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PHILIPPINE JOURNAL OF PUBLIC ADMINISTRATION
Editorial Board
ROMEO B. OCAMPO, Chair
NORIEL CHRISTOPHER C. TIGLAO, MA. OLIVA Z. DOMINGO,
DANILO DR. REYES, MARIA FE VILLAMEJOR-MENDOZA, Members
International Advisory Board

BELINDA A. AQUINO, JOAQUIN GONZALEZ III, PAN SUK KIM, RAUL LEJANO,
JOHN MARTIN, AKIRA NAKAMURA, ROSEMARY O'LEARY, JON S.T. QUAH,
SOMBAT THAMRONGTHANYAWONG, ROGER WETTENHALL
Issue Editor: NORIEL CHRISTOPHER C. TIGLAO
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EULA MARIE DC. MANGAOANG
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Volume LX January-December 2016 Numbers 1 & 2
Page
The Travel of a Reform Idea: Participatory Budgeting

and its Adaptation in the Philippines ........ Simeon Agustin Ilago 1
The Dual Role of the Supreme Court as

an Administrative System and Guardian
of the Constitution . ........................ Alder K. Delloro 24
Synergies in Philippine Language-in-Education

Policy in RA 10533: The Case of MTBMLE
Implementation in Tacurong Pilot
Elementary School .. .................... Antonio D. Igcalinos 45
The Emergence of LGBT Human Rights

and the Use of Discourse Analysis in
Understanding LGBT State Inclusion . .. .Ma. Theresa Casal De Vela 72
Developing the Philippine Sovereign

Wealth Fund . ..................... Russell Stanley Geronimo 98
Reflections from Scholars and Practitioners
Once More with Passion:

Filipino Women and Politics ......... .Proserpina Domingo Tapales 136
Editor's Notes
Making public sector reforms work, through either policymaking or

implementing innovations, is indispensable in achieving and sustaining
social progress. Beyond improving how the government operates, reforms
tackled in the articles featured in this issue of the PJPA are concerned
with the advancement of democratic values such as citizen participation,
inclusivity in policies, upholding of human rights, and equality in
representation.
Citizen participation appears to be the core principle at work in the

budgeting reform implemented by the Aquino administration through its
bottom-up budgeting (BUB) program. This was the intent of left-leaning
municipal and city governments in Brazil in the early 1990s when they
devised participatory budgeting to end patronage and clientelism in
government. However, as more and more governments across the globe
adopted participatory budgeting, its transformative values were tempered
to focus merely on public sector efficiency and effectiveness. Likewise,
Simeon Agustin Ilago's "The Travel of a Reform Idea: Participatory
Budgeting and its Adaptation in the Philippines" suggests that the
accomplishment of the BUB program is more on improving budget
efficiency than on genuinely empowering communities and citizens. Thus,
Ilago argues that one should not expect highly from the Aquino
government's BUB program in terms of participation and citizen
engagement.
In his article "The Dual Role of the Supreme Court as an

Administrative System and Guardian of the Constitution," Alder K. Delloro
examined how the Philippine Supreme Court straddles the competing
bureaucratic and democratic values which the institution both upholds.
Through the Public Administrative Thought lens, Delloro interrogated the
many conundrums that were implications of the bureaucracy-democracy
dichotomy, primarily the question of bureaucratic efficiency at the expense
of democratic ideals and values. While PA scholars such as Wamsley and
Waldo were not able to provide means on how to reconcile the
bureaucracy-democracy dichotomy, Delloro expressed optimism that the
ongoing reforms being undertaken by the Supreme Court are
"[strengthening] the Supreme Court as an administrative system under
the framework of democratic constitutionalism."
The next two articles were presented at the 2016 NCPAG Good
Governance Research Colloquium and Paper Competitions organized by
the Center for Leadership, Citizenship and Democracy. Supported by
USAID/Facilitating Public Investment Project, DAI Global LLC, the
colloquium theme focused on the principles of open government such as
citizen empowerment, government transparency, accountability and
responsiveness.
In the article "Synergies in Philippine Language-in-Education Policy

in RA 10533: The Case of MTBMLE Implementation in Tacurong Pilot
Elementary School," Antonio D. Igcalinos traced the long and arduous road
of enacting and implementing an inclusive language education policy. The
article particularly focused on the synergies of various stakeholders in the
implementation of the mother tongue-based multilingual education
(MTBMLE). Igcalinos highlighted the case of Tacurong Pilot Elementary
School's implementation of the language policy to demonstrate the
viability of MTBMLE as an inclusive and democratic language policy in
education. The article, however, noted gaps and issues in the national
policies on education that pose constraints in the sustainability of the
implementation of MTBMLE in schools across the country.
Ma. Theresa Casal De Vela's article titled "The Emergence of LGBT

Human Rights and the Use of Discourse Analysis in Understanding LGBT
State Inclusion" tackled the inclusion of the LGBTs in political discourse
and state policies. Through discourse analysis, De Vela provided a
narrative of the historical exclusion of LGBTs, from the discrimination
and violence LGBTs experience to the non-passage of laws and policies for
the protection and recognition of their human rights. De Vela also
examined contending discourses on LGBTs propagated by public
institutions to elucidate the status of LGBTs in contemporary Philippine
society and the current policy environment for formulating and
implementing laws that protect and recognize LGBT human rights.
In addition, this volume of the Journal also features an article that

examines the prospects of creating a sovereign wealth fund (SWF). Despite
having a surplus-level foreign exchange reserves, the Philippine
Government is constrained by the current legal environment in investing
its excess reserves in global financial markets. In "Developing the
Philippine Sovereign Wealth Fund," Russell Stanley Geronimo frames his
proposal for the development of an SWF using the 24 Generally Accepted
Practices and Principles (GAPP) for SWFs, otherwise known as the
Santiago Principles. Geronimo cites various experiences by other
countries and the models they used for their respective SWFs. Geronimo
argues the need to pass a law creating an SWF to enable the government
to maximize the potential of its surplus reserves by participating in
alternative investments such as futures contracts, private equity and
commodities.
Featured in this issue's Reflections from Scholars and Practitioners
section is an article from former NCPAG Dean Proserpina Tapales. In
"Once More with Passion: Filipino Women and Politics," Tapales
historicized the Filipino women's political participation to contextualize
the increasing number of women in elective positions both at the national
and local levels. At face value, this trend in Philippine politics can be
construed as a victory for gender equality. However, Tapales reveals that
the growing number of women political leaders is mainly attributed to
their role in dynastic politics in the Philippines. She argues that more
needs to be done beyond merely securing political seats for women to be
truly represented in government.
Strides in social progress have been achieved in recent years as

evidenced by policies and programs that aim to actively involve citizens,
particularly marginalized groups, in decision making and nation building.
As the articles in this issue suggest, there is still a long way to go towards
achieving an ideal democratic society. That being said, Public
Administration as a field of study offers a fertile ground for scholars to
explore how government policies and programs can go beyond the usual
goals of effectiveness and efficiency to make services inclusive and
accessible to the people, and to promote democratic values, such as
participation, equality, and human rights.
Philippine Journal of Public Administration, Vol. LX Nos. 1 & 2 (January-December2016)
The Travel of a Reform Idea:

Participatory Budgeting and
its Adaptation in the Philippines
SIMEON AGUSTIN ILAGO*
The article looks at a particular experience of the Philippine

government in participatory budgeting through the bottom-up
budgeting (BUB) program adopted by the Aquino
administration. It frames the implementation of the BUB
program within the historical development and context of
budgeting reform. The program is discussed in terms of how
participatory budgeting is defined, its process, and decision
making. By situating BUB in the context of Philippine
budgeting reform history, it has shown how its adoption and
adaptation signified a reform attempt quite distinct from the
more technocratic attempts on public financial management
reform. By locating it within the historical evolution of
participatory budgeting worldwide, it presented the constraints
of the current BUB model and why it should not be expected to
generate a radical transformation of the current decision-
making system at the local government level, contrary to
normative expectations.
Keywords: Participatory budgeting, administrative history, budgeting,

local government administration
Introduction
In the past six decades, the public budget has been the object of
various reforms targeting both its performance and its results. Most of
these reforms traveled from their initial experimentation in developed
countries to their adoption and adaptation in less developed ones (Martin,
2002). The Philippines is not an exception. Recent efforts to strengthen
budget transparency, responsiveness and performance follow a long line of
budgeting reforms that had been undertaken in the country (Diokno,
2014).
This article, however, focuses on a particular budgeting reform that

did not originate from the developed world but became part of the recent
*Associate Professor, National College of Public Administration and Governance,

University of the Philippines Diliman.
1
2 PHILIPPINE JOURNAL OF PUBLIC ADMINISTRATION
reforms adopted in the Philippines by the government. Participatory

budgeting (PB) grew out of a strategic vision to transform budget
policymaking in one of the cities of Brazil. PB was born mainly out of the
experience in the city of Porto Alegre, Brazil, and it traveled to other
parts of the country and of the developing world. From these experiences,
PB was advocated as a budgeting reform by multilateral and international
development organizations. It has since been adopted and applied in
various political and country contexts. (For examples, see Bassolli, 2011;
Goldfrank, 2012; Patsias & Bherer, 2012; Rodgers, 2010; and Thompson,
2012.)
In the Philippines, PB was adopted through the bottom-up budgeting

(BUB) program, which is one of the budgeting reforms that were
introduced under the Aquino administration (2010-2016).
Raadschelders (2003) emphasized the importance of administrative

history in enhancing our understanding of the interaction between
government and society, and the role of ideas in shaping the processes and
operations of government. The case of the BUB program provides a
relevant illustration of how a historical perspective of the budgeting
process could be useful in demonstrating how ideas travel and become
embedded in the functioning and structure of government. Such a
perspective can lead to a better understanding of public administration and
can contribute to more informed action or decision on the part of
administrators and policy makers (Raadschelders, 2003; Fesler, 1982). A
historical perspective could also illuminate the reasons why a particular
reform is adopted. By linking the reform to its temporal context, one gets
to understand what drives the decision to adopt it. One gets to understand
also the constraints and issues which the reform faces.
As part of recent budgeting reforms, BUB provides a clear example of

the shift in understanding of the role of citizens in decision making.
Raadschelders (2003) observed that the transformation of the idea of
citizens as subjects to citizens as co-decision makers who can influence
policy and administration has generated a substantial amount of
theoretical discussion and academic literature. It also has brought into
sharper focus the role of citizen participation in contemporary public
administration. Participatory budgeting provides a good example of such
transformation. PB has been powerful, not only in terms of empowering
the citizens to become co-decision makers in spending decisions that affect
them, but also in developing and institutionalizing other participatory
mechanisms and institutions.
In 2012, the administration of President Benigno Aquino introduced

the bottom-up budgeting (BUB) approach as part of its reforms to improve
January-December
PARTICIPATORY BUDGETING IN THE PHILIPPINES 3
fiscal transparency, efficiency and accountability. In exploring the

administrative history of PB, this article offers two lines of possible, yet
intersecting, explanations on why BUB was adopted by the Aquino
administration. The first explanation puts it in the context of the
continuing efforts of various administrations to improve the process and
functioning of budgeting administration and civil society initiatives
towards public financial sector reform. These efforts were nurtured and
slowly gained traction, making the government warmer to the decision to
adopt BUB. Here, BUB is seen as an attempt to go beyond and outside the
technique-oriented, insular and inward-focused environment of budgeting
by involving subnational actors and civil society organizations (CSOs) in
the process. The other explanation looks at BUB's adoption as a result of
the global travel and diffusion of participatory budgeting as a reform idea.
Following the Introduction, this article develops an understanding of

the BUB program by placing it within the historical development and
context of budgeting. This is followed by a short discussion of the BUB
program and the challenges and issues it faces in terms of definition,
process, decision making and project selection. The last part looks at the
global travel of PB and its landing in the Philippines.
BUB in the Context of Past Budgeting Reforms
Commonwealth Period to the Pre-Martial Law Period
According to Briones (1996), a rudimentary form of budgeting was

already practiced during the Spanish colonial period. Following the
introduction and ascendancy of line item budgeting in the United States in
early 1900s, the Philippines adopted the practice through the enactment of
Commonwealth Act 246 or the Budget Act of 1937. This practice of line
item budgeting continued until 1954, when performance budgeting was
introduced with the passage of Republic Act (RA) 992 or the Revised
Budget Act of 1954. Its adoption was part of a package of reforms initiated
during the administration of President Ramon Magsaysay, and it followed
the recommendation of the Economic Survey Mission in 1950, headed by
Daniel Bell, for the modernization of fiscal administration (Parsons, 1957).
Parsons (1957) described the adoption of performance budgeting as "a

striking example of American success in peddling abroad a management
device having substantially less than general acceptance in governmental
practice at home" (p. 173). He identified four fundamental problem areas
in the Philippines, which he thought constrained the objectives and
advantages of a performance budgeting system. These were the areas of
measurement, personnel, organization and the role of the legislature.
2016
Parson argued that performance budgeting could only work if there is an

effective measurement system in place. The Philippines at the time of its
adoption of performance budgeting did not have any established cost
accounting and work measurement systems. The Philippine government
also did not have the superior personnel or the effective administrative
structure needed to administer a complex system such as performance
budgeting. Lastly, performance budgeting suffered from weak legislative
support, as it threatened the legislators' administrative control of line
items in the budget, and could also reduce their influence on the way pork
barrel allocations were decided (Parsons, 1957, pp. 175-178; see also
Briones, 1996).
Given these constraints, the impact of performance budgeting process

was observed to be limited. According to Briones (1996), the budget
produced annually under the performance budget process could not be
distinguished from one created under a line-item budgeting process,
except for one difference-that it was somehow bigger (Briones, 1996).
Despite claims to performance budgeting, what was produced was a budget
that was not tied to objectives but was merely a summary of different
budget preferences of the various government agencies. Thus, to Briones,
a budget that was substantively performance oriented was only produced
in 1972, under Presidential Decree (PD) 1050.
Martial Law Period
When martial law was declared in the country in 1972, the first
Presidential Decree (PD No. 1) called for the reorganization of the entire
government system and created a national planning authority in the
National Economic and Development Authority (NEDA). With its creation,
the Martial Law government also introduced the importance of
development planning, and the need to link planning with the budget
process. This provided the rationale for advocating the planning,
programming and budgeting system (PPBS), which originated from the
United States. It is not clear from the discussion of Briones (1996) if it was
fully adopted as part of budgeting reform. What was clear was that there
was interest in the approach but it was not openly advocated, with some
advocates introducing it as the integrated budget system (IBS) rather than
PPBS. But the technocratic orientation of PPBS, its requirement for
automated data, and its need for technical competence in the bureaucracy
on how to use its tools of analysis made its adoption difficult and open to
debate (Briones, 1996).
Zero based budgeting (ZBB) was introduced in the Philippines in 1977

during the preparation of the annual budget for 1978. The legal basis was
January-December
Section 8 of PD 177 (Budget Reform Decree), which required agency

proposals to be reviewed on their own merits rather than on an
incremental basis (Briones, 1996).
However, it was noted that ZBB's implementation suffered from the

lack of sufficient training and guidance on how to implement the system,
lack of appreciation and support from department heads and officials,
emphasis on forms or too much paperwork, and the difficulty of
operationalizing ZBB concepts into something easier to understand by end-
users (Briones, 1996).
Post-Martial Law Budgeting Reforms
Corazon Aquino Administration. The Corazon Aquino (1986-1992)

administration re-introduced PPBS through the synchronized planning-
programming-budgeting system (SPPBS) (Memorandum Order 295, s.
1990). An agency mandate review was also instituted to clarify
departmental responsibilities (Diokno 2014). Likewise, through Executive
Order (EO) 376, s. 1989, the regional project monitoring and evaluation
system (RPMES) was established to decentralize "project facilitation,
problem-solving, monitoring and evaluation to the regions and sub-
regional levels, particularly to the provincial and municipal levels" (Sec.
1). Within the RPMES, the extensive participation of non-government
organizations (NGOs) as project monitors was advocated at all levels (Sec.
3).
Fidel Ramos Administration. The RPMES was revisited during

the administration of President Fidel Ramos through EO 93,s. 1993, which
further clarified the roles of the project monitoring committees (PMCs) at
the regional, provincial, and city/municipal levels. The EO also expanded
the scope and coverage of the RPMES to include foreign-funded projects
and those funded by official development assistance (ODA).
Under the Ramos administration, a simplified fund release system

(SFRS) was also introduced in 1995 to standardize the release of funds
across agencies in line with the policy priorities of the government
(Department of Budget and Management [DBM], 2012a).
Joseph Estrada Administration. The SFRS system was continued

during the administration of President Joseph Estrada (1998-2000). Under
the system, a simplified budget release procedure was introduced, which
Diokno (2014, p. 80) described as "what-you-see-is-what-you get"
(WYSWYG). In this procedure, the General Appropriations Act (GAA)
becomes the basis for the release of the regular budgets of implementing
2016
agencies. The Estrada administration also restarted the government

procurement reform program which began during the Aquino
administration, and this resulted in the launch of an electronic bid board
system. This electronic system became the basis for subsequent
automated improvements in procurement in the country (Diokno, 2014).
Gloria Macapagal-Arroyo Administration. Under the term of

President Gloria Macapagal-Arroyo (2001-2010) a public sector
management reform program was introduced. Under the program, the
budget was to be used as a means for ensuring desired developmental
results (Boncodin, 2004). The program introduced the organizational
performance indicators framework (OPIF), which had two components:
agency performance review (APR) and sectoral effectiveness and efficiency
review (SEER). Both were meant to shift the budget from an input-based
process to a results-based one. Complementing OPIF was the adoption of a
medium-term expenditure framework (MTEF), which provided for explicit
targets on managing the public deficit, debt, revenues and disbursements.
The MTEF also indicated medium-term estimates for costs of ongoing and
committed programs, and rules on updating estimates of revenues and
costs (Boncodin, 2004). Despite their introduction the year 2000 (DBM,
2012b) and adoption in 2005 (Abad, 2014) or 2007 (according to Boncodin,
2008), the OPIF and the MTEF had not fully shifted the budget process
into becoming results-based.
The budget process in the Arroyo administration, according to Abad

(2014), suffered from several weaknesses. First, the process has not been
results-focused, detached from the medium-term development plan, and
both were not linked to resource constraints. Second, programs and
projects were poorly designed as indicated by lump-sum allocations which
lacked the needed details and information on the projects that were
supposed to be funded. Third, the execution of the budget was neither
predictable nor controlled, leading to delays and failures in program and
project implementation. The system of budget release was complicated.
And fourth, there were little opportunities for the citizens to inform and
improve the budget process (Abad, 2014, pp. 38-39).
Benigno Aquino III Administration. Under the term of President

Aquino, the government adopted the following reforms: the MTEF,
program convergence budgeting (PCB), ZBB, performance-informed
budgeting (PIB), BUB, unified accounts code structure (UACS), forward
estimates (FEs) and the two tier budget approach (2TBA), and the GAA-as-
release-document (GAA-RD) (DBM, 2016).
The MTEF appears to be a carry-over and refinement of the MTEF

that was introduced during President Arroyo's term. It sets out annual,
January-December
rolling three-year expenditure planning, medium-term expenditure

priorities, and hard budget constraints (DBM, 2016). The PCB requires
agencies to collaborate in the planning, budgeting, and implementation of
programs. Hence, for example, four agencies collaborate in the oversight
of the BUB program, while 13 agencies participate in its implementation.
The ZBB assesses the performance of existing programs and projects

to improve on their performance and serve as basis for canceling out non-
performing programs or projects. PIB, on the other hand, ensures that
performance information as indicated by the major final outputs (MFOs)
and other performance targets of agencies are presented in the National
Expenditure Program (NEP) and General Appropriations Act (GAA) to
inform Congress and the public in general (DBM, 2016). Abad (2014)
describes PIB as building from the idea of OPIF. However, Diokno (2014)
in his earlier assessment noted that at that time, the new process has not
been approved by Congress and can still be improved. As with the old
performance budgeting, the weaknesses are in the specification of
indicators, targets and results and outcomes for agencies. The UACS
established a harmonized classification system for financial transactions
for the use of the Commission on Audit (COA), Bureau of the Treasury
(BTr), Department of Finance (DOF), and DBM. Forward estimates were
part of the MTEF as it was introduced in 2007 and refer to the estimates
of the future costs of on-going policies, programs and projects of the
government for the next three years. The FEs are given more prominence
with the adoption of a two-tier approach to budgeting. As described by
DBM, under the two-tier approach, resources that will be required to
continue implementing the agencies' existing activities, programs and
projects will be identified and finalized in Tier 1. In Tier 2, the resources
identified available in the MTEF will be allocated to fund the government's
priority new activities, or to broaden the scale of existing activities in
terms of scope, coverage, design or implementation method (DBM, 2016).
The GAA-RD was adopted by the Aquino administration beginning in

2014 to address the delays in budgetary allotments to agencies. Under this
approach, the agencies can begin working on the procurement, contracting
and start-up of program/project implementation on the very first working
day of the fiscal year (FY) because the budget items under the GAA as
approved are already considered released to their respective agencies
(DBM, 2016; Abad, 2014). Diokno (2014) disputes this as an innovation of
the Aquino administration, saying that it was first done during the Estrada
administration.
2016
Revisiting the Past Budgeting Reforms
The previous discussion identified the various reform attempts that

were introduced to improve the budgeting process. As the discussion has
implied, most of the reforms adopted by various administrations were from
American practice. Endriga (1978) pointed this out, when he wrote that
the influences of American bureaucratic institutions in the Philippines
were evident in the structure, values, technology and traditions of
Philippine public administration.
The reforms adopted in the Philippines included attempts at

expenditure control (through line-item budgeting), managerial control
(performance budgeting), planning and programming (planning,
programming and budgeting system), and hard budgeting (ZBB). To
Endriga (1978), these were part of the package of tools exported to the
country by American public administration, characterized by an
orientation towards technique.
These reforms notwithstanding, the larger institutional structure of

budgeting remained constant and stable, involving the executive branch in
terms of preparation and execution; the legislature in terms of
authorization; and both in terms of oversight and accountability. The
Philippine process is not far from how Schick (2004) described the
conventional budgeting process. Schick described it as largely inward
looking and insular, where bureaucrats and politicians communicate with
each other in a language and terminology particularly developed for it. It
is highly technical and complex, but paradoxically has the quality of a
village setting in it, in the sense that within the confines of government,
financial planning and spending decisions are made while others remain
outside, at some times involved, but most often, looking in (Schick, 2004).
The BUB Program Under the Aquino Administration
The administration of President Benigno Aquino III introduced BUB

in 2012, in time for the FY 2013 budget preparation. For this purpose, the
four oversight agencies that collaborated on its design and
implementation, the Department of Budget and Management (DBM),
Department of the Interior and Local Government (DILG), Department of
Social Welfare and Development (DSWD), and the National Anti-Poverty
Commission (NAPC), issued Joint Memorandum Circular (JMC) 1,
prescribing the "policy guidelines, processes, responsibilities and timelines
to guide the participating agencies and selected focus LGUs in the bottom-
up planning and budgeting approach to be applied in the preparation of the
FY 2013 budget" (Sec. 2.0).
January-December
Definition of BUB
The circular defined bottom-up budgeting as "an approach to the

preparation of agency budget proposals, taking into consideration the
development needs of cities/municipalities as identified in their respective
local poverty reduction action plans that shall be formulated with the
strong participation of basic sector organizations and other civil society
organizations" (Sec. 4.1). This definition has been adopted in the
subsequent joint memorandum circulars issued by the four oversight
agencies.
This definition describes BUB in terms of several elements: that BUB

is an approach to agency budget preparation; that in preparing their
budget proposals, agencies should take into account the development
needs of local governments; that these needs are to be reflected in the
local poverty reduction action plans of local governments; and that these
poverty reduction action plans are results of a highly participatory process
involving NGOs, people's organizations (POs) and community
organizations. This definition thus implies various possible motivations for
three key actors in the process: the national government, the local
governments, and the CSOs. From the perspective of national government
and budgeting authorities, BUB is expected to improve agency budget
preparation, and make it more transparent and fiscally accountable. From
the point of view of local governments, it presents an opportunity to gain
access to additional sources of financing for their development needs.
While from the perspective of civil society, it is an opportunity to be
involved and to enhance a decision-making space. These motivations are
not necessarily in lockstep with one another, and in terms of value, they
may not have equal importance.
Process
Figure 1 presents the BUB process as made up of eight steps, based

on JMC 7.
The process begins with the mobilization of civil society

organizations. Within two weeks from the date set for the CSOs' assembly,
the local operations officer of the DILG, in coordination with the BUB
focal person of the local government unit (LGU), issues the official
invitations to CSOs operating in the locality to participate in the assembly.
During the CSO assembly, CSO sectors select their representatives

to the local poverty reduction action team (LPRAT) and identify their
priority projects or proposals to be taken up by their representatives
2016
Figure 1. BUB Process
1. 4. 7.
Conduct of the Endorsement of Validation of
CSO Assembly theSanggunianof projectsby
theLPRAP Regional Poverty
Reducation Action
Team(RPRAT)
2. 5.
O rganizingthe Submission of
LPRAT and LPRAPpriority
conduct of the projectsto DI LG
LPRAP regional office 8.
workshop NGAsintegrate
the project
proposalsin their
II budgets
6.
3. Consolidation of
Endorsement of projectsbyDI LG
theCSO regional office
represntatives
.
of the LPRAP
project
proposals
during the convening of the local poverty reduction action planning

(LPRAP) workshops. During the LPRAP workshop, the CSO
representatives deliberate with their LGU counterparts in identifying
priority projects to be funded by national government agencies. The list of
priority projects is submitted by the LGU to the DILG regional office, with
the list signed by designated signatories from the CSO members. The
proposed projects are then validated by the regional poverty reduction
action teams (RPRATs) and also by the national poverty reduction action
team (NPRAT) to determine whether the projects are eligible for funding
under the BUB guidelines. If certain proposals are not eligible, the list is
sent back to the LGU for revision. The revised list of projects are then
submitted by the LGU together with the requisite Sangguniang Bayan or
Sangguniang Panlungsod resolution to the DILG regional office, which in
turn submits it to the NPRAT. The projects are then integrated into the
budget of the relevant national government agency.
The process does not reflect the required action on the part of the
LGUs to allocate counterpart funding for their approved projects once the
national agency budget has been approved. This action clears the process
for the execution of the project once the budget has been released by the
national government agency.
January-December
Looking at the process, the participatory aspect of BUB is seen in the

first three steps of the process-in the mobilization and convening of the
CSO assembly, in the constitution of the LPRAT and the conduct of the
LPRAP workshop, and in the endorsement of the agreed-on LPRAP
priority projects. But the quality of participation is also structured by the
design of the BUB process. For instance, The Local Government Code
requires NGOs and CSOs to register for accreditation in LGUs based on
procedures to be determined by their respective Sanggunians. This has
implication on the mobilization and invitation of CSOs to participate in the
CSO assembly. The limited information of LGUs on CSOs operating in
their areas would mean they would rely on their list of accredited NGOs
on whom to invite, thus excluding those who did not apply for
accreditation for operational and ideological reasons.
Structure of LPRAT as the Main Decision Body
The LPRAT is important to the participatory process. The

composition of the LPRAT since its integration as a structure in the BUB
process has not changed from the time the first joint memorandum
circular was issued in 2012 to the most recent joint memorandum circular
in November 2015. Table 1 lists the members of the LPRAT as provided
for in the most recent circular.
Table 1. Members of the LPRAT as provided in JMC 7, s. 2015

L ocal Government CivilSodety
Local chief executiveasachair CSO representativeelected bytheCSO assembly
asco-chair
Sangguniang Bayan/ Panlungsod who is 4Psparent- leader recognized by D SW D
chairof theCommitteeon Appropriation
Liga ng Barangay president Leader of aD epartment of H ealth-organized
community health team
AlI local government department heads CSOsaccredited by LG Us
Representativesof national government CSOsaccredited or recognized byanynational
agencies government agency
Basicsector organization
Basicsector organization recognized byN APC
Women'sgroup
Other communityor grassrootsorganization
I ndigenouspeoples(l Ps) in areaswhere I Ps
comprise over 20%of the population
Local businessgrouporassociation
Source: DBM-DILG-DSWD-NAPC Joint Memorandum Circular 7 (2015)
2016
The BUB design can be commended for its attempt to cover the
diversity of sectors operating in society. There is also a provision for equal
representation between CSOs and the LGU/government sector. In fact, in
determining equality, the mayor is counted. There is also the mandate
that at least 40 percent of the CSO representative should be women. Yet,
it could be argued that there is no assurance that having met the
representation requirements, it would lead to substantive and empowered
participation.
Selection of Projects
In the selection of projects to be funded out of the BUB Program,

JMC 1, s. 2012 indicated that as much as possible, the priority projects of
the LGUs should be consistent with the menu of programs of the national
agencies.
The menu of programs provides information on poverty reduction

programs that are already undertaken by national government agencies.
LGUs are encouraged to identify projects that fall within the menu.
Projects may still be identified outside of the menu, but they are subject
to validation and approval at the national government level (Sec. 5.4). The
said circular also provided that in the process of conducting the local
poverty reduction action plan (LPRAP), cities and municipalities with
updated comprehensive development plans (CDPs) may cull out poverty
reduction projects from their CDPs that fall under the menu, while other
local governments participating in such projects as agrarian reform
communities program (ARCP), Makamasang Tugon, and Mindanao Rural
Development Project-2 (MRDP-2) can revisit their unfunded sectoral plans
to select their priority projects for inclusion in the LPRAP (Sec. 7). The
rest of the LGUs through the LPRAT should conduct a full workshop to
identify their priority programs and projects. By providing the above
options, the said circular had shortcut the participatory process and made
the BUB program as another way to access funding for unfunded projects
and programs.
JMC 3, s. 2012 introduced a thematic classification of projects that

can be considered for national government agency funding. Based on the
said circular, the projects must contribute to: (1) the provision of basic
social services and the attainment of the Millennium Development Goals,
including poverty reduction; (2) hunger mitigation and elimination; (3) job
generation and inclusive local economic development; and (4) climate
change adaptation/mitigation and disaster preparedness (Sec. 5.2.8).
January-December
Likewise, JMC 3 introduced a negative list of projects that could not

be proposed for funding under the BUB program. These include
infrastructure projects that require substantial funding, such as housing
and flood control; projects already covered by existing social and health
programs of the government (for example, 4Ps and health insurance); and
projects that are not considered to be contributing against poverty (for
example, international training/scholarships; construction of municipal/
city halls and other multipurpose buildings; purchase of motor vehicles
such as ambulances and trucks; and those related to law enforcement, jail
management, and fire protection).
The same thematic classification of projects that could be considered

under the BUB program was retained in the subsequent circular (Sec.
6.2.8, JMC 4, s. 2013). A general requirement added was that the projects
should consider gender equality and gender responsiveness.
In addition to the previous year's negative list, JMC 4 also included

material recovery facilities and projects that fall below Php500,000, except
for Gulayan sa Paaralan projects under the Department of Education
(DepEd) (Sec. 6.2.9).
JMC 5, s. 2014 did not provide a list of project themes applicable for
funding, but provided an attachment of specific programs by national
government agency under which LGUs can identify their project
proposals. The negative lists are also attached with the programs, with
capital outlay, equipment and supplies as the most common items that are
not eligible for funding under the BUB program. The most recent circular
(JMC 7, s. 2015) also provided for a menu of programs as an attachment
for the reference of the LGUs and the LPRAT.
A key question on the selection of projects is the discretion or

autonomy of the LPRAT members in identifying projects that are needed
by their communities. On the one hand, the existence of the menu of
programs somehow boxes the members of the LPRAT in terms of project
identification and selection. Between a project deemed more important by
most members but outside the menu of programs, and another project
that is less important but falls within the menu, selection would tilt
towards the project less important but more likely to be funded because it
is within the menu. In this sense, participation is present and practiced,
but the results are structured by decision constraints. On the other hand,
the provision of a menu of programs could be viewed as the central
government's way of ensuring alignment of priorities and goals with the
national government, to ensure harmonization of outputs under a
performance-based budgeting system
2016
Understanding BUB's Adoption
BUB could be viewed as an attempt to introduce a different

perspective on the budgeting process. It can be seen as a way of getting
out of the traditional budgetary decision making, by allowing others who
are outside to have a say on the type and kind of programs and projects
which should be supported by public money. BUB also represents the
travel of participatory budgeting as a reform idea to the Philippines. It has
taken more than two decades for the idea to be considered, and officially
adopted in the country. In the meantime, budgeting reforms were explored
and adopted, with some being reinvented from the past. If PB's travel had
been overdue, its consideration and acceptance as a public financial
management reform is a confluence of historical, social and economic
conditions and a favorable political context.
Before 2012, there were few independent initiatives on participatory

budgeting. Most initiatives focused on participatory development planning
which were indirectly hoped to influence budget preparation. An example
of this was the work of the Barangay-Bayan Governance Consortium in
the Philippines, which produced the Barangay Administration Training
Manual (BATMAN) and a core training program called Barangay
Development Planning Through Participatory Resource Appraisal. In this
program, consortium members trained community members and citizens
on negotiating with their barangay and municipal/city authorities in
identifying community priorities and in demanding for specific services.
Part of the program involved engaging both the citizens and the local
government officials, and the formation of a technical working group to
work on operational plans under a participatory planning process
(Sadasivam & Fjorde, 2007).
In 2002 to 2005, Caucus of Development NGO Networks (CODE-NGO)

implemented an expanded localized anti-poverty project called Localized
Anti-Poverty Program II (LAPP 2). The project was developed and
implemented by 10 partner organizations of the network in nine provinces,
12 municipalities and one city, covering 109 barangays. The project
included a PB component, where barangay community organizations were
trained to be involved in problem identification, prioritization and budget
advocacy (Ilago & Esden-Lopos, 2006).
The other notable example was the case of civic participation in Naga
City, Camarines Sur. Here, civic participation was institutionalized
through the Empowerment Ordinance enacted in 1995. The ordinance
enabled the representatives of the Naga City People's Council (NCPC)-a
federation of CSOs and NGOs active in the city-to sit as regular members
of various city governmental bodies. Thus, the NCPC representatives can
January-December
observe, vote, and participate in the design, implementation and

evaluation of programs, projects, and activities of the city government.
They can also propose legislation, participate, and vote at the committee
level of the Sangguniang Panlungsod or the City Legislative Council.
NCPC representatives can sit at the City Development Council (CDC) and
at the Appropriations Committee (Ilago, 2005).
What then could explain why BUB was adopted as a budgeting reform
by the Aquino administration? This article offers two possible
explanations. The first one is that BUB represents the convergence of
several trends and factors: (1) the response of the administration to the
perceived issues on budgeting and accountability, as shown by the
controversies on the priority development assistance fund (PDAF) and the
pork barrel; (2) the logical development of organized civil society
initiatives to advocate for public financial management reform; and (3) a
strategic political initiative to build coalitions of political support for the
administration. The other explanation is that BUB represents the travel of
PB around the world as a reform idea, which is part of the good
governance narrative promoted by the World Bank and other international
development organizations.
BUB as a Logical Consequence of Past Reforms

and the Assumption of the Aquino Administration
The first perspective looks at BUB as a break from past budgeting

reforms. If past reforms sought to improve the way the inputs or outputs
of the budget are controlled, BUB represents the effort to redirect the
budget and its responsiveness by introducing external pressure as a form
of control.
At the same time, this perspective looks at the assumption of the

