Module 9: Decentralization and Local Governance

In this module, you will be able to:

• identify the different levels of the Philippine local government;
• explain the roles and functions of a local government unit;
• examine how decentralization affects governance;
• evaluate the performance of a local government unit;
• conduct an interview with barangay officials on community programs; and
• propose solutions to current barangay problems.

In unitary systems, the national or the central

government is given substantial control and power
over the affairs or directions of the country. Unlike
in federal systems where the local government and Local governments are important
central government are supreme in their own spheres, in delivering welfare and implementing
unitary systems (like the Philippines) let the national policies from the national level.
government decide for the country. In this system,
all laws or policies are expected to come from the
central government and are trickled down to the local level. The previous topics presented the
powers of the executive, legislative, and judiciary at the national level. What was presented was
governance at the central level. How about governance at the local level? Just like the national
government, the local governments are likewise divided into three branches—the executive,
legislative, and judicial. However, the Supreme Court has control over the local courts while
the Local Government Units (LGUs) have executive and legislative powers. How does this
happen? This section presents issues related to local governance and decentralization.

Local governments are the political

subdivisions of a state. They are at the lowest level of
an elected territorial organization within a state, both
in federal or unitary governments (Atienza 2006). In a
unitary system like the Philippines, local governments Local governments are expected
are created by the national government through to promote participation from the
people as they are closer to them.
legislation. Given this, the national government can
create, merge, and abolish them (Legaspi 2001).
Local governments are given the task to provide local public services and implement national
welfare policies (Atienza 2006).

Decentralization, Democratization, and Governance

The process that involves the transfer of planning, decision-making, or administrative
authority from the central government to its field organizations, local government, or

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nongovernmental organizations is known as decentralization (Rondinelli and Cheema, n.d. in
Atienza 2006). There are four major forms of decentralization:

1. Deconcentration – It involves the redistribution of administrative responsibilities within

the central government. An example of this is the shifting of workload from the central
government agency to its own field staff outside the national capital.
2. Delegation to semi-autonomous or parastatal organizations – It involves the delegation
of decision-making and management authority for specific functions to bodies that are
not under the direct control of the central government. Examples of these bodies are
public corporations, and regional planning and area development authorities.
3. Devolution – It involves the process by which the central government relinquishes certain
functions to local government units. It thus seeks to strengthen or to create independent
levels or units of government. It is an arrangement where there are reciprocal, mutually
beneficial, and coordinated relationships between central and local governments.
4. Transfer of functions from government to nongovernment institutions – It involves the
transfer of planning and administrative powers or functions to voluntary, private, or
nongovernmental institutions.

Decentralization and democratization reinforce each other. Decentralization enhances

local participation and therefore strengthens democracy. Decentralization can only take
place within democratic processes and it requires for local government systems to have
good management and democratic accountability. Under the 1987 Constitution, the structure
and role of the Philippine government is guided by the principle of decentralization.

What Have I Learned So Far?

1. What is decentralization for?

_____________________________________________________________________

_____________________________________________________________________

2. Why is decentralization the trend among governments, not only in the Philippines, but
also in other countries?

_____________________________________________________________________

_____________________________________________________________________

118 Philippine Politics and Governance

 Reflect Upon

1. Will local government units be able to think of and address their own issues instead of
the national government?

_____________________________________________________________________

_____________________________________________________________________

2. Is more autonomy synonymous to better governance? Explain your answer.

_____________________________________________________________________
_____________________________________________________________________

Local Government Units in the Philippines

Historical Overview
Devolution is not new to the Philippines. Even
before the coming of the Spaniards, almost everything
was localized. The barangay, the most basic unit,
The different periods in Philippine
was comprised of about 30 to 100 households. The political history show the country’s
datu rules the barangay and exercised governmental experimentation on varying levels of
powers as discussed in the previous modules. The centralization and decentralization.

barangays would later on be incorporated into the

Spanish colonial regime. These indigenous and autonomous political institutions have not
attained a level of organization beyond the kinship principle.

It was during the time of the Spaniards that a centralized system of governance was
introduced. The barangay or the barrio was retained as the most basic administrative unit while
other tiers were created: pueblos (municipalities), cabildos/ayuntamiento (cities), and provincias
(provinces). The governor-general was supreme over all affairs including local ones. While the
Maura Law of 1893 gave greater autonomy to towns and provinces in Luzon and Visayas, its
effects were not felt because of the Revolution that broke in 1896. Nonetheless, the Spanish
occupation had its influence on the development of local governments—the most important of
which was the high degree of centralization in Manila, which thereafter characterized central-
local relations. During the Malolos Republic, local governments were also created under
the Malolos Constitution. Among the important provisions of the said constitution were the

The Basics of Political Science and Philippine Politics 119

creation of municipal and provincial assemblies, autonomous local units, and popular and direct
elections. However, these did not function as expected due to the continuing revolution.

