Polytechnic University of the

Philippines
San Pedro Campus

The Contemporary World

FEDERALISM

Submitted by:

BSBA-MM 1-2

Submitted to:

Prof. Lito Peñaflor

October 25, 2018

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I. Issue: Federalism

Introducing a federal form of government in the Philippines is one of the goals of President
Rodrigo Duterte in his six-year term. This paper wants to tackle the question on how federalism
works and how it can affect the country.

With this topic explained, Filipinos would hopefully be better equipped in judging whether
a federal government in the Philippines is a good idea or not.

The Philippines is currently under a unitary form of government - this means that the
central government is the highest governing power. It receives a large part of every region's income
and redistributes it, often disproportionately so. Our autonomous regions, provinces,
municipalities and barangays can only exercise powers and enact policies that the central
government chooses to delegate to them.

II. Background

What is federalism in the Philippines?

Federalism is a proposed type of government wherein sovereignty is constitutionally

divided between the national government and subdivisional governments (such as states or
provinces). Federalism divides the country into several autonomous states with a national
government.

How federalism works?

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The autonomous states are even further divided into local government units. They will have
the main responsibility over developing their local industries, public health and safety, education,
transportation, and culture. These states have more power over their finances, policies,
development plans, and laws.

The United States, Switzerland, Germany and Australia, Canada, India, Malaysia and
Brazil are examples of countries with a federalist form of government.

III. Relevance

One of the goals of President Rodrigo Duterte is to implement a federal from of government.
Duterte said a federal constitution would "truly embody the ideals and aspirations" of all Filipinos
and create opportunities for growth. President Duterte said the time for the country’s shift to
federal government has come, adding that the unitary form of government was only good at the
time that the country was developing as a nation. Since his presidential campaign, Duterte has been
pushing for federalism, which he said will help achieve peace in Mindanao and spur economic
development throughout the country in all regions and not just in “imperial” Manila.

Duterte’s consultative committee tasked to review the 1987 Constitution is also 95-percent to
98-percent done with its draft federal Constitution, which they will be submitting on July 9 to the
President, the committee’s self-imposed deadline. This is to give time for the President to review
the draft before his State of the Nation Address on July 23.

In the past, the Philippines has had attempts at a reform towards a federal system of government
- during the administration of former President Gloria Macapagal Arroyo, she recommended
federal decentralization as one of the goals of the proposed charter change. However, the attempt

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failed because opposition from various sectors believes this reform was used to extend her term
limit.

IV. Analysis

Pros and cons of federalism in the Philippines

What are advantages of federal form of government and why is it attractive to

Filipinos?

Firstly, under a federal government, states are empowered to make their own decisions.
They no longer need to rely on the central government to decide for them. This is important to
note in the Philippine context because of the vast geographical and cultural differences between
regions - differences that the central government may not always be able to cater to.

Furthermore, decentralization in the Philippines would allow states to keep more of their
income to themselves. They do not have to rely on collecting real estate tax and business permit
fees - 80% of their total earned income stays, while only 20% goes back to the national
government. This means that states are able to channel their own income for their own
development, creating policies and programs suitable for them without having to wait for the
national government to approve. Within the 80% budget that remains with these states, 30% will
be funneled to the local state government, and 70% will be allocated to the provinces, cities,
municipalities and barangays.

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Because states are able to both make their own decisions and retain the income they have
to fund these decisions, it's possible for federalism to promote specialization and competition.
This affects both the national government and the states - since the national government turned
certain administrative powers over to the regional governments, it can now funnel its resources
more intensively towards the issues it is assigned to, such as foreign policy and nationwide defense.
Likewise, the states are now better able to nurture their individual strengths and selling points

because the people who have the decisions and funding are the people who are personally involved
in the state's development.

These self-reliant states will compare their growth to the growth of surrounding states.
Hopefully, this will lead to friendly competition between states that will help raise the quality of
life and economic development for everybody involved.

Mayor Duterte presents federalism as a possible solution to the Mindanao conflict instead
of implementing the Bangsamoro Basic Law. According to him, "nothing short can bring peace in
Mindanao.". This is likely a reference to the numerous revisions the BBL has undergone, and the
number of years it has stayed in Congress.

All in all, a federal form of government in the Philippines is a hot topic among Filipinos
because it is expected to accommodate regional preferences and diversity - a matter of great
importance in a country with 7,107 islands and more than 40 different ethnic groups.

Geoffrey de Q. Walker, Emeritus Professor of Law at Queensland, believes that "by these
means, overall satisfaction can me maximized and the winner-takes-all problem alleviated,"
especially in policies with divided opinions. if we allow people to make decisions with reference
to their cultural and ethnical beliefs, as well as their economic and social backgrounds, we allow
them to coexist with others and achieve solidarity as a whole.

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What are disadvantages of a federated Philippines?

Like all forms of government, federalism has its ugly side too. The first problem the
Philippines would have to iron out would be the overlaps in jurisdiction. Unless responsibilities
of state governments and national governments are very clearly stated in the amended Constitution,
there will be ambiguities that can lead to conflict and confusion.

Next, there is always a chance that it will bring more division than unity in the
Philippines. It can arise from more than just increased hostility between ethnic groups -
competition between states can quickly become unhealthy, and can lead to the regionalism that is
currently already challenging the unity of the country.

Moreover, development of the states in a federal form of government might not even
work at all. Some states may not be as gifted or as ready for autonomy as others. A major concern
is that while some states may progress faster, the converse is also true because other states may
devolve faster as well - even more so without a national government to back them up. However,
in some federal countries, the national government provides funds to help underdeveloped states.

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A proposed Equalization Fund will use part of the tax from rich states for the funding of poorer
states.

V. Application

What would the Philippines look like under transition to a federal form of
government?

Past proposals divided the Philippines into 10 or 11 autonomous states. President Duterte
envisions 18 federated regions – 16 federated regions (including the new Negrosanon region) and
the federated regions of Bangsamoro and Cordillera.

In a federal system, billions of pesos will have to be spent on setting up state governments
and the delivery of state services. States will then have to spend for the elections of their own
officials.

While the idea of federalism in the Philippines is attractive for most Filipinos, the possible
benefits that are marketed by the idea will inevitably come at a cost, and will require extensive
time and effort from both governments and citizens alike. President Duterte has to make sure the

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people are satisfied with the division of responsibilities that will be stated in the Amendment, and
that the work towards building a federalist country will not alienate other states or leave them
behind, the way they are being left behind right now.

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