Federalism and Its Possible Impact

to the Philippine Economy and Political Landscape

(Mila T. Mangsi)

Today, the Philippines was exposed to the threat of economic and political
instability. The current administration is aggressively working in hope that the
rampant mismanagement of the country would totally be transformed into what it
think is best for the Philippines. With the currently prolonging problem on corruption
and declining public service involving no other than the government officials and
employees, it is not surprising that a thought of perhaps changing the system of
governance would solve the problem. Federalism is defined as a form of government
where sovereignty is constitutionally shared between a central governing authority
and constituent political units called states or regions. This form is being proposed by
the current administration to be adopted by the Philippines and it is best to scrutinize
the possible impact to the different aspect of our society.
On the economic aspect, federalism will bring financial independence,
specialization and distribution of wealth to the local and national government.
Unlike in a unitary form of government where the local government remits its
income in full to the national government which in turn returns a portion of such
income to the former, in federal form of government, the state government retains its
income and is required to turn over only portion to the central or federal government.
The state government will spend its income to programs and policies which it
deems suited to the needs of its constituents. This is advantageous to the properly
established regions or local government since they can maximize their income in the
improvement of their community. However, the poor and undeveloped regions of the
country which depend primarily to the national government for their funding will
suffer since such support will be reduced and limited. The latter will have to depend
on their own resources and will nevertheless be advantageous if they will strive to
develop and enhance their natural resources and will be disadvantageous if they take
it negatively and be left out by the developed regions of the country.
The federal government in turn will use its share for the national defense,
foreign policy and other national programs like the national health care.
Another edge of federalism would be the distribution of wealth through the
decongestion of Metro Manila. If the independence given to the state government
results to economic development, there will be more incentive for Filipinos to live
and work in regions outside Metro Manila. More investors may also decide to put up

their businesses there, creating more jobs and opportunities to be an enough reason
to keep the people in their respective provinces.
On the political landscape, federalism will strengthen representation of the
different regions of the country and will increase citizens participation in political
affairs.
Representation of the regions will be strengthened with the election of
senators which will represent the local level unlike today where senators do not have
their own constituents. Furthermore, regions with different cultures may establish
their own laws which may not be applicable to other regions and this is most likely
advantageous to the Philippines considering cultural and topographic diversity.
Also, federalism will bring the people closer to the government as their
grievances and issues will be resolved by the state government without waiting for
the approval of the central government such that the former may no longer use as
alibi the bureaucracy in Metro Manila in delaying public service.
Although some of the commentaries argue that this will encourage political
dynasty, the writer believes this will be balanced by the opportunity of active
participation of the people in political affairs of the state.
In general, the Philippines will be reformed by this proposed federal form of
government. The concentrated power in the present centralized government will be
diffused to the state governments and its concentration in the urbanized Metro Manila
will be distributed in their respective regions.
The structure and components of different branches of the government may
likewise be adjusted according to the needs of each state. One component state may
strive to develop independently but all must contribute to defend the Philippines as a
whole.
This system may also address the independence being claimed by the Muslim
Mindanao. It would be a win-win situation on the part of the government and the
separatist group since the latter may govern without the national government
necessarily surrendering part of its territory.