FEDERALISM 101

A Presentation of the DILG Task Team on Federalism

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 What is Federalism?
A system of government under which
significant government powers are shared
between the federal government and the
Regional governments

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 How Is
Federalism
Different From
Presidential-
Unitary System?
In a PRESIDENTIAL-UNITARY In FEDERALISM, the
system of government, powers and resources of
powers and resources are the government are
under the control of the shared by the federal
central government government and the
Regional government
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 Unitary & Federal Countries
Unitary Countries Federal Countries
LEBANON AUSTRIA
BANGLADESH GERMANY
PHILIPPINES CANADA
AFHANISTAN UNITED STATES
KHAZAKSTAN AUSTRALIA
It is notable that the most stable and progressive
countries have federal forms of government.
Source: Wikipidia 4
 Least &as Most Corrupt Countries
per Transparency International
Most Corrupt Countries Least Corrupt Countries

NORTH KOREA SOMALIA AFGHANISTAN DENMARK FINLAND SWEDEN

SOUTH SUDAN IRAQ LIBYA NORWAY SWITZERLAND SINGAPORE

VENEZUELA ERITREA SYRIA LUXEMBOURG UNITED KINGDOM AUSTRALIA

Majority of countries belong to the most corrupt have

unitary form of government while the least corrupt are
mostly federal
The Federal Government
Operates Under:
ONE FEDERAL CONSTITUTION
ONE ARMED FORCES
ONE FLAG
ONE CENTRAL BANK
ONE MONETARY SYSTEM
ONE FOREIGN POLICY
ONE EMBLEM
 Political Structure
of Federal System
Federal Constitution is
Federal Supreme over the Regional
Organic Law
Each Region has its own
Regional
Organic Law
Each Local Government unit
Local operates in accordance with
the Regional Organic Law
 Duties and Responsibilities
of the Federal Government
Among others, the Federal government is responsible
for the following:
• General welfare of the Filipino people
and the development of the country as
a whole.
• National Defense & Security
• Foreign Relations
• Enactment of laws of national
applications.
• National peace and unity.
• Global competitiveness.
• Technical & Financial Assistance to the
Regional governments. 8
 Duties And Responsibilities Of The
Regional Government
Among others, the regional
governments are responsible for the
following:
• Social, economic, cultural and
political well-being of its
constituents.
• Maintenance of peace and order.
• Enforcement of national and
Regional laws.
• Development of the local
government units.
• Regional competitiveness.
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Distribution and Sharing of Powers

Federal Regional
• National security • Regional elections
• Civil, political, intellectual, • Regional Supreme
property, human rights Shared Court, Metropolitan Trial
Courts
• Foreign relations • Health
• Education • Licensure of public
• National elections utilities
• External trade • Environment
• Social Welfare • Administration and
• Citizenship enforcement of Regional
• Energy
• Currency/monetary • Tourism laws
system
• Peace & Order• Regional socio-
• Immigration, emigration, economic planning
extradition • Regional Finance
• Supreme Court decisions • Regional infrastructure
 How Will
Federalism Help
The Country?

Let us count the ways… 11

 Decentralization
and Devolution of Powers
Under the unitary system, we
only have one center of power,
finance and development: the
Imperial Metro-Manila.

Under Federalism, more powers are

decentralized and devolved to local
government

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 Establishing Powerful
Economic Regions
Federalism is not
simply a ‘political’
undertaking, it is also
an economic effort.
By creating federal regions we shall
immediately establish centers of power,
finance and development throughout the
country.
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 Equalization Fund

An Equalization Fund shall be

established by the Federal Government
to provide more funding support for
those regions in need to accelerate their
development and progress
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 Local Empowerment

