioned. The moderate success of the Presidential Anti-Crime Commission· (PACC) merit its being frequently placed
on newspaper front pages. But the woes met by local governments in realizing the devolution of power in certain
agencies of government illustrates lack of foresight on the part of national legislators and weak political will insofar as
the local officials are concerned in realizing the provisions of the Local Government Code. The question, therefore, .on
why government service in the Philippines is ineffective must be closely examined by concerned authorities as well as
those in academe and other sectors. The country's status as a "basket case" in the ASEAN subregion, just a notch higher
in terms of gross national product than Bangladesh, for example, can he attributed to this long-term ineffectiveness of
the country's administrators. Much i!:. expected from them since the business and economic elites prove dominant both
in terms of assigning themselves several governmental programs as well as monopolizing certain industrial, business,
and service sectors.1 But more importantly, why is it that government administrators are generally incapable of
attaining a significant level of effectiveness to achieve a modicum of socioeconomic development for the country? What
is the crux of the problem? Are we prepared to accept that we are incapable of administering government programs?
ASIAN STUDIES A LOOK AT THE PAST A look at the distant and the recent past could yield answers and insights on why
some countries adopted a federal system of government. In the West, two cases may be noted in the institutionalization
of federalism. The first case was impelled by the need among small government units to have a "central" authority
which could undertake programs and discharge functions beyond the local or "slate" domains and thus weld together
the diverse territories.2 This was the case of the original 13 states of the United States of America. The second case
refers to the chain of events which were propelled by the need of a highly centralized government to dccenLraliw and
devolve powers to the local units, as in the case of Australia. In Asia, Malaysia developed as a federa!ion of small states
in 1963 with a slightly different rationale. This case merits a closer scrutiny considering that both Filipinos and Malays
have sprung from roughly the same racial and cultural origins, although the Malays were converted to Islam while the
Filipinos were converted to Christianity. Moreover, each has entirely different colonial experiences. The political history
of Malaysia will reveal that federalism is a product of political impositions by the British colonial administration. There is
not much argument on this point except when the counter-argument is wholly anchored on social Darwinism or
evolutionary theory. But who among the social scientists can definitely say that social Darwinism is a valid explanation
for such basic questions as Man, Society, and State in Southeast Asia? At the beginning there were scattered
communities, most probably in riverine, as well as in coastal areas, which sounds almost exactly the same as the history
of pre-Spanish Philippines. With the advent of Islam in Southeast Asia in the 14th century, wm-e of these enduring
communities such as Malacca3 and Brunei were lslamized and became seats of powerful sultanates. Independent of
each other, these communities were conquered by the British through treaties, diplomacy and warfare. Brunei, on the
other hand, one of the earliest sultanates, was whittled down to its current size by the activities of the Brookes clan
(who also carved Sarawak) while pretending to be intermediaries for peace between Brunei Sultanate and the Bugis
(who encroached in Sarawak),.and between the Sultanate and the chartered companies which desired plantations and
other business ventures in North Borneo (Sabah). The British experimentation on three politico-administrative systems
of governance -Straits Settlements, Federated Malay States (FMS), and the Unfederated Malay States (UFMS)- became
in reality the forerunner of the current Malaysian federal system. But it was really the existing small political units of
governance- the hereditary sultanates - that became the primary basis of federalism. Secondary w this was the
peculiarly distinctive mix of cultures in Malaysia. One such example is that between Islam PROS & CONS ON FEDERALISM
and Thai cultural and racial mix in Trcngganu, Perlis and Kedah as contradistinguished from Chinese and Malay in
Singapore and in Penang. Another set can be found in the uniquely gcographically~situatcd Sabah and Sarawak which
are in Borneo island. So far, the federal structure has worked well in Malaysia as evidenced by the socio~economic
progress not to mention a good measure of poJitical stability the country has achieved. The general progress can be
taken as a result of effectively functioning institutions which came about despite the problem of"ethnic balance"
whereby Chinese, Malays and Indians have to work together regardless of some imbalances and perhaps cross-
purposes, e.g., the~ versus the "immigrant races," etc. ADVANTAGES AND DISADVANTAGES OF A FEDERATED
PHILIPPINES ADVANTAGES. There are several discernible and constantly repeated arguments in favor of a federal setup
in the Philippines. Some of these arguments include a) diverse ethnolinguistic elements whiCh may or may not coincide
wilh geographic differences; b) archipelagic characteristics that do not allow for immediate government responses to
social probiems and, hence, a unitary government does not make for effective and economical actions considering time
and budget constraints; and c) it follows the preHispanic polilical situation whereby scattered barangay units plus the
sultanates of Sulu and Maguindanao existed side bY side. Diverse Ethnolinguistic and Cultural Elements