The coming of the Americans saw changes in

the structure of local governance. The Americans
promulgated a number of policies recognizing local
autonomy, emphasized local self-government with
the objective of building democracy from below, The 1987 Constitution and the
and introduced municipal and provincial elections. Local Government Code of 1991 (RA
7160) provide for decentralization
The new colonizers, however, moved toward and local autonomy. Whether these
greater centralization to prevent the negative effects goals have been achieved in the
of unrestricted Filipino rule by maintaining a country remains a question.
highly centralized politico-administrative structure.
Thus, Manila became not just the political, but the economic and cultural center as well.
However, the bureaucracy created by the Americans was weak, which reinforced the
decentralized nature of the Philippines. After all, the American rule focused more on the
creation of representative institutions rather than on the creation of a central bureaucracy. It
was only during the 1934–1935 constitutional convention that centralization became a key
governmental policy. Formal centralization continued during the Japanese occupation and
an even greater degree of central control on local governments was imposed. The Japanese
collaborators imposed authority on the local governments.

The postwar period (1946–1972) saw a trend on decentralization. Significant legislations
were passed including Republic Act (RA) 2264 (Local Autonomy Act), RA 2370 (The Barrio
Charter), and RA 5185 (The Decentralization Act of 1967), among many others. While
instances of decentralization existed in the Martial Law period, these were mere extensions of
central governmental power. Martial Law and the strength of the military paved the way for a
centralized system under a dictatorship.

The post-1986 period saw the move toward greater decentralization. The 1987
Constitution (Article II, Section 25) provided that “the state shall ensure the autonomy of local
government.”

Article X of the present constitution is devoted to the general provisions of local

governments in the Philippines. It provided for the creation of the Autonomous Region in
Muslim Mindanao (ARMM) and the Cordillera Administrative Region (CAR). Moreover,
LGUs were given the power to create their own sources of revenue and to levy taxes and
charges (Section 5). LGUs shall also be provided with a just share from the national taxes

120 Philippine Politics and Governance

(Section 6) and shall have an equitable share in the proceeds of the utilization and development
of national wealth within their respective areas (Section 7). The provisions in the constitution
gave rise to the enactment of RA 6766 and RA 6734, which created the CAR and the ARMM,
respectively; and RA 7160 or the Local Government Code of 1991.

What Have I Learned So Far?

How did the past experiences of the country influence the course of decentralization
in the Philippines at present?
________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

Reflect Upon

1. How important is history in shaping the political landscape of a country, with reference
to the structure of local governments?

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

2. Do you think your own local government is a product of the evolution of our society?
Explain your answer.

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

The Basics of Political Science and Philippine Politics 121

The Structure of Local Government
The Local Government Code of 1991 brought about significant changes, among which
are the devolution of basic services, facilities, and regulatory powers; and the enhancement
of governmental and corporate powers. The provinces, cities, municipalities, and, barangays
enjoy autonomy—specifically on local affairs—but the president of the country exercises
general supervision over these local government units (Article X, Section 4). The structure of
local government is illustrated below.

National Government

Province Highly Urbanized City

Municipality Component City

Barangay Barangay Barangay

Fig. 9.1 The structure of local government (Atienza 2006)

The 1991 Local Government Code decentralized functions and responsibilities to local
government units. The four major roles are:
1. Efficient service delivery
2. Management of the environment
3. Economic development
4. Poverty alleviation

122 Philippine Politics and Governance

 Reflect Upon

1. How well does your local government unit perform in terms of the major functions
cited previously?

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________
_____________________________________________________________________

2. What can you do to help your LGU in these respects?

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

BEYOND WALLS 9.1 Apply It in Real Life

You are a journalist working for the country’s leading TV network and you will
be hosting a segment titled “The State of the Philippine Government: How’s My Local
Community Doing?” The segment intends to present the condition of the people in their
local governments based on the basic roles of the LGUs as presented in the discussion. You
are asked to do a three- to five-minute documentary featuring how your local government
performed in one of the four functions listed and how it could improve in these areas. An
interview with barangay officials and constituents is therefore necessary. Your segment
producer will rate you based on: content (clarity of points, production/discussion of evidence)
and technical and artistic considerations (video clarity, basic editing, etc.). Your outputs
must include:
1. Script/outline of the presentation
2. Video/documentary
The top three documentaries will be presented during the culminating/integration
activity of the Politics and Governance course.

The Basics of Political Science and Philippine Politics 123

Criteria for the Creation of LGU
Article X, Section 10 of the present constitution specifically provides that “no province,
city, municipality, or barangay may be created, divided, merged, abolished, or its boundary
substantially altered, except in accordance with the criteria established in the local government
code and subject to approval by a majority of the votes cast in a plebiscite in the political units
directly affected.” Under the Local Government Code of 1991, the following are the criteria
for LGU creation.
Table 9.1 Criteria for the Creation of Local Government Units

LGU Income Population Land Area

Barangay 2 000
5 000 for Metro Manila
and other metropolitan
political subdivisions

Municipality P2.5 million 25 000 50 sq. km

City P20 million 150 000 100 sq. km

Highly Urbanized City P50 million 200 000

Province P20 million 250 000 2 000 sq. km

Sources: Local Government Code of 1991; Atienza (2006)

Impacts of Devolution
According to Atienza (2006), devolution paved the way to further democratization
and had important impacts on the way politics is practiced in the country. She contended
that democratization and the progress made by the civil society became a counterweight to
traditional Philippine politics. She noted the following observations:
• Some LGUs have become entrepreneurial.
• LGUs have become sources of innovations in local governance.
• E-governance has brought opportunities for improved welfare delivery and
development.
• LGUs have become more assertive.
• LGU-NGO partnerships have become stronger.

