The Evolving Empowerment of Local Governments and Promotion of Local Governance in the Philippines: An Overview

Abstract

This chapter gives an overview of the evolving empowerment of local governments and promotion of local governance in the Philippines. It provides a historical context from the Spanish colonial period to the present, culminating in the enactment of the Local Government Code of 1991. It also expounds on the pertinent sections of the Code which are the book chapters’ concerns and highlights how the shortcomings of the coverage and implementation of the Code have ushered in further debates with regard to the search for alternative models of governance. These include the recent debates on a federal form of government. Metro Manila is the focus of this study as it remains to be the country’s major political and economic hub. This chapter, therefore, sets the context by which the rest of the chapters take off from, with consideration of the different forces which historically have hampered efforts towards decentralization.

Appendices

Annex I

1.1 Governance Provisions in the 1991 Local Government Code

Title 1: Basic Principles
Chapter 1: The Code: Policy Applications
SECTION 1	Title. - This Act shall be known and cited as the “Local Government Code of 1991”.
SECTION 2	Declaration of Policy. - (a) It is hereby declared the policy of the State that the territorial and political subdivisions of the State shall enjoy genuine and meaningful local autonomy to enable them to attain their fullest development as self-reliant communities and make them more effective partners in the attainment of national goals. Toward this end, the State shall provide for a more responsive and accountable local government structure instituted through a system of decentralization whereby local government units shall be given more powers, authority, responsibilities, and resources. The process of decentralization shall proceed from the national government to the local government units. (b) It is also the policy of the State to ensure the accountability of local government units through the institution of effective mechanisms of recall, initiative and referendum. (c) It is likewise the policy of the State to require all national agencies and offices to conduct periodic consultations with appropriate local government units, nongovernmental and people's organizations, and other concerned sectors of the community before any project or program is implemented in their respective jurisdictions.
SECTION 3	Operative Principles of Decentralization. - The formulation and implementation of policies and measures on local autonomy shall be guided by the following operative principles: (a) There shall be an effective allocation among the different local government units of their respective powers, functions, responsibilities, and resources; (b) There shall be established in every local government unit an accountable, efficient, and dynamic organizational structure and operating mechanism that will meet the priority needs and service requirements of its communities; (d) The vesting of duty, responsibility, and accountability in local government units shall be accompanied with provision for reasonably adequate resources to discharge their powers and effectively carry out their functions: hence, they shall have the power to create and broaden their own sources of revenue and the right to a just share in national taxes and an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas; (f) Local government units may group themselves, consolidate or coordinate their efforts, services, and resources commonly beneficial to them; (k) The realization of local autonomy shall be facilitated through improved coordination of national government policies and programs an extension of adequate technical and material assistance to less developed and deserving local government units; (l) The participation of the private sector in local governance, particularly in the delivery of basic services, shall be encouraged to ensure the viability of local autonomy as an alternative strategy for sustainable development
SECTION 5	Rules of Interpretation. - In the interpretation of the provisions of this Code, the following rules shall apply: (a) Any provision on a power of a local government unit shall be liberally interpreted in its favor, and in case of doubt, any question thereon shall be resolved in favor of devolution of powers and of the lower local government unit. Any fair and reasonable doubt as to the existence of the power shall be interpreted in favor of the local government unit concerned; (c) The general welfare provisions in this Code shall be liberally interpreted to give more powers to local government units in accelerating economic development and upgrading the quality of life for the people in the community;
Chapter 2: General Powers and Attributes of Local Government Units
SECTION 16	General Welfare. - Every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare. Within their respective territorial jurisdictions, local government units shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants.
SECTION 17	Basic Services and Facilities. - (a) Local government units shall endeavor to be self-reliant and shall continue exercising the powers and discharging the duties and functions currently vested upon them. They shall also discharge the functions and responsibilities of national agencies and offices devolved to them pursuant to this Code. Local government units shall likewise exercise such other powers and discharge such other functions and responsibilities as are necessary, appropriate, or incidental to efficient and effective provisions of the basic services and facilities enumerated herein.