Ethnolinguistically, one can find the Filipino really diverse. This could be explained by the country's archipelagic
characteristic which keeps the ish;t'!d provinces isolated from one another. Another effect of isolation, lack of contacts
resulting from undeveloped transport and communication systems, is the difference in world views and perceptions. A
Muslim Filipino and a Christian Filipino, for example, would differ in perceptions about political issues and may be
completely contradictory. This is true with a Filipino from the North (Cordillera) who might have a different impression
of a lowlander. But on a closer scrutiny, this problem of ethnic differences and perspective-'S is not really alarming,
provided that it does not result in "movements" to separate from the country like the secessionist movement in
Mindanao. It must be pointed out, however, that the perspective of the natives or aborigines can be taken as reflections
of the effectivity of national political socialization and integration. An efficient-transport and communication system
would play a crucial role in the realization of such goals. Archipelagic Characteristics Except for Indonesia and a few
other archipelagic nation-states, the Philippines is perhaps lhe most scattered island territory. 4 ASIAN STUDIES A closer
look at some of these islands which lie in proximity to one another may show that these are populated by one
homogeneous ethnolinguistic group. At certain periods, it is difficult to reach some of these islands (particularly those
that are located in East Visayas, Bicol, Cagayan Valley and Batanes province because of frequent typhoons and other
weather disturbances). The monsoon seasons, for example, which causes strong sea currents caused by the flow of wind
emanating from the Pacific Ocean entering through the Philippine Archipelago's "choke points"4 somehow affected the
directions toward which traditional seacrafts had travelled in the past. It may be argued though that, to a certain extent,
these traditional seacrafts have been replaced by modern means of land, air, and sea transportation, making travel to
these islands relatively easy. These changes, nonethelesss, are only of recent phenomenon, not much earlier than the
first few years of the American rule. The best system of governance under these circumstances is one that is sufficiently
decentralized. The response mechanism to natural calamities must be locally crafted, suitable-for the most part to local
conditions. In general, how to minimize adverse impacts of natural calamities or how to turn negative developments
relative to nature into regional assets should be comparatively easy for the local leaders to work on. The Barangays:
Basic Political Communities Just like Malaysia, Philippine culture presents varying characteristics, for instance, the
presence of ethnolinguistic groups spread all over the country. Characteristically, it also qualifies for a federal set-up.
Being an archipelagic country, the. Philippines' earliest political units were spread throughout.almost 7,100 islands and
islets, thus were faced with different circumstances and therefore having a variety of survival capabilities. Some
barangays like Cebu or Manila or those in rich alluvial plains had better resource bases or had more opportunities to
prosper because of the presence of a highly established commercial and trading activities. DISADVANTAGES. Ironically, it
was the same political circumstance-the existence of hundreds, if not thousands of barangays, or disunited political
units- that became the basis of the opinion that the present Philippine State is weak,. The existence of forces such as
those represented by the sultanates, the datus, and the chieftains of the highlanders either in the Cordillera or those in
Mindanao, etc., that tend to pull people's support away from the Manila government is likewise cited as supportive of
the view. The argument goes that if the State is weak, then why weaken it further by proposing a federal setup? A
second usual argument that seems to negate the move toward federalism has to do with the monarchial system under
Spain. The Governor-General, who was on top of the government under Spain during colonial times, represented a
strong central government in the Philippines, which in the minds of many, had held the country together for centuries.
Then, they ask: "why alter such an appropriate system now"? PROS & CONS ON FEDERALISM 5 Lastly, critics of a federal
setup cite the fact that the various provinces are unevenly endowed with human and natural resources. If one province
with relatively small annual revenues becomes self-supporting under a federal structure, these revenues in absolute
terms will remain small, compared to big and relatively developed provinces, notwithstanding the percentage of
retained revenues by the province. Thus, there will be uneven development. A PROPOSED SETUP In order to avoid an
uneven development for each and every province in the country, a ticklish problem faced by China in the 1990s, which is
referred to in the last point above, a setup is thus proposed as follows: 1. Abolish all provincial jurisdictions. After all, the
provinces do not have their own constituencies. Their so-called "constituencies" are already constituencies of towns and
cities under their jurisdiction. 2. Consider the 14 regions as the 'states' or provinces with cities and towns immediately
adjoining or adjacent to them as their smaller units. The head of the 'states' may be called Governor, Chief Minister,
Director, or whatever is appropriate. Each 'state' shall elect its own senators and congressmen who will compose the
state or regional legislators. These senators and congressmen shall be different from senators and congressmen of the
federal government. 5 From the present 14 regions (which include the National Capital Region and the Autonomous