Aquino administration as a critical juncture that made it possible for the
government to warm up to the idea of partnering with civil society in
budgeting reform.
In the view of the Aquino administration's Budget Secretary

Florencio Abad, BUB is the result of the focused and strategic
interventions, which the Aquino administration had pursued since its
assumption to power. BUB reflects the political will and determination of
the administration to reform the budget process and make it more
transparent, accountable and participatory (Abad, 2014). Abad (2014)
describes BUB as a "bold response to the system of pork barrel" and a way
of "engaging the grassroots and marginalized communities" in the budget
preparation process (p. 51). For Abad, the BUB program is a logical
2016
development of a full Public Financial Management Reform roadmap. This

roadmap sought to strengthen the technical capacity of government
institutions for financial management, and also sought to shift the balance
of power around the budget process away from the clientelist and
patronage-based relations to an empowered process (Abad, 2014).
If Abad places a central role on the Aquino government in the

adoption of BUB, Dressel (2012) provides a view that puts more weight on
civil society initiatives. This view highlights the crucial role of civil society
in public financial management reform, which led to more inclusive
strategies such as BUB. Dressel did recognize the importance of the
Aquino administration, which came into power with the support of the
civil society. But he also recognized other factors as important, for
example, the active participation of civil society in engaging and
influencing government in a stable political environment, and the
international diffusion of neoliberal thinking as advocated by international
development organizations.
Beyond these factors, Dressel (2012) believed that the adoption of

BUB is a result of the cumulative experience and gains of civil society
networks and coalitions on public finance advocacy and reform. In his
view, the ability of the civil society coalition and networks to influence
public finance reform was credible enough that it allowed the sector to
engage government officials who were open to working with civil society
and were receptive to the idea of reform. These officials, such as Abad,
functioned as policy intermediaries and drivers within government.
A more skeptical explanation is based on the view of the budget as a

political tool. The skeptic will have to ask why, after more than two
decades of participatory budgeting, is PB being adopted in the country in
the form of BUB? And why does it have to be introduced in 2012, in time
for the budget preparation for FY 2013? For the politically minded, the
introduction of BUB can be viewed as a way of building political support
for the administration in time for the mid-term elections in 2013. This can
be argued also as the reason for the announcement of expansion of BUB to
the barangays and provinces in time for the 2016 national and local
elections (ABS-CBN News, 2016).
BUB as Adaptation of the Global Travel of PB
The idea of citizens' voice and vote in budgeting can be traced to the
seminal experiment in Porto Alegre, Brazil in 1989, where the local
government tried out a social transformation experiment to involve
citizens in decision making on how to allocate public money based on what
January-December
the people considered as priority programs and investment projects. With

the success of the participatory strategy in Porto Alegre, PB was
subsequently adopted in other municipalities and cities in Brazil and
around the world (Goldfrank, 2012).
Ganuza and Baiocchi (2012) emphasized that when looking at how PB

navigated the world as an idea, "it is not enough to simply speak of
'diffusion' while forgetting the way that the circulation and translation of
an idea fundamentally transform it" (Latour, 1987 as cited by Ganuza
&
Baiocchi, 2012, Art 8, p. 1). A relevant question to ask then is what has
traveled under the name of participatory budgeting in the Philippines?
How can the BUB program be located in the overall travel and evolution of
participatory budgeting?
The distinction made by Ganuza and Baiocchi (2012) in describing

PB's travel is instructive in understanding what has arrived as a form of
PB in the Philippines. They divide PB's travel into two phases. In the first
phase, PB traveled as part of a set of comprehensive administrative
reforms as experimented by leftist administrations in municipal
government in Brazil. The high point was the experience in Porto Alegre,
from where it traveled to other cities and municipalities in Brazil, then to
other local governments in Latin America. A defining characteristic of PB
during this phase was its social transformation and empowerment
character. PB was adopted by cities and municipalities as a political
strategy to break away from clientelism and to transform capitalist
institutions. PB was thus a transformative strategy to bring about
empowerment and social justice. It was also a bottom-up initiative, driven
largely by local governments.
In the second phase that occurred in the late 1990s, PB's success
made it internationally recognized as a best practice. A number of
international development organizations saw its potential, not as a social
transformation device, but as a governance approach which could be
packaged along with other governance reform initiatives to bring about
public sector efficiency and effectiveness. Thus, PB traveled as a politically
neutral device or as a tool to improve governance and generate trust in
government (Ganuza & Baiocchi, 2012). Here, the deliberative value of
participation was recast as an instrumental tool to expand and improve
public services. Improving public services would in turn help governments
gain legitimacy in the eyes of citizens, and thus promote the stability of
neo-liberal democracy (Sintomer, Herzberg, Rocke, & Allegretti, 2012).
The social justice principles that inspired the best practice were no longer
emphasized and its transformative potential became marginalized (Ganuza
& Baiocchi, 2012).
2016
A relevant example of this model of PB is that of Peru. As in the

Philippine case, Peru's PB was a top-down initiative. It was the central
government which initiated the program as a response to the lack of
transparency, as a means of controlling corruption, and as a way of
improving accountability and oversight. Similar to the Philippine case,
Peru's PB involved participating agents or representatives of associations
and CSOs, not individuals representing districts or territories. Peru's
process also calls for the registration of CSOs, with local governments
given the task of determining the registration criteria and codifying them
by way of a local ordinance. This has led to variations in the process,
although a common requirement is for the CSO to have a legal status.
Lastly, government officials are part of the process as members of the
assemblies, interacting with the civil society representatives. Thus, the
deliberative process also involves civil society representatives engaging
with their government counterparts, which means that the space for
decision making is not purely a civil society sphere. In the same way that
in the Philippines, civil society representatives engage and deliberate with
their government counterparts in the LPRAT (See McNulty, 2012;
Hordijk, 2009).
From this perspective, what has arrived in the Philippines is the idea
of PB that is part and package of good governance reforms with some
elements of citizen participation, not the transformative, emancipatory
type of PB that is closely associated with the Porto Alegre model. As in
the experience of other countries where PB has traveled, the form of PB
took into account the social, political and economic environment of the
countries where it was adopted. Part of PB's evolution is its branching out
into different types of application. Sintomer et al. (2012), for instance,
identified three overall trends on PB application worldwide.
The first is the radical trend, whose aim is to transform prevailing

social conditions and enable a movement for sustainable development.
This trend emphasizes overcoming social injustice and dismantling
traditions of patronage and corruption. The second adopts PB as part of a
reform agenda. While this does not involve a radical break with prevailing
institutions and practices, it aims to support decentralization, improved
local government performance and better social outcomes. The main
impact of this type of PB is in building the confidence of the participants,
improving trust, and improving relations between local governments and
their citizens. The third uses PB in a formalistic way, to provide a
semblance of participation where in reality there is none. The case of BUB
in the Philippines fits in with the second type of trend, where PB is
adopted as part of budget reform, to support decentralization, and improve
social outcomes through better targeting and identification of projects at
the local government level.
January-December
Sintomer et al. (2012) likewise proposed six ideal-type models of PB

to reflect the complexity of the PB process as it was adapted in the world.
The six ideal-type models are: participatory democracy; proximity
democracy; participatory modernization; multi-stakeholder participation;
neo-corporatism; and community development. The ideal-type model of
neo-corporatism appears to be the closest approximation to the BUB
program. In the neo-corporatist model, the local government plays a
strong role. The aim of the process is to establish wide-ranging
consultations with various organized groups, social groups and local
associations. The rules for participation are formalized. The procedural
independence of civil society is limited, and overall, the process is top-
down, and may simply reinforce traditional notions of civic participation
(Sintomer et al., 2012).
Given these characteristics and realities of BUB as the Philippine

version of PB, the article argues that one should not expect highly in
terms of participation and citizen engagement, although one should not
discount the possibility that the process in the long term could improve
the confidence of CSOs in engaging local governments.
Conclusion
This article set modest aims in relation to relevance and value of

administrative history. By situating BUB in the context of budgeting
reform history, it was able to show how its adoption and adaptation
signified a break from the more technocratic attempts on public financial
management reform. By locating it within the historical evolution of
participatory budgeting worldwide, it was able to show the constraints of
the current BUB model and why it should not be expected to generate a
radical transformation of the current decision-making system at the local
government level, contrary to normative expectations.
In the context of past budgeting reforms, this article showed that BUB
represented a different approach, getting out of the traditional, technique-
oriented reforms to integrating some form of citizen participation in the
budget preparation process. Whether this could be sustained in the future is
a big question. Diokno (2014) has been particularly critical of BUB. He
described the program as an attempt to get the "political support of favored
civil society organizations," its process as "tedious and time-consuming" and
violative of the "essence of representative democracy, where citizens elect
their representatives to make policy decisions for them," and overall, a
"scheme for political consolidation" (pp. 72-75). As the designated Budget
Secretary in the incoming Duterte administration, Diokno's description of
BUB does not augur well for the program and its continuation.
2016
The discussion of the process shows how the BUB has been
institutionally constrained as it traveled to the country as a reform idea.
PB's global diffusion has enriched theory and understanding of its process,
but a sobering realization is that PB may travel without its transformative
essence. The global trends and ideal-types developed from the cases of
PB's adoption in various countries show how CSO representation could be
designed in a corporate way, in terms of representation by individuals of
sectors and associations or groupings. In the case of the Philippines, CSO
representatives also have to participate in a deliberative sphere in which
they would have to engage with government counterparts, in a political
and social environment where the mayor and the local government
institution by itself engage in clientelist and patronage relations. The way
BUB was defined in the memorandum circular is unclear in terms of what
it really wants to accomplish. Does it want to improve outcomes of
national government agency budgeting processes? Does it want to improve
local government decision making? Does it want to engage and empower
citizens?
Even if BUB is described as a means towards empowerment, the

process and structures-the way it was designed-suggest that it was
meant to improve the efficiency of public budgeting outcomes, and not as a
process to capacitate people in the community to transform themselves.
Wampler (2007) had this in mind when he wrote that the PB process may
not provide the opportunity for participants "to challenge the underlying
reasons for their social and economic exclusion" (p. 47). Neither could it
guarantee that those who participate will be able to go beyond their
sectoral concerns to understand and question the broader socioeconomic
forces that shape their lives (Wampler, 2007).
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Philippine Journal of Public Administration, Vol. LX No. 1 (January-December2016)
The Dual Role of the Supreme Court

as an Administrative System and
Guardian of the Constitution
ALDER K. DELLORO*
The 1987 Philippine Constitution has bestowed upon the

Supreme Court the institutional and moral integrity as both an
administrative system and as a bastion of democratic rights.
Behind this dual role of the Supreme Court are two competing
ideologies of governance: (1) administrative efficiency, which
promotes managerialist approaches and bureaucratic values,
and (2) pluralist-democracy, which promotes democratic values.
The clashing of these principles has become apparent in many
issues confronting the Philippine judiciary, including claims of
undue judicial interference and unwarranted judicial
prerogative. However, these principles need not be in conflict.
Drawing from the insights of local and foreign public
administration scholars, the article attempts to explain how the
Supreme Court can be an effective bureaucracy and platform for
democracy.
Keywords: Supreme Court of the Philippines, Philippine judiciary,

bureaucracy versus democracy, politics-administration dichotomy,
Philippine administrative system
Introduction
One of the important sources of judicial authority is the people. This

democratic mandate is enshrined in the 1987 Philippine Constitution,
which expects the Supreme Court to uphold and protect constitutional
rights, provide legal assistance, and ensure fair and efficient disposition of
legal cases (Article VIII, Section 5[1]). At the same time, however, the
Constitution has greatly expanded the bureaucratic power of the Court.
This dual role of the judiciary in upholding democratic principles and, at
the same time, its moral and institutional authority, has become more
apparent with the changing political landscape and public demands. In
*Managing Partner, Delloro Espino & Saulog Law Offices; Senior Lecturer,
National College of Public Administration and Governance, University of the Philippines
Diliman; and Law Professor, City University of Pasay.
24
DUAL ROLE OF THE SUPREME COURT 25
pluralistic societies such as the Philippines, with a large, more

sophisticated network of lawyers and civil society organizations, there is
greater pressure for the judiciary to negotiate bureaucratic and
democratic expectations. Its nature as a public organization that is part of
a vast administrative system nestled in a greater socioeconomic and
political environment further blurs the distinction. This article
acknowledges, and attempts to deepen the understanding of, the tension
between the bureaucratic and democratic character of the Supreme Court.
Towards the end, this article will provide recommendations on how the
Supreme Court, as an administrative system and a guardian of the
Constitution, can effectively enable social transformation.
According to Alfiler (1999), public organizations comprising the three

branches of the government, including their relationship with the public
and the greater sociopolitical and economic environment, make up the so-
called Philippine administrative system (PAS). Owing to the vastness of
power and influence that it derives from the people, the PAS is not only
expected to enhance efficiency and effectiveness as a network of
organizations, but also to exercise fairness and justice, to be accountable
in its use of power, and to be responsive to the needs of the people (Alfiler,
1999). This reflects the dual nature of public organizations, as a
bureaucracy, aiming for efficiency, and as a democratic institution,
upholding the principles of fairness, equity, and participatory governance.
A number of Public Administration scholars have long tackled this

dichotomy. In their paper, "A Legitimate Role for Bureaucracy in
Democratic Governance," Wamsley, Godsell, Rohr, White, & Wolf (1992,
as cited in Reyes, 1997, p. 283) raise two competing ideologies about
governance: pluralist-democracy model and administrative-efficiency
model. They also discussed the new dichotomy involving bureaucratic
reforms: macromanagement and micromanagement (Wamsley et al., 1992,
as cited in Reyes, 1997, p. 282). Lee (1995) also contends that "public
administration is construed as 'the administration of public affairs in a
political context' and being part of governance and this political concept"
(p. 544, as cited in Reyes, 1997, p. 291).
Such a controversy raises a number of questions for both academics

and practitioners in the field. Wamsley et al. (1992, p. 63) rightfully state
in rhetoric, "how to govern a political economy that requires a strong
administrative system while providing for as much democracy and
efficiency as possible." Or, as Reyes (1997) puts it:
On the one hand, can we ever design an administrative system

anchored on constructive pluralism, one that begins with conflict
and concludes with consensus? Is this far too ideal and far-
fetched from a world ridden with imponderables? How are we to
2016
arrest the growing and almost disruptive culture of hyper-

pluralism pervasive in most democratic societies today? (p. 293)
At the crux, one will find the judiciary and the Supreme Court, as the
guardian of the Constitution, taking an active role in protecting the values
of democracy, which include the concept of co-equality and
interdependence among the three great departments, the doctrine of
separation of power, and the principles of checks and balances. In this
sense, there is a need to appreciate the role of the judiciary in the context
of public administration and democratic constitutionalism. Concomitantly,
there is also the need to situate the Supreme Court's dual role as (1) an
administrative system, which pursues the traditional values of
bureaucracy; and (2) guardian of the Constitution, which supports the
values of democracy.
The article describes the bureaucratic character of the Supreme

Court as a Philippine administrative system. It then highlights the
judiciary as one of the three co-equal departments in the government,
which operate under the doctrine of separation of powers and the
principles of checks and balances, all within the framework of democratic
governance.
By examining the dual role of the Supreme Court as an

administrative system and as the guardian of the Constitution, the article
proposes a framework in understanding the dichotomy that separates
bureaucracy from democracy (Denhardt & Denhardt, 2009). Through this
paradigm, it is hoped that a middle ground is found to develop a normative
framework that can serve as a platform for genuine bureaucratic reforms.
This article reflects on the questions: (1) How does the democratic
governance framework affect, shape and define the administrative system?
(2) How does the administrative system affect, shape and define the
framework of democratic governance? In the end, we may very well ask
the question, "How then can the Supreme Court be an effective
administrative system enabler but still be faithful to its solemn duty to
guard and defend the Constitution?"
This article also reexamines, in the purview of the Supreme Court,

what Reyes (2012) referred to as, two of the "neglected dichotomies in
public administration today," (p. 18) namely: administrative efficiency
versus democratic pluralism, and the micromanagement approach versus
macromanagement approach [emphasis added], which provides
perspectives for bureaucratic reforms (Reyes, 1997, p. 282). Likewise, the
article discusses and hopes to elicit a better understanding of the nature
and extent of judicial power as the key to understanding the Supreme
Court and its role in the context of public administration and democratic
January-December
constitutionalism. Lastly, it provides some recommendations on how the

Supreme Court can effectively enable social transformation of the Filipino
nation.
Public Administration paradigms and theories were analyzed in the

light of judicial pronouncements. This is through the survey of related
jurisprudence enunciated in recent court decisions as well as circulars,
memorandum and press releases of the Supreme Court and other lower
courts.
Significance
The study looks through the lens of some contemporary theories of

Public Administration and Governance in reflecting on the following
neglected dichotomies: (1) bureaucracy versus democracy; (2)
administrative efficiency versus democratic pluralism; and (3)
micromanagement approach versus macromanagement approach. It is
then hoped that this will help in understanding the role of the Supreme
Court as an institution and as a purveyor of democratic governance.
There is dearth of available literature in the Philippines that deals

with the judiciary and its relationship with public administration. This is
because the "third branch" is perceived as a passive actor in the
bureaucracy and the government as a whole. On the other hand, public
administration practitioners and scholars need to appreciate in depth the
constitutional and political laws. Hence, this article hopes to contribute to
the scholarly work on the judiciary, in general, and the Supreme Court, in
particular, and how these could build on the study and practice of Public
Administration.
Understanding the Supreme Court

as an Administrative System
The judiciary is responsible for the government's adjudicatory

functions, and enforcing constitutional rights and rule of law. Given this
mandate, the Supreme Court can be considered an administrative system,
with the five basic components: (a) mandate as a public organization, (b)
internal process and interactive efforts, (c) implementation, assessment,
and support in formulation of public policies, (d) public-in-contact, and
(e) the greater sociopolitical and economic environment (Alfiler, 1999).
The sources of power of the Supreme Court as an administrative system
will be tackled under the components where they shall be relevant.
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Supreme Court as a Public Organization:

Its Component and Power Base
Section 1, Article VIII of the 1987 Constitution provides for the

mandate of the Supreme Court:
The Judicial Power shall be vested in one Supreme Court and in

such lower courts as may be established by law. Judicial power
includes the duty of the Courts of Justice to settle actual
controversies involving rights which are legally demandable
and enforceable, and to determine whether or not there has been
a grave abuse of discretion amounting to lack or excess of
jurisdiction on the part of any branch or instrumentality of the
Government. [emphasis added]
The Supreme Court holds the government's judicial power and, at

the same time, the duty to settle actual controversies involving rights that
are legally demandable and enforceable. As stated in the Constitution,
there can only be one Supreme Court of the land. Thus, in this sense,
judicial power is the exclusive domain of one Supreme Court, which
cannot be diminished by a legislative fiat that will confer such power to
another Supreme Court. However, it must be noted that "although the
judicial power is vested in the judiciary, the proper exercise of such power
requires prior legislative action (1) defining such enforceable and
demandable rights and prescribing remedies for violation of such rights;
and (2) determining the court with jurisdiction to hear and decide
controversies or dispute arising from legal actions" (Lopez v. Roxas, 1966,
as cited in Bernas, 2009).
Fr. Joaquin Bernas, S.J. (2009), a well-known constitutionalist and a

delegate of the 1986 Constitutional Commission, wrote that:
In a society which looks to the judiciary as the last bulwark of

constitutional rights and liberties, the last bastion of democracy,
one can be spared the agony of disappointment over the silence
of the judiciary about critical public issues if one takes the
trouble to find out the role of the judiciary in the constitutional
scheme. (p. 946)
The judiciary exercises judicial power under certain parameters and

allowable scope of judicial action. Judicial power refers to "the right to
determine actual controversies arising between adverse litigants duly
instituted in courts of proper jurisdiction" (Muskrat v. United States, 1911,
as cited in Bernas, 2009). Referring to Lopez v. Roxas (1966), Bernas (2009)
defined judicial power as "the authority to settle justiciable controversies
or disputes involving rights that are enforceable and demandable before
the courts of justice or the redress for violation of such rights." These
January-December
definitions imply that judicial power can only be exercised when real
parties, bound by existing laws, come to court to settle an actual
controversy (Bernas, 2009). As an administrative system, the mandate of
the Supreme Court is essentially for the delivery of justice through
adversarial proceedings.
The Judiciary Structure
Section 6, Article VIII of the 1987 Constitution mandates the

Supreme Court to appoint all officials and employees of the judiciary in
accordance with the Civil Service Law. Hence, it exercises exclusive
control and supervision over all court personnel in the judiciary, including
the magistrates in all court levels. With respect to the judiciary structure,
Section 2, Article XVIII of the Constitution gives the Congress power to
define, prescribe, and apportion the jurisdiction of the various courts.
However, under Section 5, Article VIII, the Congress may not deprive the
Supreme Court of its immutable jurisdictions, which means that it cannot
create a court co-equal to or superior than the Supreme Court. Thus, in
the exercise of this legislative power, the Congress has enacted Batas
Pambansa 129 or the Judiciary Reorganization Act of 1980, along with
other related amendatory laws.
The Judicial and Bar Council
Prior to the 1987 Constitution, judges and justices in the judiciary

were appointed by the President subject to the confirmation of the
Commission on Appointments in Congress. However, the selection and
appointment processes have changed with the creation of the Judicial and
Bar Council (Art. VIII, Sec. 8), an innovation in the 1987 Constitution.
The Council is under the supervision of the Supreme Court with the
clerk of court of the Supreme Court as ex-officio secretary. It is composed
of three ex-officio members (the Chief Justice as the ex-officio chairman,
the secretary of Justice, and a representative from Congress as members).
The four regular members are the following: a representative of the
Integrated Bar, a professor of law, a retired member of the Supreme
Court, and a representative from the private sector. The Constitution
mandates judicial independence, which requires the courts to be free from
any external influence. Nonetheless, the judiciary remains tends to be
influenced by partisan politics, as the President appoints the regular
members for a term of four years with the consent of the Commission on
Appointments.
2016
Internal Process and Interactive Efforts
The judiciary enjoys fiscal autonomy (Art. VIII, Sec. 3). Likewise, the
appropriations for the judiciary may not be reduced by the legislature
below the appropriation of the previous year, and, after approval, they
shall be automatically and regularly released.
With respect to its internal processes in administering the court and

allowing for simplified and efficient disposition of cases, Section 5,
paragraphs (3) to (6) and Section 6 of the 1987 Constitution grant the
Supreme Court auxiliary administrative powers. These include: (a) issuing
temporary assignment of judges, (b) ordering the change of venue, (c)
promulgating rules of procedure and enforcement of constitutional rights,
(d) integration of the bar, (e) legal assistance and admission to the practice
of law, (f) appointment of its employees, and (g) administrative supervision
over all courts (Bernas, 2009).
The fiscal autonomy and the auxiliary powers granted to the

Supreme Court insulate it from the partisan politics that usually influence
the executive and legislative branches of government. The Constitution
leaves it to the Supreme Court to solely determine its own internal
processes and interactive efforts to fulfill its Constitutional mandate.
Implementing, Help Formulating and Assessing Public Policies
Public policy is whatever governments choose to do or not to do.

Furthermore, it is also concerned with the reasons behind, and the impact
of, these choices (Dye, 2002). The legislative department is mainly
responsible for policymaking. Meanwhile, the administrative system,
usually through the executive branch, enforces the laws and implements
public policies (Alfiler, 1999). Hence, the Supreme Court as a public
administrative system implements public policies when it exercises its
adjudicatory functions in settling justiciable controversies as part of its
mandate. The Supreme Court likewise formulates public policies when it
issues rules of procedures for the enforcement of constitutional rights and
judicial remedies. Finally, it assesses public policies when it submits an
annual report to the President and Congress on the operations and
activities of the Judiciary, pursuant to Section 16, Article VIII of the 1987
Constitution,1 or when the Courts report to the Chief Executive, through
the secretary of Justice, any act that they may deem proper to repress but
which is not punishable by law. 2
January-December
Public-in-Contact
For an administrative system to be effective, it needs to understand

its public clientele as part of its system (Alfiler, 1999). Within its own
organization in the judiciary, the Supreme Court controls and supervises
all court personnel, including those in lower courts. In turn, they are
tasked to fulfill the mandate of the judiciary. Outside the judiciary, every
party-litigant who seeks redress and remedy in court comprises the public-
in-contact of the judiciary.
The Greater Sociopolitical and Economic Environment
The PAS is embedded in the sociopolitical and economic

environment, wherein various stakeholders have different and conflicting
interests, demands, and pressures (Alfiler, 1999). Understanding the
greater system is imperative for an administrative system to ultimately
win public support and acceptance.
The greater sociopolitical and economic environment within which

the Supreme Court functions as an administrative system will be discussed
in the succeeding part of this article using the framework of democratic
constitutionalism in the context of public administration.
Understanding the Role of the Supreme Court

within the Purview of Democratic Constitutionalism
and as Guardian of the Constitution
The Constitution is the fundamental and the supreme law of the

land. Under a democratic and republican government, sovereignty resides
in the people and all government authority emanates from them (Art. II,
Sec. 1). According to Wamsley et al. (1992), "public administrators must
always act within the constraints imposed by its origin in covenant, a
covenant reaffirmed in the Constitution" (p. 76).
Section 1, Article I of the Constitution provides for the Preamble,

which states:
We, the sovereign Filipino people, imploring the aid of Almighty

God, in order to build a just and humane society, and establish a
Government that shall embody our ideals and aspirations, promote
the common good, conserve and develop our patrimony, and secure
to ourselves and our posterity, the blessings of independence and
democracy under the rule of law and a regime of truth, justice,
freedom, love, equality, and peace, do ordain and promulgate this
Constitution.
2016
Citing Jacobson v. Massachusetts (1905), Bernas (2009) points out that

the preamble is not a source of power or right for any department of the
government. Nevertheless, the preamble provides a manifestation that the
Constitution is the articulation of the sovereign will of the Filipino people. In
fact, it identifies the Filipino people as the author of the Constitution who put
their mark of approval through the process of ratification. Thus, the
Constitution embodies the ideals and aspirations of the Filipino people, binds
the Filipinos through its heritage, culture, and history as a nation.
For Abueva (1993), the Constitution mandates social transformation

that will lead us towards the Filipino vision of the good society and authentic
democracy, "no less than building of a peaceful, prosperous, just and humane
society through a dynamic political, economic, social and cultural democracy"
(p. 268).
Democratic Governance:
The Philippine Political Context
To appreciate the relationship of the three branches of the government

in the context of public administration, there is a need to have a better
understanding of the democratic framework of the country that is enshrined
in Section 1, Article II of the Constitution, which provides that, "The
Philippines is a democratic and republican state. Sovereignty resides in the
people and all government authority emanates from them."
The previously mentioned constitutional provisions speaks of three

important aspects: (1) that the Philippines is a democratic state; (2) that
the Philippines is a republican state; and (3) that sovereignty resides in
the people and the government authority emanates from them. Bernas
(2009) broadly defines republican form of government as "one constructed
on this principle, that the supreme power resides in the body of the
people" (p. 56). On the other hand, sovereignty connotes as the source of
the ultimate legal authority. Note that the Constitution also mentions the
word "democratic," which, as Commissioner Nolledo (as cited in Bernas,
2009) puts it, is a "justifiable redundancy."
Understanding the Constitution
Woodrow Wilson (1887) argued that it is more difficult to administer

than to frame and amend the constitution. However, Rosenbloom,
Kravchuk, and Clerkin (2009, p. 468) observed that there are rather
limited discussions in public administration concerning democratic
constitutionalism. The Supreme Court and the judiciary play a major role
January-December
in administering the Constitution; thus, the need to understand the

Constitution and the laws is almost inevitable.
The Constitution also provides the public administrator the

framework within which the government should operate. It helps public
administrators understand how the co-equal branches of the government
co-exist and relate with each other in the democratic governance paradigm
so that they can function accordingly (Rosenbloom et al., 2009).
Collapse of Separation of Powers:

Understanding the Administrative Bodies
Administrative bodies have been created to overcome the slow and

cumbersome quality of government due to the separation of powers by the
three departments (Rosenbloom et al., 2009). Nachura (2006) defines
administrative bodies as "organs of the government, other than a court
and other than a legislature, which affects the rights of private parties
either through adjudication or rule making" (p. 392). They possess quasi-
legislative or rule-making power, which is the power of the legislative;
quasi-judicialor adjudicatory power, which is a function of the judiciary;
and determinative or enforcement power, which is a domain of the
executive. As such, the courts and, ultimately, the Supreme Court, may
subject administrative actions (in rulemaking, adjudication and execution
areas) to judicial review, taking into account relevant constitutional,
statutory, and executive provisions. This will determine whether an
administrative action constitutes a grave abuse of discretion amounting to
lack or excess of jurisdiction (Denhardt & Denhardt, 2009).
Collapsing of separation of powers has both administrative and

constitutional consequences. For one, public administrators can be held
accountable to each of the three constitutional branches. To illustrate,
officials of the Department of Environment and Natural Resources (DENR)
are directly accountable to the President, but they are subject to the
oversight committee on the environment of the Congress, and their acts
are reviewable by the judiciary. Moreover, public administrators exercise
functions originally assigned to each of the constitutional departments
(Rosenbloom et al., 2009).
Understanding the Role of the Supreme Court

as the Guardian of the Constitution
The role of the Supreme Court as the guardian of the Constitution is

expressly provided under Section 1, paragraph (2) of Article VIII, which
2016
grants the Supreme Court the expanded power of judicial review. This
means that the Court may nullify and declare unconstitutional any act of
the President, the Congress or any branch or instrumentality of the
government if it finds grave abuse of discretion amounting to lack or
excess of jurisdiction.4 In Duero v. Court of Appeals (2002), grave abuse
refers to the arbitrary or despotic exercise of power due to "passion or
personal hostility", to the extent that one deliberately evades or refuses to
perform duties according to the law. Further, citing Infotech Foundation
et al. v. COMELEC (2004), Bernas (2009) explained that an act could be
considered grave abuse of discretion when it goes against the Constitution,
the law or jurisprudence, or "when it is executed whimsically, capriciously
or arbitrarily out of malice, ill will or personal bias."
The power of judicial review is the crux of the controversy among the
three co-equal branches of the country. Critics brand the exercise of this
power as "judicial overreach," which is tantamount to an encroachment on
the powers of the two other branches of the government and, as such, a
violation of the doctrine of separation of powers.
The power of judicial review may be better understood within the

context of democratic constitutionalism, which emphasizes the role of the
Supreme Court as the guardian of the Constitution and the final arbiter of
all justiciable questions and controversies. Justice Laurel (Angara v.
Electoral Commission, 1936, as cited in Bernas, 2009)5 thus reminds us
that:
And when the judiciary mediates to allocate constitutional

boundaries, it does not assert any superiority over the other
departments; it does not in reality nullify or invalidate the act of the
legislature [or the President], but only asserts the solemn and
sacred obligation assigned to it by the Constitution to determine
conflicting claims of authority under the Constitution and to
establish f or the parties in an actual controversy the rights which
the instrument secures and guarantees to them. [emphasis added]
The granting of the power of judicial review to the judiciary is a

response to the dictatorial regime of the Marcos administration. Hence,
the power of judicial review is then considered as the anti-thesis of an
arbitrary government or, as Justice Marshall would put it, "the sine qua
non of Constitutionalism."6
The Dual Role of the Supreme Court as the Key

in Unraveling the Dichotomy of Bureaucracy and Democracy
A better understanding of the Philippine political context will give a

proper perspective on the separation of powers in the government. Justice
January-December
Louis Brandeis explained the doctrine of separation of powers in his

dissenting opinion in the case of Myers v. United States (1926), thus:
The doctrine of separation of powers was adopted...not to

promote efficiency but to preclude the exercise of arbitrary
power. The purpose was not to avoid friction, but, by means of
inevitable friction incident to the distribution of governmental
powers among these three departments, to save the people from
autocracy. (p. 293)
The system is predicated on the belief that, by allocating the powers

of the government to the three branches, harmony will be achieved, power
will not be concentrated, and, thus, autocracy will be avoided. This
political context serves as not only the foundation but also the limit of
every bureaucratic action. As pointed out by Wamsley et al. (1992, p. 36),
public administration should be understood as "the administration of
public affairs in the political context" (as cited in Reyes, 1995, p. 291).
Administrative Efficiency vs Pluralist Democracy:

