SALIENT FEATURES OF

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

Province Highly Urbanized Cities

Cities/Municipalities Barangay (village)

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