Federalism allows regions to exercise right

to self-determination such as to address
their problems based on their own
geographic, cultural, social and economic
conditions
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 The 20 poorest provinces
in the country in 2015*
1. Lanao del Sur (ARMM) - 74.3% 12/11. Eastern Samar (R8) - 50%
2. Sulu (ARMM) - 65.7% 12/11. Lanao del Norte(R10)- 50%
3. Sarangani (Region 12) - 61.7% 13. Mt. Province (CAR) - 49.9%
4. Northern Samar (R8) - 61.6% 14. Western Samar (R8) - 49.5%
5. Maguindanao (ARMM) - 59.4% 15. North Cotabato (R12)- 48.9%
6. Bukidnon (Region 10) - 58.7% 16. Catanduanes (R5) - 47.8%
7. Sultan Kudarat (R12) - 56.2% 17. Leyte (Region 8) - 46.7%
8. Zamboanga del Norte(R9)-56.1% 18. Negros Oriental (R7) - 46.6%
9. Siquijor (Region 7) - 55.2% 19. Zamboanga Sibugay (R9)- 45%
10. Agusan del Sur (Caraga) - 54.8% 20. Sorsogon (R5) - 44.8%
It is notable that the poorest provinces in the country are
the farthest from Metro Manila, mostly because the
capital is too far away to efficiently control distant regions
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*according to Philippine Statistics Authority
 Incentives to Live, Work &
Invest Outside Manila
Federalism will promote
economic opportunities in the
regions and provide incentives
for Filipinos to live and work in
regions outside Metro Manila.
More investors may also decide to put
up their businesses outside Manila thus
creating more jobs and opportunities to
attract more people away from the
congested mega cities.

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 Feasible Solution To The
Mindanao Issues

The creation of the Bangsamoro Regional

Government within a federalist system will
address concerns of our Muslim brothers and
sisters who crave more autonomy over the
governance and administration of Muslim
Mindanao.
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 Federalism on Political
Dynasties
In federalism with a strong political
party system, political dynasties will
become irrelevant. Political leaders
will become more accountable to
their constituents.
Regional governments
will no longer have any
excuse for delays in
services or projects.
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 Power To Collect and Spend Taxes
For Own Development
Right now, local government
units can only collect real
estate taxes and business
permit fees.
In federalism, they can
retain most of their revenue
income collection
And they can spend the money on programs
and policies according to their needs.
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 Proposed Sharing of Revenues
Under the present system, 80% of the revenue
collections goes to the National Government and
only 20% is distributed to Local Government
Units.

In federalism, the
distribution will be
reversed

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 Estimated Sharing of Internal
Revenue Allotment (IRA)
Under Federalism
PROPOSED SHARING
DESCRIPTION PRESENT SHARING UNDER FEDERALISM
% DIFFE-
SAMPLE REVENUE PhP1,000,000,000.00 PhP1,000,000,000.00 RENCE
NATIONAL GOVT
SHARE 60% PhP600,000,000 30% PhP300,000,000 -50%
Regional GOV'T
SHARE none
30% PhP 210,000,000
PROVINCIAL GOV'T
SHARE 23% PhP92,000,000
CITIES SHARE 23% PhP92,000,000 21% PhP 146,363,636 +63%
MUNICIPALITIES
SHARE 34% PhP136,000,000 24% PhP 216,363,636 +63%
BRGY SHARE 20% PhP80,000,000 14% PhP 127,272,727 +63%

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 Proposed Taxation

Regional
Federal • Real Property Tax
Shared • Business Tax
• Customs
• Excise Tax
• VAT • Corporate
(on minerals)
• Excise Tax Income
• Donor’s Tax
(except on minerals) • Personal
Income • ERegional tax
• Donor’s Tax
• Effluent • Motor vehicle Tax
• Energy tax
Charges • Amusement Tax
• Capital gains Tax
(except on property) • Capital Gains Tax
(on property)
• Documentary Stamp Tax
• Fees and Charges
DISADVANTAGES
OF FEDERAL SYSTEM IN
THE PHILIPPINES
 Possibly Divisive
Healthy competition among
regions can become alienating –
creating rivalries and promoting
the regionalism that some say
already challenges the sense of
unity in the country.
It could enflame hostilities
between ethnic groups in the
country like Tagalogs, Cebuanos,
Bicolanos, Ilocanos, Tausugs, and
Zamboangueños.
 Uneven Development
Among Regions
Some regions may not be as
ready for autonomy as others.
Some regions may not be as
rich in natural resources or
skilled labor as others.
Regions with good leaders will progress faster
while Regions with ineffective ones will degrade
more than ever because the central government
will not always be there to balance them out.
 May Not Satisfy
Separatists In Mindanao
Separatists are calling for
their own country, not just a
region that still belongs to a
larger Federal Philippines.
Federalism may not be enough for them.
After all, the conflict continues despite the
creation of the Autonomous Region in
Muslim Mindanao.
 High Cost of Federalism
Shifting to federalism won't
come cheap. It would entail
billions of pesos to set up
Regional governments and
the delivery of Regional
services.
A small country like East Timor and Fiji requires an
annual budget equivalent to PhP70Billion to self
administer, and yet the land area and population of
these countries is only equivalent to one of our smallest
regions like CAR.
 PROPOSED POLITICAL
STRUCTURE
FOR PHILIPPINE SETTING
As recommended by PDP Federalism Institute – Federalism Study Groups