Understanding the Two Competing Ideologies of Governance
Thus, as Wamsley and his colleagues (1992, p. 64) assert, "we know a
bit about the part bureaucracy plays in governance" because most scholars
have conveniently advocated only two competing models concerning "how
government should work and be structured" (Wamsley et al., 1992, p. 61),
namely: (1) administrativeefficiency, and (2) pluralist-democracymodel.
The former espouses Wilsonian sense of business-like procedures and

rational decision making where the prime value should be efficiency- the
greatest output at the least cost. This is labeled by Reyes as the
micromanagement approach, which essentially advocates managerialist or
agency perspective, which is the institution-based initiative for change.
Meanwhile, the latter supports what Reyes calls the macromanagement
approach, which assumes, among others, that "the government should
have multiple and dispersed centers of power to ensure that ambition
counter-acts ambition and a balance or power results" (Wamsley et al.,
1992, p. 62, as cited in Reyes, 1997, pp. 282-283).
Wamsley et al. (1992) asked two perennial questions that arise from
the aforesaid two models:
[I]s the pluralist-democracy 'model,' and its corollary implications

for administration, adequate to meet the problems of a modern,
industrialized and complex society? Conversely, is the
administration-efficiency 'model,' with its emphasis on
businesslike procedures and rational decision making, adequate
2016
to deal with the problems of administration in a political and

democratic setting? (p. 62)
For these scholars, the two models hold us captive such that we
might never come to grips with an enlightened answer. In fact, Wamsley
et al. (1992) offered the following value premises that serve as
alternatives to these models:
(1) Public administration-with the managerial skills that lie at

its core and its experience in applying those skills in a
political context-is a social asset;
(2) Public administration has a distinctive character that sets it

apart from private management-for the public administration
is more than generic management; it is the administration of
public affairs in a political context... it is governance; and
(3) There are positive aspects to agency perspective-agencies

represent some degree of consensus as to the public interest
relevant to a particular societal function. (pp. 68-69)
These scholars conclude that a more favorable interpretation of the

public administration's constitutional role can be developed and more
closely examined.
Bureaucracy vs Democracy
Table 1 illustrates the competing values of democracy and

bureaucracy as abstracted from the discussions of Denhardt and Denhardt
(2009, p. 18). As both a bureaucratic institution and a bastion of
democratic principles, the Supreme Court is expected to reconcile the
values espoused by the bureaucracy (e.g., hierarchy and collectivism) with
that upheld by democracy (e.g., individualism, equality and participation).
In particular, the Supreme Court assumes a dual role as: (1) an

administrative system promoting the traditional bureaucratic values such
as the 3Es of "efficiency, effectiveness and economy that have served as
guiding principles in public administration theory and practice for almost a
century perceived to remain relevant, but have been claimed to be
inadequate to meet current stress for better bureaucracies" (Ross, 1994
and Wamsley, 1996, as cited in Reyes, 1997, p. 281); and (2) guardian of
the Constitution espousing democratic values such as the 3Rs of
"responsiveness, representativeness and responsibility" (Wamsley, 1996, p.
355, and Rosenbloom & Ross, 1994, p. 156, as cited in Reyes 1997, p. 281).
What can we then learn from this dual role of the Supreme Court?
January-December
Table 1. Values of Democracy vs. Values of Bureaucracy

D enorao, Bureaucaq Canpeting Values
The individual isthe The work of many D emocratic:

measureof human value individualsisbrought Value of the I ndividual
and his' her development is together to achieve
an essential goal of the objectivesthat none of Bureaucratic:
democratic political sem. them can accomplish Valueof the Group
individually.
Theprincipleof equal Thereexistsastructured D emocratic:

protection isvalued and hierarchy, with those on top Valueof Equality
doesnot discriminateon exercising greater power
the basisof wealth, statusor and discretion than those at Bureaucratic:
position. thebottom. Valueof Hierarchy
W idespread participation Power and authorityflow Democratic:

among citizensis from the top to the bottom Valueof Participation and
encouraged in the moral of the bureaucratic Involvement
decision- making proces organization.
Bureaucratic:
Valueof Top-down
Decision Making and
Authority
Adapted from Denhardt &Denhardt (2009)
Key Issues in the Philippine Judiciary:

Through the Lens of Public Administrative Thought
Undeniably, the judiciary and the Supreme Court play an important

role in public administration practice under the framework of democratic
governance. As the paper suggests, the Supreme Court's dual role as a
public administrative system and as the guardian of the Constitution
places it, at some point, at the center of competing ideologies of
democracy and bureaucracy, as well as of the conflicting approaches of
administrative efficiency and pluralist democracy. This seeming
ambivalence may enlighten public administration practitioners, scholars,
and students, particularly with regard to issues that beset the judiciary,
which are discussed in the following sections.
2016
Undue Judicial Interference:

Is Inefficiency the Price of Democracy?
The judiciary mainly interprets the Constitution and all other laws
with which the President, all other officials under the executive
department, the Congress, the constitutional offices, the administrative
bodies, as well as all government instrumentalities and agencies, must
operate and conform. Hence, there are instances when the judiciary's
pronouncements seemingly encroach upon the authority of the two other
branches, and even the sphere of the constitutional bodies and offices.
Thus, these judicial acts are sometimes construed as obstacles to an
efficient and effective service delivery to the public.7 Nevertheless, the
Supreme Court justifies itself as merely affirming the supremacy of the
Constitution, even when doing so frustrates the traditional values of the
public administrative system or the bureaucracy.
Unwarranted Judicial Prerogative:

Is Secrecy Not the Antithesis of a Democracy?
The Supreme Court has been criticized often for adopting a double-
standard policy when it comes to criticisms of official conduct. In the
leading case of U.S. V. Bustos (1918, as cited in Cruz, 2000), Justice
Malcolm said:
The interest of society and the maintenance of good government

demand a full discussion of public affairs. Complete liberty to
comment on the conduct of public men is a scalpel in the case of
free speech. The sharp incision of its probe relieves the
abscesses of officialdom. Men in public life may suffer under a
hostile and unjust accusation; the wound may be relieved by the
balm of a clear conscience. A public official must not be too thin-
skinned with reference to comment upon his official acts.
[emphasis added] (p. 221)
Worthy of note is the rule on criticism of the administration of

justice. While the Supreme Court has taken a lenient view regarding
attacks against public officials in general, it is not similarly disposed in
terms of public comment upon their own conduct. For example, in re Sotto
(1995), a senator was punished for contempt for having attacked a decision
of the Supreme Court, which he described as incompetent and narrow-
minded. With respect to pending litigations, the Supreme Court forbids
public comment because it would interfere with the administration of
justice. People v. Alarcon (1939, as cited in Cruz, 2000) held that
[n]ewspaper publications tending to impede, obstruct, embarrass

or influence the courts in administration of justice in a pending
January-December
suit or proceeding constitutes criminal contempt which is

summarily punishable by the courts. The rule is otherwise after
the case is ended. (p. 224)
It did not explain how or why such comments would affect the
administration of justice.
Interestingly, after more than 20 years, the Supreme Court reversed

its 1989 ruling, where the magistrates unanimously ruled to deny the
request of one Jose Alejandrino to release their statements of assets,
liabilities, and net worth (SALNs).8 The reversal happened during former
Chief Justice Renato Corona's impeachment for culpable violation of the
Constitution and betrayal of public trust.
Conceivably, while the Supreme Court espouses the values of

democracy as the supposed guardian of the Constitution, it is apparent
that, as a public administrative system, it adopts the Weberian value of
secrecy, even when it proves to be an antithesis to the concept of
democracy. In light of these issues, how do we view the predicament of the
Supreme Court of being caught in the middle of the opposing worlds of the
bureaucracy and democracy?
This article does not attempt to explain how understanding the dual
role of the Supreme Court can lead to a normative framework for the
development of a legitimate role in governance for the bureaucracy, as
suggested by Wamsley et al. (1992). Rather, this article attempts to
interrogate what Reyes (1997) refers to as the "imponderables." Is the
dichotomy of bureaucracy and democracy illusory to begin with? What can
we benefit as public administrators if we consider governance as our
context? Can the administrative system pursue bureaucratic reforms
outside the context of democracy and the Constitution?
What, then, is the role of the Supreme Court as an administrative

system and a guardian of the Constitution "to arrest the growing and
almost disruptive culture of hyper-pluralism pervasive in most democratic
societies today" (Reyes, 1997, p.293)? Finally, is inefficiency the price that
we need to pay for democracy?
Wamsley (1996) calls for a refounding of public administration,

stating that the "scientific quest for the 3Es (economy, efficiency,
effectiveness) for increased output is not simply misguided because it puts
primary emphasis on the wrong values for public administration in a
democracy, where the prior concerns should be for responsiveness,
representativeness, and responsibility" (p. 355, as cited in Reyes, 2001, p.
233). Wamsley (1996) suggests that public administration today needs
2016
"multiple paradigms which can provide different 'lenses' for seeing our
subject from different perspectives" (p. 366, as cited in Reyes, 2001, p.
233). This may help in understanding how bureaucracy can operate in a
democratic context.
Meanwhile, Waldo (1948), explains that
public administration revolved around a core set of beliefs that

cumulatively served to constrain theoretical development. Key
among these were the beliefs that efficiency and democracy were
compatible and that the work of government could be cleanly
divided into separate realms of decision and execution. (as cited in
Frederickson, Smith, Christopher, & Licari, 2012, p. 43)
Likewise, to place efficiency as central goal of public administration

is to ignore political reality. Waldo (1948, as cited in Frederickson et al.,
2012, p. 45) opines that the founders of public administration have
resolved this conundrum by embracing democracy as the guiding principle
of the American political system, but keeping it external to the
professional interests through the politics-administration dichotomy. In
other words, so long as public reforms increase efficiency in
administration, and administration was separated from politics, the
contradictions of the bureaucracy with the egalitarian ideals of democracy
should not be an issue.
However, the founders of Public Administration as a discipline were

not opposed to democracy. They were progressive reformers who espoused
the democratic ideals and values. Frederickson et al. (2012) point out that
"the reality they faced at the time, however, was a public administration
characterized by disorganization, amateurism and dishonesty" (p. 45).
Thus, it was for the expediency and the demands of their times that these
public administrators put emphasis on the value of the bureaucracy. This
means that the undemocratic elements of the bureaucracy could operate
in the service of democracy as long as the politics-administration
orthodoxy is upheld. Regrettably, the politics-administration dichotomy
proved an illusion, as public administration exists in a political context. As
Waldo (1952, as cited in Frederickson et al., 2012, p. 46) pointed out,
administrative theory has to bring back the concept of democracy, and
public administrators must recognize that bureaucracy is not value-
neutral and that its uneasy relationship with democratic principles must
be recognized. In light of all these, unfortunately, Wamsley and Waldo
have not offered any concrete prescriptions and measures as to how the
two worlds of democracy and bureaucracy can be reconciled.
January-December
Recommendations
The Supreme Court indeed plays an important role in public

administration practice under the framework of democratic governance.
Understanding the dual role of the Supreme Court as a bureaucracy and
as the guardian of the Constitution under the lens of public administrative
theories gives us the benefit of introspection. Nevertheless, as
Frederickson et al. (2012) put it, the ultimate test is whether we can find
these public administrative theories useful in their practical application.
Thus, the true power of the Supreme Court and its vital role in the
country lies in the fulfillment of its mandate as an effective channel for
the administration of justice (i.e., as a PAS) and as the bulwark of our
democracy (i.e., as the guardian of the Constitution).
Reforms in the Philippine judiciary, which started in the 1990s, were

built on the findings from at least 40 technical studies on court
administration. This included: (1) Technical Assistance of the Philippine
Judiciary on Justice and Development (1996-1999); (2) Blueprint of Action
for the Judiciary (1999), (3) Action Program for Judicial Reform (2001-
2010), and (4) Judicial Reform Support Project (2001-2012) (Supreme
Court, 2016).
At present, under the stewardship of Chief Justice Maria Lourdes

Sereno, all these actions have now been included in "The Judiciary and
Legal Profession Development Plan" (JLPDP), which is now being
developed as the judiciary's roadmap, highlighting major ongoing or future
programs, projects and activities. The Supreme Court (2016) explains that
"the reform programs continue to evolve, taking their cue from changes in
our environment, culture, and learnings from ongoing court initiatives" (p.
51), aiming to continue past and present achievements of the Supreme
Court, and to link them with future plans. These initiatives will hopefully
strengthen the Supreme Court as an administrative system under the
framework of democratic constitutionalism.
In view of the solemn and sacred role of the Supreme Court as the
guardian of the Constitution, its power of judicial review over the acts of
the executive and legislative departments must likewise be linked with its
integrity and independence as an institution. The bureaucracy will be able
to uphold the values of democratic constitutionalism if the Supreme Court,
as the guardian of our democracy, has the moral ascendancy and the
legitimacy to claim such sacred obligation.
2016
Concluding Remarks
Biller (1971), in his analysis of the historical roots of PA in the U.S.,

points out that the "inward-looking theme" is "one in which we demand
that the public's business be conducted with competence, efficiency and
care" (p. 94, as cited in Reyes, 1995, p. 23). On the other hand, the
"outward-looking orientation" reflects the sensitivity to improving the
lives of other people, not only of those in the bureaucracy. Reyes re-
conceptualizes Biller's notions of the outward-looking theme "to sensitivity
to the needs and demands of the recipients of public goods and services"
[emphasis supplied] (Reyes, 1995, p. 23).
In this sense, public administrators must always go back to the

Constitution as the guiding framework of the bureaucracy in upholding
both bureaucratic values (e.g., efficiency, effectiveness, and economy) and
democratic values (e.g., separation of powers, due process, equal
protection, freedom of expression, etc.). In the words of Wamsley et al.
(1992), "public administrators must always act within the constraints
imposed by its origin in covenant, a covenant reaffirmed in the
Constitution" (p. 76). Understanding the relationship of the judiciary and
public administration as well as the role of the Supreme Court in
democratic constitutionalism can be a good starting point for public
administrators to initiate bureaucratic programs and reforms, taking into
consideration the greater political landscape.
Wamsley (1996) believes that public administration today needs

"multiple paradigms which can provide different 'lenses' for seeing our
subject from different perspectives" (p. 366, as cited in Reyes, 2001, p.
233). Indeed, understanding the Supreme Court's dual role as an
administrative system and as guardian of the Constitution through the
lenses of various administrative theories involving the bureaucracy and
democracy dichotomy and the administrative efficiency and democratic
pluralism ideologies in the context of democratic constitutionalism
provides us with frameworks that will hopefully be applicable to public
administration practice.
Endnotes
Section 16, Article VIII of the Constitution provides that "The Supreme Court
shall, within thirty days from the opening of each regular session of the Congress,
submit to the President and the Congress an annual report on the operations and
activities of the Judiciary."
2 Article 5 of the Revised Penal Code provides that "Whenever a court has
a
knowledge of any act which it may deem proper to repress and which is not punishable
January-December
by law, it shall render the proper decision, and shall report to the Chief Executive,
through the Department of Justice, the reasons which induce the court to believe that
said act should be made the subject of a penal legislation."
Section 1, Article II of the 1987 Constitution.
Section 1, Article VIII of the 1987 Constitution states, "Judicial power includes
the duty of the courts of justice to settle actual controversies involving rights which are
legally demandable and enforceable, and to determine whether or not there has been
abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch
or instrumentality of the Government."
I Justice Laurel is the ponente of the landmark case, Angara v. Electoral

Commission (1936).
6 The American Constitution does not contain an express grant of the power of
judicial review which is first articulated in the landmark US case of Marbury v. Madison
(1803). Its existence, however, is anchored on the basic theory in the grant of judicial
power to the Court.
The declaration of the Supreme Court of the Congress's Priority Development

Assistance Fund (PDAF) in Araullo et al. v. Aquino et al. (2014) and the President's
Disbursement Accelerated Program (DAP) in Belgica et al. v. Aquino et al. (2013) as
unconstitutional has been criticized for being undue judicial interference that practically
deprived the elected officials from promptly responding to their constituencies.
Re: Request of Jose M. Alejandrino, SC Resolution dated 2 May 1989.
References
The 1987 Constitution of the Republic of the Philippines.
Abueva, J.V. (1993). Towards the Filipino vision of the Good Society and an authentic
democracy: From development to social transformation. In V.A. Bautista, M.C.P.
Alfiler, D.R. Reyes, & P.D. Tapales (Eds.), Introduction to public
administration in the Philippines: A reader (pp. 268-280). Quezon City,
Philippines: UP NCPAG.
Alfiler, M.C.P. (1999). Philippine administrative system. Quezon City, Philippines: UP

Open University.
Angara v. Electoral Commission, 63 Phil. 139, 158 (1936).
Bernas, J.G. (2009). The 1987 Constitution of the Philippines: A commentary. Quezon
City, Philippines: Rex Printing Company.
Cruz, I.A. (2000). Constitutional law. Quezon City, Philippines: Central Law Book
Publishing Company.
Denhardt, R.B. & Denhardt, J.V. (2009). Public administration:An action orientation
( 6 th edition). California, USA: The Thomas Corporation.
Duero v. Court of Appeals, G.R. No. 131282, 373 SCRA 11 (2002, January 4).
2016
Dye, T.R. (2002). Understanding public policy ( 1 0 '^ edition). USA: Prentice Hall.
Frederickson, H.G., Smith, K.B., Christopher, W., & Licari, M.J. (2012). The public
administrative theory primer. Boulder, Colorado, USA: Westview Press.
In re Sotto 46, Off. Gaz. 2570 (1955).
Infotech Foundation, et al. v. COMELEC, G.R. No. 159139, (S.C. 2004).
Jacobson v. Massachusetts, 197 U.S. 22 (1905).
Lopez v. Roxas, 17 SCRA at 761 (1966).
Muskrat v. United States 219 U.S. 346 (1911).
Nachura, A.B. (2006). Outline reviewer in political law. Quezon City, Philippines: VJ
Graphic Arts, Inc.
People v. Alarcon, 69 Phil. 265 (1939).
Reyes, D.R.R. (1995). Life begins at forty: An inquiry on administrative theory in the
Philippines and the structure of scientific revelations. In P.D. Tapales, N.N.
Pilar, & N. Romblon (Eds.), Public administration by the year 2000: Looking
back into the future.
Reyes, D.R.R. (1997). Controversies in public administration: Enduring issues and

questions in bureaucratic reform. Philippine Journal of Public Administration,
41(1-4), 277-300.
Reyes, D.R.R. (2001). An overview of current developments in the study and practice of
public administration. Philippine Journal of Public Administration, 45(3), 225-
241.
Reyes, D.R.R. (2012). The antimonies of administration: Politics-Administration and

the neglected dichotomies of administrative thought. Paper presented at the
NCPAG 6 0 th Anniversary Conference on Public Administration and Governance:
Tradition and Transformation, Shangri-La Hotel, Mandaluyong City,
Philippines.
Rosenbloom, D.H., Kravchuk, R.S., & Clerkin, R.M. (2009). Public administration ( 7 th
edition). New York: McGraw-Hill Book Co., Inc.
Supreme Court of the Philippines (2016). The judiciary annual report (2015-2016).
Retrieved from http://sc.judiciary.gov.ph/pio/annualreports/SCAnnual_2015-
2016_narrative%20report.pdf.
U.S. v. Bustos, 37 Phil. 731 (1918).
Wamsley, G.L., Godsell, C.T., Rohr, J.A., White, 0., & Wolf, J. (1992). A legitimate role
for bureaucracy in democratic governance. In L. Hill (Ed.), The state of public
bureaucracy. New York: M.E. Sharpe.
January-December
Synergies in Philippine Language-in-

Education Policy in RA 10533:
The Case of MTBMLE
Implementation in Tacurong Pilot
Elementary School
ANTONIO D. IGCALINOS*
The continuing struggle to advance a democratic and

inclusive language policy and governance in the Philippines has
never been more challenging as public forces, aided by private
interests, have deployed coercive State powers to reverse significant
inroads gained over decades of painstaking research and
immersive work in communities by volunteers and stakeholders
from the academia, nongovernmental organizations, and people's
organizations coming together and guided by pragmatic ideals and
shared values of equity and sustainability in development.
Ongoing attempts at providing a framework for inclusive language
policy and governance are not succeeding on a broader, nation-
state scale as marginal victories from the struggle were confined to
peripheral narratives valued more for novelty and less for
potential as reference for rigorous discourse on identities, human
rights, and development. The emergence of mother tongue-based
multilingual education as an inclusivist philosophy in education
and development offers a new paradigm and demands new
perspectives from which to measure impact and gains. As a
community-driven and sustained initiative, the policy is assessed
in terms of its drawing power to rally key policy actors to work on
a common platform to ensure sustainability.
Keywords: multilingual education, devolution, contextualization,

collaborativegovernance
Introduction
This article examines, from the lens of participatory governance on a

macro and micro scale, the implementation synergies of mother tongue-
based education policy in the Philippines, the challenges it is facing as
*Master of Public Administration Student, National College of Public

Administration and Governance, University of the Philippines Diliman.
This article was based on a paper that was presented at the 2016 NCPAG Good
Governance Research Colloquium and Paper Competitions.
45
well as prospects for its sustainability. Four questions frame the purpose
of this article, to wit:
(1) What policy components are necessary to make the program

sustainable?
(2) What initiatives are being introduced in the community to make

the implementation sustainable?
(3) What are the issues and challenges attendant to policy

implementation and how are they being addressed?
(4) What success indicators can be observed in the community,

particularly in (a) education outcomes, i.e., participation, early
grade literacy, identity, general school achievement; (b) empathetic
relationships among ethnolinguistic groups; and (c) expression of
favor and support from stakeholders?
For macro analysis, this article documents, in limited scope, the

national level, relationships that the Department of Education (DepEd) has
with both state and non-state policy actors. At the micro level, the study
focused on Tacurong Pilot Elementary School on account of its highly
diverse community situated in a cultural melting pot. The study involved
consultative forums and orientation where key stakeholders were invited
and interviewed. Stakeholders included DepEd, teachers, students,
parents, non-governmental organizations, parents-teachers associations,
local government units, local media, local writers and artists, private
sector and business, people's organizations, higher education institutions,
and elders of ethnolinguistic groups for both levels where available. By
purposive sampling, Tacurong Pilot Elementary School is chosen for its
location, student diversity, and for being situated in the cultural melting
pot in the region.
Broadly, the policy, embedded in Republic Act (RA) 10533 or the

Enhanced Basic Education Act of 2013, provides for the use of regional or
native languages of learners in the instruction from kindergarten up to
Grade 3 (Sections 4, 5c, 5f, and 5h, RA 10533), provided that a transition
program (also in Sec. 12) be implemented for Grades 4 to 6, to gradually
introduce Filipino and English as the medium of instruction. Native or
regional languages pertain to first language (Ll), defined in the law as
"languages first learned by a child, which he/she identifies with, is
identified as a native language user by others, which he/she knows best,
or uses most" (Sec. 4).
January-December
SYNERGIES IN PHILIPPINE LANGUAGE-IN-EDUCATION POLICY 47
Policy Evolution: Timelines
From Spanish to English to the National Language
The Philippines' language-in-education policy has evolved with the

imperatives of the state and its institutions. Spanish was the official
language during Spain's rule (Sobritchea, 1996). During the First
Philippine Republic, the Malolos Constitution made Spanish language
compulsory in the conduct of public and judicial affairs. English replaced
Spanish as the official state language in commerce and trade although the
latter is maintained as the medium of instruction in many elite schools
(Rodao, 1995).
From Spanish to English, a policy shift towards the adoption of a

national language took place during the Commonwealth period. President
Quezon, stirred by language nationalism, facilitated the eventual
enshrinement of Tagalog as the foundation of the national language via
Executive Order 134, s. 1937. Article XIII, Sec. 3 of the 1935 Constitution
was an articulation of Quezon's vision, which provides that "the National
Assembly shall take steps toward the development and adoption of a
common national language based on one of the existing native languages.
Until otherwise provided by law, English and Spanish shall continue as
official languages." As the national language, Tagalog gained traction
during the Japanese occupation when it was used as the language of the
propaganda movement, bringing the language to areas where it was not
even spoken, much less understood (Javier, 1975).
The Bilingual Education Policy
The 1973 Constitution provided the framework for further

entrenchment of a Tagalog-based national language which it called
Filipino (Article XV Sec. 3, par. 2), which institutionalized the bilingual
education policy (BEP) in the then Department of Education, Culture and
Sports via DECS Order 25, s. 1974 that went on until the introduction of
mother tongue-based multilingual education.
The 1987 Constitution, while upholding Filipino as the national

language, provides for other Philippine languages to be used in the formal
instruction to develop, promote, propagate and preserve Filipino and other
languages (Sec. 9). According to the 1987 Policy on Bilingual Education
(Department Order 52, s. 1987), the BEP was crafted to:
... enhance learning through two languages to achieve quality

education, propagate Filipino as a language of literacy, develop it
2016
as a linguistic symbol of national unity and identity, cultivate and

elaborate Filipino as a language of scholarly discourse, and
maintain English as an international language for the
Philippines and as a non-exclusive language of science and
technology. Filipino and English shall be used as media of
instruction, the use allocated to specific subjects in the
curriculum.
In this light, DECS issued Department Order 81, s. 1987 which

expanded the Filipino alphabet system. On 25 August 1988, President
Corazon Aquino signed Executive Order 335 enjoining all government
offices to use Filipino in official transactions, communications and
correspondence. Three years later, Aquino signed into law Republic Act
7104 creating the Komisyon sa Wikang Filipino (KWF) to further
strengthen Filipino as well as the other Philippine languages. Filipino is
defined as "a native language, spoken and written in Metro Manila, the
National Capital Region, and in urban centers in the archipelago where it
is used as a language for communication among ethnic groups" (KWF
Resolution 92-1, 13 May 1992).
In 1996, the Commission on Higher Education (CHEd) issued CHEd

Memorandum Order (CMO) 59, s. 1996, which stipulates, in light on the
BEP underlined in DECS Order 52, s. 1987, the following as guidelines as
regards medium of instruction:
(1) language courses, whether Filipino or English, should be taught

in that language;
(2) literature subjects may be taught in Filipino, English or any

other language as long as there are instructional materials
available and where both students and teachers are competent in
the language; and
(3) courses in humanities and social sciences preferably be taught in

Filipino.
Towards Multilingual Education
Despite various numerous attempts to install English as the medium

of instruction for all levels in basic education except for subjects in
Filipino, the DepEd on 14 July 2009, issued DepEd Order 74, s. 2009,
mandating the institutionalization of mother tongue-based education. The
following year, 2010, then newly-elected President Aquino III introduced
the K12 program. In 2011, President Aquino signed into law Republic Act
10533, subsuming the provisions of DepEd Order 74 into Sections 4 and 5
of the new law.
January-December
The most compelling argument for the latest shift was the outcome
of the bilingual policy that has been in place since 1974. A study by
Brigham and Castillo (1999), commissioned by the Asian Development
Bank (ADB) and World Bank, pointed to dismal performance and poor
mastery of reading and writing skills in Filipino and English of students
under the BEP, which allows use of regional languages as transition
languages in Grades 1 and 2 only (Brigham & Castillo, 1999). The study
confirms that using the learner's mother tongue facilitates literacy,
learning of academic content, acquisition of a second language, and overall
academic achievement where parents are more involved and where
teachers are able to assess learning achievement better (Kosonen, 2005a).
Principles and Evidence that Underpin Policy:

Some Background Literature
This section lays down the rationale for the latest shift in policy
guided by evidence culled from years of local and international
experiments, the necessary components for successful implementation,
key governance imperatives, as well as demands for new models of
language and education development that are integrative in character to
ensure inclusivity and sustainability (Malone, 2003).
Evidences of Gains
Two long-term local experiments are worth considering. In the First

Iloilo Experiment, conducted between 1948 until 1954, test results showed
that the experimental group of students who were taught using Hiligaynon
as the language of instruction was significantly superior in proficiency in
language and reading tests and in tests on arithmetic and social studies
subjects compared to the control group who were taught using English for
the same tests among Grades 1 and 2 pupils. For Grades 3 to 6, the
experimental group obtained higher proficiency in reading and higher
achievement levels in arithmetic and social studies than the control group
that learned English starting in Grade 1 (Aguilar, 1961). Meanwhile, the
Lubuagan Experiment showed in its test results significant and consistent
advantage for children in the experimental group using Lilubuagen across
all subjects in the curriculum compared to the performance registered by
children in the control group using the prevailing bilingual instruction in
English and Filipino (Walter & Dekker, 2011).
In Africa, mother tongue-based learning was positively correlated

with social development as high retention and enrollment, and lessening
repeat classes and school leaving were noted (Benson, 2010). A
2016
longitudinal study spanning 11 years involving more than 210,000 students

in both urban and rural schools in the United States showed that students
with the longest exposure to their mother tongue outperform the average
native English speaker and students who switched to English after the
third grade performed poorly in the latter years (Thomas & Collier, 1997).
Components and Conditions for Success
In addition to the experiments, principles that have been tested and

validated serve as foundations in policy implementation. Policies
unsupported by research evidence tend to fizzle at midstream. Such was
the case with previous language policies which failed because these were
oblivious to research evidence that instructed otherwise (Bautista,
Bernardo, & Ocampo, 2010).
Malone, who spent decades researching in multilingual, multicultural

settings in various parts of the world, has come up with ten key
components which became a useful guide in numerous successful policy
implementations in many parts of Asia and Africa. These are:
(1) preliminary research;

(2) awareness raising and mobilization;
(3) recruitment and training;
(4) working orthography;
(5) local development of materials;
(6) teacher training/preparation;
(7) availability of graded learning materials;
(8) mechanisms for coordination and monitoring and evaluation;
(9) availability and accessibility of funding to sustain the program;
and
(10)supportive policy environment. (Malone, 2003, pp. 8-9)
These components are to be located in the synergy mapping, which

will be discussed in the next sections, to understand the nature of
collaboration that exists between and among policy stakeholders.
Awareness raising and mobilization generate broad social acceptance

and buy-in; higher awareness translates to greater mobilization for
program support. Recruitment and training bring in the right people to
implement the policy. A working orthography is developed in a
community-based, user-determined setting (Bow, 2013), veering away from
the divisive and invasive expert and linguist-driven process (Panda
&
Mohanti, 2009). Local development of materials starts from where the

learners are. Teacher training considers the local language proficiency of
January-December
teachers to facilitate better interaction in the classroom. Graded

materials, especially the locally produced ones, are culturally situated,
interesting, challenging, and engaging, and take into consideration the
diverse socioeconomic patterns and levels of literacy development of
learners (Bernardo, 2000).
Policy components notwithstanding, success in implementation is

owed to collaborative planning which, according to Margerum (2002), is
based on a two-way communication flow between the public and the
planning agency, emphasizing the communicative and interactive nature
of planning practice achieved through collaborative planning. From a
program management perspective, planning ensures only half the success.
Collaborative planning involves partnerships in building consensus, which
makes it imperative that key stakeholders are involved all phases-the
problem-setting phase, the direction-setting phase, and the
implementation phase.
Imperatives for Sustainability and the Role

of Participatory Governance
In many policy contexts, participatory governance proves a key factor

in successful implementation. Participatory governance is defined as a
governing arrangement where public agencies directly engage with non-
state stakeholders in a collective decision-making process that is formal,
consensus-oriented and deliberative for the purpose of making or
implementing public policy or in managing public programs and projects
(Ansell & Gash, 2008). A parallel view supports the argument that
participatory governance results from dynamic interactions between
government, business, and civil society organizations (CSOs) in the
formulation of state policies, implementation of government programs,
projects and activities, and in ensuring government transparency,
accountability and citizen's participation (Lucas & Tolentino, 2006).
Similar in character to participatory governance is collaborative

governance, defined as the processes and structures of public policy
decision making and management that engage people constructively
across the boundary of public agencies, levels of government, and public,
private and civic spheres to carry out a public purpose that could not be
accomplished otherwise (Emerson, Nabatchi, & Balogh 2011).
Among the key elements in participatory governance are people's

mobilization, training, and awareness raising on participatory mechanisms
(Lucas & Tolentino, 2006, p. 128) that provide space for CSOs to engage
with government agencies. Participatory governance exacts transparency
2016
and accountability from policy participants. Meanwhile, training and

awareness solicit citizen participation and demand good leadership and
governance in local bodies such as the local school board (LSB), parents-
teachers associations, local councils, and other organizations involved in
policy implementation. CSOs have critical roles in policy formulation and
deliberative democratic decision making by way of storylines. Storylines
are narratives used to shift the debate to advance the CSOs' interpretation
of issues. Through storylines, CSOs are able to set the agenda and
construct the content and form of public deliberation to change the rules
of the game in shaping meanings related to policy (Dodge, 2014).
In participatory or collaborative contexts, leaders have to be someone

creating trust, treating others as equals, and maintaining a close-knit
group (Silvia, 2011). These qualities are important in identifying policy
advocacy champions, which are useful as the collaboration becomes more
complex. In such a situation, it is necessary to maintain the inclusion
process. When managed appropriately, the inclusion process can be an
active force in creating the virtuous and reinforcing cycle of trust,
commitment, understanding, communication, and outcomes that mark
successful collaborative arrangements (Johnston, Hicks, Nan, & Auer,
2010).
Finally, community-based implementation in Southeast Asia and

