LOCAL GOVERNANCE IN THE PHILIPPINES

I. Concept of Governance
Intro: In most dictionaries “government” and “governance” are interchangeably
used, both denoting the exercise of authority in an organization, institution or
state. Government is the name given to the entity exercising that authority.
Authority can most simply define as legitimate power. Whereas power is the ability
to influence the behavior of others, authority is the right to do so. Authority is
therefore the based on an acknowledged duty to obey rather than on any form
of coercion or manipulation. Weber distinguished between three kinds of
authority, based on the different grounds upon obedience can be established;
traditional authority is rooted in history, charismatic authority stems from
personality and legal-authority is grounded in a set of impersonal rules.
To study government is to study the exercise of authority. (Heywood, 1997)
Government is closely related to politics. To study politics is in essence to study
government or more broadly, to study the exercise of authority.
Politics is the art of government, the exercise of control within the society through
the making and enforcement of collective decisions. (Heywood 1997) The realm
of politics is restricted to state actors who are consciously motivated by
ideological beliefs, and who seek to advance them through membership of a
formal organization such as a political organization.

Meaning of Governance & Local Governance.

What is governance?
Governance is about the processes by which public policy decisions are made
and implemented. It is the result of interactions, relationships and networks
between the different sectors (government, public sector, private sector and civil
society) and involves decisions, negotiation, and different power relations
between stakeholders to determine who gets what, when and how.
“The traditions and institutions by which authority in a country is exercised” –
Kaufman et al
The way “ … power is exercised through a country’s economic, political, and
social institutions.” – the World Bank’s PRSP Handbook.
“The sound exercise of political, economic, and administrative authority to
manage a country’s resources for development. It involves the institutionalization
of a system through which citizens, institutions, organizations, and groups in a
society articulate their interests, exercise their rights, and mediate their differences
in pursuit of the collective good “(Country Governance Assessment 2005).
In governance, citizens are rightly concerned with a government’s responsiveness
to their needs and protection of their rights. In general, governance issues pertain
to the ability of government to develop an efficient, effective, and accountable
public management process that is open to citizen participation and that
strengthens rather than weakens a democratic system of government. “ The
USAID, Office of Democracy & Governance
Local governance comprises a set of institutions, mechanisms and processes
through which citizens and their groups can articulate their interests and needs,
mediate their differences, and exercise their rights and obligations at the local
level. The building blocks of good local governance are many: citizen
participation, partnerships among key actors at the local level, capacity of local
actors across all sectors, multiple flows of information, institutions of accountability,
and a pro‐poor orientation (UNDP 2004)
Legs of Governance
Governance has three legs: economic, political and administrative. Economic
governance includes decision-making processes that affect a country's
economic activities and its relationships with other economies. It clearly has major
implications for equity, poverty and quality of life. Political governance is the
process of decision-making to formulate policy. Administrative governance is the
system of policy implementation. Encompassing all three, good governance
defines the processes and structures that guide political and socio-economic
relationships.

KEY ACTORS IN GOVERNANCE

Source: UNDP (1997)
1. The State
The state is the principal actor of government to facilitate participation and
provide an enabling environment to other elements of the society. It is a strong
entity that recognizes the significance and autonomy of the other sectors without
overwhelming them.
 The state as enabler provides for the legal and regulatory framework and
political order within which firms and organizations can plan and act. It
encourages citizens to act by liberating them from the fear of military
reprisals when they criticize policies or serve marginalized groups. It can
assure private firms that policies are fair and not subject to caprice or whim
or the private interest of political officials.
The state as resource provider facilitates by providing resources to assist
markets and communities. Such resources include information, technical
expertise, research and development programs, physical infrastructure as
well as grants-in-aid or incentive schemes.
As part of the state, the local government performs a crucial role in the efforts of
the national government in implementing its programs and projects.

The Local Government

The Local Government is an avenue where the civil society groups at the
community level can participate meaningfully in the decision-making processes.
By virtue of the powers and authority provided in the Local Government Code of
1991, local government formulates and defines the legal and regulatory
framework. This serves as the basis for the involvement and participation of the
various organizations and groups in the governance of the community.
The Local Government also maintains a political order and provides the necessary
resources such as technical expertise and infrastructure to the various groups,
most especially to those who are places at disadvantaged position.
As an enabler, the local government likewise provides the environment for the
development of full potentials of its citizens guided by the “overarching goals of
respecting, protecting and fulfilling basic human rights for all and of empowering
everyone to shape their own destiny under a regime in which the realization of
basic rights is guaranteed” (J. Natividad, Rights-Based Philippine Governance
Review, DAP, 2005: 21)
The Local government is the real actor in effecting governance and
development.