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 Basic Features of Presidential-
Parliamentary Political System
• THE EXECUTIVE AND LEGISLATIVE BRANCHES OF
GOVERNMENT ARE MERGED. (Reason: The Separation of
Power causes intense rivalry and competition for power
between the executive and legislative in a system that has
turned very adversarial like Congressional Investigations of
executive policies and actions, which unnecessarily delay and
obstruct legislation. )
• THERE SHALL BE A BICAMERAL
LEGISLATIVE BODY. (Senate to act
as Principal Inter-governmental
Institution and there will be two (2)
Senators elected per region).

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 Basic Features, cont’d

• There is a President who will be elected at large and is

nominated by a political party following established
procedures. He shall be the head of the state and
Commander-In-Chief;
• The President shall also have the authority to dissolve
the Parliament under specific circumstances;
• There shall be a Prime Minister (PM) who shall be
nominated by the majority of the members of the
Parliament and appointed by the President. The PM
shall be the head of government and can be removed
by electing a new Prime Minister anytime during the
term.
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 Cabinet Members
• The President appoints the Minister
of Foreign Affairs, Defense and the
military officers with the rank of full
colonel and above.
• Majority of the cabinet members are
chosen by the Prime Minister from
among the members of the
parliament.
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 Proposed Legislative Composition
Legislative Powers Form/ Proposed
Vested Manner of Election Composition
SENATORS WILL BE
TWO (2) SENATORS FOR
1. Members of ELECTED BY REGIONS
EVERY REGION AND
Senate and MEMBERS OF MEMBERS OF PARLIAMENT
Parliament PARLIAMENT SHALL BE BY FOR EVERY LEGISLATIVE
LEGISLATIVE DISTRICTS DISTRICTS AND PARTY
AND PROPORTIONAL REPRESENTATIONS
PARTY REPRESENTATIONS

UNIICAMERAL / ELECTED COMPOSED OF AT LEAST

2. Regional BY LEGISLATIVE DISTRICTS TWO (2) REPRESENTATIVES
Legislatures FOR EACH DISTRICT

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 Proposed Regional
Governments
It is proposed that there shall be as many federal
regions as there are as many ethno-linguistic
groups in the Philippines.
However, Regional Governments shall be provided
by the Federal Constitution following territorial,
population & GDP requirements to determine
sustainability. A Regional Government may be
formed by at least 3 provinces or highly urbanized
cities provided that it satisfies requirements
provided by the constitution.
Cordillera, Bangsamoro are deemed qualified as
Regional Governments,
Other autonomous territories for Indigenous
People (IP’s) shall also be provided
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What Will Happen To The Local Government
Units Under A Federal System?

The local
government units
shall form part of
the Regional
Government.
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What Will Happen To The Judiciary
Under Federalism?
There shall be a Federal
Supreme Court
Each region shall also
have its own Regional
Supreme Courts and
adopt its judicial
systems
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Timeline

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 MODE TO REVISE
OUR CONSTITUTION
• CON-ASS or Constituent Assembly,
constituted by the incumbent
Congressmen and Senators

• CON-COM or Constitutional
Commission, which will be
composed by the Men and Women
of integrity, patriotism and experts
in their respective fields whose
members are directly appointed by
the President.
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 Projected Timeline
• It is probable that the constitutional revision shall have
been completed not later than 2018 and submitted to
the people thru a plebiscite by 2019, coinciding with
the Mid-Term National Election;

• From June, 2019 to 2020, sub-national government

units (regions), in accordance with the ratified Federal
Constitution, will make their respective Regional
organic laws, submit for approval to Parliament and
shall be ratified by the people thru a plebiscite

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 The Shift to Federal Republic
of The Philippines
• By 2020 to 2021, the process of effective, actual
transition from unitary to a federal government
should take place.
• On May 2022, we will probably elect the
President of the new Federal Republic of the
Philippines, together with the Members of
Parliament;
• Federal President may be installed on June 30,
2022, and immediately thereafter, the first
Prime Minister and Members of the Cabinet will
be confirmed by the Parliament
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Thank you!
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