China are regarded as models of inexpensive, efficient and sustainable
policy implementation, allowing a sense of local ownership where external
stakeholders-local or foreign linguists, educators and academics, NGOs
and funding agencies-link, cooperate and coordinate with various local
stakeholders (Kosonen, 2005b). A United Nations Educational, Scientific
and Cultural Organization (UNESCO, 2005) study on Southeast Asian
countries corroborate such findings where the preferred model is the
community-based and community-managed implementation led by a team
of local implementers and managers selected by the community.
State of Policy Implementation:

Macro and Micro Synergies
This section explores the synergies between DepEd and state and
non-state actors vis-&-vis the components necessary for a strong policy
implementation (Malone, 2003).
Synergy is the confluence and convergence of varying interests

unified by a common goal to ensure effective policy implementation
(Harris, 1981). Synergy capitalizes on the strengths, expertise, and
specialization of each part in dealing with specific tasks, issues, or
January-December
concerns that affect the whole as in a consortium (Harris, 1981). The

synergies are examined at the national and at the school level in locating
issues and challenges as well as emerging practices in mother tongue-
based education.
The Macro Synergies
The following are the documented synergies in policy implementation

between DepEd and state and non-state actors and among and between
stakeholders themselves:
- DepEd and higher education institutions (HEIs)/ technical

education institutions (TEIs), such as the University of the
Philippines, Philippine Normal University, and Leyte Normal
University, have partnered for the provision of skills training in
orthography development, materials development, pedagogy,
reading, and assessments;
- DepEd and national government agencies (NGAs), such as the

KWF collaborate in matters relating to the use of Filipino as a
national language. DepEd also partners with the National
Commission on Indigenous Peoples for the delivery of instruction
to indigenous peoples communities and works with Department
of Health, and Department of Social Welfare and Development,
sharing information on school-age children under the conditional
cash transfer program;
- DepEd and international/local nongovernment organizations

(NGOs), such as Summer of Institute of Linguistics (SIL), 170+
Talaytayan MLE Inc., and Save the Children partner for
advocacy, capacity building, and various trainings. Teach for the
Philippines,' a local NGO, deploys teacher volunteers to selected
schools nationwide to supplement DepEd's teaching force;
- DepEd and the private sector, mainly through business

associations/chambers of commerce, have built classrooms or
school buildings for public schools. Other groups offer free
English language training for those interested to work in the
business process outsourcing (BPO) industry.2 The Philippine
Business for Education (PBED) mobilizes the business community
to finance scholarships of aspiring teachers 3;
- DepEd and internationaldonor organizations, such as the World

Bank (WB), the Asian Development Bank (ADB), and the United
2016
States Agency for International Development, have provided aid

packages and technical assistance to the Philippine government
in meeting the local, regional, and global goals in education;
- DepEd and the media have a passive relationship, mostly

revolving around coverage of DepEd major events;
- DepEd and local government units (LGUs) work closely through

the LSB to address school and education related concerns within
their jurisdictions. The LSB serves as an advisory committee to
the municipal, city or provincial council on educational matters;
and
- DepEd and the parents collaborate through the parents-teachers

associations (PTAs), with the latter's privileges and
accountabilities further clarified in DepEd Memorandum Order
54, s. 2009.
Aside from collaborations between DepEd and the aforementioned

stakeholders, the following linkages among the stakeholders were also
established:
- PBED (private sector) has a partnership with Australian Aid

(international donor) for the program, Scholarships for Teacher
Education Programs to Upgrade Teacher Quality in the
Philippines (STEP UP), which seeks to attract good-performing
college graduates and professionals into the teaching profession
by offering them competitive scholarship packages;
- Between international donor organizations, the WB and ADB

have joint undertakings for the Philippine basic education sector,
principally through the Basic Education Sector Reform Agenda
(BESRA), which ran from 2005 to 2010. This undertaking is also
participated in by Australian Aid. USAID, WB and ADB also
partner for literacy project Basa Pilipinas;
- Between HEIs and international NGOs, the UP College of

Education and SIL have collaborated on skills trainings on
materials development and orthography development for public
school teachers;
- Between international and local NGOs, local advocacy groups and

HEIs, Save the Children, SIL, Talaytaya, and UP, through its
various units, have collaborated on awareness raising and
mobilization;
January-December
Between HEls and international donor organizations, the UP

College of Education and Australian Aid are collaborating on a
study on classroom practices in selected areas in the Philippines.
Between local NGOs and international donor organizations,

Teach for the Philippines and ADB had a funding arrangement
for SY 2014-2015.
Figure 1. Components, Stakeholders and Synergies

at the Macro Level
1 reliminary Re h
2 Awarenes Raisig and Mobilization
3 Recrutmet nd Training
7 Avabit of ridedin Materals

10(prvDliyniomn
8 Monitrng and Evlaion
As shown on Figure 1, DepEd works mostly with HEls/TEls and

NGOs (local and international), followed by LGUs, then with NGAs and
PTAs/CSOs/people's organizations (POs) and, the least, with the business/
private sector, donor organizations, and media, on various components of
the policy implementation. Among the stakeholders, cross-collaboration
exists closely between NGOs, the private/business sector and donor
organizations. This is expected since this cluster of stakeholders enjoys
certain flexibility in terms of engaging with external partners. For one,
their partnership is not governed by the usual bureaucracy built by default
when engaging state agencies. The collaboration between HEls/TEls and
NGOs is another viable synergy that produced significant results as
explained previously. Two stakeholder groups are totally detached in this
2016
collaboration-the PTAs/CSOs/POs and the media-although media's

detachment may be explained by their desire to remain independent to
some extent.
The mapping is by no means comprehensive as it relied mainly on

the available information at the time of the research. Nevertheless, it
presents a case for clarifying synergies among stakeholders in view of
improving governance and establishing shared responsibility and
accountability to ensure sustainable implementation.
The Policy at the Ground Level: The Local Case

of Tacurong Pilot Elementary School
Tacurong is a fourth-class component city in the Province of Sultan

Kudarat in Region XII, in the Mindanao heartland. It is approximately 96
kilometers from Cotabato City, 178 kilometers from Davao City, and 92
kilometers from General Santos City and is connected to Pan Philippine
Highway in the Davao-GenSan-Cotabato corridor. It became a chartered
city in 18 September 2000 by virtue of Republic Act 8805.
Originally called Pamasang, Tacurong was once a barangay of the

Municipality of Buluan, Cotabato province. Named after a creek, Tacurong
was created into a municipality on 3 August 1951 through Executive Order
462 signed by Pres. Elpidio Quirino. Pamasang was later changed to
Talakudong, in reference to a head-covering material worn by early
settlers. According to its 2010 census, Tacurong had a total population of
89,188.
Tacurong is a multicultural epicenter and is home to migrants from

Luzon and Visayas as well as to the Maranaos, Maguindanaons, the
Tausugs. Hiligaynon (Ilonggo) is the most dominant language in the city,
followed by Ilocano and Cebuano/Binisaya. In its 2010 socioeconomic
profile, Sultan Kudarat listed 40 languages being spoken in the province.
Of the 114,461 households surveyed, 43% or 50,083 speak Ilonggo, broadly
understood as Hiligaynon, followed by Ilocano with 15% or 17,324, and
Cebuano/Binisaya with eight percent or 9,159 households (Sultan Kudarat
SEP 2010). According to the 2000 Population Census, the province is also
home to 113 ethnic groups. The four largest groups consist of Ilonggos
with 41.12% or 240,839 of the household population, followed by
Maguindanao with 21.31% or 124,843, Ilocano with 15.05% or 88,160, and
Cebuano with 8.06% or 47,254. In 2000, Tacurong had a household
population of 57,866, 54,072 of whom are literate, hence recording a
literacy rate of 93.44% among ten years old and above, comprising 27,040
males and 27,032 females.
January-December
With a land area of 15,340 hectares, Tacurong has 20 barangays,

mostly agriculturally dependent. Rice and corn are the major agricultural
products supported by the local milling industry. According to the National
Statistical Coordination Board's (NSCB) poverty statistics survey in 2009,
Tacurong's poverty incidence rate of 18.5% was the lowest among cities
and municipalities in Region XII.
The law that converted the Municipality of Tacurong into a

component city of Sultan Kudarat provides for the establishment and
maintenance of city schools division, which started to operate officially on
8 January 2004.
The City Schools Division of Tacurong is the smallest of the nine

DepEd Divisions in Region XII. The Division is headed by a schools
division superintendent, assisted by a curriculum and instruction division
chief, and the school governance and operations division chief.
Profile of the TPES
Located along Alunan Highway, Tacurong Pilot Elementary School

(TPES) is a 70-year old institution and very much a part of the life of the
city and its people. TPES is one of the 24 public elementary schools in
Tacurong. Below is the enrolment data of TPES for SY 2014-2015 and
2015-2016.
Table 1. TPES Grades 1 to 3 enrolment, SY 2014-2015, 2015-2016

SY 2014-2015 Grade 1 Grade 2 Grade 3
Enrolment 481 479 576
Male Female Male Female Male Female
244 237 219 260 296 280
Total Enrolment, from Grades1 to 6 3,573
Male Female
1,812 1,761
SY 2015-2016 Grade 1 Grade 2 Grade 3
Enrolment 492 487 496
Male Female Male Female Male Female

251 241 242 245 226 270
Total Enrolment, from Grades1 to 6 3,521
Male Female
1,775 1,746
Source: http://www.deped.gov.ph/datasets
2016
The DepEd masterlist of elementary school teachers for SY 2013-2014

indicates the teaching force of TPES in Table 2.
Table 2. TPES Teaching Force, SY 2013-2014

Mcule Mcule Mcule Tmr Tmr TeSPED
Tade 3 Tedex2 Teadx1 3 2 1
0 11 14 36 27 33
Source: http://www.deped.gov.ph/datasets?page=1
In total, TPES has a teaching force of 126 as of SY 2013-2014. For SY

2013-2014, TPES has a total of 86 rooms, 76 of which are instructional
rooms and 10 non-instructional rooms, with an average class size of 47
pupils per classroom. For SY 2010-2011, the Division of Tacurong
registered a 1:41 teacher to pupil ratio. As indicated in the socioeconomic
profile of Sultan Kudarat, the predominant language spoken in Tacurong
is Hiligaynon (Ilonggo), followed by Ilocano, Cebuano/Binisaya, Maranao,
Maguindanao, Iranun, and Tausug, making it truly a cultural melting pot
where migrants from Panay, Iloilo, Ilocos, Cebu have settled for decades.
The Division of Tacurong is among the first adopters of the policy.

Classified as a monograde school providing instructions from kindergarten
through Grade 6, the TPES had a maintenance and other operating
expenses (MOOE) of Phpl,606,000 for SY 2014-2015 and Php2,204,000 for
SY 2015-2016.
The languages used in school are Hiligaynon, Ilocano, Filipino,

English and, for the early grades, include Maranao, Maguindanao, Iranun,
Tausug, Kinaray-a among other local languages. Teachers reported wide
use of the local languages mentioned and their variations but the highly
diverse classrooms force teachers and students to using Filipino as the
"middle language."
Policy Implementation at the School or Community Level
At the micro level, there is a marked difference in policy synergies as

compared to that of the macro level. While DepEd and international donor
organizations are unlinked at this level, the school has indirectly benefited
from the partnership DepEd has forged with the latter at the national
level. For example, ADB partly provided financial support to the Basa
Pilipinas project that produced reading materials that were circulated in
Region XII and benefitted teachers and students of Tacurong. Quite
January-December
glaringly, too, is that no collaboration is recorded among stakeholders on

any of the ten components as Figure 2 below indicates. One explanation is
that whatever collaboration these stakeholders enter into at their national
offices are carried through to the community level.
Figure 2. Components, Stakeholders,

and Synergies at the Micro Level
F 00
t00000 COMPONENTS
2 A-,re,--
3 t1 1:TuIttndV ni
sig ~ M ,bifzation
I 6 111 1 il ' :r '
.
9 AvU"biw ty ,0d~ 1eair
Jaer
1
FtZ
-pEV
M
,t~n
More of action research

2Mostlyinvolved trainers from outside the area
Policy components are a critical factor at the micro level. This study
examined how each component is being operationalized.
Preliminary research at this level happens mostly in TEIs and HEIs

in the area. In addition, teachers in the Division of Tacurong who are
taking graduate studies are encouraged and incentivized by the regional
leadership to do action research on improving delivery of instruction.4
Awareness raising and mobilization consist of explaining to parents

in PTA meetings the value and benefits of the policy. The core message is
that the use of mother tongue facilitates literacy, learning of academic
content, acquisition of a second language, and overall academic
achievement.
2016
Recruitment and training at the division level factors in the language

proficiency of an applicant as a national strategy and policy to address the
language barrier between teachers who do not speak in, or lack the
proficiency of, the language of their pupils.
Working orthography is derived from of a series of workshops that

DepEd Region XII facilitated to come up with orthographies of at least
three languages used in the area with the assistance of NGOs such as SIL
and TAP and the LGUs.
Local development of materials in TPES means teachers have to

make their own big books using manila paper, crayons and colored pens
for the illustrations. This component provides an opportunity for
collaboration between DepEd and LGUs, which extended funding to
teachers' training on materials development.
The DepEd and NGOs, with assistance from the LGU, conducted
trainings for teachers. However, as different trainings yield conflicting
learnings and views, remedial workshops were organized to harmonize
varying interpretations of the same policy.
Availability of graded learning materials is a major issue as the shift

in policy has left a gap in the DepEd inventory. Thus, teachers had to
produce their own materials in limited quantity.
Mechanisms for coordination, monitoring and evaluation consist of

unannounced random principal's visits to classrooms to check whether teachers
are using the right strategies and approaches. During the data gathering for this
study, the teachers share their experiences in handling highly diverse classrooms
in TPES, documenting issues and how they handle them.
Availability and accessibility of funding to sustain the program is

granted. As stated earlier, the school's MOOE for SY 2014-2015 was
Php1,606,000. For SY 2015-2016, it was increased to Php2,204,000. The school
also receives supplemental support from the local government of Tacurong.
Supportive policy environment, while not explicit, exists. The LGU

openly supports the policy in various ways and means even without the
usual written resolution.
Community Initiatives for Sustainable Policy Implementation
The TPES promotes the MTBMLE policy through various school

activities it organizes. Festivals supported by the local government have
January-December
been turned into opportunity to introduce the policy to the public. Events
at TPES promote the policy using adornments that reflect the diversity
and cultural heritage of the city. The TPES community also celebrates the
International Mother Language Day every year.
Meanwhile, classrooms in the early grades have mother tongue

corners featuring books in different local languages. In some classrooms,
instructions in English and Filipino have translations in the local
languages.
Initiatives such as publication of children's books written using the

local languages with the help of local writers are being planned.
Various initiatives in HEIs in the region are also undertaken

although some of these are not aligned to the goals of the local basic
education sector. However, the diverging priorities converge through
research, leading to arrangements between HEIs and DepEd. Teachers
enrolled in graduate programs, for example, conduct research on
improving outcomes and school-based management with the purpose of
benefiting their respective school with their newly-acquired competencies
and enriching the university's knowledge capital.
The participation of donor agencies, NGOs, the private sector, and

POs in various initiatives in education can be chaotic. To harmonize
initiatives, the regional leadership performs a vetting process on all
interventions to optimize resources through targeted and equitable
application.
The media, for their part, has a passive role in all of these
arrangements, sticking to their function as independent documentarist
and watchdog of the policy implementation. In the research areas covered,
there is no single formalized arrangement between media and DepEd as
well as with other non-state policy actors as the former try to maintain
their independence.
Success Indicators
In the four years of the MTBMLE implementation at TPES,

encouraging results have been documented. These critical policy gains
constitute the best argument to sustain the policy.
Education outcomes. An increase in pupil participation in classes is

noted since the policy introduction. Improved participation lessens the
phenomenon of school leaving due to poor access to schools (Nava, 2009).
2016
But the most important barrier that was overcome because of the policy
was that of language. The teachers noted that pupils now stay in school
longer than they used to. They see this as the pupils' increased sense of
belongingness, which they attribute to the use of the pupils' language in
the classroom. Pupils also expressed satisfaction with the policy through
which, they said, they have reclaimed their lost identity. However, it is
too early to measure literacy and general school achievement after only
four years of implementation.
Empathetic relationships among ethnolinguistic groups. The

teachers link this indicator to the strengthened child protection policy of
the national government through the enactment of RA 10627 or the Anti-
Bullying Act. They explained that the multilingual classrooms they are
handling demand more cultural sensitivity. They exert extra effort in
fostering an inclusive and caring attitude for their pupils not to feel left
out or discriminated on account of their ethnic or linguistic background.
Expression of favor and support from stakeholders. The policy

implementation at TPES has earned the support of various stakeholders,
among these the LGUs, NGOs, CSOs, and religious organizations that
consider the program as a feeder to the shared agenda of peacebuilding in
the region and the entire Mindanao. To them, the policy fosters
inclusiveness and greater understanding and appreciation for diversity and
multiculturalism that must be ingrained early on in the minds of young
people as they are being raised as peace-loving citizens.
Policy Issues and Challenges
The policy is hounded by issues that are operational in nature. Yet,

suggestions of flawed policy design have also been raised too often. This
section documents the major challenges confronting the policy
implementation at all levels and dimensions.
Ideological Resistance
Adherent of centralist, nationalist-democratic, and one-language

policy dominate public discourse on education and development and
impose the monolithic view on language in the academia and in media
whose content, prevalence and reach suppress emerging narratives that
lend voice to multiculturalism and multilingualism as counter-
perspectives.
January-December
Policy proponents essentially are up against those who want to

maintain the bilingual policy, the pro-English lobby (recall Rep. Gullas'
English Only and Rep. Gloria Arroyo's similar bill filed in the 1 5 h
Congress), and those who want a Filipino-only policy.
While the policy has been institutionalized in the K12 system, its
opponents continue to mobilize to discredit it, demanding that government
scrap the policy. There are at least three cases pending at the Supreme
Court, all praying for the scrapping of RA 10533.6
Lack of Materials and Funding Inaccessibility
Lack of materials and inaccessible funding mar policy

implementation. These arose as the shift from the old Revised Basic
Education Curriculum to K12 was not fully anticipated, leaving gaps in the
inventory of K12-compliant materials. The transition also ushers in the
learning resource materials development system, an online hub for
paperless learning. However, access to the system is difficult in areas
where internet service is poor or non-existent at all. Funding, on the
other hand, is available although its access is made difficult by the
requirements of the Commission on Audit. School administrators are
stymied from tapping into their school's MOOE to support activities to
skirt paperwork and accountability.
Gaps in Policy and Practice
Gaps in policy provision on funding, curriculum and learning materials

development, devolution, transition and actual implementation were noted.
According to the Region XII MTBMLE coordinator, funding for their activities
was sourced not from the MTBMLE fund but from Indigenous Peoples Education
program. While Section 5 of RA 10533 provides that the development and
approval of learning materials are devolved to the regions, teachers were asked
to wait for the approval from the KWF. In reality, the escape clauses in the
implementing rules and regulations (IRR) rendered the devolution provision
optional rather than imperative. The transition program for Grades 4 to 6 as
provided for in Section 4 of RA 10533 is also not being done by DepEd.
Flawed Policy
A number of issues raised against K12 can be attributable to policy

design, which is complex and often internally orchestrated by bureaucrats
and target groups and is usually less accessible to public scrutiny
2016
compared to other kinds of policy deliberations (Howlett, 2014). The IRR of

RA 10533 is so disjointed that it allows for arbitrary interpretation. The
policy had to contend with diminution6 of the salient provisions of the law
as observed by a noted linguist.
One flaw is manifested, first, in Section 10.3 of the IRR, which

provides that
the production and development of locally produced teaching and

learning materials shall be encouraged. The approval of these
materials shall be devolved to the regional and division education
unit in accordance with national policies and standards.
The killer phrase "in accordance to national policies and standards"

runs counter to the unqualified provision in the law and open to abuse by
the approving authority especially when there is no common
understanding of what constitutes devolution. The devolution clause
actually recognizes that the language users know best what their
linguistic needs are.
Another is found in Rule II, No. 10.4, which states that "The
curriculum shall develop proficiency in Filipino and English, provided that
the first and dominant language of the learners shall serve as the
fundamental language of education." What the law actually provides in
Section 4 is
For kindergarten and the first three (3) years of elementary

education, instruction, teaching materials and assessment shall
be in the regional or native language of the learners. The
Department of Education (DepED) shall formulate a mother
language transition program from Grade 4 to Grade 6 so that
Filipino and English shall be gradually introduced as languages
of instruction until such time when these two (2) languages can
become the primary languages of instruction at the secondary
level.
There is also misunderstanding on devolution, which seeks to

transfer specific decision-making powers from one level of government to
another (Gregersen, Contreras-Hermosilla, White, & Phillips, 2004). In
the Philippine context, devolution is commonly understood as the transfer
of specific decision-making powers from the central government to LGUs
or to its subnational agencies. It is in this light that the DepEd regional
and division units are vested certain decision-making powers, including
the power to develop local materials and approve them for usage. But this
power is curtailed by KWF on account of issues in orthography, of which
the Commission neither has competence nor expertise over.
January-December
When government devolves functions, it also transfers authority for

decision-making, finance, and management. Agencies with devolved
powers have clear boundaries over which they exercise authority and
within which they perform functions (Gregersen et al., 2004). Yet the case
on orthography and materials development and approval shows the
contrary, except for funding provision, which the study noted that the
teachers have difficulty accessing.
Hence, decentralization as often decided top-down and is a strategy

for increasing the central government agency's capacity to achieve
proposed goals and objectives (Bresser-Pereira, 2004) warrants deeper
reflection in relation to this policy, whose provisions may suffer the fate of
countless other laws as being mere options rather than imperatives. The
devolution thought to be responsive to demands for more local or regional
autonomy may remain as thoughts as officials in the central government
reluctantly accede to it (Bresser-Pereira, 2004). Power sharing, in effect,
is easier on paper than when it is operationalized.
Ambiguous Stakeholder Synergies and Institutional Relationships
The role of each agency, organization or institution involved directly

or indirectly in the policy implementation has to be spelled out clearly.
The rules of engagement should be set in clear language to avoid overlaps
and ensure sustainable implementation.
Finally, a clear system that harmonizes the disjointed initiatives is

needed as in a consortium (Harris, 1981) where each stakeholder's
strengths are identified. Stakeholders are assigned a role or function that
best utilizes them to stamp out redundancies that impact on resources.
Towards Sustainable Policy Implementation:

Critical Assessments and Conclusion
The serious gaps and issues in the policy implementation remain

unattended, owing to bureaucratic constraints and the lack of resources to
address them (Arzadon, Calinawagan, & Datar, 2015). Note that the issues are on
two levels-policy and operationalization. On the policy side, the DepEd is given
powers to issue clarificatory departmental orders to arrest confusion that stems
from contravening provisions in the JRRs. Operationally though, DepEd can
implement the policy in its broadest sense. However, Congress must deliver its
part by deleting contravening provisions in the policy. The issues are multifaceted
and demand that DepEd and key policy stakeholders reassess their strengths,
resources and capacities to address them.
2016
The synergistic, participatory policy administration demands that the

roles and accountabilities of each stakeholder are clearly defined to
manage overlaps and redundancies which, if left unaddressed, mean
leakage in resources. While there exist macro and micro synergies
between DepEd and key stakeholders-higher education institutions and
teacher education institutions (HEIs/TEIs), national government agencies
such as KWF, local and international NGOs, private and business sector,
local and international donor organizations, media, LGUs, CSOs and POs,
and parents-their specific roles and functions are not clarified, much
more formalized, leaving collaborations nebulous and perpetually in the
interim with parties unable to exact accountabilities from one another.
DepEd's circuitous, multi-layered administrative processes and procedures
from the central office down to the school and its deference to a national
body complicate devolution. The development of orthographies for
languages with incomplete or no spelling and writing system until now
could have been expedited.
Also, demand for improved English skills in the workforce forebodes

a difficult challenge for the policy. For certain, the growth in the BPO
sector, which was projected to reach annual revenue of US$25 billion in
2016, and may overtake revenue from OFW remittances, according to
figures released by ING Bank Manila (Domingo, 2015), provides the
compelling argument to take another look at the country's current
language policy. The sustained growth of the BPO industry, of which
majority transactions are conducted in English, motivates policymakers to
reconsider English as the primary medium of instruction in schools. This
is on top of remedial English classes programs, many of these funded by
LGUs in the Philippines. With estimated revenue of US$51 billion from
OFW remittance and the BPO sector for 2016, recasting the language
policy maybe the most expedient way to go. Proponents contend that for
the country to be globally competitive, its younger work force have to
sharpen their English language skills. According to statistics from the
Department of Labor and Employment and the Information Technology
and Business Process Association of the Philippines, the Philippine BPO
industry association, there are now 1.3 million Filipinos working in the
sector (Domingo, 2015).
On its fourth year of implementation, the policy has produced

encouraging results especially in areas where diverse cultures converge
and collide over competing narratives. In communities in Mindanao, the
policy is being embraced as a feeder to promoting peace in the region that
witnessed violence and neglect for decades. Research evidence suggests
improving school attendance and class participation among learners. More
importantly, children in conflict areas are now appreciative rather than
January-December
suspicious and dismissive of their ethnic and linguistic differences. As

learners and teachers become more engaged, traces of intra and intercultural
interest are noted, with a few teachers in one school, for example, going the
extra mile by learning two more local languages to relate to their students.
These are small yet meaningful gains that warrant support from all sectors,
and critical monitoring and documentation of these emergent practices will
further strengthen the policy.
In the midterm, there is not going to be a tectonic shift in both public

interest and regard of the policy given the constraints, difficulties and
unresolved issues in its operationalization. There is no foreseeable
addition to the 19 languages granted official medium of instruction status
by DepEd. For their part, the media will continue to be an English-Filipino
enterprise with tokens for multilingualism in their regional news
programming. This prevalence adds up to the insurmountable task of
reversing public perception about the policy.
For the long term, there are prospects that policy advocates can
work on in partnership with government and international organizations.
Also, the ongoing debate on the need to shift to a presidential federal
system of government is a welcome development for multilingual and
multicultural advocates that see federalism as an opportunity to fully
operationalize decentralization beyond token devolution. Under a federal
system, the place, status, and roles of languages-are accorded their
rightful places: Beyond mere identity markers, they are indispensable in
the attainment of sustainable development.
Regardless of the political fortunes of the country in the coming

years, the fundamentals for sustainable implementation should remain in
place: the components and the synergies and collaborations at the macro
and micro levels by state and non-state policy actors.
Endnotes
From their website http://www.teachforthephilippines.org/ and from testimonies

of former and current volunteer teachers.
2 Various clubs of the The Rotary Club in Metro Manila have embarked on English
proficiency training, financing the program out of members' contributions.
3 See http://pbed.ph/content/1000-teachers-program.
Based on interviews with Dir. Allan Farnazo of DepEd RXII, who has since been
assigned to DepEd RX, and Dr. Omar Obas, Schools Division Superintendent for the
Cotabato Province Division, conducted between August 2015 and October 2015.
2016
5 http://newsinfo.inquirer.net/694452/multi-sectoral-group-bares-discrepancies-in-
k-to-12-law
6 See http://opinion.inquirer.net/61025/castrated-mtb-mle.
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2016
The Emergence of LGBT Human

Rights and the Use of Discourse
Analysis in Understanding LGBT
State Inclusion
MA. THERESA CASAL DE VELA*
State inclusion of lesbian, gay, bisexual and transgender (LGBT)

rights in the Philippines remains a development imperative. The use of
discourse analysis is a significant public administration and policy
tool that helps explain the formidable challenges that have limited the
state inclusion of LGBT rights from happening in the last two
decades. This article presents a narrative on the existing forms of
LGBT discrimination, exclusion, and violence. The historically
ingrained basis of LGBT social exclusion is traced, followed by the
rise of movements seeking to uphold human rights and LGBT state
inclusion. Key milestones in the assertion of the call to recognize
LGBT rights as human rights at both the global and national levels
are discussed. The article argues for the use of discourse in policy
analysis. It provides a conceptual understanding of discourse and a
historical backgrounder on discourse theory, and emphasizes the value
of discourse in policy analysis by providing examples of dominant
discourses that support and oppose LGBT human rights. Discourse
analysis is applied to discussing the cases of LGBT rights in Indonesia
and Singapore. The article argues for the use of discourse-as-policy in
examining the debates on LGBT state inclusion in the Philippines
towards an enabling policy environment for enactment of a national
law that recognizes and protects LGBT human rights.
Keywords: LGBT rights, discourse analysis, anti-discriminationbill, policy

analysis, state inclusion
Despite the increased visibility of lesbian, gay, bisexual and

transgender (LGBT) people in societies today, social stigma, intolerance,
and exclusion of LGBT identities remain (International Lesbian, Gay,
Bisexual, Trans and Intersex Association [ILGA], 2016). Based on
*Assistant Professor, Department of International Studies, Miriam College.
This study received a grant from the Strengthening Human Rights and Peace
Research and Education in ASEAN/Southeast Asia (SHAPE-SEA) Program, a
collaboration of the ASEAN University Network (AUN) and the Southeast Asian Human
Rights Studies Network (SEAHRN). An earlier version of the paper was presented at the
2016 NCPAG Good Governance Research Colloquium and Paper Competitions.
72
LGBT HUMAN RIGHTS IN THE PHILIPPINES 73
Philippine LGBT Hate Crime Watch (Bernal, 2015), Philippine media has
reported at least 164 cases of LGBT-related murders in the past ten years.
Hate crimes committed against LGBT people are often very brutal-
involving strangulation, multiple stab wounds, drowning-and rarely justly
resolved nor its perpetuators brought to justice. The highly publicized
murder of Jennifer Laude in 2014 by Scott Pemberton, a member of the
US Marine Corps, is a prime example. Pemberton was convicted not for
murder but for homicide, which has a much lesser penalty. Laude's failure
to tell Pemberton that she was a transgender woman was seen as a
mitigating circumstance and was used by the defense to argue for
homicide.
Unjust as it may seem, the Jennifer Laude case could be considered

as one of the more fortunate cases in terms of seeking justice, receiving
media coverage, and having access to legal services, as most hate crimes
against LGBT people go unnoticed. A study (United Nations Development
Programme & United States Agency for International Development
[UNDP & USAID], 2014) involving more than 40 local and national LGBT
groups, human rights organizations, and academic-based organizations
reviewed the Philippine legal and social environment for LGBT individuals
and groups. According to the study, LGBT discrimination, exclusion, and
violence are encountered in the various areas of social, political and
economic life. The report shows discrimination against LGBT people in the
community, in schools and even in the family. Despite being qualified or
fit for the job, LGBT people experience discrimination when seeking and
keeping employment. There is stigma and rejection of LGBT people from
religious institutions. The mainstream media perpetuates negative
stereotypes of LGBT people, reinforcing homophobia and transphobia in
society as well as marginalization and invisibility of LGBT people in
politics and law. Despite surveys that report a high level of social
tolerance for LGBT people among Filipinos, LGBT discrimination and the
violation of LGBT human rights are still very much prevalent.
"The Status of Lesbian, Gay, Bisexual and Transgender Rights in the

Philippines" (Rainbow Rights Project and Philippine LGBT Hate Crime
Watch, 2011) reported that the numerous international human rights
instruments, of which the Philippines is a signatory, are not translated
into national laws. Among the basic international human rights
obligations denied to LGBT persons are the following:
(1) right to security of person - given the physical and verbal

assaults that LGBT persons experience because of their non-
conforming sexual orientation and/or gender identity and
expression (SOGIE);
2016
(2) right to equality and non-discrimination - given sexual

orientation and gender identity and expression are not included
or explicitly mentioned as a basis for equality and non-
discrimination in domestic laws;
(3) right to the highest attainable standard of health and protection

from medical abuses - given it is not uncommon for LGBT
persons to be subjected to judgment and ridicule by medical
personnel and to be refused access to healthcare services; and
(4) right to recognition before the law - given the absence of laws
promoting anti-discrimination and protecting the rights of LGBT
persons alongside the presence of laws that criminalize and
condemn LGBT persons.
The denial of LGBT human rights, can be traced to a history of LGBT

social discrimination, exclusion, and violence-a history where LGBT
identities were framed as sin, sickness, and crime. It is also a history of
struggle for the recognition of LGBT rights as human rights.
The Historical Development of LGBT Social Exclusion

to Social Inclusion'
Public policies and laws on LGBT human rights were derived from a
social context of religious condemnation, medical pathologization, and
legal criminalization of LGBT identities. It begins with the early
conceptions of homosexuality as the overarching term for LGBT people.
Early Conceptions of Homosexuality
According to Sanders (2005), attraction, carnal intercourse, and

intimate relationships between the same sex did not have a definitive label
despite the criminalization and condemnation of such acts during the
colonial era. The term "homosexuality" was only introduced during the
second half of the 19 century.
Early condemnation of homosexuality can be found to exist within

religious Christian discourse. Saint Peter Damian coined the term
"sodomy," in the 1 1 th century to refer to any sexual activity that is against
biblical teachings from the story of Sodom and Gomorrah in the Book of
Genesis (Damian, 1982). Among these activities are masturbation,
fornication, bestiality, and oral or anal sex between two persons of the
same sex (Damian, 1982). Biblical passages were used as basis for the
January-December
condemnation of homosexuality. This condemnation and criminalization of

homosexuality by religious groups greatly shaped social structures and
interactions in early Western societies.
Another early and highly influential discourse on homosexuality was

the medical discourse. The medical discourse on homosexuality emerged
due to the need to assess the mental health of people accused of illicit
sexual behavior (Group for the Advancement of Psychiatry, 2012). Before
the term "homosexuality" evolved, its construction as either a congenital
or acquired sickness was introduced by European physicians and forensic
experts. As a medical condition, homosexuality was deemed as requiring
psychiatric care, not legal punishment (Group for the Advancement of
Psychiatry, 2012). French neurologist Jean Martin Charcot described
homosexuality as the "inversion of the genital sense" and concluded that it
was a serious mental illness (Group for the Advancement of Psychiatry,
2012). In 1886, Austro-German psychiatrist Richard von Krafft-Ebing,
wrote PsychopathiaSexualis, which documented over 200 cases of human
sexual behavior and was used as a reference material in which medical
and legal decisions were based (Sanders, 2005). The pathologization of
homosexuality led to numerous research studies with the goal of finding
biological and/or genetic factors that influence the occurrence of this
"condition" (Group for the Advancement of Psychiatry, 2012).
A turning point in the medical discourse occurred when Sigmund