2. The Private or Business Sector - Corporate Governance

In governance parlance, the private/business sector serves as the engine of the
society. It is an important collaborator in the economic development of the
community. It generates jobs and incomes for the people in the community.
Because of its resources such as financial and technical expertise, it can assist the
local government in coming up with an economic plan for the community and
help in the implementation of the plan.
It can also provide the needed resources for the government to enable it to
pursue big and wide scale projects that are beyond the local government’s
financial capability. Efficiency and economy are expected outputs or products
of corporate governance. The state provides a level playing field for those able
to compete, and turns its attention to the provisions of safety nets for those unable
to do so.
In the field of information technology, the private sector can help the local
government in the development of technologies that would help proper the
growth and development of the economy of the community. In this connection,
the private sector can assist the local government promote the transfer of
technology such as the application of spatial planning and decision support
systems for effective local governance. The participation of market and civil
society in governance adds new role to the state and that is of building
partnerships and linkages to the two sectors. Moreover, their engagement of the
state shifts the social picture from elite control to active citizenship.

3. The Civil Society

The Civil Society consists of the complex of citizens and groups outside
government working in the public arena. It is often called as CSOs- civil society
organizations and also sometimes referred to as the Third Sector. The civil society
comprises the academe or schools, NGO’s e.g. Association of Schools of Public
Administration in the Philippines, Inc. (ASPAP, Inc) housed at the National College
of Public Administration and Governance which is religiously collaborating with
Government.
Other civil society groups include POs and the voluntary groups. This sector plays
an important role in the facilitation and interaction among the key players of local
governance. It mobilizes the various groups or organizations in the community to
participate in planning and decision-making process.
Within the broad view of governance, Third Sector organizations play a key role
as they engage in programs and deliver services in areas where government is
absent or where the private sector is not interested in. They facilitate political and
social integration by mobilizing and empowering people to participate in
economic, social, and political activities.
It also performs some political role in the community by serving as an instrument
of checks and balances on the power of the state or local government and the
business sector behavior. It is seen as a claim holder of basic human rights. And
most of all, it can serve as an alternative delivery mechanism for the frontline
services.
Some civil society organizations engage primarily in the critique of existing policy
and the advocacy of what to them are more appropriate policies for the good
of the nation. In authoritarian regimes which close avenues of citizen access to
policy formulation, some groups maybe forced to go underground and work for
the ouster of the regime itself. But even in the most democratic states, there will
be no lack of critics that press for regime change and drastic policy reversals.
NGOs may also go beyond opposition and debate into competing with
government’s own delivery system, demonstrating that the alternative
mechanisms they advocate are capable of being implemented on the ground.
Other civil society organizations may extend the government’s delivery system by
mobilizing people to prove themselves eligible to receive government social
services, or providing their own services in areas unreached by the public
bureaucracy. ADB (2005) ( http://www.unescap.org/huset/gg/governance.htm)

II. ASSESSMENT OF LOCAL GOVERNANCE

It is important to understand that assessing local governance is not simply a subset
or a disaggregated form of national governance assessments. Assessments of
local governance provide important information on issues specific to the local
level, such as policies vis-à-vis decentralization, participation and local
accountability. One of the main differences between a national and local
governance assessment is the greater proximity to the real-world issues. In contrast
to national governance which often deals with systemic policies, the local level is
in a daily and intensive interaction with the citizens. Therefore, local assessments
need to be much more sensitive to the particular needs of groups of stakeholders
and certain segments in the local community.
Why assessing local governance?
The purpose for undertaking an assessment of local governance is of utmost
importance as it is the purpose that decides the scope of the assessment, the
methodology and the indicators to be applied, and not vice versa. Conducting
an assessment with vague objectives fails to provide proper development
outcomes and can be a waste of time and resources. Assessments of local
governance are undertaken for multiple purposes and reasons.

Four main objectives to undertaking an assessment of governance at the local

level:
1. Diagnostic: an assessment will be done to identify a problem and its scope;
2. Monitoring: an assessment will be done at regular intervals to keep a check on
the success or failure of an initiative, policy or programme;
3. Evaluation: an assessment will be done to assess whether an initiative, policy or
programme has achieved its pre-defined results and outcomes;
4. Dialogue: an assessment will also serve to engage citizens and communities in
informed discussions about shared goals and priorities.

III. LOCAL GOVERNANCE STRUCTURE IN THE PHILIPPINES

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.