Region in Muslim Mindanao), the Cordillera region can be included to bring the total to 15 states. 3. The functions and
powers of the federal government, with its capital in Manila, shall focus on foreign affairs, national finance and currency,
defense and security, education, and agrarian reform, among others. Local authorities of the various 'states' shall be
concerned with cultural affairs, agriculture, natural resources generally domestic commerce, regional or state planning,
taxation, non-tertiary education and lower-level education and others. · In this setup, the 'states' (or regions) will have
equal chances of economic and political survival. For these will be assured of substantial resource base, after several
provinces in given regions are lumped together. A CHALLENGE The foregoing discussions regarding the proposed federal
setup are presented to elicit reactions not only coming from academe but also from administrators and political leaders,
and other sectors of society. The responses could help us device for"ttte country a more effective and responsive
governmental system. 6 ASIAN STUDIES NOTES 1 There are numerous examples in past and present regime whereby a
specific sector is under the control of a business clan while, at the same time, a clan member heads the department of
government that is concerned with policy making for that sector. 2 William Livingstone, Federalism and Constitutional
Change (London: Oxford-Clarendon Press, 1956), p. 8. 3B. Simandjuntak, Malayan Federalism (London: Oxford University
Press, 1969), p. 1. "The area between Northern Samar and Marnog, Sorsogon; the narrow passage between Southern
Samar entering through the San Bernardino Strait until it passes through the Almagro island; and the area between
Southern Leyte and Surigao City. 5Proposed by Dr. Panfilo Hincuy, President of the International University, Manila, from
a financial point-of-view. He stressed that if provincial jurisdictions are converted into regional jurisdictions (and
constituted as regional units) all financial requirements and or gains shall then be redirected to the said regional
governments, thus giving them fiscal independence.
THE PROPOSAL OF FEDERALISM IN THE PHILIPPINES
By Maudi MaadilUniversity of the Philippines
–
Institute of Islamic Studies March 8, 2017
Introduction
This paper does not seek to argue for or against Federalism, but it seeks to explore animportant aspect of the discourse
on Federalism and the promise of change of the
Duterte Administration that this will bring in response to the violent situations in our countryparticularly in the
Mindanao region. Majority of political leaders in Congress are in fullsupport of the proposed Federal form of Philippine
Government. However, only a fewclearly understand its potential benefits and negative implications to the Philippines.
Theproposed new form of government is one of the main platforms on which President Dutertecampaigned, and it
projected hope and inspiration for the governed. The Presidentproclaimed that Federalism is the answer. But then, what
exactly is the question? Does itpertain to ending the decades of corruptions, crime, and illegal drugs issue? To divide
theFilipino people according to their identity, culture, traditions, status, and background in life?Does it truly serve the
needs of the Filipino people? Or will it only worsen the
country’s
situation? Will the federal form of government cater to the people of this land? Will judiciaryand quasi-judiciary be
improved to give just treatment to the less fortunate? With regards tothe issues of Indigenous peoples and Muslims in
the regions of Mindanao, Will Federalismfinally address the historical injustices faced by indigenous peoples and
Muslims? There aremany more questions of the Filipino people that remain unanswered and needs to beanswered. This
paper does not seek to address all of these questions but merely contribute tothe discourse.In my humble
understanding of the amended laws under the 1986 Constitution ofthis country, Republic Act (RA) 9054
–
An Act providing for the Autonomous Region in Muslim Mindanao ( amending th e purpose o f RA 6734)
and RA 8438
–
An Act to Estab lishth e Cor diller a Autonomous R egio n (1997) rep resent th e princip les of a
federal state. It canbe descr ib ed as a providing for a
‘
subtle
’
federal state
. Th e Philipp ines also groups o f prov incesas o ne regio n such as th e CALABAR ZON and
MIMAR OPA. How differ ent will th ep roposed Federalism b e fro m th ese? Wh at po licies ,
mech anisms and s yst ems will b e p ut inplace th at will affect and ch ange th e status quo of
t h e minority in t h ese
regio ns? The proposed Federalism may change the form of government but it does notnecessarily ch ange
th e p eop le wo rking under t h es e go v er nments. If we are to ch allengepo litical dynas ties to
b uilding b etter homes , co mmunities and living, this may not b e th e b estanswer. We h av e
ch anged leaders for many decades, yet poverty, corrup tio n, crime and oth ermajor iss ues
still exist and remain r amp ant to day. If a human b eing is sincere enough to ch ange h is or
h er status, o nly hims elf or h ers elf can h elp in h aving a b etter life. As a Muslimand as a
scho lar o f UP Inst it ut e o f Is lamic S tudies, I b elieve th at wh atever fo rm o f ch ange we have in
our life is rooted in one of the ayah in surah Al-Anfaal:
“That is because Allah never
changed the grace He hath bestowed on any people until they first change that
which is in their hearts, and
(that is) because Allah is Hearer, knower” (Quran 8:53).
Th e ayah exp lains th at ch ange is o nlypossib le only if we,
‘ the stewar ds’ of Allah s.w.t .
, are th e o ne wh o t ake r e spo ns ib ility to makech ange and th at Allah is th e one who will
guide as we surr ender to Him what ev er will co meb efore us.
ASEAN Neighbors with Federal State:

“Which country in Southeast Asia practices a federal formof government?”

The Philippines can learn from its ASEAN neighbor, Malaysia, on how it formed itsgovernment. Malaysia
is known to th e wo r ld no t just for it s rich culture and traditio n, butalso fo r its unique for m
o f government
—
th e Federal Const it ut io nal Mo narch y. Mal aysia h as3 federal states: Putrajaya, Kuala
L ump ur, and L abuan. As ide from th ese, it h as 13 statespracticing th e mo narch y for m o f
government. Th e Philippines may b e ab le to learn fro mMalaysia how it formed th is unique
form of government wh er e bot h feder al and mo narch yco exist in one country.
Duter
te’s
Pro mise of a Feder al St at e:
“What

do you think are the advantages of a federal system?”

President Rodrigo Ro a Dut ert e is fir m and p assio nate in his vario us statements
andsp eech es since the s t art o f th e camp aign p erio d. He claims to serve th e p eop le and
bringch ange to th e co untr y. He pro mises to fight against drugs, corruptio n, and cr ime. He
ran o nth e vision of a Feder al Ph ilipp ines. Th is visio n needs to b e scrutinized tho rough ly
b ecause itcan sp ell out ov erwh elming ch anges in th e state of th e country. Th e presence o f
differentarmed groups in th e r egio n of Mindanao such as th e Moro N atio nal L ib erat io n
Fro nt(MNL F) , Moro Is lamic
Li ber ati on Fr ont ( MILF) , New People’s Ar my ( NPA) , and
Bangsamoro Islamic Fr eedo m Fight er (BIFF) should b e co nsidered. Th ese groups hav e
o nething in co mmo n
—
th eir interest to es t ab lish a new po lit ical entity. Th is po litical entitydiffers for each group
and in order to mitigat e th e pot ential risks o f not h aving th eminvo lved, th e gov ernment
needs to ensure th at no o ne is excluded in th e p rocess o freforming th e go vernment to a
federal form. For examp le, th e h is tor ical injustices for whichth e MILF and MNL F fight for
need to b e incorpo r at ed into th e p rocess and design of th efederal gover nment. If we ar e
going to talk abo ut th e adv ant ages and disadvantages of afederal state, th ere are many
questio ns we h av e to co nsider:
a.

What i s the process in decent ralizi ng the power? b.

W h a t p o w e r s w i l l t h e g o v e r n m e n t p u t i n t o t h e t a b l e a s c o n c u r r e n t p o w e r ? c.

