FEDERALISM

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. Federalism is a 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.
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.
In the past, the Philippines has had attempts at a reform towards a federal form of government -
during the administration of former President Gloria Macapagal Arroyo, she recommended
federalism as one of the goals of the proposed charter change. However, the attempt failed
because opposition from various sectors believes this reform was used to extend her term limit.
How federalism works: What are its advantages and why is it attractive to Filipinos?
Firstly, under a federal form of 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, federalism 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. 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. How federalism works: What are its disadvantages? 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. A
proposed Equalization Fund will use part of the tax from rich states for the funding of poorer
states. How federalism works: 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 14. In a federal form of government, 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 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.