124 Philippine Politics and Governance

 What Have I Learned So Far?

1. What are the characteristics of LGUs in the Philippines?

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

2. How did decentralization and devolution change the landscape of local governance?

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

BEYOND WALLS 9.2 Read and Answer

Read the article on the implications of decentralization on reproductive health in

the Philippines through the following link: http://siteresources.worldbank.org/INTPRH/
Resources/PhilippinesRHMarticle.pdf. Answer the following questions:
1. What are the intended and unintended consequences of decentralization to reproductive
health in the country?
2. How important is central-local relations in the welfare and development of local
governments, particularly in the health sector?
3. Do you think the findings also reflect the condition of decentralization in the education
sector? How about in environment protection or in disaster and risk reduction
management?

The Basics of Political Science and Philippine Politics 125

Issues and Challenges
Several years after the Local Government Code of 1991 devolved powers and services
from the national to the local governments, the law has yet to accomplish its purpose of
building self-reliant communities that shall contribute to national welfare and development
(The Asia Foundation, n.d.). The Asia Foundation observed that several LGUs still fail to
address the most basic needs of their constituents, still lack mechanisms for transparency and
accountability, and have yet to exercise autonomy from the national government.

Atienza (2006) noted that parts of the country are still governed by traditional politicians
who use coercion and patronage rather than platforms-based stance to encourage local
participation. While decentralization aimed toward democratization, such rule by traditional
politicians goes against what the 1987 Constitution and 1991 Local Government Code aimed
in the first place. Decentralization may have triggered more participatory and development-
oriented LGUs, but not all LGUs have become more democratic or economically developed as
a result of decentralization. Apart from this, Atienza (2006) held that some national government
officials and agencies still have centralist tendencies that prevented successful decentralization
efforts. There still prevails an unequal distribution of financial resources and this raises questions
as to whether or not national agencies are more favored than local governments. There are also
problems regarding personnel and human resource that persist in local government; this points
to problems on training and doubts on the competency to govern and provide welfare to the
people.

So you may ask—what is the future of decentralization in the Philippines? The answer to
this question relies on a number of factors. First, you may look at the impact of the international
arena; after all, globalization (as discussed in module 4) has an effect on the course of local
governance. Second, you may want to observe the state of civil society in the Philippines. A
vibrant civil society that pressures or influences local governments to serve well may define
the future of how LGUs provide services to their constituents. Finally, you may try to assess
the degree through which people participate in local affairs.

Perhaps you are wondering how ordinary citizens could take part in affairs of
decentralization. The logic is simple: good governance (as presented in module 1) has
something to do with the inclusion of the people in the process of development. There might be
mechanisms that encourage popular participation but if individuals do not engage themselves
in such efforts, then such attempts of inclusiveness become futile. After all, welfare projects
are for the people.

126 Philippine Politics and Governance

 There are still other determinants that will decide the success of decentralization in the
country. You have learned that decentralization and democratization reinforce each other; thus,
one thing is for sure—the dynamic relationship between the citizens and their local governments
is significant in the prospect of development.

Extend Your Knowledge

For a discussion on the relationship between decentralization and quality of local
governance, you may visit http://www.econstor.eu/bitstream/10419/46627/1/494483288
.pdf.
For a presentation of the impacts of devolution on several issues, check the
following Web sites:
• http://environmentalhistory.net/wp-content/uploads/2012/07/6-2_Magno.pdf
• http://pdf.usaid.gov/pdf_docs/PNACM559.pdf
• http://www.rrh.org.au/Articles/subviewnew.asp?ArticleID=220
• http://unpan1.un.org/intradoc/groups/public/documents/eropa/unpan014257.pdf
For a list LGU officials and their contact details, you may go to http://www.gov
.ph/directory/local-government-units/.

Essential Learning
The national government consists of the machinery of the central government
(as discussed in the previous modules), as differentiated from the local governments,
which are political subdivisions that have substantial control over local affairs. Each
local government unit has a set of locally elected and appointed officers, their functions
being mandated by the 1991 Local Government Code. The post-1986 period aimed
at strengthening local governments for self-governance and sufficiency given the fact
that people are closer to their local governments than to the central government. The
idea of decentralization lies in the simple logic that local governments are expected to
better address issues since they can easily determine the problems of their constituents.
However, decentralization—specifically devolution—has its fair share of successes and
failures. While it has led to significant improvements, the prospect of decentralization
in the country is still confronted with issues and challenges. Local governments may be
able to identify problems instantly, but they are not equipped with both expertise and
resources to these problems. Nonetheless, the future of decentralization is determined
by a number of factors including, but not limited to, the context of globalization, civil
society, popular participation, and central-local relations.

The Basics of Political Science and Philippine Politics 127