In terms of devolving the executive power, how ready is the Mindanao region?
S ince th e p ast decades , we h av e wit nessed an increasing interest in federalism in
th ePh ilippines and ar o und th e glob e. In th e sp eech o f Professor R onald Watts ( 2002) o f
Queen’ s Uni ver sit y Canada
during th e Inter natio nal Co nfer ence o n Federalism h eld atSwitzerland this year,
“
Political leaders, leading intellectuals and even some journalist increasingly
s p e a k o f federalism as a healthy, liberating and positive form of organization. Belgium, Spain,S o u t h A f r i c a ,
Italy and the United Kingdom appear to be emerging towards new
i n n o v a t i v e federal forms, and in a number of other countries some consideration has been given to thee f f i c a c y
of incorporating some federal features, although not necessarily all
the characteristicsof a full-fledged federation.
”
Two main reasons cited why the federal system is better than the present unitarysystem are: a) It will
h asten eco no mic develop ment b y devo lving p owers of th e natio nalgo vernment to th e
regio ns th at b eco me t h e feder al st at es. Th ese powers will allow th e
federal states to mob ilize th eir o wn r esources to boo st th eir lo cal eco no mic develop ment
and without the central government intervening; and b) It will resolve the causes of conflict thatthe ar med
Moro gro ups are figh ting for and, h enceforth, lay th e foundatio ns o f a a just andlas ting
p eace in Central and So uth west er n Mindanao ( Pimentel, 2002) .Ho wever, it can be
remem b ered th at under Ar ticle III o f R A 9054,
Section 3 onDevolution of Powers, it states:
“
The regional government shall adopt a policy on local autonomy whereby regional
p o w e r s shall be devolved t o local government unit s parti cul arly in areas of educati on, h ealt h,
human r e s o u r c e , s c i e n c e a n d t e c h n o l o g y a n d p e o p l e e m p o w e r m e n t . U n t i l a l a w
i m p l e m e n t i n g t h i s provision is enacted by the Regional Assembly, Republic Act No. 7160, the LocalGovernment
Code of 1991, shall conti nue to apply t o all the provi nces, citi es ,muni ci pal iti es, and barangay
wit hi n the autonomous regi on
.”

(R EPUBL IC ACT N O.905 4, 2001)

.
Desp ite th is auto nomy, AR MM r emains o ne o f th e po orest regio ns in th e
Philipp ines. The economic development that was supposed to follow after the devolution of powers didnot
h app en as exp ect ed. Wh y? Is it b ecause of th e system o r th e peop le?I p erso nally do no t s ee
th e r atio nale of p o liticians th at a federal state will pro videmore eco nomic b enefits to th e
p eop le, co nsider ing t h e curr ent co ntro l and auto no my
o f ARMM. In terms of fiscal autonomy under the same Republic Act, Section 3 of Article Xstates th at :
“All corporations, partnerships, and other business entities directly engaged in
business in
the Autonomous Region shall pay through the Regional Government tha t portion of
theirannual income tax corresponding to the net income generated from business
done in the area
of autonomy.”
In th e present form o f gov er nment, th ere are many things th at can b e goo d for th ep eop le
b ut was no t put int o r ealit y. Th is means, in order to make a better federal state, th er eis a
need to acknowledge th e miss ing p iece o f th e p uzzle in th e current form o f go vernment.It is
not just a matter o f s tr uct ur e, but of process o f developing and executing th e
po licy. Aside from an inclusive process, nothing else will work for the better of the
people. The federal state is advantageous only to the people holding the position in thecountry, the
po litical dynasty, and th e upp er and middle class. It is advantageous fo r th ep eop le o f
Mindanao, in ter ms o f its div er sit y in cultures and religio ns, for it will give a
ch ance fo r minor it y groups to r epr es ent th emselves. But, we h ave to admit th is will
createtensio n amo ng th e p eop le of Mindanao. Co nflict may again arise amo ng and b etween
eachtrib es, not unless if th e st ruct ur es and p rocesses are co mpreh ensive and
ho listic. Generally,peop le ar e co ncer ned abo ut po litics in terms of achieving justice to
reach po litical st abilit y;gaining a gr asp of th e reality o f po litical po wer and ho w th ey can
utilize it; and las t ly, th efor mat io n and mob ilizatio n o f a vibrant civil so ciety
and community net wor ks th at canint egrate th e use of po litical power and stability ( Elazar ,
1 991). We can unders t and from th eb igger p icture of th e Federalism, at least o n the s ur face,
it serves as a po lit ical force th at cancater to th e princip les of bo th majorities and
mino rities. Howev er, majo rities ar e co mpo sedo f minority groups, and th e
r e is a possi bili t y t hat the lat ter ’s ri ghts and aspi rat ins are set
aside. Hence, St at es loo k into Feder alism as so lutio ns to th e pro b lems th ey enco unt er in
ademocratic framewor k.
Peoples’ Quest for Duterte’s promise to ‘Federalism’

