In dismantling the domination of so-called “Imperial Manila,” as well as alleged threats of the Muslim separatist insurgency, President Rodrigo Duterte and the advocates of the Philippine federal system continuously push for the radical shift towards “hybrid federalism” that is uniquely Filipino to address some of the country’s contemporary issues.
According to the Social Weather Surveys in 2017, people from the National Capital Region (NCR) are more financially stable compared to citizens from other regional areas in the country. Imperial Manila is a metonym for the national government’s active presence in NCR, to the point that when Metro Manila is combined with wealthy regions of Luzon, this accounts for over 70 percent of the nation’s wealth, which means Visayas and Mindanao are second priority to opportunities regarding benefits of overall economic growth. Not to mention that, currently, nearly 50 percent of the wealth of the entire nation remains in the Metro Manila area.
Referring to today’s political discourse, the former Davao mayor’s claim of a Luzon-dominated leadership is heavily resonant. His branding of the Philippine Federal system is popularized as an antidote to the Moro separatist movement or the insurgent group based in the southern region of the Philippines, seeking to establish an independent Islamic state for the Filipino Muslim Minority. Accordingly, the federal system is believed to address the issue of Imperial Manila which assumes that NCR exploits much of the country’s resources. Under a federal government, the power is divided between the national government and local government units. As compared to a unitary government where the national government primarily holds decisions for policies and programs, a federal government will give authority to local government units to tax, establish courts, construct and maintain roads, among others.
Addressing the nation’s woes
Appointing a 19-member Consultative Committee (ConCom) under Executive Order No. 10, President Duterte tasked the members to review the provisions of the 1987 Constitution as introductory efforts in crafting a presidential-federal form of government.
ConCom Senior Technical Assistant Ding Generoso said in a statement that the transition will involve all agencies from the local, regional, and national levels, adding there will also be an establishment of institutions like the Federal Intergovernmental Commission (FIGC) that will accommodate and assist the transition.
Behind the move towards federalism, the main objective is said to be purely economic rather than political.
President Duterte recalls the local budget he remits to the national government was not close to the internal revenue allotment he receives when he was a local government official. The said shift will create budgetary reforms, increasing the current internal revenue allotment for local government units (LGU) twice its current budget. LGUs will also be granted the autonomy to control and to utilize the budget and resources of their region.
However, as the sensitive topic of federalizing the government surfaces, its efficiency still does not hold a substantial truth.
One of the senior researchers from the Philippine Institute for Development Studies, Dr. Rosario Manasan, warned that adopting a federal system without a coherent fiscal equalization formula may further lead to regional inequality. Therefore, the lack of readiness of government institutions may breed issues such as aggravating uneven regional development, worsening corruption within government institutions, and strengthening the foothold of political dynasties, wherein several members of one family are involved in politics.
Additionally, the Socioeconomic Planning Secretary, Mr. Ernesto Pernia, shared the same sentiments that the regions are not yet ready for a federal government and the momentum of ongoing infrastructure development in the regions will be disrupted. He also shared that implementing federalism can aggravate the country’s fiscal health and impose serious repercussions on ill-prepared regions for the transition from a unitary type of government.
Whether through federalism or any other form of government, the country’s fate must not rely on an ambitious agenda to be the game changer of the poorer regions of the country towards instant gratification.
Instead, the current administration must go back to address the roots of the country’s issues through decentralizing power and amending laws for budgetary reforms, as well as strengthening all local, regional, and national institutions.
This article was originally published in The Benildean Vol. 4 No. 3: Aftermath.