Freud, one of the forefathers of psychology, contended that while sexual
inversion may be a result of arrested sexual development, it is not an
illness but a "variation of sexual function" (Freud, 1951). This claim led to
studies that further debunked the notion of homosexuality as a sickness.
A groundbreaking research by Evelyn Hooker in 1951 provided

empirical evidence against the claim of homosexuality as an illness. It
eventually led to the American Psychiatric Association's (APA) removal of
homosexuality from the Diagnostic Statistical Manual of Mental Disorders
in 1973 (APA, 2013).
Criminalization of Homosexuality
To a large extent, the religious and medical discourses became the

bases for legal or state-prescribed discourses in early Western societies.
As a result, the argument that homosexuality is both a sin and a sickness
is strengthened. An illustration of this would be the laws against same-sex
relations in colonies of the British Empire during the 1 9 h century. The
inclusion of Section 377, which refers to carnal intercourse between same-
sex individuals, as an offense "against the order of nature" and "unnatural"
2016
is a clear indication that homosexuality is viewed as both a sin and a

sickness (Carey, 2011; Kannabiran & Singh, 2009). Although the said
legislation did not explicitly mention male-to-male or female-to-female
sexual relations as a crime, they are considered to be "against the order of
nature" and punishable by law (Indian Penal Code, 1860). Among the
countries that adopted this law were Australia, Bangladesh, Bhutan,
Brunei, Fiji, Hong Kong, India, Kiribati, Malaysia, Maldives, Marshall
Islands, Myanmar (Burma), Nauru, New Zealand, Pakistan, Papua New
Guinea, Singapore, Solomon Islands, Sri Lanka, Tonga, Tuvalu, and
Western Samoa in the Asia Pacific region; and Botswana, Gambia, Ghana,
Kenya, Tanzania, Uganda, Zambia, and Zimbabwe in the African region
(Human Rights Watch, 2008). Germany, one of the most powerful
countries during the Second World War, likewise had its own version of
the sodomy law stated in Paragraph 175 of the German Criminal Code
(Awareness Harmony Acceptance Advocates [AHAA], 2014).
LGBT discrimination has a long history and serves as a remnant of the

colonial era when the most powerful nations used laws as mechanisms of control
over morality and standards of behavior (Human Rights Watch, 2008; United
Nations Human Rights Commission [UNHRC], n.d.). The criminalization of
homosexuality led to the LGBT people's repression, which persisted even beyond
the end of the Second World War when the international community pushed for
the recognition and respect for human rights.
Sanders (2005) argues that "a legal and social condemnation" of LGBT
people continued after the war as a result of discourses that intensified
prejudice and discrimination. Sanders further noted that this
condemnation was made invisible by society's blindness to homosexuality,
by treating it as taboo, and by concealing it in secrecy. According to
Sanders, the blindness to homosexuality was manifested in society's denial
of LGBT identities and existence while allowing LGBT people to pursue
social and sexual activities. Sanders asserted that homosexuality was
considered taboo as people deliberately refuse to treat homosexuality as
natural or normal. LGBT people of the said period kept their identities in
secret to avoid negative judgment from the larger society.
However, with the rise of the human rights discourse, individuals

and groups, particularly within the feminist and LGBT social movements,
advocated for the recognition of LGBT rights as human rights.
The Birth of Human Rights
The Universal Declaration of Human Rights is a landmark document

of the international community's efforts to recognize and promote the
January-December
rights of every person, regardless of "race, color, sex, language, religion,

political affiliation, national or social origin, property, birth or other
status" (United Nations [UN], 1948). The Universal Declaration, together
with the International Covenant on Civil and Political Rights (ICCPR) and
the International Covenant on Economic, Social and Cultural Rights,
constitute the "International Bill of Human Rights" (UNHRC, n.d.).
Despite the creation of these international laws and mechanisms to

promote human rights after World War II, LGBT people remain at the
margins of society (Sanders, 2005). Among the indications of this is the
reality that criminal laws against same-sex relations were not repealed
after the creation of the Universal Declaration of Human Rights. The
United Nations Human Rights Commission (UNHRC, n.d.) reports that at
present, laws that criminalize same-sex partnerships still exist in around
76 countries. Out of these, Iran, Mauritania, Saudi Arabia, Sudan, and
Yemen impose death penalty on those found guilty of same-sex offenses
(UNHRC, n.d.). The UN points out that this reality makes LGBT people
vulnerable to prejudice and discrimination, subjected to hate crimes,
police abuse, torture, family violence, and other overt negative behavior of
society that prevent LGBT people from enjoying basic human rights
(UNHRC, n.d.).
Women's Rights Movements and Sexual Identities
In understanding discrimination on the basis of gender and sexuality,

it is important to note the significant contribution of the women's rights
movement. There were at least two major conferences that initially
included lesbian issues on the agenda, namely the Sisterhood is Global
Dialogues in 1988 sponsored by the Women's Media Circle Foundation,
and the International Women and Health Meeting (IWHM) in 1990 led by
the IWHM Philippine Organizing Committee. It is said that these
international events marked the recognition of lesbianism as a political
issue and the importance of this issue to be addressed by women's
movements internationally (de Vela, Ofreneo, & Cabrera, 2011).
The first wave of feminism, which started in the 1 9 h century, focused

on women's equality in the law, particularly in having the right to vote,
the right to education, and the right to property, deemed as basic rights
given to men but denied to women (Freedman, 2003). The second wave of
feminism occurred in the 1960s and 1970s, amidst social protests and civic
unrest. It was a time of marches and demonstrations in the streets to
protest the Vietnam War, for people of color to demand equality, and for
women to question the power relations in the personal or private spheres
that positioned the female as subordinate.
2016
However, in the 1990s, feminist movements consisting of women

from diverse sexual identities, economic and cultural backgrounds came
together with the goal of eliminating overlapping issues of gender and
racial discrimination in politics, business, academia, media, among other
social units, and became known as "third wave feminists" (lannello, 2010).
The third wave of feminism claimed to be more inclusive, as it was
multicultural and sexually diverse and sought to put forward issues of
other marginalized groups such as gays, lesbians, bisexuals, and
transsexuals (lannello, 2010).
LGBT Organizing and Activism
At about the same time that the second wave of feminism started,
LGBT organizing was also taking place. Many scholars consider the
Stonewall riot in New York in 1969 as the catalyst for the rise of the
LGBT movement (Asico, 2001; Sanders, 2005). The Stonewall riot refers to
the series of protests against police harassment and brutality of LGBT
people that was taking place at the time. However, prior to the Stonewall
riot, gay organizations already existed in parts of Europe, such as The
Netherlands and Denmark (Sanders, 2005).
After the Stonewall riot in 1969, annual gay pride marches were held
in the United States and in other parts of the world (AHAA, 2014). LGBT
groups continued to be formed to advocate for the promotion and
protection of LGBT rights. Among such groups is the Gay Liberation Front
(GLF) based in the United States, which was formed right after the
Stonewall riot to raise awareness on the ways in which gays are
discriminated in various social contexts. The Gay and Lesbian Activists
Alliance (GLAA), a Washington, D.C.-based organization, was formed in
1971 to protect the civil rights of LGBT people in the United States
(GLAA, 2016).
At the global sphere, the International Lesbian, Gay, Bisexual, Trans

and Intersex Association (ILGA), one of the world's largest LGBT
communities, was established in 1978 (ILGA, 2016). Composed of 1,200
member organizations from 125 countries, the ILGA advocates for the
rights of lesbian, gay, bisexuals, transgender, and intersexed people or
LGBTI (ILGA, 2016).
Another international LGBT organization, Outright International

(formerly International Gay and Lesbian Human Rights Commission),
aims to protect and advance the basic rights of LGBTI people, with the
goal of empowerment and inclusion of LGBTI people in the global human
rights movement (Outright International, 2016).
January-December
In the recent decade LGBT activism, both locally and globally, has
achieved a number of milestones which are discussed in the next section.
The Global and Local Context of LGBT State Inclusion
As of 2015, 113 United Nations member states have legally

recognized same-sex relations (ILGA, 2015). Also, key international
documents and human rights instruments were achieved, among them the
Yogyakarta Principles in 2006, the UNHRC Resolution on Human Rights,
Sexual Orientation and Gender Identity (SOGI) in 2011, and the UNHRC
Core State Obligations on LGBT Human Rights in 2012.
The Yogyakarta Principles
The Yogyakarta Principles were developed in a gathering of human

rights experts, the International Service for Human Rights, and the
International Commission of Jurists in November 2006 at Gadja Mada
University, Yogyakarta, Indonesia (International Commission of Jurists,
2007). The principles were crafted in recognition of the marginalization
and discrimination experienced by persons all over the world based on
SOGI, and despite the assertion of the Universal Declaration of Human
Rights that "all human beings are born free and equal in dignity and
rights" and that "everyone is entitled to all the rights and freedoms...
without distinction of any kind, such as race, color, sex, language,
religion, political or other opinion, national or social origin, property,
birth or other status" (United Nations, 1948).
The Yogyakarta Principles, composed of 29 key sections, addresses a

broad range of universal human rights standards as they apply to sexual
orientation and gender identity (SOGI)-related issues. Among the adverse
manifestations of discrimination based on SOGI are various forms of
abuses (i. e., physical, sexual, and psychological) and denial of basic human
rights such as the rights to health, freedom of expression, education and
employment (International Commission of Jurists, 2007). The document
attributes these outcomes to stereotyping, prejudice, and discrimination
due to religious beliefs and cultural gender norms that condemn the non-
conformity of LGBT people.
The intention of the Yogyakarta Principles is to bind all states to the

obligation of recognizing, promoting, and protecting LGBT human rights.
It also stresses that all state actors should contribute to the fulfillment of
this accountability through recommendations addressed to the UNHRC,
national human rights agencies, civil society organizations (CSOs), and
2016
human rights funding organizations (International Commission of Jurists,

2007).
UNHRC Resolution on Human Rights, Sexual Orientation

and Gender Identity
In June 2011, the UNHRC issued a resolution that seeks to identify

existing discriminatory laws, practices, and violence against persons based
on SOGI and come up with possible interventions to mitigate such cases by
the end of the said year (UNHRC, 2011a). This resolution was made
because of the Council's heightened concern on the rampant violation of
human rights based on SOGI across the globe even after the creation of
international human rights standards several decades ago. It serves as an
appeal for states to recognize that all individuals, regardless of sex, sexual
orientation or gender identity, are protected by international human
rights law-that is, the rights to life, security of person and privacy,
freedom from torture, arbitrary arrest and detention, the right to be free
from discrimination and the right to freedom of expression, association
and peaceful assembly (UNHRC, 2012). The resolution specifically called
for a dialogue at the 1 9 h session of the Human Rights Council, citing
violence against persons on the basis of SOGI as a priority issue.
As a response to this resolution, a report on discriminatory laws,

practices and acts of violence against individuals based on SOGI and how
these may be addressed by international human rights law was presented
by the UN High Commissioner for Human Rights. It was presented to the
UNHRC in November 2011 and was documented as a report on
"Discriminatory Laws and Practices and Acts of Violence Against
Individuals based on Sexual Orientation and Gender Identity" (A/HRC/19/
41) (UNHRC, 2011b).
UNHRC Core State Obligations on LGBT Human Rights
The report on the discriminatory laws and practices and acts of

violence against individuals based on SOGI delivered by the UNHRC
painted a clearer picture of the state of LGBTs across the globe. It also
provided pragmatic action points that governments should undertake to
promote and protect human rights of all individuals regardless of their
sex, gender, sexual orientation, gender identity, and gender expression.
Other than those mentioned above, the UNHRC report aided the
Council to identify five core State obligations on safeguarding LGBT
human rights. These are: (a) to protect individuals from homophobic (a
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bias against homosexual people) and transphobic (a bias against

transgender people) violence, which refers to protection from hate crimes
based on sexual orientation and gender identity, including fair and
efficient investigation, and provision of asylum if necessary; (b) to prevent
torture and degrading treatment of LGBT persons in detention, which
includes the assurance that LGBT persons detained have redress; (c) to
decriminalize homosexuality, which includes the call to repeal laws that
criminalize homosexuality; (d) to prohibit the discrimination of persons
because of their sexual orientation and gender identity, which includes the
need to pass and implement laws that protect LGBT persons from
discrimination, particularly discrimination from access to basic services
and education opportunities; and (e) to respect and safeguard LGBT, as
well as intersex persons' freedom of expression, association, and peaceful
assembly, which includes protecting the exercise of this freedom from
intimidation and/or violence2 (UNHRC, 2012).
Philippine State Inclusion of LGBT Human Rights
The Philippines has no law that criminalizes homosexuality, unlike

its neighboring in Southeast Asia-Brunei, Malaysia, and Singapore-where
there still exists an Anti-Sodomy Law, a law inherited from British
colonization. However, while being LGBT is not criminalized, there is also
no legal recognition of LGBT people in the Philippines.
While there is no public policy for the protection of LGBT human

rights at the national level, there exist public policies at the local level.
Using data from the Philippine Statistical Authority, Manalastas (n.d.)
identified 15 local government units (LGUs) that have passed ordinances
against the discrimination of LGBT persons. However, these local
ordinances across cities, municipalities, and barangays in the Philippines
only cover a small number of the population. Manalastas also asserts that
only 11.2 percent of the Philippine population are protected by these
ordinances, leaving 88.8 percent of the population unprotected of
discrimination based on sexual orientation and gender identity and
expression (Manalastas, n.d.).
At the national level, however, numerous bills have been filed in

both the House of Representatives and in the Senate related to the
recognition and protection of LGBT human rights. In the House of
Representatives, a total of 18 bills were filed in the past two decades. The
first bill that recognized LGBT was titled An Act Providingfor Additional
Sector Known as Third Sex which was filed by Rep. Reynaldo Calalay in
1995 at the 1 0t Congress. This was followed by the bill Lesbian and Gay
Rights Act of 1999 filed in 1999 at the 1 1 th Congress by Rep. Bellaflor
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Angara-Castillo. Then Rep. Loreta Ann Rosales filed the Anti-

Discrimination Act of 2001 at the 1 2th Congress. Most of the bills that
followed were on anti-SOGI discrimination, many of which were carried by
representatives of the Akbayan Partylist. The most number of LGBT-
related bills were filed in the 1 6 h Congress-a total of 12 anti-LGBT
discrimination were bills filed by various congress representatives from
2013 to 2016.
On the other hand, a total of 15 bills were filed in the Senate from
2004 to 2016. The first bill was filed in 2004 at the 1 3 th Congress. Senator
Miriam Defensor-Santiago has been filing anti-SOGI discrimination bills
from the 1 3 th Congress up until the 1 6 h Congress. During the 1 3 th
Congress, four anti-LGBT discrimination bills were filed. In the 1 4 th
Congress, another four anti-LGBT discrimination bills were filed, followed
by two bills in the 1 5 th Congress, and five bills in the 1 6 h Congress.
However, it would appear that these bills filed in congress for the past
two decades are at a standstill. What is the cause of this standstill? Why are
these bills not being passed? How are they being argued? The passage of a
national law on LGBT human rights has been a struggle of more than 21
years. To date, there has been no study that has examined the public policy
process involved in the formulation of a national law that would recognize
and protect LGBT human rights in the country. For LGBT human rights to
be fully recognized in the Philippines, this article argues for the need to
understand the public policy process towards creating an enabling policy
environment for state inclusion of LGBT human rights.
There is a need to critically examine the public policy system in the

creation of a Philippine national law that would recognize and protect
LGBT human rights. This includes knowing the actors involved, in favor of
and against the passing of a national law on LGBT human rights and their
various positions or representations of the issue within the public debate
on the proposed policy. This study looks into the factors in the policy
environment that facilitate or hinder the passage of a national law on
LGBT human rights. Finally, this study examines the underlying
discourses of the various positions or representations on a national law on
LGBT human rights and recommend counter or alternative discourses
that will allow for the passage of a national law on LGBT human rights.
By undertaking an interrogation of the public policy system

surrounding state inclusion of LGBT human rights, a critical
understanding of the constructed discourses can be achieved. Using
discourse analysis, an examination of the LGBT policy debates can be
directed towards proposals for an enabling policy environment for a
Philippine national law on LGBT human rights.
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Understanding Discourse Analysis for Examining

the LGBT Policy Environment
Discourse refers to "systems of meaningful practices that form the

identities of subjects and objects" (Howarth & Stavrakakis, 2000, pp. 3-4).
This builds on Foucault's definition of discourses as "practices that
systematically form the objects of which they speak" (Foucault, 1969, p.
49). As systems of social relations and practices, discourses are
intrinsically political as they institutionalize "insiders" and "outsiders."
Discourses exercise power as they constitute which possibilities are
included and which are excluded. Discourses are also contingent upon
historical and social contexts, shaped by political forces and events at a
given space and time.
According to Torfing (2005), discourse is constructed through hegemonic

struggles. Discourse is a result of political decisions, "not conscious decisions
of central decisionmakers on the basis of rational calculation" but a series of
decisions resulting from "a myriad of decentred strategic actions undertaken
by political agents aiming to forge a hegemonic discourse" (Torfing, 2005, p.
15). Discourse analysis refers to the practice of analyzing empirical raw data
as discursive text. Speeches, reports, interviews, and policies, are among a
range of data treated as texts that constitute a "discourse," constructing a
"reality", and providing the conditions for experiencing such reality (Howarth
& Stavrakakis, 2000).
A Brief Background on Discourse Theory
Torfing (2005) accounts for the history of discourse theory as emerging in

the 1970s as a critique of structuralist theories of language, culture, and society
coming from poststructuralist and postmodern thought. Discourse theory comes
from various traditions, disciplines, and ontologies. One such theory is
poststructuralist discourse theory that has become a political science research
program and one that has significant impact on social sciences in general and
political science in particular. Torfing argues that poststructuralist discourse
theory has offered an alternative to the objective, reductionist, and rationalist
bias of modern theory by emphasizing the role of discourse and politics in shaping
social phenomena. It has also opened up new issues such as knowledge
paradigms, identity formations, and the discursive construction of norms and
values. Hence, a number of policy analysts now recognize the importance of
knowledge frames in identifying and solving policy problems.
Torfing (2005) describes three generations of discourse theories. The

first generation of discourse theories defined discourse in the linguistic
sense and focused on the semantic meaning of written and spoken text.
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The focus was on speakers' use of language. Some of these theories were
sociolinguistics, content analysis, conversation analysis, discourse
psychology, and critical linguistics.
The second generation of discourse theories went beyond language

and attempted to link discourse to politics and power. Discourse expanded
from written and spoken language to a wider set of social practices.
Critical discourse analysis (CDA) by Norman Fairclough is one such
discourse theory that espouses for the link between linguistically mediated
discursive practices and the naturalization of constructed meanings
derived from these discursive practices. This is referred to as ideological
discourses that produce hegemony or the reproduction of the social and
political order as well as counter-hegemony or social transformation.
In contrast, Foucauldian discourse analysis (FDA) coming from the

work of Michel Foucault goes a step back and seeks to understand "the
rules that form" discursive practices, the rules that regulate "what can be
said, how it can be said, who can speak and in which name" (Torfing, 2005,
p. 7). In Foucault's archaeological writings, he links the discursive and the
non-discursive (i.e., material); and in his genealogical writings, he focuses
on the power struggles and the ways in which discourse regulate action.
For Foucault, power and discourse mutually constitute each other.
The third generation of discourse theories extend discourse to all

social phenomena and argue that everything becomes discourse. As with
the work of Laclau and Mouffe (1985), this third generation contend that
the non-discursive phenomena such as institutions or technology are
ultimately constructed in discursive practices and are therefore still part
of the discursive realm.
The Value of Discourse Theory to Policy Analysis
What value does discourse theory add to mainstream public

administration and policy analysis? Torfing (2005) presents six added value
or contributions of a discourse approach:
(1) discourse theory poses other kinds of research questions, that is,
it is problem-driven and generates problems not identified by
behaviorist, institutionalist, or rationalist choice approaches;
(2) discourse theory draws attention to the contingent nature of

social phenomena, that is, it does not take social structures and
subjective interests as givens but rather examines political
processes leading to these structures and interests;
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(3) discourse theory emphasizes language and the link of language to

action, that is, it looks at how language constitutes structures
and identities;
(4) discourse theory emphasizes social change, that is, it sees history
as marked by political struggles that organize and reorganize the
social order;
(5) discourse theory puts power and political struggles on the

agenda, that is, it reveals how discourses create inclusionary and
exclusionary practices given that discourses and power are
inherently linked; and,
(6) discourse theory is particularly interested in the formation of

political groups, communities, networks, and alliances and how
meanings and identities bind actors together into imagined
political communities.
This article argues that discourse theory can make a valuable

contribution to public administration and policy analysis. A discourse
analysis of state inclusion of lesbian, gay, bisexual, and transgender or
LGBT human rights in Philippine national law contributes to: (1)
interrogating the problematization of LGBT human rights and how various
actors in Philippine governance construct the "problem" or issue of LGBT
human rights; (2) understanding the political process of creating a national
law or public policy on LGBT human rights as contingent upon historical
and social forces; (3) examining how the language, the text and the words
used to construct the issue of LGBT human rights represent discourses
that shape the meaning of the "problem" or issue and its proposed
"solution" or action orientation; (4) emphasizing the nature of social
change and how the negotiation and contestation of the issue of LGBT
human rights has evolved and progressed in time; (5) reflecting the power
of discourses to include and/or exclude subjects, identities, or groups of
people in development, and how discourses have either promoted state
inclusion or propagated state exclusion of LGBT human rights; and,
(6) highlighting how political groups or alliances of civil society actors
have come together to challenge the current status quo towards promoting
an enabling environment for the state inclusion of LGBT human rights in
Philippine national law.
Discourse analysis can inform a policy analysis of state inclusion of

LGBT human rights in Philippine national law. Policy-as-discourse can
focus on the role of the state or Philippine government in formulating a
national policy on LGBT human rights. In particular, the role of the
legislature, that is, the House of Representatives and the Senate, as the
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branch of government primarily in-charge of national public policy

formulation. A discourse analysis approach unpacks the role of the
legislature by looking at how actors in this branch of government engage
and interact with each other in formulating a national law or policy.
Discourse analysis goes beyond individual actors, political parties,
organizations, and institutions and instead locates these actors' discursive
practices or text and talk as part of wider discourses or the "rules that
form" or the rules that govern these discursive practices (Parker,
1990,1992; Foucault, 1969; Howarth, 2005). The focus of this policy
research then is in analyzing the discourses surrounding state inclusion of
LGBT human rights in the creation of a Philippine national law as
articulated by various actors involved in national policy formulation and
decision making.
A discourse analytical approach understands the exercise of control

and power over policy formulation and decision making. Discourse analysis
looks at the power beyond organizations and institutions and what is
legitimized by the state and highlights the power of discourses themselves.
Following Foucault's work, discourses have the power to shape policy
proposals, position statements, and speeches, and the power to influence
policy decisions (Parker, 1990, 1992; Foucault, 1969; Howarth, 2005).
Discourse-as-policy looks at the complex and continuously evolving

nature of the public policy process that, in the case of LGBT human rights,
has spanned decades. It can be used to examine the bills on LGBT human
rights formulated and filed in both the House of Representatives and the
Senate, the specific social and historical context of the filing of these bills,
and the public debates or discursive practices surrounding these bills
through time. It can provide an analysis that looks at how these various
formulations of the problem or issue of LGBT human rights are discussed,
debated, negotiated, and contested through time.
Finally, discourse analysis goes beyond the actors within the

Philippine government or the state and locates the public policy process in
the wider network of civil society actors in Philippine governance involved
in the public policy debate. These include government and non-
government actors; civil society groups such as LGBT and human rights
groups; and religious groups, specifically the Catholic Church. This
network reflects the complexity of the web of individual and institutional
actors that participate, collaborate with and contest each other in the
public policy process. It leads to the understanding of the various ways in
which society is governed, and how it can contribute to theory building.
LGBT human rights groups, as one of the actors in Philippine

governance, assert that the Philippine government has the duty to uphold
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the human rights of LGBT persons as a signatory to international human

rights covenants. This rights-based approach in identifying the need for an
Anti-SOGI Discrimination Act provides a frame for enacting a policy to
honor the national government's commitment to international standards
of human rights.
Other key actors in the public policy debate, for instance, Catholic or
religious groups, oppose an Anti-SOGI Discrimination Act on the grounds
of immorality. Arguing on the basis of religious beliefs or religious text,
these groups contest that the behaviors that LGBT persons engage in are
immoral. As such, a religious moral discourse may be made more
prominent in the public debate on the proposed Anti-SOGI Discrimination
Act.
Both the universal human rights discourse and the religious

discourse, therefore, contribute to the shaping of problem formulation and
the process of deciding on a national law that aims to protect LGBT
persons from discrimination.
The value of discourse theory to policy analysis is presented through

a brief review of studies regarding dominant discourses both in support
and opposed to LGBT human rights.
Dominant Discourses in Support of LGBT Human Rights
Petchesky (2001) illustrated the evolution of sexual health discourse,

sexual rights discourse, and sexual and reproductive health and rights or
SRHR discourse in the UN system, particularly in international covenants
concerning women's rights in the past two decades. Petchesky cited the
Declaration on the Elimination of Violence against Women (UN, 1993) as
the first UN document to introduce the word "sexual" into human rights
language in the context of eliminating all forms of sexual violence. The
most progressive language pertaining to sexuality appeared in the
International Conference on Population and Development (ICPD) in 1994
as it "acknowledges sexual activity as a positive aspect of human society"
(Tambiah, 1995, as cited in Petchesky, 2001, p. 120). Eventually, the World
Health Organization (WHO) would refer to "sexual health" as a right that
population and development programs should protect, with sexual health
requiring that "people are able to have a satisfying and safe sex life"
(WHO, as cited in Petchesky, 2001, p. 120).
A global study on state policies on same-sex sexual relations from

1984 to 1995 by Frank and Mceneaney (1999) traced the state legitimation
of same-sex sexual relations as indicated by nations liberalizing their
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policies on homosexuality and the presence of lesbian and gay social

movements. Liberalization included decriminalizing same-sex relations,
legalizing same-sex marriage, protecting homosexuals from hate crimes,
protecting immigrant rights for those fleeing persecution or joining
partners, and providing equal access to employment and housing. In their
analysis, Frank and Mceneaney attributed this global change towards
legitimizing same-sex relations to an individualization discourse where
modern western societies are seen as shifting their focus from family
procreation to individual personhood. An individualization discourse
transformed the meaning of sex from the needs of a family to the needs
and desires of an individual, otherwise put, from sex for procreation to sex
for pleasure. Frank and Mceneaney (1999) also found a link between
gender equality discourse with state legitimation of same-sex relations.
Using a quantitative research design, they measured nations' adherence to
an individualization and gender equality discourse and correlated these to
how liberal the policies of nations are towards same-sex relations. This
global change in the 1980s and 1990s towards upholding the rights of
LGBT people through decriminalizing homosexuality, anti-discrimination
laws, and equality laws, among others, were also linked to the increased
visibility of the LGBT community and the support of the scientific and
medical community in the 1970s. A depathologization discourse emerged
from the scientific and medical profession's (e.g., the American Psychiatric
Association [APA] and the World Health Organization [WHO]) declaration
that homosexuality is normal and no longer perceived as an illness or
pathology. An identity politics discourse emerged with the rise and
visibility of lesbian and gay identities in Western societies. A human
rights discourse also became a dominant discourse among transnational
social movements such as Amnesty International, the ILGA, and the
International Gay and Lesbian Human Rights Commission or IGLHRC
(Frank & Mceneaney, 1999).
In a treatise, Sullivan (1995) argued that an equality discourse will

lead to the state's inclusion of LGBT rights as human rights. An equality
discourse demands full equality for all citizens, including homosexuals,
and calls for an end to discrimination. Sullivan (1995) calls for "all
discrimination against homosexuals be ended and that every right and
responsibility that heterosexuals enjoy as public citizens be extended to
homosexuals" (p. 171). Sullivan also identified a political liberal discourse
as leading to the state's inclusion of sexual minorities to rights and
protection of human liberty. According to Petchesky (2009), the idea that
sexual rights are human rights, and that reproductive rights are human
rights, follow the principle of indivisibility discourse that highlights the
interconnectedness nature of human rights.
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Dominant Discourses that Oppose LGBT Human Rights
This section presents a review of dominant discourses surrounding

state policies that continue to discriminate against and criminalize same-
sex sexual relations, transgender identities and expressions.
In analyzing the negotiations between various stakeholders towards

the Beijing Platform for Action in 1995, Petchesky (2001) identified the
Vatican-led fundamentalist alliance as expressing the strongest opposition
to sexual rights. The taboo against homosexuality, bisexuality and diverse
family forms are based on a traditional family discourse that privileges
heterosexual marriage and having children (procreation) as the only
acceptable form of intimate relations. According to the Holy See, a couple
only refers to "the individual man and woman" bonded in marriage, which
is the basis of family (as cited in Petchesky, 2001). The Vatican-led
alliance led a crusade in behalf of "parental rights" and the "family" (Holy
See, as cited in Petchesky, 2001). The religious right also utilized an
irresponsible sex discourse, blaming homosexuality for the spread of HIV/
AIDS, and calling it a "hedonistic mentality unwilling to accept
responsibility in matters of sexuality" and "a self-centered concept of
freedom" (Catholics for a Free Choice, 1995, as cited in Petchesky, 2001, p.
123). According to Petchesky (2009), fundamentalist conservative religious
discourses on moral purity are shared by Christians, Islamists (Muslims),
and the radical right.
Rubin (1989) had earlier argued how discourses about morality,

masculinity and femininity, and family relations shape the public debates
around gender and sexuality. A morality discourse, a traditional gender
role discourse, and a traditional family discourse dictate what is good and
what is bad, what is acceptable and what is not, in terms of gender
expression and sexual relations. These discourses seek to maintain
traditional masculine and feminine gender roles and preserve the tradition
of heterosexual marriage and procreation.
Sullivan (1995) identified several dominant discourses that influence

state policies and practices regulating homosexuality. The first is what is
referred to as an unnatural discourse, which states that homosexuality is
an abomination, an aberration, and unnatural (and heterosexuality as the
only natural form of being). The second is a pathology discourse that
considers homosexuality an illness that requires a cure. The third is a
social deviance discourse that treats homosexuality a transgression that
deserves punishment. The fourth is a political conservative discourse, as
opposed to a political liberal discourse, which combines private tolerance
with public disapproval of homosexuality, speaking against persecution of
homosexuals but maintaining heterosexist social norms in public.
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In ten case studies conducted by Sexuality Policy Watch across eight

countries (Brazil, Egypt, India, Peru, Poland, South Africa, Turkey,
Vietnam) and two international agencies (World Bank, United Nations),
Nathanson, Sember, and Parker (2009) concluded that religion and the
state coalesce in nationalist discourses in supporting state policies against
sexual and reproductive rights. Nationalist discourses claim that state
policies that criminalize same-sex relations, for example, work towards
preserving the nation-state. In the case of India, for instance, the "modern
Indian state" defended the Anti-Sodomy Law or Section 377 of the Indian
Penal Code, a law inherited by the Indian state from British colonial rule,
to protect the nation (claiming that the nation is at stake) and preserve
Indian culture (claiming that Indian culture is endangered). A similar
nationalist discourse shaped anti-homosexuality in South Africa by
asserting that LGBT identity is counter to an African identity. State
policies then against LGBT identities defend "Africanness" or an African
national identity.
Applying Discourse Analysis in Understanding LGBT Policy
This article presents two key studies to illustrate the utility of

analyzing the discourses surrounding state regulation of sexual
orientation and gender identity and expression (SOGIE) and how these
shape a nation's policies on LGBT human rights in the context of
Southeast Asia. The first study by Blackwood (2007) is on Indonesia, while
the second study by Obendorf (2013) is on Singapore.
LGBT Discourses in Indonesia
Blackwood (2007) documented the changing discourses surrounding

homosexuality as espoused by the Indonesian state in three historical
periods.
In the first period referred to as the New Order in the 1960s and
1970s, the Indonesian State normalized heterosexuality, marriage, and the
family by promulgating the concept of the nuclear family as the ideal. It
idealized marriage and motherhood as the ideal role for women, and
naturalized gender differences. In a traditional family discourse, anything
outside heterosexual marriage was deemed unacceptable. The Indonesian
State's position towards same-sex relations was implied in its assertion of
marriage, motherhood and the family, and was shaped by Indonesian
traditional values or customary practices alongside Islamic morals and
laws.
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In the second period, with the prominence of media in the 1980s and
1990s and the rise in visibility of lesbian and gay media representations, a
"moral panic" ensued. Despite the increased visibility of lesbian and gay
media representations, the pathologization of homosexuality as a sickness
and abnormality continued, along with the stigma of lesbians and gays as
"abnormal/sick" as opposed to normal heterosexuals. Lesbians and gays
were seen as having a mental illness and/or committing a crime. Despite
the growing international social movements pushing for LGBT rights as
human rights, the Indonesian state's position on homosexuality was to
assert that being lesbian or gay is deviant and is not part of Indonesian
culture. Coming from a traditional family discourse, which valued family
and marriage, and a naturalist discourse, which deemed homosexuality as
unnatural and outside natural manhood/womanhood, the Indonesian State
allied with fundamentalist Islamic factions. It argued against
homosexuality on the basis of an Indonesian sense of "family values"
combined with Islamic morals. Homosexuality was depicted as a product of
the West, as immoral and unnatural.
In the third period, referred to as the Reformasi in the 2000s, the

