FRDC Minutes 20 August 2003

8/11/2019 FRDC Minutes 20 August 2003

1/6

MINUTES OF THE MEETING AND WORKSHOP OF THE FEDERATION OF

REGIONAL DEVELOPMENT COUNCILS OF THE REPUBLIC OF THE

PHILIPPINES, HELD AT SANTAN 1 & 2 ROOMS, EDSA SHANGRILA PLAZA

HOTEL, MANDALUYONG CITY ON 20 AUGUST 2003, 9 AM-2 PM

Present:

Governor Isagani S- Amatong -Chairman, RDC IX

Governor Hermilando I. Mandanas -Chairman, RDC IV-AGovernor Eleandro F. Madrona -Chairman, RDC IV-B

Mayor Muslimin G. Sema -Chairman, RDC XII

Chairman Bayani Fernando -Chairman, MMDAMs. Paulina L. Nayra -RDC VIII

OIC Roberto Montelibano -RDC VI

Also Present:

AGM Corazon Cruz -MMDAGov. Erineo S. Maliksi -RDC IV-A

Ms. Paulina L. Nayra -RDC VIII

Mr. Mario T. Pagulayan -RDC II

Mr. Manuel R. Moje -Exec. Officer & Asst. Secretary, FRDCAtty. Joaquin E. San Diego -Legal Counsel, FRDC

Ms. Lynnette Y. Bautista -ARD-NEDA III

Mr. Oskar D. Balbastro -RD, NEDA IV-BMs. Marlene C.P. Rodriguez -RD, NEDA V

Mr. Truman T. Cainglet -RD, NEDA VIMr. Jose Romeo C. Escandor -RD, NEDA VII

Mr. Buenaventura C. Go-Soco, Jr. -RD, NEDA VIII

Mr. Rafael G. Evangelista -RD, NEDA IXMs. Carmencita S. Cochingco -RD, NEDA XIII

Mr. Leonilo B. Lariosa -RD, DILG IV

Ms. Josefina E. Castilla-Go -RD, DILG VMs. Aida Laruda -ARD, DILG VIII

Mr. Rodolfo Z. Razul -RD, DILG X

Mr. Carlos T. Derecho -RD, DILG XIII

Ms. Everdina E. Doctor -RD, DILG CAR

Ms. Liberty Abellon -NEDA IV-A

Guests:

Mr. Klaus Preschle -Konrad Adenauer FoundationAmb. Jose V. Romero, Jr. -Asian Center for the Study of DemocracyDr. Gaudioso Sosmea -Local Government Development FoundationMr. Manuel C. Yoingco -Local Water Utilities Administration


2/6

Welcome Remarks and Preliminary Comments

Gov. Hermilando I. Mandanas noted in his welcome remarks that the context of theworkshop is the upcoming election in May 2004. He pointed out that there is wide consensus on

the need for decentralization, while there are proposals from certain sectors to go further by

changing the Constitution and adopting a federal form of government.

Gov. Amatong commented that there is indeed a strong push toward federalism and that

the birth of a federal Philippines is being hindered. Mayor Sema observed that there is over

centralization of government, and that the creation of autonomous regions like the ARMM is notenough. There is a need to change the mechanism of government; otherwise, few RDC-

endorsed development programs will be actually implemented.

Chairman Fernando outlined the conditions that need to be fulfilled if there would be a

shift to a federal system and said that any shift should be done with caution. In a sense, the tribal

situation previous to the establishment of the Philippines as one nation was somewhat federal.

He gave the following further comments on the proposal:

1) The economic viability of regions proposed to be made into autonomous states mustbe considered. Right now many local communities are very much dependent on their IRA. In

many cases only 10% of their budget is internally generated. The data should be analyzed in

order to gauge the viability of the proposal.

2) The proposed regions need to have undergone previous training for independence and

development.

3) The advantages that a large pool of talents80 million peoplebrings with it must

be given due weight.

4) Federalism certainly serves local interest but one should ask to what extent it will

serve the entire country and whether it is timely.