The structure of local government (Atienza 2006)

Decentralization and Local Governance in the Philippines
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 central government are supreme in
their own spheres, unitary systems (like the Philippines) let the national 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 are created by the national government through 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 nongovernmental organizations is known as
decentralization (Rondinelli and Cheema, n.d. in Atienza 2006).
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.
The principles that govern the mandate of locally elected authorities and the
powers and responsibilities of local authorities, based on the principle of
subsidiarity. In particular, it is stated that:
1. The process of decentralization requires concerted efforts in
capacity building and institutional reform and should therefore be
associated with the strengthening of local authorities.
2. Participation through inclusiveness and empowerment of citizens
shall be an underlying principle in decision-making, implementation and
follow-up at the local level.
3. Local authorities should recognize the different constituencies within
civil society and should strive to ensure that all are involved in the
progressive development of their communities and neighborhoods.
4. The principle of non-discrimination should apply to all partners and to
the collaboration between national and regional governments, local
authorities and civil society organizations.
5. Representation of citizens in the management of local authority
affairs should be reinforced by participation at all stages of the policy
process, wherever practicable.
 6. With a view to consolidating civil engagement, local authorities
should strive to adopt new forms of participation such as neighborhood
councils, community councils, e-democracy, participatory budgeting, civil
initiatives and referendums in as far as they are applicable in their specific
context.
7. Records and information should be maintained and in principle
made publicly available not only to increase the efficiency of local
authorities but also to make it possible for citizens to enjoy their full rights and
to ensure their participation in local decision-making.
8. An increase in the functions allocated to local authorities should be
accompanied by measures to build up their capacity to exercise those
functions.
These universal and internationally recognized imperatives for local governance
reform should act as a major anchor and reference for any assessment tool that
purports to assess governance at the local level. The following sections explore
the opportunities to meet this challenge.
IV. ROLE OF LOCAL GOVERNMENTS
The planning function of local governments is embedded in the dual status of
local government units (LGU) as a political unit and as a corporate body.
As a body politic the LGU is a political subdivision of the national government. It is
endowed with powers to manage its territorial jurisdiction for and on behalf of the
national government. Being a subdivision of the national State, moreover, local
governments are envisioned to become effective partners of the national
government in the attainment of national goals.
To carry out this mandate, LGUs exercise their inherent powers such as police
power, as well as share with the national government the responsibility in the
management and maintenance of ecological balance in their respective
territorial jurisdiction (RA 7160, Sections 2a, 15, and 3i).
As a body corporate the LGU represents its residents, the inhabitants within its
territory. It is likewise endowed with powers and resources necessary for its efficient
and effective governance and to deliver basic services and facilities to enable
its inhabitants to develop fully into self-reliant communities. Being a corporate
body, every LGU is mandated to promote the general welfare among the
inhabitants within its territorial jurisdiction (RA 7160, Sections 2a, 15, 16 and 17).
Beginning of Corporate Existence. - When a new local government unit is created,
its corporate existence shall commence upon the election and qualification of its
chief executive and a majority of the members of its Sanggunian, unless some
other time is fixed therefor by the law or ordinance creating it.
Basic Services and Facilities Devolved
Agricultural extension and on-site research (DA)
Community-based forestry projects (DENR)
Field health and hospital services and other tertiary health services (DOH)
Public works and infrastructure projects funded out of local funds (DPWH)
School building program (DECS) - Social welfare services (DSWD)
Tourism facilities and tourism promotion and development (DOT)
Telecommunication services for provinces and cities (DOTC)
Housing projects for provinces and cities
Regulatory Powers Devolved
Reclassification of agricultural lands (DAR)
Enforcement of environmental laws (DENR)
Inspection food products (NMIC-DA) - Quarantine (DOH)
Enforcement of the national building code (DPWH)
Operation of tricycles (LTFRB-DOTC)
Processing and approval of subdivision plans (HLURB)
Establishment of cockpits and holding of cockfights (PGC)

Enhanced Governmental and Corporate Powers

- Full autonomy in the exercise of proprietary rights and management of
economic enterprises
- Authority to secure domestic or foreign grants without need of national
government approval
- Cooperative undertakings among LGUs
- Exemption from payment of customs, duties for imported heavy
equipment
- Authority to extend loans to other LGUs and to aid calamity-stricken LGUs
Local Planning Structure
Planning is both proactive policy making and reactive problem solving. The first
character of planning makes it essentially a political act while the second is the
more popularly known character of planning, that of management and hence,
an executive function. Correspondingly, the local planning structure has two
components: political and technical.
1. Political Component The political component comprises the legislative
body (Sanggunian) and the local development council (LDC). These
bodies are composed mainly of elective officials, hence, of politicians. The
only non-politician members of the political component of the local
planning structure are the representatives of the private sector and civil
society who comprise one-fourth of the LDC membership. The political
component is the policy-making body which defines the content and
direction of local development. The principal function of the political
component is that of deliberation to take decisions or lay down policies.
2. Technical Component The technical component is made up of the local
special bodies, the sectoral and functional committees, non-government
sectors, and the office of the local planning and development coordinator.
Even the heads of offices of the local government and of national agencies
operating in the local area are part of the technical component of the
local planning structure. This component supplies the technical content
and process of local planning. Except for some local special bodies, the
technical component generally has no decision-making powers.