Indonesian State increased its repression of LGBT identities and
expressions and criminalized homosexual acts. A growing LGBT and
democracy movement emerged alongside the rise in religious
fundamentalism within the Indonesian State. Conservative Islamic law
(shariah) led to the criminalization of homosexual relations by only
permitting heterosexual sex within marriage, i.e., between a man and a
woman. Homosexual sex became a crime against morality. Although the
law does not explicitly prohibit same-sex relations, the Indonesian State
indirectly criminalizes same-sex relations by permitting only heterosexual
sex within marriage. The current situation is that of criminalization and
state surveillance of individual behaviors versus a privacy discourse, a
liberal discourse, and an individualism discourse. The question "who has
the power to regulate morality?" associated with individualism and free
choice is seen as a threat to the stability of the state. Thus, there is
stronger state repression of homosexuality.
LGBT Discourses in Singapore
In another illustration of discourse analysis of state regulation of

sexuality in a Southeast Asian country, is the study by Obendorf (2013) of
the unique case of Singapore, which despite of its economic advancement
still refuses to decriminalize homosexuality.
The Singaporean State has taken a nationalist narrative or discourse

in justifying its regressive perspective as regards the protection of the
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rights of its homosexual citizens. In 2014, the Singaporean Supreme Court

re-affirmed the criminalization of male homosexual sex in the Singapore
Penal Code (377) when the civil society sought its repeal. The Singaporean
State has decided to continue criminalizing homosexual intercourse and
has chosen to censor queer cultural expression.
The Singaporean State's position has to be understood in the context

of its colonial legacy, having inherited Section 377 from the British Penal
Code, and its assertion of postcolonial independence and statehood. Touted
as the "Singapore Model", the Singaporean system of social and political
regulation is said to have led to its independence, which consequently
paved the way for its economic growth and global success. To thrive as a
city-state, Singapore adopted an efficient authoritarian model to create a
communitarian social order that allows the nation to survive and the
economy to grow.
Alongside Singapore's political-economic narrative is its conservative

society that promotes the nuclear, heterosexual family, which is composed
only of a married heterosexual couple and their children. Promoting
procreation or reproduction, the Singaporean state views queer identities
as non-procreative and non-normative, therefore threatening the survival
and viability of the nation or city-state. Interestingly, Singapore is more
open to transsexuals or those who have changed their sex through sexual
reassignment surgery (SRS). SRS is legal in Singapore and transsexuals
can change their legal documents and marry. This contradiction is
understood in a discourse that sees transsexuals as conforming to
heterosexual norms.
In addition, fundamental morality or traditional values (Islam,

Chinese, Christian) of Singaporean society is said to make it distinct from
the neocolonial moral imperialism of the West (with its individualism,
economic stagnation, and immorality, e.g., divorce).
The Singaporean case is a situation of state suppression, with its

criminal prohibition and social disapproval, versus a vibrant LGBT
community, with its empowerment and love as a human need discourse.
Singapore's case is a situation of social tolerance, in which criminal
prohibition is in place but the law is not strictly enforced as long as
individuals stay in their own space. In keeping with Singapore's
"cosmopolitanism, diversity, and sophistication" narrative or discourse,
the Singaporean State seeks to keep LGBT people in its labor force and
economy by taking a pragmatic approach to the state's regulation of
homosexuality.
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A Call to Problematize LGBT Human Rights in the Philippines
As demonstrated in the foregoing case studies, discourse analysis in

examining public policy process proves to be a useful approach in
understanding the public policy formulation and decision-making process
surrounding state inclusion of LGBT human rights in the Philippines. The
central premise of policy-as-discourse is that policy problems are not
neutral, objective realities, but rather, are shaped and constituted within
the policy proposals that seek to remedy a given problem (Bacchi, 2000;
Cooper, 2006). It recognizes that within policy or policy proposals,
language, or more broadly, discourse, provides the frame, parameters, and
limits on what can be said and thought as regards a policy problem
(Bacchi, 2000; Cooper, 2006). The assumption of the policy-as-discourse
approach is that governments are not addressing problems that are out
there, waiting to be discovered. In policy-as-discourse approach, policy
problems are shaped by the public policy process (Bacchi, 2000; Cooper,
2006). The focus of policy-as-discourse theorists is not the assumed
problem as identified within a given policy, but the process of
problematization (Bacchi, 2000; Bacchi & Bonham, 2014; Bacchi, 2015).
There is a shift, therefore, from policy analysis as problem-solving to

policy analysis as problem-questioning (Bacchi, 2009). This focus on policy-
questioning occurs through an examination of where power is located as
regards a policy problem. The policy-as-discourse analysis emphasizes the
sites of power, where policy shapes, and is shaped by, related discourse. It
also recognizes that those who are in positions of power or privilege, can
more easily participate in shaping discourse, while those who are not can
be more easily influenced by the discourse (Bacchi, 2000).
Although there is no law that criminalizes LGBT people in the

Philippines, LGBT people in the Philippines continue to experience
differing forms and degrees of discrimination, stigma, and violence in
various spheres of life. The absence of a law protecting LGBT human
rights makes LGBT people's rights at risk of being violated. Thus, state
intervention through a national law to recognize and protect LGBT human
rights is an imperative. A discourse-as-policy approach can be a step
towards addressing that imperative.
Endnotes
In arguing for state inclusion of LGBT human rights, it is important to have a

clear understanding of the acronym "LGBT", that is, the social identities that it
represents. Lesbian, gay, bisexual and transgender are identity labels attached to
individuals based on their sexual orientation, gender identity, and/or gender expression.
Sexual orientation refers to the person whom one is sexually and/or romantically
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attracted to (APA, 2011). Gay men and lesbian women are attracted towards individuals
of the same sex, bisexual people are attracted towards individuals of both sexes, and
heterosexual people are attracted towards individuals of the opposite sex. Gender
identity, on the other hand, refers to a person's subjective or self-identification as male,
female, or transgender (APA, 2006). The male and female gender identities are used
when an individual's sense of self is aligned with the sex assigned at birth (based on
biological sex). The transgender identity, on the other hand, refers to people whose
gender identity or sense of self are dissonant or not aligned to their assigned sex at birth
(based on biological sex). Gender identity is an internal and deeply felt sense of self.
Gender expression refers to the external characteristics or behaviors that correspond to
what is socially defined as masculine or feminine. Gender expression does not
necessarily match one's gender identity.
2 A limitation of this article is that it did not delve into the rights advocacy for
intersexed persons.
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2016
Developing the Philippine Sovereign

Wealth Fund
RUSSELL STANLEY GERONIMO*
Through a sovereign wealth fund, the Philippine

government can invest its financial assets in the global
financial markets to maximize long-term returns. Considering
that the current level of foreign exchange reserves in the
Philippines already exceeds international benchmarks of reserve
adequacy, a sovereign wealth fund can mitigate the adverse
effects of surplus reserves, help the government increase
national savings, and diversify its portfolio of investments
across asset classes and markets. This article explores the
prospect of developing the fund from a legal and regulatory
perspective. It explores the governance framework for the
proposed fund under four possible modes of creation or forms of
organization: (i) a government-owned and controlled
corporation (GOCC) with special charter, (ii) a GOCC registered
with the Securities and Exchange Commission, (iii) a
government instrumentality with corporate powers, or (iv) a
special administered fund managed by a national government
agency.
Keywords: corporate governance, sovereign wealth fund, foreign exchange

reserves, GOCC, government-owned and controlled corporation
Introduction
A sovereign wealth fund (SWF) is a pool of government-owned

financial assets invested in the global financial markets for the purpose of
maximizing long-term returns (Moore, 2011). It also pertains to the
investment fund or government financial institution created to manage
these assets (Otinche, 2014). Andrew Rozanov (2011), who is credited with
the invention of the phrase, provides its three defining elements: first, it
is sovereign-owned and managed; second, its assets are not prudential
monetary reserves; and third, its assets are not traditional pension funds.
While there are various disagreements about the precise meaning of
SWFs, the definition provided by the International Working Group of
Sovereign Wealth Funds (IWG-SWF) is regarded as the consensus
definition (Rozanov, 2011), as follows:
*Law Student, College of Law, University of the Philippines Diliman.
98
PHILIPPINE SOVEREIGN WEALTH FUND 99
SWFs are defined as special purpose investment funds or

arrangements, owned by the general government. Created by
the general government for macroeconomic purposes, SWFs
hold, manage, or administer assets to achieve financial
objectives, and employ a set of investment strategies which
include investing in foreign financial assets. The SWFs are
commonly established out of balance of payments surpluses,
official foreign currency operations, the proceeds of
privatizations, fiscal surpluses, and/or receipts resulting from
commodity exports. (p. 256, citing IWG-SWF)
The source of SWF funding includes (i) surplus foreign exchange

reserves, (ii) revenues from commodity exports and exploitation of natural
resources, (iii) mandatory premium contributions held in trust for social
security, and (iv) dividend income from state-owned enterprises or GOCCs
(Megginson & Fotak, 2015). The fund invests in a broad range of asset
classes, including foreign currencies, bonds, shares of stock, commodities,
derivatives, joint ventures, private equity, and real estate (Johan, Knill,
&
Mauck, 2013).
While central banks hold financial assets for the purpose of currency
stabilization and liquidity, sovereign wealth funds are authorized to deal
with riskier assets to generate higher returns (Xiang, Wang, Kong, & Li,
2009). The earnings of the fund form part of national savings and may
contribute to the national budget, except if they are already earmarked for
a specific purpose, such as funding pension schemes and social welfare
benefits (Clark & Monk, 2010).
Why do countries set up sovereign wealth funds? One reason is that

countries which heavily rely on revenues from raw material exports face
the risk of exhaustion of natural resources (Drysdale & Findlay, 2009).
Sovereign wealth funds are then created to act as "intergenerational
transfer mechanisms," allowing the country to generate long-term returns
on raw material export earnings for the benefit of present and future
generations (Ainina & Mohan, 2010). Another reason is that countries with
a massive buildup of foreign exchange reserves face the opportunity cost of
keeping their surplus reserves in low-return investments (Aizenman,
Cheung, & Ito, 2015). This is especially true for central banks which are
legally precluded from investing in risky assets in the global financial
markets (Datz, 2008). Sovereign wealth funds help countries generate
higher returns by specializing on investment fund management (Greene
&
Yeager, 2008).
Sovereign wealth funds are recent creations. The term was conceived
by Andrew Rozanov only in 2005 (Gelpern, 2011). The earliest example of
the fund is the Kuwait Investment Authority, which was set up in 1953 to
invest the country's oil export earnings (Megginson & Fotak, 2015). In
2016
1956, Kiribati established the Revenue Equalization Reserve Fund

(Bernstein, Lerner, & Schoar, 2013).
These funds have a massive global economic impact. As of June 2016,

the combined assets of sovereign wealth funds reached USD7.32 trillion
(Sovereign Wealth Fund Institute [SWFI], n.d.). The largest fund in terms
of asset size is the Government Pension Fund - Global of Norway (USD885
billion), followed by China Investment Corporation (USD813.8 billion) and
Abu Dhabi Investment Authority (USD792 billion). In 2015, the Middle
East has the largest share at 40.24%, followed by Asia at 39.74%. Funds
related to oil and gas exports contribute 56.93% of the total global
financial assets (SWFI, n.d.). Table 1 lists the top ten largest funds.
Table 1. Top 10 Largest Sovereign Wealth Funds By Asset Size

(as of June 2016)
Country Sovereign Wealth FundName AsBi

US -BiI
Inaption
nqiii
Origin
Oii
Norway Government Pension Fund 885 1990 Oil

- G lobal
China ChinaInvestment 813.8 2007 Non-Commodity

Corporation
UAE-Abu AbuDhabilnvestment 792 1976 Oil

D habi Authority
Saudi Arabia SAM A Foreign Holdings 598.4 n/a Oil
Kuwait Kuwait Investment 592 1953 Oil

Authority
China SAFE Investment Company 474** 1997 Non-Commodity
China- Hong Hong Kong Monetary 442.4 1993 Non-Commodity

Kong Authorityl nvestment
Portfolio
Singapore Government of Singapore 350 1961 Non-Commodity

I nvestment Corporation
Qatar QatarInvestment Authority 335 2005 Oil and Gas
China National Social Security 236 2000 Non-Commodity

Fund
Source: SWFI, Fund Rankings, n.d.
This article explores the prospect of developing a sovereign wealth

fund in the Philippine context. Specifically, it attempts to operationalize
the 24 Generally Accepted Principles and Practices (GAPP) for Sovereign
January-December
Wealth Funds, otherwise known as the Santiago Principles, within the

Philippine legal environment. The article examines the regulatory
framework governing the proposed fund under four possible modes of
creation: (i) a government-owned and controlled corporation (GOCC) with
special charter, (ii) a GOCC registered with the Securities and Exchange
Commission (SEC), (iii) a government instrumentality with corporate powers,
or (iv) a special administered fund managed by a national government agency.
Prospects for a Philippine Sovereign Wealth Fund
The Bangko Sentral ng Pilipinas (BSP, Central Bank of the

Philippines) cannot actively invest the surplus portion of the reserves in
global financial markets due to its charter limitation, which mandates a
passive investment approach exclusively for currency stabilization and
liquidity purposes (Republic Act [RA] 7653, Sec. 66). A sovereign wealth
fund can address this limitation by purchasing the surplus portion of the
international reserves, bringing them down to an optimal level, and
investing the excess portion in various asset classes abroad with a view
toward earning higher returns (Drezner, 2008).
Foreign exchange reserves also reached an all-time high in September

2016 at USD86.14 billion, which is 591% higher than the average foreign
exchange reserves of USD14.57 billion from 1960 to 2016. As of November
2016, foreign exchange reserves stand at USD82.7 billion. Foreign exchange
reserves consist of gold, foreign currency, special drawing rights, and foreign
currency-denominated marketable securities (BSP, n.d.). Their growth has
been consistently rising for the past 27 years, illustrated in Figure 1.
Figure 1. Foreign Exchange Reserves in the Philippines

(1989 to 2016)
2005 2415
Source: Trading Economics, n.d., "Philippines Foreign Exchange Reserves"
2016
The current level of foreign exchange reserves in the Philippines

exceeds international benchmarks of reserve adequacy. One benchmark is
the import cover, which is the number of months of average imports that
can be funded by gross international reserves (Rajan, Siregar, & Bird,
2005). Under international standards, an import cover of three to four
months already represents an adequate reserve level (Rossouw, 2006).
Import cover in the Philippines, on the other hand, grew from 3.5 months
in 2000 to 9.7 months in October 2016 (BSP, n.d.), illustrated in Figure 2.
Figure 2. Import Cover (2000 to 2016)
14
12
0 10
E
0
8
-0
E
6
Source: BSP, n.d.
Another benchmark is the short-term external debt cover, which is

the adequacy of gross international reserves to fund outstanding short-
term debt in the public and private sectors (Rodrik, 2006). Under
international standards, a short-term external debt cover which is at least
equal to the gross international reserves represents an adequate reserve
level (International Monetary Fund [IMF], 2000). Short-term external debt
cover in the Philippines, on the other hand, grew from 165.1% in 2000 to
430.1% in October 2016 (BSP, n.d.), illustrated in Figure 3.
January-December
Figure 3. Short-Term External Debt Cover

Based on Residual Maturity
(CY 2000 to 2016)
600
500
400
Z 300
200
100
0
§N &t ZA Jt) &
Source: BSP, n.d.
The gross international reserves of the Philippines has reached

surplus level, with an import cover of 9.7 months out of a benchmark of
three to four months, and a short-term external debt cover of 430.1% out
of a benchmark of 100% as of October 2016 (BSP, n.d.).
The primary benefit of reserve buildup is rooted in the Asian

Financial Crisis in 1997-1998, which prompted central banks to purchase
foreign currencies to insure their country from unexpected shortage of
international liquidity (Aizenman & Marion, 2003). Excess reserves, on the
other hand, have costs to the economy, as follows:
The three major costs of reserve accumulation are inflation,

fiscal costs and higher interest rate. A central bank's issuance of
domestic currency to purchase foreign currency increases the
monetary base, which in turn leads to inflation. In order to
sterilize the inflationary impact of reserve accumulation, a
central bank typically issues bonds, i.e., domestic liabilities, in
exchange for currency in circulation, withdrawing domestic
liquidity in the process. However, sterilization may entail a fiscal
burden-the second major cost-if the interest rate a central
bank pays on its outstanding bonds exceeds the interest rate it
earns on its foreign reserve assets. The third major cost-higher
2016
interest rate-is also associated with sterilization. Sustained

accumulation will eventually lead to a higher interest rate since
there is a limit to the general public's appetite for sterilization
bonds. (Park & Estrada, 2009, p. 6)
In 2012, the International Monetary Fund (IMF) already warned the

Philippine Government of its surplus reserves, which are beyond optimal.
Since the BSP, which manages the internal reserves, is legally
constrained from investing the excess portion of the reserves in global
markets, the BSP governor on 21 March 2013 suggested the creation of a
sovereign wealth fund, which will be funded by excess reserves and which,
in turn, will purchase foreign assets with higher returns (Matulis, 2012).
The Proposed Philippine Investment Fund Corporation
On 19 October 2016, Senate Bill (SB) 1212 entitled Philippine

Investment Fund CorporationAct was filed. The bill seeks to create the
Philippine Investment Fund Corporation for the purpose of accumulating
national savings for the present and future generations. Its other
mandates include the following:
1. To contribute to the annual national budget; [and]
2. To provide an investment function platform for GOCCs and their

subsidiaries, government owned and controlled funds with
investment and development goals, and investments of
government financial institutions and government
instrumentalities mandated by Congress. (SB 1212, Sec. 6)
The proposed Fund is authorized to place its money in alternative

investments, or asset classes other than stocks, bonds, or cash. This is
perhaps the most important aspect of the bill, since the largest
government financial institutions in the Philippines, like GSIS, SSS and
BSP, have asset class restrictions provided in their respective charters
which prevent them from carrying out the functions of a sovereign wealth
fund. Under the bill, the proposed Fund has the power to participate in the
global financial markets and invest in futures contracts, private equity,
and commodities (SB 1212).
The proposed Fund has three investment accounts: primary

investment fund, special investment funds, and reserve investment
account. The primary investment fund is a basket of foreign currencies
meant to be invested internationally. The Fund has a withdrawal limit of
50% of the net new gains for the purpose of contributing to the national
January-December
budget. The special investment funds are those that are set up in
accordance with investment mandates from GOCCs and other government
instrumentalities with investment purposes. The withdrawal limits are to
be stipulated between the Fund and the GOCC or government
instrumentality. The reserve investment account is a pool of assets not
committed for investment purposes (SB 1212, Sec. 9[c]).
In terms of governance, the Fund provides a supervisory council, which

is separate and independent from the board of directors. The Council meets
twice a year and is composed of the President of the Republic as chair, the
DOF secretary as vice chair, the national treasurer, the DBM secretary, the
BSP governor, the GCG chair, and the solicitor general. The Board is
composed of nine appointive positions (SB 1212, Sec. 14).
The proposed Fund aims to observe the Santiago Principles. As of 7

November 2016, the bill is still pending with the Committee on Economic
Affairs and the Committee on Government Corporations and Public
Enterprises (Senate of the Philippines, n.d., "Legislative History").
The Santiago Principles
One of the growing concerns about sovereign wealth funds is that

most of them are based in authoritarian regimes facing risks of political
instability, and that these funds could be utilized to further their
international political agenda (Drezner, 2008). Lack of transparency about
the funds' portfolio composition and investment mandate, and the lack of
regulatory framework to enforce disclosure of information to the
international community, have contributed to this suspicion (Bernstein,
Lerner, & Schoar, 2013).
The reality is that foreign control of sensitive economic activities is a

major source of geopolitical risk. Even developed nations operating under a
free trade are now beginning to recognize the growing risk of sovereign
wealth fund investments. According to a news article in The Trumpet (2006):
Increasingly, corporations are political tools used by nations to

exert influence over other nations. In times of peace and
economic prosperity, foreign control of strategic industries and
infrastructure may not be an immediate threat. But during
major economic recessions-or, worse, times of geopolitical
upheaval and war-the loss of ownership and full control of
national industries can be catastrophic. (para. 18-19)
Sovereign wealth funds raise several national security concerns for

host countries receiving their investments, including the "destabilization
2016
of the financial markets (to the detriment of the host country), protection
of SWF home-country industries at the expense of the host country's
industries, and the expropriation of technology" (Hemphill, 2009, p. 551).
Despite the importance of sovereign wealth funds in the global

economy, there is currently no multilateral treaty prescribing the
acceptable behavior of these funds. However, concerns about the
accountability, independence, and transparency of sovereign wealth funds
led to the formulation of a set of voluntary guidelines for fund managers
around the globe. The closest code of conduct in the international
community is the Generally Accepted Principles and Practices (GAPP) for
Sovereign Wealth Funds, otherwise known as the Santiago Principles,
which are self-imposed and non-legally binding (Norton, 2010).
The Principles are a product of a summit organized by the IMF in

September 2008. The major funds in the globe formed an International
Working Group of Sovereign Wealth Funds (IWG-SWF), which drafted the
Principles as guidelines on institutional governance and risk management
(Jensen & Seele, 2010). In 2009, the International Forum of Sovereign
Wealth Funds (IFSWF) was founded by 23 member entities for the purpose
of promoting the guidelines in the investment management community.
The current membership base of 30 funds represent 80% of the total global
assets (IFSWF, n.d.).
Operationalizing the Santiago Principles in the Philippines
The GAPP has 24 principles, which cover these three major areas:
1. Legal framework, objectives, and coordination with macroeconomic

policies;
2. Institutional framework and governance structure; and
3. Investment and risk management framework. (IWG-SWF, 2008)
Legal Framework (GAPP 1)
The Fund has four possible legal forms or modes of creation. First,
the Fund can be set up as a government-owned or controlled corporation
(GOCC) created and vested with functions by a special law (Rufino v.
Rufino,GR 139554, 21 July 2006). This is known as a chartered GOCC.
Examples of chartered GOCCs are the Government Service Insurance
System (GSIS), the Development Bank of the Philippines (DBP) and the
January-December
Land Bank of the Philippines (LBP) (Governance Commission for GOCCs

[GCG], 2016). Each is governed by the terms of the legislative act creating
the entity (Felicianov. Gison, GR 165641, 25 August 2010).
Second, the Fund can be created through the Corporation Code

(Batas Pambansa[BPI 68) by way of registration with the SEC, which is
the manner by which private corporations are created (Republic v. City of
Parailaque, GR No. 191109, 18 July 2012). This is also known as a non-
chartered GOCC. Examples include the United Coconut Planters Bank
(UCPB) and the subsidiaries of chartered GOCCs, such as the Philippine
Postal Savings Bank, Inc. (PPSB), whose parent GOCC is the Philippine
Postal Corporation (PPC) (GCG, 2016).
Third, the Fund can be set up as a special fund owned and

administered by an existing national government agency (NGA), such as
the Department of Finance (DOF), or by a government financial institution
(GFI), like the BSP (IWG-SWF, 2008). Examples of special administered
funds include the international reserves, which is managed by the BSP,
and the social insurance fund, which is administered by GSIS and the
Social Security System (SSS) (RA 7653, Sec. 66).
Fourth, the Fund can be set up as a government instrumentality

with corporate powers (GICP), which pertains to an "instrumentality or
agency of the government, which is neither a corporation nor an agency
integrated within the departmental framework, but vested by law with
special functions or jurisdiction, endowed with some if not all corporate
powers, administering special funds, and enjoying operational autonomy
usually through a charter" (RA 10149, Sec. 3[n]). Examples include the
Manila International Airport Authority (MIAA), the Philippine Ports
Authority (PPA), and the Philippine Deposit Insurance Corporation (PDIC)
(GCG, 2016).
Chartered GOCCs and GICPs are primarily governed by the special

legislative act creating them, with the Corporation Code being of
supplementary application (Sec. 4, BP 68). Non-chartered GOCCs are
primarily governed by the Corporation Code, and the articles of
incorporation and by-laws (Commissioner of Internal Revenue v. Puregold
Duty Free, Inc., GR 202789, 22 June 2015). Special administered funds are
limited by the powers, function and mandate of the NGA or GFI
administering these funds, and governed by the implementing rules and
regulations promulgated by the administering NGA or GFI (IWG-SWF,
2008).
A Fund created as a chartered GOCC, non-chartered GOCC, or GICP

has a separate juridical personality, while a special administered fund has
2016
none. All transactions affecting the fund are carried out by the
administrator, which holds the fund as an off-balance sheet item or trust
account.
A Fund created as a chartered GOCC, non-chartered GOCC, or GICP

falls within the regulatory jurisdiction of the Governance Commission for
GOCCs (GCG), and subject to the governance provisions prescribed in
Republic Act (RA) 10149 or the GOCC Governance Act of 2011, particularly
on: (i) selection of governing board, (ii) fit and proper rule, (iii) term of
office, (iv) chief executive officer, and (v) extraordinary diligence.
All appointive directors are nominated by the GCG and selected by

the President of the Philippines (RA 10149, Sec. 15). All appointive
members of the governing board and the chief executive officer (CEO)
must qualify under the fit and proper rule prescribed by the GCG and
approved by the President of the Philippines (Sec. 16). The term of office of
each appointive director is only for one year, subject to renewal, removal
for cause, and a holdover clause (Sec. 17). The CEO must be a member of
the governing board, and must be selected through an election by the
board (Sec. 18). The governing board and officers must exercise
extraordinary diligence in the management of the corporation (Sec. 19).
The foregoing governance arrangements are applicable if the SWF is

a chartered GOCC or GICP and the special law creating it is silent in these
areas. Otherwise, the terms of the statute govern the manner of selection
of the governing board and the CEO, their qualifications, terms of office,
and the standard of care expected in performing their official functions. A
non-chartered GOCC, on the other hand, cannot depart from these
provisions simply through its articles of incorporation and by-laws, which
do not have the status of law capable of altering the terms of RA 10149.
A special administered fund is not subject to these governance

arrangements, since it does not fall within the regulatory jurisdiction of
the GCG under RA 10149. The fund is directly under the control of the
governing body of the administering NGA or GFJ. One example of such
fund is the Government Pension Fund Global of Norway, with the
Ministry of Finance as the legal owner and the Norges Bank (which is
Norway's central monetary authority) as administrator (Backer, 2009a).
The general trend is to create SWFs through a special law, which

means either a chartered GOCC or a GICP. The SWFs of Korea, Kuwait,
Qatar and United Arab Emirates have a legal form which is functionally
similar to chartered GOCCs and GICPs. The SWFs of China, Malaysia and
Singapore are similar to Non-Chartered GOCCs in that they were created
in the same manner as private corporations, i.e., through the general
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corporation law (IFSWF, 2014). In the Philippines, however, non-chartered

GOCCs as a form of state corporate ownership are ordinarily utilized in
conducting purely commercial activities, rather than being vested with a
public purpose (GCG, 2016).
Policy Purpose of the SWF (GAPP 2)
The IMF (2013) classifies SWFs according to their policy purpose, as

follows: (i) reserve investment funds, (ii) pension-reserve funds,
(iii) stabilization funds, (iv) savings funds, and (v) development funds.
Reserve investment funds invest reserve assets to increase the

return on reserves (IMF, 2013). This requires a long investment horizon,
typically at 20 years. Examples include the GIC Private Limited of
Singapore, which aims to "achieve good long-term returns for the
Government" and "to preserve and enhance the international purchasing
power of Singapore's foreign reserves" (IFSWF, 2014, p. 133).
In the Philippines, the BSP is legally prevented by its charter to

function as a reserve investment fund with a long-term investment
horizon, which is necessary in increasing the return on international
reserves. Section 66 of RA 7653 (New Central Bank Act) states:
Composition of the International Reserves. - The international

reserves of the Bangko Sentral may include but shall not be
limited to the following assets:
a. gold; and
b. assets in foreign currencies in the form of: documents and

instruments customarily employed for the international
transfer of funds; demand and time deposits in central banks,
treasuries and commercial banks abroad; foreign government
securities; and foreign notes and coins.
The Monetary Board shall endeavor to hold the foreign exchange

resources of the Bangko Sentral in freely convertible currencies;
moreover, the Board shall give particular consideration to the
prospects of continued strength and convertibility of the
currencies in which the reserve is maintained, as well as to the
anticipated demands for such currencies. The Monetary Board
shall issue regulations determining the other qualifications
which foreign exchange assets must meet in order to be included
in the international reserves of the Bangko Sentral.
The Bangko Sentral shall be free to convert any of the assets in

its international reserves into other assets as described in
subsections (a) and (b) of this section.
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In short, the BSP may only hold liquid, short-term and freely
convertible assets, and is therefore unable to function as the administrator of
a reserve investment fund. The phrase, "other qualifications which foreign
exchange assets must meet in order to be included in the international
reserves of the Bangko Sentral" does not authorize investment in non-liquid
and long-term assets abroad, since it must necessarily be limited by the
restrictive intent of the provision. For this reason, a Fund set up to have a
long-term investment horizon and to increase returns on international
reserves must be further mandated by a legislative act.
A pension-reserve fund is established "to meet unfunded

superannuation liabilities that will become payable during a period when
an aging population is likely to place significant pressure on government
finances" (IFSWF, 2014, p. 28). Examples include the Future Fund of
Australia, the Pension Reserve Fund of Chile, and the Government
Pension Fund Global of Norway (IFSWF, 2014). In the Philippines, SSS
manages the pension fund for workers in the private sector, including self-
employed persons, overseas Filipino workers (OFWs) and workers in the
informal sector, while GSIS manages the pension fund for all government
workers (GCG, 2016). Both entities are created as chartered GOCCs.
SSS and GSIS are not sovereign wealth funds because of their
respective charter limitations in investing assets abroad. While Section 26
of RA 8282 (Social Security Act of 1997) authorizes the SSS to invest in a
variety of financial assets, including equities, fixed income instruments,
foreign currencies, and real estate, it can only invest in the following
foreign-currency denominated financial instruments:
j. In domestic or foreign mutual funds in existence for at least

three (3) years[;]
k.In foreign currency deposits or triple "A" foreign currency-

denominated debts, prime and non-speculative equities, and
other Bangko Sentral ng Pilipinas approved financial
instruments or other assets issued in accordance with existing
laws of the countries where such financial instruments are
issued: Provided, that these instruments or assets are listed in
bourses of the respective countries where these instruments or
assets are issued[.]
Furthermore, the same section limits foreign-currency denominated

investments to 7.5% of the SSS Reserve Fund. On the other hand, Section
36 of RA 8291 (Government Service Insurance Act of 1997) provides the
following allowable foreign investments of GSIS:
j. In foreign mutual funds and in foreign currency deposits or

foreign currency-denominated debts, non-speculative equities
and other financial instruments or other assets issued in
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PHILIPPINE SOVEREIGN WEALTH FUND ill
accordance with existing laws of the countries where such

financial instruments are issued: Provided, that these
instruments or assets are listed in bourses of the respective
countries where these instruments or assets are issued:
Provided, further, that the issuing company has proven track
record of profitability over the last three (3) years and
payment of dividends at least once over the same period.
Stabilization funds "insulate the budget and the economy from

commodity price volatility" (IMF, 2013, p. 5). This includes the Economic
and Social Stabilization Fund of Chile, and the Heritage and Stabilization
Fund of Trinidad & Tobago (IFSWF, 2014).
Savings funds "convert non-renewable assets into a more diversified

portfolio of assets to meet public sector superannuation liabilities in the
future and mitigate the possible Dutch disease effects of spending resource
revenue" (p. 13). Examples include the State Oil Fund (SOFAZ) of
Azerbaijan, which was established for the purpose of "accumulation and
management of the revenues generated from implementation of oil and
gas agreements" (p. 37). The Pula Fund of Botswana invests "proceeds
from non-renewable resources (minerals) for the benefit of future-
generations" (p. 45). The National Development Fund of Iran (NDFI) aims
to "turn a portion of revenues originated from selling oil, gas, gas
condensates and oil products into durable wealth and productive
investments as well as conserving the share of future generations" (p. 74).
The Alberta Heritage Savings Trust Fund of Canada aims to "provide
prudent stewardship of the savings from Alberta's non-renewable
resources by providing the greatest financial returns on this savings for
current and future generations of Albertans" (p. 55). The Fund may be set
up as a savings fund to address the negative macroeconomic impact of
excess international reserves.
Development funds are SWFs which invest for development purposes,

such as infrastructure and energy (IMF, 2013). Examples include the
China-Africa Development Fund, which aims to "stimulate investment in
Africa by Chinese companies in power generation, transportation
infrastructure, natural resources, manufacturing, and other sectors"
(Investment News, 2016, "China ups its investments in Africa with its
China Africa Development Fund").
The policy purpose of the SWF is the most important consideration in

designing the fund because it dictates the investment policy, asset
management strategy, investment horizon, general approach to
withdrawal, and corporate governance structure of the Fund.
2016
Coordination with Fiscal and Monetary Authorities (GAPP 3)
The Fund has potential impact in four areas of macroeconomic policy:

fiscal policy, monetary policy, public balance sheet, and balance of
international payments. For this reason, the secretary of Finance and the
BSP governor must sit as ex officio member of the governing board of the
Fund for closer coordination (SB 1212).
Funding, Withdrawal, and Spending Operations (GAPP 4)
Funding. The funding sources of the Fund depend on its policy

purpose, identified pursuant to GAPP 2. An investment reserve fund
obtains funding from foreign exchange reserves. Examples include the
Korean Investment Corporation, China Investment Corporation, and
Future Fund of Australia (IFSWF, 2014).
A savings fund obtains funding from revenues in extractive

economies or exploitation of non-renewable natural resources (IMF, 2013).
Examples are the Kuwait Investment Authority, the Libyan Investment
Authority and the Oil Income Stabilization Fund (IFSWF, 2014). The
savings fund may also obtain funding from fiscal surpluses (IMF, 2013),
such as in the case of the Exchange Fund Investment Portfolio of Hong
Kong, Khazanah Nasional of Malaysia, Shanghai Financial Holding of
China, and Superannuation Fund of New Zealand (IFSWF, 2014).
A pension-reserve fund obtains funding from employee contributions

