FEDERALISM is not the immediate answer to strengthened regional economic development and decentralization, a member of academe and an esteemed member of the Constitutional Commission who drafted the 1987 Philippine Constitution said.
Bernardo M. Villegas, an economist and an advisor to recent Philippine presidents, said local government units (LGUs) already have the power to manage their own resources sans Manila based on the Local Government Code (LGC).
According to Villegas, the code enables LGUs to implement infrastructure developments and manage internal-revenue allotments.
“One can decapitate imperial Manila without moving toward federalism government if the only objective of revising the constitution is making Manila less important. Local government officials have all the power given to you by the Local Government Code,” Villegas said during a recent LGU-Business Forum in Makati City.
Villegas said only 100-percent implementation of the LGC is needed, and “to prove that, people from the LGUs can actually already be autonomous from the crazy region we call Metro Manila.”
Under Article 10, Section 5 of the LGC, LGUs are given the power to create its own sources of revenues and to levy taxes, fees and charges subject to such guidelines and limitations as Congress may provide, as well as to levy taxes, charges and fees.
Furthermore, Section 7 mandates an equitable share in the proceeds of the national wealth for the local governments.
Villegas added that he sees an 8-percent to 10-percent economic growth rate under President Duterte’s leadership, calling it a “decisive” administration, with the thrust in infrastructure spending.
“The last government did not use the P1 trillion in its budget to implement infrastructure. Neither did they push the PPPs [public-private partnership]. I see the Duterte administration a lot more determined. If they are able to push these infrastructures we will see an 8-percent to 10-percent growth,” Villegas said.
He added: “That is needed for poverty eradication. Six percent to 7 percent is mediocre. Not all the perfect business practices, good governance, market economics will solve the problem of poverty. Only an enlightened and effective state can build farm-to-market roads and irrigation systems, which are the first needs of the poor.”
According to Villegas, true inclusive growth can be felt by the 25 percent of the population who are below the poverty line once infrastructure is prioritized and the quality of education and health-care services in the rural areas is upgraded.
“When we talk of inclusive growth, we think of the 25 percent of the population who are going to bed hungry every day, those who are below the poverty line. The question is how is the 6-percent to 7-percent growth trickling down. The answer is it is not trickling down. Seventy-five percent of the 25 million referred to are coconut farmers, fisher folks and landless farmers and they are poor because we have neglected them in terms of infrastructure. The first way to attain inclusive growth is for the government to finally provide them the infrastructure we denied them,” Villegas said.
Villegas also said by giving access to quality education, especially for elementary and secondary education, in rural areas will be the greatest service the government can provide.
He said the government should also put up more rural clinics to address maternal mortality and address issues of clean-water accessibility to enhance the state of nutrition and health in these areas.
Meanwhile, House Minority Leader Danilo Suarez sees no objection within Congress, even from their side, for the proposed shift to a federal form of government.
The congressman from the Third District of Quezon Province sees a plebiscite happening during the 2019 elections. He also sees the French form of government as the best model the Philippines can use.
Suarez believes the administration of President Duterte has built a good economic momentum for the country. However, he said that once a shift to federalism is established, more employment opportunities will be opened in provinces across the country.
With reports from Rodel Alzona
Image credits: Rodel Alzona