SECTION 18	Local government units shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, programs, objectives, and priorities; to levy taxes, fees and charges which shall accrue exclusively for their use and disposition and shall be retained by them… to apply their resources and assets for productive, developmental, or welfare purposes, in the exercise or furtherance of their government or proprietary powers and functions and thereby ensure their development into self-reliant communities and active participants in the attainment of national goals.
Chapter 3: Intergovernmental Relations
Article III: Inter-Local Government Relations
SECTION 33	Cooperative Undertakings Among Local Government Units. - Local government units may, through appropriate ordinances, group themselves, consolidate, or coordinate their efforts, services, and resources for purposes commonly beneficial to them. In support of such undertakings, the local government units involved may, upon approval by the sanggunian concerned after a public hearing conducted for the purpose, contribute funds, real estate, equipment, and other kinds of property and appoint or assign personnel under such terms and conditions as may be agreed upon by the participating local units through Memoranda of Agreement.
Chapter 4: Relations with People’s and Non-Governmental Organizations
SECTION 33
SECTION 34	Role of People's and Non-governmental Organizations. - Local government units shall promote the establishment and operation of people's and non-governmental organizations to become active partners in the pursuit of local autonomy.
SECTION 35	Linkages with People's and Non-governmental Organizations. - Local government units may enter into joint ventures and such other cooperative arrangements with people's and non-governmental organizations to engage in the delivery of certain basic services, capability-building and livelihood projects, and to develop local enterprises designed to improve productivity and income, diversify agriculture, spur rural industrialization, promote ecological balance, and enhance the economic and social well-being of the people.
SECTION 36	Assistance to People's and Non-governmental Organizations. - A local government unit may, through its local chief executive and with the concurrence of the sanggunian concerned, provide assistance, financial or otherwise, to such people's and non-governmental organizations for economic, socially-oriented, environmental, or cultural projects to be implemented within its territorial jurisdiction.
Title III: Human Resources and Development
SECTION 76	Organizational Structure and Staffing Pattern. - Every local government unit shall design and implement its own organizational structure and staffing pattern taking into consideration its service requirements and financial capability, subject to the minimum standards and guidelines prescribed by the Civil Service Commission.
Title IV: Local Development Councils
SECTION 106	Local Development Councils. - (a) Each local government unit shall have a comprehensive multi-sectoral development plan to be initiated by its development council and approved by its sanggunian. For this purpose, the development council at the provincial, city, municipal, or barangay level, shall assist the corresponding sanggunian in setting the direction of economic and social development, and coordinating development efforts within its territorial jurisdiction.
Title VI: Credit Financing
SECTION 295	Scope. - This Title shall govern the power of local government units to create indebtedness and to enter into credit and other financial transactions
SECTION 297	Loans, Credits, and Other Forms of Indebtedness of Local Government Units. - (a) A local government unit may contract loans, credits and other forms of indebtedness with any government or domestic private banks and other lending institutions to finance the construction, installation, improvement, expansion, operation, or maintenance of public facilities, infrastructure, housing projects, the acquisition or real property, and the implementation of other capital improvement projects.
SECTION 302	Financing, Construction, Maintenance, Operation, and Management of Infrastructure Projects by the Private Sector. - (a) Local government units may enter into contracts with any duly prequalified individual contractor, for the financing, construction, operation, and maintenance of any financially viable infrastructure facilities, under the build-operate-transfer agreement, subject to the applicable provisions of Republic Act Numbered Sixty-nine hundred fifty-seven (R.A. No. 6957) authorizing the financing, construction, operation and maintenance of infrastructure projects by the private sector and the rules and regulations issued thereunder and such terms and conditions provided in this Section.
ADMINISTRATIVE ORDER NO. 270 - PRESCRIBING THE IMPLEMENTING RULES AND REGULATIONS OF THE LOCAL GOVERNMENT CODE OF 1991
ARTICLE 66	Joint Ventures and Cooperative Programs or Undertakings. — LGUs may enter into joint ventures and such other cooperative arrangements with people's organizations, NGOs or the private sector, to engage in the delivery of certain basic services; capability-building and livelihood projects; develop local enterprises designed to improve productivity and income; diversify agriculture; spur rural industrialization; promote ecological balance; and enhance the economic and social well-being of the people.