(IMF, 2013). Examples are the California Public Employees' Retirement
System, the Stichting Pensioenfonds ABP of Netherlands, and
Government Pension Investment Fund of Japan (IFSWF, 2014).
The funding source of the Fund may also come from dividends from
state-owned enterprises or GOCCs (IMF, 2013). One example of this practice
is Temasek Holdings of Singapore (IFSWF, 2014). In the Philippines, GOCCs
remit dividends to the national government, but these are directly deposited
in the National Treasury to support general public spending (RA 7656).
Withdrawal and spending. If the legal form of the Fund is a

chartered GOCC or non-chartered GOCC, the Fund is liable to pay annual
dividends to the national government, by virtue of RA 7656 (An Act
Requiring GOCCs to Declare Dividends Under Certain Conditions to the
National Government), which states:
Section 1. Declaration of Policy. - It is hereby declared the

policy of the State that in order for the National Government to
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realize additional revenues, government-owned or -controlled

corporations, without impairing their viability and purposes for
which they have been established, shall share a substantial
amount of their net earnings to the National Government.
I ... ]I
Section 3. Dividends. - All government-owned or controlled
corporations shall declare and remit at least fifty percent (50%)
of their annual net earnings as cash, stock or property dividends
to the National Government. This section shall also apply to
those government-owned or controlled corporations whose profit
distribution is provided by their respective charters or by special
law, but shall exclude those enumerated in Section 4 hereof:
Provided, that such dividends accruing to the National
Government shall be received by the National Treasury and
recorded as income of the General Fund.
In this provision, "net earnings" means "income derived from

whatever source, whether exempt or subject to tax, net of deductions
allowed under Section 29 of the National Internal Revenue Code, as
amended, and income tax and other taxes paid thereon, but in no case
shall any reserve for whatever purpose be allowed as a deduction from net
earnings."
The law covers all "corporations organized as a stock or non-stock

corporation vested with functions relating to public needs, whether
governmental or proprietary in nature, and owned by the Government
directly or through its instrumentalities either wholly or, where applicable
as in the case of stock corporations, to the extent of at least fifty one
percent (51%) of its capital stock."
Notably, the language of the coverage provision does not include a

GICP, which is defined in the case of Manila International Airport
Authority v. Court of Appeals (GR No. 155650, 20 July 2006) as a
government instrumentality not organized as a stock or non-stock
corporation. RA 7656, on the other hand, limits covered corporations to
stock or non-stock corporations. It must be noted, however, that GICPs,
such as PDIC, remit dividends to the national government as a matter of
actual practice. The obligation of the GICP to remit dividends under the
GOCC dividends law can be a potential source of dispute, and it is
submitted that the charter creating the Fund (whether as a chartered
GOCC or GICP) should clearly state whether it is covered or exempted
from RA 7656.
The law provides two ways to mitigate the GOCC's annual dividend
obligation. First, Section 4 (Exemptions) excludes GOCCs "created or
organized by law to administer real or personal properties or funds held in
2016
trust for the use and the benefit of its members." This includes GSIS,
Home Development Mutual Fund (HDMF), Employees' Compensation
Commission (ECC), Overseas Workers Welfare Administration (OWWA),
and Philippine Medical Care Commission (PMCC), and similar entities.
Accordingly, if the Fund is a special administered fund of the GSIS, SSS or
any social security institution that may be set up in the future (such as a
pension system for uniformed personnel), it is not liable to pay annual
dividends to the national government because the beneficial owners of the
pension fund are its members.
The second mitigating provision is Section 5 (Flexible Clause), which

states, "In the interest of national economy and general welfare, the
percentage of annual net earnings that shall be declared by a government-
owned or controlled corporation may be adjusted by the President of the
Philippines upon recommendation by the Secretary of Finance."
The Philippine government should carefully consider whether the

Fund should be covered by RA 7656. Remitting 50% of annual net earnings
to the national government can be detrimental to the investment
objectives of the Fund and pre-empt the macroeconomic policy for which
the Fund was created in the first place. For example, a fund set up as a
stabilization fund will have a withdrawal policy consistent with the
financing of budget deficit, but RA 7656 can distort this general approach
to withdrawal by fixing the rate of dividends at 50% of net earnings,
payable annually, regardless of the level of budget deficit. The rate and
timing of return required under RA 7656 can also distort the Fund's
investment horizon. This is true if the policy purpose of the Fund is to be
a savings fund, which has long-term investment objectives, "typically
aim[ing] at generating higher returns over a long time horizon."
The special law creating the Fund as a chartered GOCC or GICP may
explicitly exempt the Fund from RA 7656. A fund created as a special
administered fund, not being a corporation, is excluded from this statutory
obligation. However, a non-chartered GOCC is compelled to comply with
the dividends law and may not be exempted by its articles of incorporation
or by-laws alone.
Governance Structure (GAPPs 6, 7, 8)
Governance framework. A fund created as a chartered GOCC, non-

chartered GOCC or GICP will have the governance framework as
illustrated in Figure 4.
January-December
Figure 4. Governance Structure
The State acting as Owner
GQneMdF1;tC rG I cs 'Aie Agea
P th Fund
Gove''ing 8oard
Maagent
(Diagram generated by author based on various GCG Memorandum Circulars cited)
The State primarily acts as an owner through the President of the

Republic. The powers and responsibilities of the President, in turn, are
delegated by legislative fiat to the supervising agency, the GCG, and
service-wide agencies. A supervising agency is a national government
department headed by a secretary, who is a cabinet member (GCG
Memorandum Circular[MC] 2012-06).
The governance framework, as substantiated in GAPP 6, should be

explicitly outlined in the charter or constitutive documents of the Fund.
The common practice in special legislative acts constituting GOCCs or
GICPs is to state the powers, responsibilities, composition and manner of
selection of the members of the governing board, including the chief
executive officer, and the delineation of authority between the board and
management (SB 1212). A more holistic articulation of the governance
framework should also include the relationship between and among the
Fund and the Office of the President of the Philippines, the supervising
2016
agency, and the GCG (GCG MC 2012-06). This is because ownership rights
are exercised by the State through the President of the Republic, the
secretary of the departments, and the GCG, pursuant to the role of the
State acting as owner (Backer, 2009b).
Oversight. The State, acting through the GCG, may set the
objectives and exercise oversight of the Fund through the Performance
Evaluation System (PES) in the GOCC sector, pursuant to GCG MC 2013-
02 (re-issued). On the other hand, the procedure for appointing members
of the governing board of the Fund are governed by GCG MC 2012-04 ( 3 rd
Issue).
The purpose of the PES is to set organizational targets for the Fund.
The achievement of the targets shall serve as basis for: (a) determining
the grant of performance-based incentives, (b) determining whether
appointive directors of the governing board are eligible for re-
appointment, and (c) ascertaining whether the Fund should be
reorganized, merged, streamlined, abolished or privatized (GCG MC 2013-
02). The targets are negotiated between the GCG and the Fund, embodied
through performance agreements, which contain the charter statement,
strategy map, performance scorecard, and strategic initiatives. Setting of
targets and review of performance accomplishments are done annually.
Nominations for members of the governing board are submitted to

and vetted by the GCG, which in turn comes up with a shortlist submitted
to the Office of the President of the Republic. The President, in turn,
appoints the directors from the GCG shortlist. The appointment has a
term of one year from date of appointment, with holdover clause (RA
10149, Secs. 15-17).
Governing board. The governing board is the repository of all the

Fund's corporate powers, and is primarily responsible for the governance
of the fund. The mandated functions and responsibilities of the board
include the following: (i) providing corporate leadership, (ii) establishing
the Fund's vision, mission, strategic objectives, policies and procedures,
including charter statements and strategy maps, (iii) determining long-
term policies to enable competitiveness, (iv) establishing the Fund's
organizational structure, including the compensation system, (v) provide
overall policy on personnel selection, (vi) provide overall guidelines on
expenditures, (vii) provide an accountability system for meeting
compliance requirements, (viii) adopt a performance evaluation system,
and (ix) ensure equitable treatment of all stakeholders (GCG MC 2012-06).
January-December
Operational Autonomy (GAPPs 9 and 16)
The operational autonomy of a Fund created as a GOCC or GICP is

guaranteed in Article 9 of GCG MC 2012-06 (Ownership and Operations
Manual for the GOCC Sector), which states:
The National Government shall not be involved in the day-to-day

management of GOCCs, and the Boards shall be allowed full
operational autonomy to achieve the defined objectives of the
GOCCs.
With regard to supervising agencies, Article 8.3 of the manual states

that "Supervising agencies shall extend autonomy at the operational level
to its attached GOCCs[.]" Article 10 of the manual guarantees the
provision of adequate operational flexibility in GOCCs. It states:
GOCCs shall be provided with adequate operational flexibility in

order to function properly and efficiently, especially under
conditions of market competition. Such flexibility shall
nevertheless be consistent with the requirements of public
accountability.
10.1. Differential Treatments. - To implement the concept of

adequate operational flexibility, GOCCs shall, subject to existing
laws, be accorded differential treatment by the various Service-
Wide Agencies, such as the DBM, the DOF, the COA, the CSC
and NEDA, in the exercise of their respective powers and
functions. Such agencies shall distinguish corporate
organizational and procurement practices of GOCCs from those
of bureaus and regular line agencies of the National
Government.
Accountability and Ethical Standards (GAPP 10, 11, and 15)
Accountability framework. There are several mechanisms of

ensuring and enforcing accountability in a Fund created as a GOCC or
GICP. Under Section 5(a) of RA 10149, the GCG may "[e]valuate the
performance and determine the relevance of the GOCC, to ascertain
whether such GOCC should be reorganized, merged, streamlined,
abolished or privatized, in consultation with the department or agency to
which a GOCC is attached." The decision to restructure the Fund under
any of these modes is guided by the following parameters:
(1) The functions or purposes for which the GOCC was created are
no longer relevant to the State or no longer consistent with the
national development policy of the State;
2016
(2) The GOCC's functions or purposes duplicate or unnecessarily

overlap with functions, programs, activities or projects already
provided by a government agency;
(3) The GOCC is not producing the desired outcomes, or no longer

achieving the objectives and purposes for which it was originally
designed and implemented, and/or not cost efficient and does not
generate the level of social, physical and economic returns vis-&-
vis the resource inputs;
(4) The GOCC is in fact dormant or non-operational;
(5) The GOCC is involved in an activity best carried out by the

private sector; and
(6) The functional, purpose or nature of operations of any group of

GOCCs require consolidation under a holding company. (RA
10149, Sec. 5[a])
Under Section 5(d), the GCG may recommend the suspension of a

board member to the governing board of the GOCC or GICP, on the
ground of participation in the approval of an act giving rise to a violation
or non-compliance with the ownership manual of the GOCC.
Under Section 5(f), the GOCC or GICP is governed by a performance

evaluation system, which include performance scorecards, which shall be a
basis for a dispositive action under Section 5(a) above.
Under Section 22, "the Board [of the GOCC] shall have the authority
to discipline the CEO, or order the removal from office, upon a majority
vote of the members of the Board who actually took part in the
investigation and deliberation."
Under Section 24, illegally spent and misappropriate property and

money belonging to the GOCC or GICP shall be restituted by the erring
board member or officer, upon determination by the COA of the illegality
of the spending. "Failure to make the restitution within thirty (30) days
after a written demand has been served shall, after trial and final
judgment, be punished by an imprisonment of one (1) year and a fine
equivalent to twice the amount to be restituted, and in the discretion of
the court of competent jurisdiction, disqualification to hold public office."
Professional and ethical standards. In a Fund created as a

chartered GOCC, GICP or special administered fund, the members of the
governing board, the management and staff are considered public officers.
January-December
Excluded from this status are personnel who are not appointed in the
official staffing pattern or the so-called plantilla of the Fund, such as
contractual employees and consultants. This is because a public office
cannot be created through contract. The Supreme Court in Malabanan vs.
Ombudsman (GR 125296, 20 July 2006) states, "The characteristics of a
public office [...] include the delegation of sovereign functions, its creation
by law and not by contract, an oath, salary, continuance of the position,
scope of duties, and the designation of the position as an office."
In a Fund created as a non-chartered GOCC, only the members of the

governing board, including the CEO, have the status of public officers,
while the management and staff are private employees. With regard to the
board and CEO, their status as public officer is due to Section 15 of RA
10149, which states, "An Appointive Director shall be appointed by the
President of the Philippines from a shortlist prepared by the GCG." This
includes the CEO because Section 18 of the same law states, "The CEO or
the highest-ranking officer provided in the charters of the GOCCs, shall be
elected annually by the members of the Board from among its ranks."
With regard to the management and staff of a non-chartered GOCC,

their exclusion as public officer is because of Section 2, Article IX-B of the
1987 Constitution, which states, "The civil service embraces all branches,
subdivisions, instrumentalities, and agencies of the Government, including
government-owned or controlled corporations with original charters." The
coverage excludes, by necessary implication, non-chartered GOCCs from
the civil service.
For the purpose of criminal liability, the Revised Penal Code (Act
3815) covers such management and staff of non-chartered GOCCs, as well
as contractual employees and consultants (whether in a chartered GOCC,
non-chartered GOCC, GICP or special administered fund), within the
definition of "public officer." Article 203 states:
Who are public officers. - For the purpose of applying the

provisions of this and the preceding titles of this book, any person
who, by direct provision of the law, popular election or appointment
by competent authority, shall take part in the performance of
public functions in the Government of the Philippine Islands, or
shall perform in said Government or in any of its branches public
duties as an employee, agent or subordinate official, of any rank or
class, shall be deemed to be a public officer.
The Philippines has a plethora of laws, administrative rules and

regulations, and professional and ethical standards guiding the conduct of
public officers. Article XI of 1987 Philippine Constitution lays down the
accountability of public officers. Section 1 states, "Public office is a public
2016
trust. Public officers and employees must at all times be accountable to

the people, serve them with utmost responsibility, integrity, loyalty, and
efficiency, act with patriotism and justice, and lead modest lives."
RA 6770 (Ombudsman Act of 1989) provides that the "Ombudsman

and his Deputies, as protectors of the people, shall act promptly on
complaints filed in any form or manner against officers or employees of
the Government, or of any subdivision, agency or instrumentality thereof,
including government-owned or controlled corporations, and enforce their
administrative, civil and criminal liability in every case where the
evidence warrants in order to promote efficient service by the Government
to the people."
RA 3019 (Anti-Graft and Corrupt Practices Act) proscribes "certain

acts of public officers and private persons alike which constitute graft or
corrupt practices or which may lead thereto."
RA 6713 (Code of Conduct and Ethical Standards for Public Official

and Employees) aims "to promote a high standard of ethics in public
service." It provides norms of conduct of public officials and employees,
their duties, system of incentives and rewards, prohibited acts and
transactions, statements and disclosure, and divestment of interest in
order to avoid conflicts of interest.
RA 1379 (An Act Declaring Forfeiture in Favor of the State Any

Property Found to have been Unlawfully Acquired by Any Public Officer or
Employee and Providing for the Proceedings Therefore) provides the
procedure for the forfeiture of unexplained wealth.
RA 7080 (An Act Defining and Penalizing the Crime of Plunder)

defines and penalizes plunder. Section 2 states,
Any public officer who, by himself or in connivance with

members of his family, relatives by affinity or consanguinity,
business associates, subordinates or other persons, amasses,
accumulates or acquires ill-gotten wealth through a combination
or series of overt or criminal acts as described in Section 1(d)
hereof in the aggregate amount or total value of at least Fifty
million pesos (PHP 50,000,000.00) shall be guilty of the crime of
plunder and shall be punished by reclusion perpetua to death.
Any person who participated with the said public officer in the
commission of an offense contributing to the crime of plunder
shall likewise be punished for such offense.
Compliance with laws of host countries. The host country of the

Fund is the country receiving its investment abroad. The Fund must
observe the investment regulatory regime of each host country, including
January-December
but not limited to its securities, banking, tax and other financial rules and
regulations (Sornarajah, 2011). It is important for the Fund to observe the
financial market rules of the host country because the Fund carries the
reputation of the Philippine government. One of the justifications for
hiring an external fund manager, as provided in GAPP 14, is to help the
Fund know the investment regime in each host country and respect its
unique regulatory environment. Another option is to create within the
Fund an organizational unit dedicated to monitoring developments in
foreign business regulation of every host country.
The Pula Fund of Botswana appoints a "global custodian" whose main

function is legal compliance in all investments in the host country. The
National Development Fund of Iran trains all its external asset managers
to comply with the regulations of recipient countries. The Government
Pension Fund Global of Norway has a dedicated Compliance and Control
unit responsible for international compliance requirements (IFSWF, 2014).
Investment Policy (GAPPs 14, 18, 19)
External fund management. The practice of hiring external fund

managers is common in SWFs. In GIC Private Limited of Singapore,
"[e]xternal managers are chosen for their ability to exploit investment
opportunities beyond GIC's current skill sets and to complement [its]
internal management capability" (IFSWF, 2014, p. 138). The authority of
the Fund to hire external fund managers, whether local or foreign, under
an investment management agreement should be clear in the charter or
constitutive documents creating the Fund.
In the case of Philippine Health Insurance Corporation (PhilHealth),

which is a chartered GOCC, Section 17 of RA 101606 (National Health
Insurance Act of 2013), amending Section 27 of RA 7875, provides, "[a]s
part of its investments operations, the Corporation may hire institutions
with valid trust licenses as its external local fund managers to manage the
investment reserve fund, as it may deem appropriate, through public
bidding. The fund managers shall submit annual reports on investment
performance to the Corporation." Pursuant to such authority, PhilHealth
entered into an investment management agreement with BDO Unibank
Inc., designating the latter as a local external fund manager (PhilHealth,
2015).
The external fund manager must follow clear and objective parameters
and criteria for performing its functions. For instance, GSIS, in planning to
invest USD1 billion in foreign currency-denominated instruments pursuant to
a portfolio diversification plan, issued the Guidelines for Externally-Managed
2016
Global Investments (Absolute-Return Portfolio), which prescribe the

investment philosophy and rules on portfolio diversification, target return,
portfolio volatility, portfolio rebalancing, liquidity requirement, instrument
selection, permissible investments, and other restrictions. In the selection of
external fund managers, GSIS likewise issued the minimum qualifications,
criteria and procedure for evaluating proposals from prospective fund
managers (GSIS, n.d.).
The ability to enter into an investment management agreement or

the hiring of external fund manager is regulated by RA 9184 (Government
Procurement Reform Act), which applies to the "procurement of
infrastructure projects, goods, and consulting services, regardless of
source of funds, whether local or foreign, by all branches and
instrumentalities of government, its departments, offices and agencies,
including government-owned and/or controlled corporations and local
government units, subject to the provisions of Commonwealth Act 138"
(Sec. 4). The investment management agreement or hiring of external
fund manager falls within the procurement of consultancy services. The
Fund is included within the coverage of the law, regardless of its mode of
creation or legal form. The coverage does not distinguish between a
chartered and non-chartered GOCC.
If the external fund manager is a foreigner, the Fund must observe

Section 4.3 of Appendix 7 of the Revised Implementing Rules and
Regulations of RA 9184, which provides that "[i]n the procurement of
consulting services, foreign consultants may be hired if local consultants
do not have the sufficient expertise, capability, and capacity to render the
services required under the project, as determined by the head of the
procuring entity."
Investment policy statement. The Fund must come up with an

investment policy statement, which is a document that sets forth how the
fund will be managed. It provides the purpose and objectives of the fund,
its portfolio characteristics, the permitted investments, the manner of
diversification of asset classes, the performance benchmark, prohibited
transactions, and other investment limitations. While the charter of the
Fund may provide the minimum guidance on investments abroad, the
investment policy statement is a more detailed set of principles and rules
which guide the behavior of fund managers in the purchase and sale of
securities. This is to ensure that the financial condition and performance
of the Fund is in accord with its policy purpose in GAPP 2.
Maximizing risk-adjusted financial returns. The Fund may

exclude a certain host country, industry, company, or asset class from the
Fund's investment universe because of political, environmental, ethical or
January-December
religious grounds (Sparkes & Cowton, 2004). This is the meaning of the
phrase, "investments decisions [...] subject to other than economic and
financial considerations" (GAPP 19). This is generally called responsible
investment exclusion decisions, which must be embodied in the Investment
Policy Statement (Sparkes & Cowton, 2004).
The investment exclusion policy must provide a catalogue of the

exclusions, the grounds for the decision to exclude, and the list of
corporations excluded (Reynolds & Newell, 2011). Other than exclusion,
the Fund can decide to put a host country, industry or corporation under
an observation list (IFSWF, 2014). The Fund must have internal
guidelines for an ethical screening of investments, and a procedure for
making investment exclusion decisions (Reynolds & Newell, 2011). The
most common areas for ethical exclusion are investments in alcohol,
gambling, tobacco, armaments, pornography and nuclear power. In the
Norges Bank of Norway, the exclusions are product-based (e.g., production
of coal or coal-based energy) or conduct-based exclusions (e.g., serious
violation of human rights, severe environmental damage, gross
corruption, serious violations of individuals rights in situations of war or
conflict) (IFSWF, 2014).
Anti-Trust (GAPP 20)
A Fund created as a GOCC or GICP must adhere to the Organisation

for Economic Co-operation and Development (OECD) Principles on
Competitive Neutrality in State-Owned Enterprises (Capobianco
&
Christiansen, 2011). This is adopted in the Philippine GOCC sector, as
articulated in Section 2(g) of RA 10149 and Article 11 of GCG MC 2012-06,
which states:
In order to achieve a level playing field with corporations in the

private sector performing similar commercial activities for the
public, the National Government shall ensure that there is a
clear separation between the regulatory and proprietary
activities of GOCCs.
Unless justified by a greater public interest, Government

Agencies that have the discretion to grant competitive
advantages and benefits to GOCCs, shall avoid the granting of
such advantages and benefits, especially to GOCCs that directly
or indirectly compete with the private sector. The advantages
and benefits mentioned herein include Government guarantees
for debts incurred and special privileges such as partial or full
exemption from the payment of taxes, duties, imposts, and other
charges. This rule shall not apply when the GOCC concerned is
organized solely for cultural, educational, civic or scientific
purposes.
2016
Competitive neutrality requires that GOCCs must not enjoy net

competitive advantages over their private sector competitors simply by
virtue of their public sector ownership. The OECD Working Party
definition also states that competitive neutrality is a state "where no
commercial entity has a competitive advantage in a mixed market purely
as a result of its ownership or control" (Paul, 2011, slide 3).
GOCCs enjoy competitive advantages, such as access to concessional

financing or sovereign guarantees, not being required to achieve full cost
recovery, and not being required to earn commercial rates of return. They
also face competitive disadvantages, such as government procurement
laws, multiple and conflicting mandates, political interference in tariff
setting, and lack of flexibility in capital structuring (Paul, 2011).
One possible and unavoidable exception to the adherence with

competitive neutrality is when the law and policy of the host country is
precisely to benefit and attract sovereign wealth funds. The Philippines,
for instance, gives tax advantages to foreign sovereign wealth funds, as
articulated in Section 32(B)(7) of RA 8424 (NationalInternal Revenue Code
of 1997), which states:
The following items shall not be included in gross income and

shall be exempt from taxation under this Title: [...]
7. Miscellaneous Items.
-
a. Income derived from investments in the Philippines in

loans, stocks, bonds or other domestic securities, or from
interest on deposits in banks in the Philippines by [...]
international or regional financial institutions established by
foreign governments.
Foreign sovereign wealth funds are covered by the phrase

"international or regional financial institutions established by foreign
governments," and are therefore exempt from payment of income tax on
their investments in the Philippines, which is the host country. This is
clearly a competitive advantage for which the Fund and the home country
cannot be faulted with under the OECD Principles on Competitive
Neutrality.
Shareholder Ownership Rights (GAPP 21)
The ownership rights of the Fund in investee companies abroad

varies depending on the applicable corporation law of each host country.
Article 5 of GCG MC 2012-06 summarizes the fundamental stockholder
rights of the State in relation to GOCCs in the Philippines, which may
January-December
apply by analogy to the stockholder rights of the Fund in relation to its

investee companies, unless the law of the host country provides otherwise.
These rights include:
(i) the right to register equity holdings in the books of the investee
company for all equity investments,
(ii) the right to be issued certificates of stock representing

investments in the investee company,
(iii) the right to dividends, when declared, pertaining to the Fund's

equity holdings,
(iv) right to dispose of its equity investment,
(v) the right to representation in all stockholders' or members'

meetings,
(vi) the right to vote on shares in all meetings where the

stockholders' or members' vote is obtained or necessary to
undertake or to ratify corporate activities, contracts or
transactions,
(vii) the right to representation, namely to nominate, elect or

appoint, and remove and replace, the members of the governing
board of every investee company,
(viii) the right to formulate and enforce governance standards to

realize ownership policy, and
(ix) the right to receive proportional share in the net assets of the
investee company upon dissolution (GCG MC 2012-06, Art. 5).
The Government Pension Fund Global of Norway has a policy of

voting in all annual general meetings, which number at 10,000 general
meetings every year, with the number of resolutions exceeding 85,000.
The voting instruction data are made publicly available. The Petroleum
Fund of Timor-Leste votes through external managers, upon the order of
the Operational Manager of the Fund, based on ISS voting guidelines. The
Alaska Permanent Fund votes through external managers by proxy, with
the principal consideration being the best financial interest of the Fund.
The Economic and Social Stabilization Fund of Chile, and the Korea
Investment Corporation, however, adopt a neutral approach in exercising
voting rights for minor and passive shareholdings (IFSWF, 2014).
2016
Risk Management (GAPP 22)
A fund created as a chartered GOCC, non-chartered GOCC or GICP is

obligated to adhere with the provisions on risk management in GCG MC
2012-07 (Code of Corporate Governance for GOCCs). Under Section 8, the
governing board shall adopt "risk management policies and programs, in
order to ensure that the GOCC survives and thrives despite financial
crises and that its assets and reputation are adequately protected." The
board shall also "ensure the integrity of the GOCC's risk management
system, and shall identify and monitor, and provide appropriate technology
systems for the identification and monitoring of key risks."
Section 16.2.5. of the Code mandates the creation of a Risk

Management Committee within the governing board. The Committee shall
consist of at least three members, one of whom must have a background
in finance and investments. The responsibility of the Risk Management
Committee includes:
(a) Performing oversight risk management functions specifically

in the areas of managing credit, market, liquidity, operational,
legal, reputational and other risks of the GOCC, and crisis
management, which shall include receiving from Senior
Management periodic information on risk exposures and risk
management activities;
(b) Developing the Risk Management Policy of the GOCC,

ensuring compliance with the same and ensure that the risk
management process and compliance are embedded
throughout the operations of the GOCC, especially at the
Board and Management level; and
(c) Providing quarterly reporting and updating the Board on key

risk management issues as well as ad hoc reporting and
evaluation on investment proposals.
Some of the most advanced risk management systems in the

Philippines are found in private and government banks. The BSP Manual
of Regulation for Banks provides guidelines for market risk management,
liquidity risk management, information technology risk management,
credit risk management, a compliance system, an internal control
framework, and an internal audit function. The BSP prescribes a dedicated
risk management unit in banks, headed by a chief risk officer, who reports
to the risk oversight committee any material information relative to the
discharge of its function. The Fund can also adopt the best practices of
other government financial institutions in managing risks, such as the
PDIC Enterprise Risk Management, which implements the AS/NZ ISO
31000:2009 Risk Management - Principles and Guidelines.
January-December
Reportorial Obligations (GAPPs 5, 11, 12, 17, and 23)
Report of investment performance. The assets and investment

performance of the Fund should be reported to the State as an owner and
to the public, through the annual report and audited financial statements.
It may also be done through quarterly press releases. One of the best
practices in calculating investment performance is through the Global
Investment and Performance Standards (GIPS) (Yuen, 2011), which is also
used by the Economic and Social Stabilization Fund of Chile (IFSWF,
2014).
The report on investment returns must be broken down into

industries and asset classes, and into domestic and foreign deals. Asset
classes must show listed equity, unlisted equity, commercial real estate,
private equity funds, joint ventures, fixed income, alternative
investments, and foreign currencies. Investments in equities must show
the investment date, the value of the investment at the inception date, the
holding period return from inception to the current reference period, and
the overall gains and losses (Yuen, 2011).
Annual report, financial statements, and other disclosures. A

Fund created as a chartered GOCC, non-chartered GOCC or GICP shall be
governed by the policy and requirements on disclosure and transparency
prescribed by the GCG. Section 41 of Code of Corporate Governance for
GOCCs (GCG MC 2012-07) lays down the general principle on public
disclosure of material information, as follows:
The essence of corporate governance is transparency; the more

transparent the internal workings of the GOCC are, the more
difficult it will be for the Board and/or Management to mismanage
the GOCC or to misappropriate its assets. It is therefore imperative
that GOCCs disclose all material information to the National
Government and the public, its ultimate stakeholder, in a timely
and accurate manner at all times.
Unless exempted by its charter or created as a special administered

fund, the Fund has the obligation to periodically disclose the following to
the public:
a) [...] latest annual audited financial and performance report

within thirty (30) days from receipt of such report;
b) Audited financial statements in the immediate past five (5)
years;
c) Quarterly, annual reports and trial balance;
d) Current corporate operating budget;
e) Complete compensation package of all the board members and
officers, including travel, representation, transportation and
any other form of expenses or allowances;
2016
f) Local and foreign borrowings;

g) Performance scorecards and strategy maps;
h) Government subsidies and net lending;
i) All borrowings guaranteed by the government; and
j) Such other information or report the GCG may require.
In addition to the above information, Article 28 of the Ownership and

Operations Manual for the GOCC Sector (GCG MC 2012-06) states that
the GCG shall initiate and formulate an integrated corporate

reporting system (ICRS) for all covered GOCCs to meet the
following objectives: (a) To streamline the various corporate
reports submitted by GOCCs to the GCG and service-wide
agencies to prevent redundancy and ensure consistency in the
content of these reports and (b) To harmonize the frequency and
timing of submission of corporate reports in order to reduce the
burden on the GOCCs. The ICRS for GOCCs shall be managed
by the GCG and shall maintain forms control and the
computerization of the database.
Section 43 of the Code (GCG MC 2012-07) also directs that all GOCCs
should maintain a website and post for unrestricted public access the
following:
Section 43.1. On Institutional Matters:
(a) For Chartered GOCCs, the latest version of its Charter;

(b) For Non-Chartered GOCCs, the latest General Information
Sheet (GIS) and brief company background, including date
of incorporation, history, functions and mandate;
(c) List of Subsidiaries and Affiliates; and
(d) Government Corporate Information Sheet (GCIS) as
mandated by the GCG in its Memorandum Circular 2012-01.
Section 43.2. On Board and Officers:
(a) Complete listing of the Directors and Officers with attached

resume, and their membership in Board Committees;
(b) Complete compensation package of all the board members
and officers, including travel, representation, transportation
and any other form of expenses or allowances;
(c) Information on Board Committees and their activities; and
(d) Attendance record of Directors in Board and Committee
meetings.
It is submitted that a Fund created as a special administered fund

should likewise adopt these disclosure and transparency requirements to
be compliant with GAPP 11.
A Fund created in any legal form is also covered by Executive Order2 s.

2016 (Operationalizingin the Executive Branch the People's Constitutional
Right to Information and the State Policies to Full Public Disclosure and
January-December
Transparency in the Public Service and Providing Guidelines Therefor).

