A SHIFT TO FEDERALISM

Introduction

One of the functions of the legislature as embodied in the 1987 Philippine Constitution is
to make laws, or amend and repeal existing laws. More so, Congress may also propose
amendments to the Constitution by transforming itself into a Constituent Assembly.

The introduction of federal form of government in the Philippines is one of the goals of
President Rodrigo Duterte in his six-year term. But the ordinary people might wonder on
how federalism works and its possible effects to the Philippines.

Our current unitary form of government

The Philippines is currently under a unitary form of government. By this kind, a central
government serves as 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.

The proposed federalism in the Philippines

Federalism is a proposed type of government in the Philippines, wherein sovereignty is

constitutionally divided between the national government and subdivisional
governments such as states or provinces. It 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.

Other countries with a federalist form of government are the United States, Switzerland,
Germany and Australia, Canada, India, Malaysia and Brazil. 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 when she recommended
federal decentralization 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.

Pros and cons of federalism in the Philippines

What are the advantages of federal form of government and why is it a hot topic today?
 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.

 Federalism can promote specialization and competition: 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.

 On the other hand, 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.
What are disadvantages of a federated Philippines?

 The first problem the Philippines would have to iron out if it would adopt federal
form of government 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.

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. Regional
states will have greater power over raising their own revenues, determining their own
legislation and choosing their economic development models. 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.