The Philippines is diverse in terms of culture, faith, beliefs, and practices and manyargue th at due to this
diversity, Federalism is necess ary to address th e natural divide o fFilipino s. Ten (1 0)
mo nths after Dut er te
’ s fir st day i n
service as th e 16
th
president o f th ePh ilippines, th e figh t against illegal drugs became o ne o f th e b loo die st
wars as Duterte
showed t he ext ent of the gover nment’ s executi ve power
. In his quest fo r th e end o f illegaldr ugs, h e h as b ent laws to ensure th e safety of th e p ub lic,
or so h e claims. Th is is cer t ainlyo missio n o f th e law, th at most o f p eop le o f th is cou ntr y
find reminiscent to th e Marcos er a.Peo p le danced o ut o f jo y with th eir eyes b lind to th e
h uman righ ts o f th e v ictims o f extr a -judicial killings. Th ere were many attemp ts t o ch ange
th e form o f th e go v er nment , such asduring administratio n o f Marco s, Cor y Aquino , and
Glo ria Arro yo . Th ey lack cr edibilit y anddiscip line towards th eir visio ns for th e p eop le and
for th e country wh ich led to minimal andinterrup ted gains o f th eir refo rms. For ins t ance,
th e propo sed p ar liament ar y go v er nment o fth e Arro yo administr atio n was hindered as it did
not fo llo w an inclusiv e p rocess; it was leftto th e decisio ns o f a few p eop le wh o wer e no t
credib le enough for t h e gov er ned to fo llowand b elieve and provided a distractio n t o th e lack
o f sustainab le dev elop ment dur ing t h etime.

The Proposal of Federalism in the Philippines

Processes: Transitions of Government

‘
What actions should the government take to effectively putinto place the
federal system of government?
’

Political leaders prioritize having their opinions on Fed eralism heard.

They certainlyhave not studied thoroughly all sides of the implications of
Federalism, but their mainconcern is the new power that they can gain
o n c e t h i s f o r m o f g o v e r n m e n t i s e s t a b l i s h e d . Their
utmost priority is to maintain their position so they gain direct access to the resourcest h a t c a n
manipulate peace and order, security, and votes to their benefit, and
allow them toexercise their monopoly of violence to the people in their
community. There should besafeguards in the process of design ing and
transitioning to a federal form of governmentfrom these risks. The
processes and structures of government in federal systems shouldinclude
a political-cultural dimension. The federal transition process needs to
establish asense of partnership and cooperation between and among
political leaders and theirconstituents. This can be established if both
parties engage in thorough negotiation andmaintain a collaborative
stance on addressing issues and programs and exploring andagreeing on
commitments. These should be done in such a way as to arrive at a
consensusthat is favorable to all and maintains the protection of the
fundamental rights and aspirationsof
p e o p l e . The government needs to conduct comprehensive consultations and make sure thatn o o n e i s
left behind. While this is a rather tedious and costly task in terms of
resources, themagnitude of the implications of Federalism is too
overwhelming to the lives of all Filipinosand thus cannot be left at the
hands of a few people who do not necessarily repre sent theintentions of
their respective constituents. There should be preferential option for the
voicesof minority groups in the table of transition because they are the
ones who have beenneglected for so long by the government and will
remain neglected if the playing field isinequitably set.
Conclusion
I believe that we all have distinct opinions and definitions of the way we
interpret thehuman situation. We are the drivers of our future yet we
never know what challenges comesalong the way of our journey to our
collective vision. Federalism is the next rational stepafter devolution, as
some would like to claim. In the Philippines, federalism advocatesbelieve
that the structure of the federal system would respond to the
geographical obstaclesand differences brought by cultural diversity. They
say that while federalism fragmentssociety, it is still at the best interest
of the whole nation. They also claim that the federal
structure will accelerate the country’s development and end the internal
conflicts brought by
armed movements in Mindanao.I would like to share this personal
experience, which hopefully will serve as areminder to myself and to my
fellow Filipinos. The aspiration for change in the form ofgovernment can
be traced from the Marcos dictatorship which changed to a
Democraticform
through Peoples’ Power during Cor
y Aquino when EDSA happened. During that time,the Filipinos were
elated as they were liberated from Martial Law. The Philippines started
torebuild itself under the notion that a democratic form of government
will allow economic
development to spur and people’s lives will improve
. During the same period, in the
Southern part of the Philippines, the ‘Land of Promise’ –
Mindanao, there was an ongoingrevolution lead by Prof. Nur Misuari for
a new form of government that is in accordance totheir culture and way
of life. The revolution resulted to radicalization and extremism
ofreligious beliefs for political gain. The new entity,
the Autonomous Region in MuslimMindanao, was established after
decades of peace process between the MNLF andGovernment of the
Republic of the Philippines (GRP). This resulted finally to a cessation
ofhostilities between the MNLF and the GRP but there were still promises
that remainunfulfilled.