Section 3 states that "[e]very Filipino shall have access to information,
official records, public records and to documents and papers pertaining to
official acts, transactions or decisions, as well as to government research
data used as basis for policy development." This covers all government
offices under the executive branch, including chartered GOCCs, GICPs and
special administered funds which form part of a department of the national
bureaucracy.
Financial statistics. The Fund is responsible in providing data set

pertinent to the data collection efforts in reporting national financial
accounts, official financial statistics, and balance of payment positions.
The BSP serves as a compiler of macroeconomic statistics.
Being an international investment fund, the Fund must comply with

standard data reporting practices in the international financial markets.
These may overlap, and therefore should be integrated, with domestic data
reporting practices. One example of an international data reporting
practice is the Special Data Dissemination Standard Plus (SDDS Plus),
which guides countries in the reporting of economic and financial data for
the purpose of generating accurate reports on stability in the international
financial system (Heath, 2013). "The SDDS Plus aims to include economies
that play a leading role in international capital markets and has
institutions that are interconnected through channels such as interbank
lending, security lending, repurchase agreements, and derivatives
contracts" (IMF, n.d., "SDDS Plus Overview").
Audit reports. No statute or administrative regulation can remove

the Fund from the audit jurisdiction of the Commission on Audit (COA).
Section 2(2), Article IX-D of the 1987 Constitution states, "The
Commission has the power, authority and duty to examine, audit and
settle all accounts and expenditures of the funds and properties of the
Philippine government. Towards that end, it has the exclusive authority to
define the scope, techniques and methods of its auditing and examination
procedures. It also may prevent and disallow irregular, unnecessary,
excessive, extravagant or unconscionable expenditures, or uses of
government funds and properties."
Audit procedures and standards are embodied in PresidentialDecree

(PD) 1445, otherwise known as the Government Auditing Code of the
Philippines. COA is mandated by Section 43 of PD 1445 to report the
results of the annual audit of the accounts and operations of government
agencies, instrumentalities and GOCCs. The annual report includes the
independent auditor's report, the audited financial statements, the
observations and recommendations, and the status of implementation of
2016
prior year's audit recommendations. The COA has the power to issue audit
observation memoranda and notices of disallowances.
A fund created as a chartered GOCC, non-chartered GOCC or GICP,

being within the regulatory jurisdiction of GCG under RA 10149 unless
exempted by law, may be subject to special audits. Section 26 of RA 10149
states:
(a) The thirty (30) GOCCs with the highest total assets shall be
subject to periodic special audit by the COA. The periodic
audit shall, at the minimum make a determination whether:
(1) The accounting records of the GOCCS are complete and

in accordance with generally accepted accounting
practices and standards; and
(2) The statements prepared from the accounts present

fairly and comprehensively their GOCCs financial
position and the results of its financial operations.
(b) As may be necessary or convenient in the performance by

the GCG of its functions, the Chairman of the GCG may
direct at any time a special COA audit of any other GOCC
for any specific purpose or when authorized by law, direct
an audit by independent auditors.
Review of GAPP Implementation (GAPP 24)
The governing board of the Philippine Sovereign Wealth Fund must

perform an annual self-assessment of the fund's compliance with the 24
Santiago Principles, following the Santiago Compliance Index (Santiso,
Capap6, & Guerrero, 2015). They may also validate this through third-
party reports, such as through surveys conducted by the International
Forum of Sovereign Wealth Funds or other methods of verification. To
date, third-party verification is not widely practiced in SWFs. The
Philippines can adopt the best practices on compliance audits in the GOCC
sector, which uses the corporate governance scorecards measured by
external consultants (Strenger, 2004).
Conclusion
Under the current legal environment, existing government agencies

and instrumentalities do not have the sufficient legal powers, rights, and
obligations that enable the national government to invest its surplus
foreign exchange reserves in the global financial markets with a
diversification strategy appropriate for long-term growth. With excess
foreign exchange reserves, the economic conditions are ripe for the
January-December
creation of a sovereign wealth fund for the Philippines. This also allows
the country to maximize the long-term potential of returns on the surplus
portion of the reserves, instead of retaining them for liquidity purposes at
a sub-optimal level. The Fund can be set up as a GOCC with special
charter, a GOCC registered through the SEC, a government
instrumentality with corporate powers, or a special administered fund.
The first three modes of creation will place the Fund within the regulatory
and governance framework of RA 10149, while the fourth mode will
subject it to the powers and limitations of the government agency tasked
to administer the fund. Whatever mode is selected, however, it is
indispensable to observe the 24 Santiago Principles to promote
accountability, independence, and transparency in the management of the
financial assets of the national government.
Endnote
See Bangko Sentral ng Pilipinas. (no date). Selected Philippine economic

indicators. Retrieved from http://www.bsp.gov.ph/publications/regularSPEI.asp
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2016
Reflections from Scholars and Practitioners
Once More With Passion:

Filipino Women and Politics
PROSERPINA DOMINGO TAPALES*
Throughout history, the Filipino women had been taking

part in the shaping of Philippine politics. Women in precolonial
Philippines were regarded highly and were given key political
roles. They participated in the revolutionary and resistance
movements against the Spanish, American and Japanese
colonial regimes. In contemporary Philippine politics, the
number of Filipino women who are holding elective positions in
the national and local level of the government is increasing. In
post-Martial Law era, women's political parties have been
participating in the national elections. Some elected women
officials have used their influence and position to advance
women's causes by enacting laws that uphold and protect the
rights and welfare of women. However, the increased
participation and representation of women in politics can be
attributed to dynastic politics of the Philippines. To skirt
around term limits on elective positions, close relatives of the
incumbent, mostly the wife and offspring, are fielded to run in
the elections to continue the political family's hold on power. In
the context of dynastic politics in the Philippines, women's
participation and representation in politics and decision making
in government should not alone be measured by the number of
women in elective positions. Rather, it should be seen in the
elected official's ability to advance the rights and causes of
women as a sector of the society.
Keywords: women elected officials, women politicians, political dynasties,

dynastic politics, women and politics
*Retired Professor and Former Dean, National College of Public Administration

and Governance, University of the Philippines Diliman.
The author would like to extend her gratitude to Dr. Maria Ela A. Atienza,
Professor and Department Chair, Department of Political Science, College of Social
Sciences and Philosophy, University of the Philippines, and Dr. Ma. Theresa C. de Vela,
Head of International Partnerships and Programs Office, Miriam College, for giving their
comments to improve this paper.
136
FILIPINO WOMEN AND POLITICS 137
The Pinay's Political Journey:

Women's Many Paths to Politics
Historians of Pre-Spanish Philippine society documented the high

status of Filipino women before western colonization. In the book Filipino
Women's Role in History (1998), Salazar presented a strong portrait of the
Filipino woman as babaylan in the community, where she served as healer
and astrologer. While she did not have the political powers of the datu,
she had the respect of the people who depended on her for medicinal and
agricultural advice. Moreover, Prill-Bret (2004) pointed out the egalitarian
roles played by males and females in the ethnic communities in the
mountains of Northern Luzon.
The woman's high status was conveyed in accounts of women

ascending to high political office in the sultanate or datuship, such as
Queen Sima of Cotabato and Princess Urduja of Pangasinan. Likewise,
stories of brave women also abound during the revolution against Spain
and the resistance movement against the Americans and the Japanese.
For instance, Gabriela Silang, wife of Ilocano revolutionary leader Diego
Silang, took over the leadership of her martyred husband and continued
his rebellion against Spain.' Outside the battleship of guns, the women
fought for their rights. The women of Malolos fought for equal access to
opportunities for education that only men had at that time. During the
Commonwealth period, the panuelo activists fought for women suffrage
and won their cause.
In the direct political front, wives of some prominent political figures

continued their husband's crusades. The first noted case is that of
Magnolia Welborn Antonino, who ran for and won the senatorial position
left by her husband when he died during the campaign. There will ever
remain in recent memory the case of Senator Ninoy Aquino's widow Cory,
who ran for presidency against former President Ferdinand Marcos in the
waning months of Martial Law. Her being the first woman President of
the Philippines added a newer dimension to political analysis-the wife as
a political substitute. Recently, this can also be said of Vice President Leni
Robredo, who ran for Congress following the death of her husband, former
Interior Secretary Jesse Robredo, and, in 2016, became the second highest
ranking official in the country.
However, other writers have observed the Filipino women's political

influence even beyond the actual political seat. Neher (1980), writing on
Cebu society in the 1970s, noted the wife's reluctance to run for political
or any office that will make her higher in status as her husband, looking
at politics as "dirty" and "a man's game". This was reiterated in one of my
previous studies in 1992 on women and politics. Yet, outside of politics,
2016
the Filipino woman has been able to exercise her influence, for instance,
in getting preferences for projects and favors for people. Roces (2001)
studied the phenomenon of kinship politics in some of her writings, the
most prominent being about the Lopez family (2001). Much was written on
Imelda Marcos, who, at the height of her husband's rule, exercised power
through influence and actually assumed political power in positions where
she was appointed by her husband-as governor of Metro Manila,
secretary of Human Settlements, member of the Batasang Pambansa, and
as special envoy for certain concerns abroad.2
Thus, we can say that the reluctant women, content with exerting
influence when they could, may have found it important to hold the power
themselves. Imelda Marcos is an example-albeit not a good one-of this
use of power. The political path became an alternative choice for women
after the International Conference of Women in Mexico in 1975 bared
their lack of power in the male-dominated world. The post-Martial Law
period made the path for politics smoother for the Filipino women who
saw the opportunity to participate more actively in decision making.
And Then There Were Some
The first political party for women emerged after 1986 when
democratic space became wider. Many civil society organizations arose,
most of them established for women's causes and led by women. The first
women's political party, Kaiba, put up candidates in Congress. Counting on
what was then perceived as possible women's vote, because of the larger
turn-out of women voters, Kaiba fielded very competent candidates.
However, the large turn-out did not translate into women's vote and only
Dominique Coseteng won a seat in Congress as representative of the third
district of Quezon City (Tancangco, 1992). However, through the Party
List system, the women's political parties Gabriela and, for a while,
Abanse Pinay, have been able to win Congress seats. Although not a party
list, the women's group Ugnayan ng Kababaihan sa Politika (UKP) in the
1990s lobbied for women's more active political participation.
The women's organization WIN (Women in Nation Building) and the

then National Commission on the Role of Filipino Women (now Philippine
Commission on Women) conducted training activities to help women
candidates win political positions, especially at the local level. However,
women who won in those days related that they were given patronizing
treatment by male colleagues in local Councils.
Nonetheless, at that time, two women senators in the Senate and

some members of the House of Representatives were able to push for the
January-December
women's agenda. For example, then Senator Santanina Rasul, a Muslim,

worked to include in the Local Government Code of 1991 a woman sectoral
representative in the local councils. The late Senator Leticia Ramos-
Shahani pushed for a five-percent appropriation in the national budget for
women's programs in every government agency. Senator Rasul and the
late Congressman Raul Roco authored the Republic Act (RA) 7192 (Women
in Development and Nation Building Act, 1992), which opened several
doors to women in the military and other exclusively men's enclaves. Its
title set the tone: An Act Promoting the Integration of Women as Full and
Equal Partners of Men in Development and Nation Building and for Other
Purposes.
This landmark legislation led to other laws like the Anti-Sexual

Harassment Law (RA 7877), Anti-Rape Law (RA 8353), Day Care in Every
Barangay (RA 6972), Special Protection of Children Act (RA 7610), Solo
Parents Welfare Act (RA 8972) and other laws providing protection and
welfare to women and family. More female and even male legislators
recently approved laws, such as the Violence against Women and Children
Act (RA 9262), the Anti-Trafficking in Persons Act (RA 9208) and the
Magna Carta for Women (RA 9710). Laws that could not be enacted in
Congress were done by Executive Order of the President. In the early
years of her term, President Corazon Aquino issued the Family Code of
the Philippines (Executive Order 209) upon the prodding of women
activists. The Code corrected many provisions of the Civil Code that are
detrimental to women. One very significant provision is the nod for
annulment of marriage on certain grounds, skirting the divorce issue,
which had not hurdled the Congress.
The road to getting these and other laws enacted had been thorny,
but the women in Congress counted on the support of some men who
understood women's concerns. Women in civil society organizations
pushed for and assisted in reiterating the feminist discourse. The most
recent bone of contention is the Reproductive Health Law (RA 10354),
which took 15 years to pass and has not been fully implemented mainly
due to influence of conservatives outside of Congress. Despite the current
President's endorsement, the law has to hurdle obstacles to its
implementation.
And Then There Are Many
More inroads to women's concerns were paved by other international

initiatives for women. Significantly, the Beijing Conference Declaration
and Plan for Action in 1995 noted the expansion of women's participation
in politics. The Beijing document boldly called for 50% representation of
2016
women in political positions. Later on, a compromise was made, leading to

30% representation. Nonetheless, the Beijing document became the
inspiration for countries to aspire for an equal proportion of women in
decision making.
Representatives in 189 countries pledged to support the effort. Some

countries provided affirmative action measures to meet the 30%
proportion, through quotas for women in party candidacies, reserved seats
for women in legislatures, and special laws providing for such support for
women candidates (Dahlerup, 2005). Sixteen of those countries have
established quotas for women. Through such efforts, Rwanda in Africa has
succeeded in raising the proportion of women policymakers to 48.8%. The
South Asian countries of India, Bangladesh and Pakistan have been
successful in putting more women in the village government. For
instance, Alhabad, a city in India, makes sure that, in every third election,
only women ran for Mayor. In some South East Asian countries, women
now occupy as much as 20% of positions in the legislature (World
Economic Forum, 2014; United Nations, 2010).
Further prodding states to widen women's political participation, the

UNDP called another conference in Phitsanulok, Thailand in 2001,
gathering together women local chief executives and legislators. National
conventions followed. In the Philippines, a summit in Manila was held in
2003. It produced the Manila Declaration, calling for the government to
move forward in terms of women's representation in politics.
The Philippines now ranks 7Th among 144 nations in the world in
terms of female political representation and first in Asia in that category.
It also ranks among the leaders in terms of the passage of laws
empowering women. Moving from reluctance to acceptance of the role of
women in politics, the Philippines now has the actual ideal representation
in Congress, with 33% women in the Senate and 29% women in the House
of Representatives. We have what seems to be the ideal proportion of
females in the legislature. Can we say this is real representation of the
Filipino women?
The Pinay in Politics Today:

Community Seer to Dynasty Link?
Before recent records of improved participation of women in

Philippine politics, anecdotal data indicated the extent of women's
participation in electoral politics. Studies on local government politics
sufficiently discussed patron-client relationships and how they helped
perpetuate the power of prominent political families. One earlier research
January-December
is that of Remigio Agpalo, who wrote in 1969 and 1972 about the politics of
Occidental Mindoro. He said that, whoever won in elections, the Abeleda
family likewise won, as members of the extended family were associated
with both parties (Agpalo, 1972). A number of studies have shown how
political dynasties come to be. However, not much has been written on
how women in politics attain power in national and local governments,
except in very recent political studies. I focused on this subject in my
article, "Gender and Local Government" (Tapales, 2016). Moreover,
Mendoza, Beja, Yap, & Venida (2016) presented gender statistics in a study
titled PoliticalDynasties in the Philippine Congress.
In retrospect, we can look at the electoral provisions in the 1987

Constitution and the Election Code, which provide term limits for elected
positions except the barangay. Local officials and members of the House of
Representatives serve three years per term and are allowed to serve up to
three consecutive terms. Members of the Senate serve for up to two
consecutive six-year terms. Political dynasties were usually limited to two
or three family members in elected positions. What occurred was the
practice of "breakers", usually assumed by women, who sat for the
patriarch or family member while he had to sit out one term. With the
inclusion of the party list system, more positions were opened to family
members. The provision, which was initially intended to discourage
dynasticism, actually broadened its scope.
Temario Rivera (2016) conducted a study of dynastic politics in 77

provinces (out of now 81) by looking at the posts of governors, members of
the House of Representatives, and local officials. Rivera counted 178
political families dominating the provincial and congressional seats, with a
mean of 2.31 families per province.
On the other hand, Mendoza et al. (2016) looked at Congress

members in the 1 6 h Congress and related them to local officials elected in
the 2013 mid-term elections. They found that 34.33% of the members of
the 1 6 h Congress had "kinship links with at least one legislator in the 1 3th,
1 4 h and 1 5 h Congress". Almost half of female representatives, vis-A-vis
only 28.77% of male representatives, belonged to this group. It is observed
that "when the scion gets to his three-term limit he can field a female
relative... to occupy he post that he is vacating"(Mendoza, et al., 2016, p.
17).
For instance, former President Macapagal-Arroyo fielded her two

sons as representatives in Pampanga and Bicol, and when she ran for the
House of Representatives later, one son ran as party list representative.
The Binays of Makati, until 2016, occupied national and local positions
(i.e., Vice-President, Senator, Mayor, and Representative). Jejomar
2016
Binay's wife, Elenita, ran for and won an office to "break" her husband's
expired term as mayor. Meanwhile, in the City of San Juan, another post-
Martial Law dynasty emerged, starting from former city mayor Joseph
"Erap" Estrada. Erap was initially the only Ejercito in government, serving
as senator, vice president, and president. Along the way, his wife became
senator, and his sons became San Juan Mayors, then Senators. Now, some
members of the extended family are serving as mayor and vice mayor of
San Juan.
Can the dynastic cycle be stopped? In Isabela, a young woman with

disabilities won two terms as governor against the well-entrenched Dy
family with the help of media and NGOs. Nevertheless, she failed to
secure a third term as the dynasty returned to power. In some cases,
political families in power change, such as in Occidental Mindoro, which is
now under the newer Villarosa family. However, the succeeding dynasties
remain in power for long periods as well.
Clarissa David and Rosel San Pascual, scholars from the UP College
of Mass Communication, analyzed the choice of voters for political dynasty
candidates. They referred to the 2004 study of investigative reporter
Sheila Coronel, which found that more than 60% of legislators elected
since 1986 are members of political clans. Indeed, the last Senate "saw two
sets of siblings, three sons of former Presidents, the daughter of the Vice
President, eight children of former senators, and the wife of a former
senator" (David & San Pascual, 2015, p. 102). The two researchers
categorically say that "since 1986 new political dynasties emerged... as
wives, daughters, sons and grandchildren as former Presidents and
Senators pursued senatorial offices" (David & San Pascual, 2015, p.106).
They mainly attribute this to name recall and low levels of political
knowledge. Ultimately, David and San Pascual referred to this as
"symptomatic of political and socioeconomic inequality" (David & San
Pascual, 2015, p. 115).
Catching the Dynasty by the Toe
While most studies do not precisely look at gender, the newer, closer
look at provincial and national election winners show that more
entrenched dynastic situation can be considered a major reason for the
increased participation of women in Philippine politics, where the gender
component is now more easily documented in the national legislature. In
local government, a possible, yet difficult, means of tracing gender is
through the leagues of women local officials, such as the 4Ls (League of
Lady Local Legislators). The Department of Interior and Local
Government (DILG) has yet to come up with the complete list. In any
January-December
case, women's use of their husband's name may not accurately determine
their dynastic ties, except through deeper case studies.
Yet, we must concede that dynasties are not necessarily

dysfunctional, although their heavy reliance on and loyalty to family may
cause them to be so. Rivera (2016) tried to correlate dynastic local
governments with higher human development index (HDI) and found that
HDI is usually higher in areas closer to Metro Manila. Thus, geography
and availability of resources is a major factor in achieving higher HDI.
While island provinces show relatively lower HDIs, Cebu, a highly
urbanized island, and Batanes, which is now progressing on its own, are
examples of islands with high HDIs. Meanwhile, Rivera pointed out that "a
wider network of incumbents belonging to the same family as the
incumbent governor is in a better position to improve socioeconomic
conditions" (p. 61). In a conference, a mayor claimed that she is able to
perform well because of her familial ties in the provincial government and
the Congress. Perhaps there is more to name recall than meets the eye.
Beyond the feudal, familistic system, name recall may stand for trust in
the dynastic leadership by the electorate.
Why did more women in political dynasties secure electoral positions

after 1986? If we look deeper at anecdotal reports, we may discover that
strong family ties have made it easier for women to run for office. The
idea of women as breakers is non-threatening to the family patriarch;
rather, it does him the favor of keeping the post and strengthening the
family ties. Corollary to this observation, children in political dynasties
start as barangay youth officials and go on to higher offices. In some cases,
perpetuation of political dynasties goes beyond issues of legitimacy, as in
the case of the Ejercitos in San Juan City.
Beyond Dynasticism
The questions we may ask about "dynastic women" in Philippine

politics go beyond meeting the standard of representativeness in terms of
political positions. We need to look into their ability to represent the
women per se, and not just the interests of their families and parties. It is
encouraging that many women outside of politics have been actively
lobbying for feminist causes even under difficult times, such as the Martial
Law period.
As dynasticism, which usually starts at the local government level, is

equated with wealth, so is women's voting consistent with their perception
of immediate needs and the status quo. As Pulse Asia found in a recent
survey, 41% of the Filipinos do not feel that women are disadvantaged.
2016
Nonetheless, majority (94%) believe that Filipino women should fight for
their rights (Pulse Asia, 2016). Until this sentiment is realized, true
representativeness of women in politics and policymaking cannot be
achieved.
More questions about Philippine political dynasties remain. For now,

the idealists talk about passing an anti-dynasty law to supersede the failed
attempt of the drafters of the 1987 Constitution to discourage it through
term limits. In the dynasties now prevailing in Congress and the local
governments, this seems to be an impossible dream. By then, we may
have had a real 50/50 proportion of male and female leaders in politics,
unfortunately dominated by few elite families.
Endnotes
Her bravery has inspired the current activism of the women's political party,
Gabriela.
2 In this case, I explained that Imelda was only the moon reflecting the light of her
husband, the sun. I could have called it "reflective politics", but it does not describe the
situation.
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David, C.C. & San Pascual, R.S. (2015). Who votes for dynastic candidates? In R.U.
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Mendoza (Eds.), Building inclusive democracies in ASEAN (pp. 102-118).
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Executive Order 209. The Family Code. (1987).
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National Conference of Women Local Chief Executives, Manila Pavilion, City of
Manila.
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Mendoza, R. U., Beja, E., Jr., Yap, D., & Venida, V. (2015). Political dynasties in the
Philippine Congress. In R.U. Mendoza, E. Beja, Jr., J.C. Teehankee, A.G.M. La
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Neher, C.D. (1980). The political status and role of Philippine women in Cebu province.
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Phitsanulok Declaration on the Advancement of Women in Local Government (2001).

Adopted by the Asian Pacific Summit of Women Mayors and Councilors,
Phitsanulok, Thailand.
Prill-Brett, J. (2004). Gender relations and gender issues in resource management in the
Central Cordilleras, Northern Philippines. Review of Women's Studies, 14(1) 1-
29.
Pulse Asia (2016). December 2016 Nationwide survey on women's rights and the status
of women in Philippine society. Ulat ng Bayan 2016. Quezon City: Pulse Asia
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Republic Act 10254. Responsible Parenthood and Reproductive Health Act. (2012).
Republic Act 7160. Local Government Code. (1991).
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Republic Act 9710. Magna Carta of Women. (2009).
Rivera, T.C. (2016). Rethinking democratization in the Philippines: Elections, political

families and parties. In F. Miranda & T.C. Rivera (eds.), Chasing the Wind:
Assessing Philippine Democracy ( 2 nd ed.) (pp. 43-74). Manila: UNDP and
Commission on Human Rights.
Roces, M. (2001). Kinship politics in post-war Philippines: The Lopez family, 1946-2000.
Manila: De La Salle University Press.
Salazar, Z. A. (1988). Ang babaylan sa kasaysayan ng Pilipinas [The babaylan in

Philippine history]. In Women's role in Philippine history: Selected essays (pp. 1-
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Philippine Journal of Public Administration, Vol. LX Nos. 1 & 2 (Januaryy-December 2016)
2016
Author-Title Index
Volume LX, Nos. 1 & 2
De Vela, Ma. Theresa Casal. The emergence of LGBT human rights and
the use of discourse analysis in understanding LGBT state
inclusion, 72-97.
Delloro, Alder K. The dual role of the Supreme Court as an

administrative system and guardian of the constitution, 24-44.
Developing the Philippine sovereign wealth fund, by Russell Stanley

Geronimo, 98-135.
The dual role of the Supreme Court as an administrative system and

guardian of the constitution, by Alder K. Delloro, 24-44.
The emergence of LGBT human rights and the use of discourse analysis in
understanding LGBT state inclusion, by Ma. Theresa Casal De
Vela, 72-97.
Geronimo, Russell Stanley. Developing the Philippine sovereign wealth

fund, 98-135.
Igcalinos, Antonio D. Synergies in Philippine Language-in-Education

Policy in RA 10533: The case of MTBMLE implementation in
Tacurong pilot elementary school, 45-71.
Ilago, Simeon Agustin. The travel of a reform idea: Participatory

budgeting and its adaptation in the Philippines, 1-23.
Once more with passion: Filipino women and politics, by Proserpina

Domingo Tapales, 136-146.
Synergies in Philippine Language-in-Education Policy in RA 10533: The

case of MTBMLE implementation in Tacurong pilot elementary
school, by Antonio D. Igcalinos, 45-71.
Tapales, Proserpina Domingo. Once more with passion: Filipino women

and politics, 136-146.
The travel of a reform idea: Participatory budgeting and its adaptation in

the Philippines, by Simeon Agustin Ilago, 1-23.
147
author-title indexpmd 147 30-May-18, 4:29 PM

2016
Subject Index
Volume LX, Nos. 1 & 2
BILINGUAL EDUCATION
Igcalinos, Antonio D. Synergies in Philippine Language-in-

Education Policy in RA 10533: The case of MTBMLE
implementation in Tacurong pilot elementary school, 45-71.
BILINGUAL EDUCATION POLICY (BEP)

BOTTOM-UP BUDGETING (BUB)

BUDGET

BUDGET MANAGEMENT

BUDGET REFORM

BUREAUCRATIZATION

CORPORATE GOVERNANCE
Geronimo, Russell Stanley. Developing the Philippine sovereign

wealth fund, 98-135.
148
SUBJECT INDEX 149
CRIMES AGAINST LGBT PEOPLE
De Vela, Ma. Theresa Casal. The emergence of LGBT human

rights and the use of discourse analysis in understanding LGBT
state inclusion, 72-97.
DISCOURSE ANALYSIS

FOREIGN EXCHANGE RESERVE

GENERALLY ACCEPTED PRINCIPLES AND PRACTICES (GAPP)

GOVERNMENT SPENDING POLICY-ECONOMIC ASPECTS

GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS (GOCC)

JUSTICE ADMINISTRATION

LEGAL STATUS OF LGBT PEOPLE

2016
LGBT RIGHTS

LOCAL BUDGETS

LOCAL POVERTY REDUCTION ACTION PLANNING (LPRAP)

MOTHER TONGUE BASED-MULTILINGUAL EDUCATION (MTBMLE)

MULTILINGUAL EDUCATION

MULTILINGUAL EDUCATION-TACURONG PILOT ELEMENTARY

SCHOOL-STUDY AND TEACHING

MULTILINGUALISM

PHILIPPINES. SUPREME COURT

January-December
SUBJECT INDEX 151
PHILIPPINES-FOREIGN ECONOMIC RELATIONS

POLITICAL DYNASTIES
Tapales, Proserpina Domingo. Once more with passion: Filipino

women and politics, 136-146.
PUBLIC FINANCE-GOVERNMENT POLICY


SOCIAL CONDITIONS OF LGBT PEOPLE

SOVEREIGN WEALTH FUND

WOMEN IN POLITICS

WOMEN-POLITICAL ACTIVITY

2016
FACULTY
NATIONAL COLLEGE OF PUBLIC ADMINISTRATION AND GOVERNANCE
UNIVERSITY OF THE PHILIPPINES DILIMAN
JOSE V. ABUEVA, ProfessorEmeritus of Public Administrationand Political Science

ERWIN GASPAR A. ALAMPAY, Associate Professorand Director, Center for Local
andRegional Governance (CLRG)
ENRICO L. BASILIO, Assistant Professor
MINERVA S. BAYLON, Associate Professorand College Secretary and Director,
Centerfor PublicAdministrationand Governance
Education(CPAGE)
KRISTOFFER B. BERSE, Assistant Professor
ALEX B. BRILLANTES JR., Professor
LEONOR M. BRIONES, ProfessorEmeritus of Public Administration
WILHELMINA L. CABO, Associate Professor
ZITA CONCEPCION P. CALUGAY, Assistant Professor
EDNA ESTIFANIA A. Co, Professor
RIZALINO B. CRUZ,Assistant Professor
JOCELYN C. CUARESMA, Associate Professor
J. PROSPERO E. DE VERA III, Professor
MARIA FAINA L. DIOLA, Assistant Professorand Director, Centerfor Leadership,
Citizenship andDemocracy (CLCD)
MA. OLIVA Z. DOMINGO, Professor
EBINEZER R. FLORANO, Associate Professorand Director, Centerfor Policy and Executive
Development (CPED)
HERISADEL P. FLORES, Assistant Professorand ProgramCoordinator,
Residential Program,CPAGE
SIMEON A. ILAGO, Associate Professor
MARIA FE V. MENDOZA, Professorand Dean
MARIA VICTORIA R. RAQUIZA, Assistant Professor
DANILO R. REYES, Professor
DAN A. SAGUIL, Associate Professor
NORIEL CHRISTOPHER C. TIGLAO, Associate Professorand Director, Publications Office
MICHAEL A. TUMANUT, Assistant Professor
LECTURERS
MARILYN B. BARUA-YAP, ProfessorialLecturer NOREEN ROSE V. GONZAGA, Senior Lecturer

ROENTGEN F. BRONCE, Senior Lecturer SANDRA MAE T. MAGALANG, Senior Lecturer
CORINNA FRANCES 0. CABANILLA, Senior RAYMUND E. NARAG, Visiting Professor
Lecturer REMIGIO EDGARDO D. OCENAR, Professorial
CHARLIE E. CABOTAJE, Lecturer Lecturer
LOURDES M. CASTILLO, Senior Lecturer MA. CARMEN V. PENALOSA, Senior Lecturer
MICHAEL ERIC L. CASTILLO, Senior Lecturer CARMELA S. PEREZ, ProfessorialLecturer
ALICIA B. CELESTINO, Senior Lecturer TONISITO MACHIVELLI C. UMALI, Senior
ELYZABETH F. CUREG, Senior Lecturer Lecturer
* On Study Leave

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a a

V" V" - - --- -- -VII

DuA W* 4 the Suproma C*i

REMLMONS FROM SCUOLARS

Filipino womon 0=4 poktic,4

v"v" LK JANVAUl(-O)WZMM 2010 NUTO"Us 1, & 2

International Advisory Board

Issue Editor: NORIEL CHRISTOPHER C. TIGLAO

Managing Editors: JAYSON D. FAJARDA

EditorialAssistant: MERCEDITA M. MIRANDA

PHILIPPINE JOURNAL OF PUBLIC ADMINISTRATION

Subscription rates:* Philippines: P500.00

Volume LX January-December 2016 Numbers 1 & 2

The Travel of a Reform Idea: Participatory Budgeting

The Dual Role of the Supreme Court as

Synergies in Philippine Language-in-Education

The Emergence of LGBT Human Rights

Developing the Philippine Sovereign

Reflections from Scholars and Practitioners

Once More with Passion:

Making public sector reforms work, through either policymaking or

Citizen participation appears to be the core principle at work in the

In his article "The Dual Role of the Supreme Court as an

In the article "Synergies in Philippine Language-in-Education Policy

Ma. Theresa Casal De Vela's article titled "The Emergence of LGBT

In addition, this volume of the Journal also features an article that

Strides in social progress have been achieved in recent years as

The Travel of a Reform Idea:

SIMEON AGUSTIN ILAGO*

The article looks at a particular experience of the Philippine

Keywords: Participatory budgeting, administrative history, budgeting,

This article, however, focuses on a particular budgeting reform that

*Associate Professor, National College of Public Administration and Governance,

reforms adopted in the Philippines by the government. Participatory

In the Philippines, PB was adopted through the bottom-up budgeting

Raadschelders (2003) emphasized the importance of administrative

As part of recent budgeting reforms, BUB provides a clear example of

In 2012, the administration of President Benigno Aquino introduced

fiscal transparency, efficiency and accountability. In exploring the

Following the Introduction, this article develops an understanding of

BUB in the Context of Past Budgeting Reforms

Commonwealth Period to the Pre-Martial Law Period

According to Briones (1996), a rudimentary form of budgeting was

Parsons (1957) described the adoption of performance budgeting as "a

Parson argued that performance budgeting could only work if there is an

Given these constraints, the impact of performance budgeting process

Martial Law Period

Zero based budgeting (ZBB) was introduced in the Philippines in 1977

Section 8 of PD 177 (Budget Reform Decree), which required agency

However, it was noted that ZBB's implementation suffered from the

Post-Martial Law Budgeting Reforms

Corazon Aquino Administration. The Corazon Aquino (1986-1992)

Fidel Ramos Administration. The RPMES was revisited during

Under the Ramos administration, a simplified fund release system

Joseph Estrada Administration. The SFRS system was continued

agencies. The Estrada administration also restarted the government

Gloria Macapagal-Arroyo Administration. Under the term of

The budget process in the Arroyo administration, according to Abad

Benigno Aquino III Administration. Under the term of President

The MTEF appears to be a carry-over and refinement of the MTEF

rolling three-year expenditure planning, medium-term expenditure

The ZBB assesses the performance of existing programs and projects

The GAA-RD was adopted by the Aquino administration beginning in