Annex II

1.1 Relevant Provisions in the Draft Bayanihan Constitution

Article II: Declaration of Principles and State Policies
SECTION 11	The Federal Republic shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living befitting human dignity and an improved quality of life for all.
SECTION 12	The Federal Republic shall promote social justice in all phases of national development.
SECTION 27	The Federal Republic shall promote autonomy of local government units in line with the principle of subsidiarity and in accord with federalism.
SECTION 17	The Federal Republic shall protect and promote the right to health of the people and instill health consciousness among them.
SECTION 18	The Federal Republic shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature.
SECTION 19	The Federal Republic shall give priority to education, science and technology, arts, culture and sports to foster patriotism and nationalism, accelerate social progress, and promote total human dignity, security, liberation, and development.
Article III: Bill of Rights
A. Social and Economic Rights
SECTION 26	Every person has the right to: (a) Adequate food; (b) Complete, quality education; (c) Adequate and decent housing; and (d) Livelihood and employment opportunities.
SECTION 27	The Federal Republic shall adopt measures to guarantee the progressive realization of these rights.
B. Environmental and Ecological Rights
SECTION 28	Every person in every generation has the right to: (a) A healthful environment and balanced ecology, clean air, clean water, clean soil, and clean surroundings All doubts shall be resolved in favor of the right of the people to a healthful and balanced ecology.
Article VII: Legislative Department
SECTION 28	(a) Taxation shall be uniform, equitable, and progressive.
Article XI: Federated Regions, the Bangsamoro, and the Federation Region of the Cordilleras
Article XII: Distribution of Powers of the Government
SECTION 1	The Federal Government shall have exclusive power over: (f) National socio-economic planning; (g) Monetary policy and federal fiscal policy, banking, currency; (m) Basic education; (n) science and technology
SECTION 2	Within their regional territory, the Federated Region shall have exclusive power over: (a) Socio-economic development planning; (b) Creation of sources of revenue; (c) Financial administration and management; (e) Infrastructure, public utilities and public works; (g) Land use and housing; (i) Local government units; (k) Municipal waters; (l) Indigenous peoples’ rights and welfare; (m) Culture and language development
Article XIII: Fiscal Powers and Financial Administration
Article XV: National Economy and Patrimony
SECTION 1	(a) The Philippine Economic System seeks an equitable distribution of opportunities, income, and wealth through sound and efficient use of human and natural resources. It is directed at a sustainable increase in the amount of goods and services produced by the State for the benefit of all sectors of society, especially the underprivileged.
SECTION 4	(a) The exploration, development, and utilization of natural resources shall be a shared power of the Federal and Regional Governments. Within their respective competencies, they may determine the manner and extent of their exploration, development, and utilization. They may directly undertake such activities, or they may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or entities at least sixty percent (60%) of whose voting capital is owned by Filipino citizens. Such agreements may be for a period of exceeding twenty-five (25) years, renewable for another twenty-five (25) years.
SECTION 8	Congress shall enact a comprehensive federal land use policy that shall provide the minimum standards for the Federated Regions in the rational, holistic, and just approach for the allocation, utilization, development and management of the country’s land and water resources. It shall include the regulation of activities that bear impact on said resources. Regional Assemblies may legislate other standards in the pursuit of its activities, provided that they are not below the minimum standards set forth in the policy.
SECTION 15	(a) Educational institutions, other than those established by religious groups and mission boards, shall be owned solely by citizens of the Philippines or corporations or associations at least sixty percent (60%) of the capital of which is owned by such citizens. (c) No educational institution shall be established exclusively for aliens and no groups of aliens shall comprise more than one-third (1/3) of the enrollment in any school. The provisions of this subsection shall not apply to schools established for foreign diplomat personnel and foreign temporary residents.
SECTION 19	The Congress shall promote and protect the viability and growth of cooperatives as instruments for social justice and economic development.
SECTION 25	An independent economic and planning agency headed by the President shall, after consultations with the appropriate public agencies, the private sector, and the Federated Regions, recommend to Congress and implement continuing integrated and coordinated programs and policies for national development. The National Economic Development Authority, operating under existing laws, shall function as the independent planning agency of the Federal Government, unless otherwise provided by federal law.
SECTION 26	(a) An independent central monetary authority shall provide policy direction in the areas of money, banking, and credit. It shall have supervision over the operations of banks and exercise such regulatory powers as may be provided by law over the operations of finance companies and other institutions performing similar functions.
Article XVI: Social Justice
SECTION 1	The Congress shall give highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the common good. To this end, the State shall regulate the acquisition, ownership, use and disposition of property and its increments.
SECTION 2	The promotion of social justice shall include the commitment to create economic opportunities based on freedom of initiative and self-reliance.
Urban Land Reform and Housing
SECTION 9	The Federal Republic shall, by law, and for the common good, undertake, in cooperation with the public sector, a continuing program of urban land reform and housing which will make available at affordable cost decent housing and basic services to underprivileged and homeless citizens in urban centers and resettlement areas. It shall also promote adequate employment opportunities to such citizens. In the implementation of such program, it shall respect the rights of small property owners except in accordance with law and in a just and humane manner.
SECTION 10	Urban or rural pool dwellers shall not be evicted nor their dwellings demolished, except in accordance with law and in a just and humane manner No resettlement of urban or rural dwellers shall be undertaken without adequate consultation with them and the communities where they are to be relocated.
Role and Rights of People’s Organizations
SECTION 15	(a) The Federal Republic shall respect the role of independent people’s organizations to enable the people to exercise their right to pursue and protect, within the democratic framework, their legitimate and collective interests and aspirations through peaceful and lawful means. (b) The right of the people and their organizations to effective and reasonable participation at all levels of social, political, and economic decision-making shall not be abridged. The Federal Republic shall, by law, facilitate the establishment of adequate consultation mechanisms. (c) People’s organizations are bona fide associations of citizens with demonstrated capacity to promote the public interest and with identifiable leadership, membership, and structure.
Article XVII: Education, Science and Technology, Arts, Culture, and Sports
EDUCATION
General Provisions
SECTION 9	The Congress may create a consultative body to advise the President on policies affecting indigenous peoples, the majority of the members of which shall come from such communities.