5) There is an ongoing process of devolution which has not been completed. Theexperience with devolution can provide lessons as a sort of test case for federalism.

Some Notes on the Genesis Evolution of the German Federal System

Mr. Klaus Preschle, Country Representative of the Konrad Adenauer Foundation, which

is sponsoring the workshop, greeted and thanks the participants for their attendance. He gave abrief history and description of the German Federal System. (See power point presentation.) He

observed that Germany and the Philippines have many similarities, such as the size of

population.


3/6

Evaluation of Charter Proposals Toward a Philippine Federal Svstem

Ambassador Romero stated Congress had passed two bills proposing a shift to a

unicameral system and to a federalist system, but that these bills remain unacted upon by the

Senate. He emphasized the need for integrated area planning to support the shift in the form of

government. There would be a need for a shift in mindset since those who are now localexecutives will become national executives. It is important to proceed with caution while at the

same time trying to accelerate capability building at the local and regional levels.

Gov. Amatong emphasized that a change of structure is called for, given the inefficiencyof the current system of government. This change will require constitutional amendments and,

as a matter of strategy, everyone should remain focused on this goal. In the new structure,

among other things, the allocation of funds must be demand-driven instead of being supply-

driven, as is happening now.

Chairman Fernando pointed out that the label "Imperial Manila" can be somewhat

misleading and unfair, implying as it does that changes ought to disfavor Manila. In the firstplace, Manila became what it is now because it was built by its own people and less because of

being favored by government. Other communities will have their time, as conditions become

more attractive for investments there. Businessmen cannot just be forced to go anywhere. In

this connection, one must now also take into account the changing scenarios in the differentcommunities because of globalization, e.g., Mindanao is becoming less and less the main source

of rice for the country. Whatever the form of government, what is most important is the strength

of the bureaucracy, especially in times of change.

Chairman Fernando suggested that one change that he finds more important has to do

with the funding of elections. Government ought to spend for the election of its rulers. This can

be the solution to the persistent problem of conflict between congressmen and mayors, forexample. In the past, government paid for the party inspectors. The 1987 Constitution changed

this and made this election-related problem worse. Change in the form of government is not the

priority because even devolution has taken time to implement.

Gov. Amatong maintained that from his prospective devolution will not suffice.

Gov. Mandanas summarized the discussion by saying that (a) regardless of whether the

label "imperial" given to Metro Manila is appropriate or not, the really relevant issue has to do

with the reform of the system of central government; (b) within the present Constitution andLocal Government Code much can be done before 2004 and the LGUs should not limit

themselves to waiting for constitutional change and speculations.

Assessment of LGU Readiness for Federalism and Re!!ionalization

Dr. Gaudioso Sosmefia of the Local Government Development Foundation stated thatmaking an assessment of LGU preparedness for federalism will require an extensive data-

gathering effort. He said that indeed a lot of work needs to be done and a great deal of


4/6

overhauling and transition is required to prepare LGUs and regions for federalism. What is

useful is to outline the objectives toward which all the preparatory work must be directed. Theseobjectives, in turn, must have in view the changes that a shift to a federal system will bring

about, namely:

1) Change in central-local relations: Under the federal system, state governments will bethe center of government activities instead of the central government. The procedure followed in

the relation between state governments and the central government will be either standardized or

by negotiation, depending on what each state constitution will specify.

2) Downward transfer of government functions: in the listing of functions belonging to

the state, the federal government, and concurrent functions, most will belong to the stategovernments.

3) Changes in tax structure: The tax structure will be stratified more in favor of stategovernments.

4) Introduction of the concept of "state" or "region": The "regions" in the federal system

are independent states and not the administrative regions under the present system. Ethnic originswill be emphasized move and there will be greater competition among the region.

5) Empowerment process: Citizens will identify themselves more with their state orregion.

Dr. Sosmea encouraged the body to go over Senate Bill 2111 filed by Senator JohnOsmea which proposes a new Code of Local Governance. Some salient features of the

proposed Code are the creation of a local government bank for LGUs, the establishment of anautonomous salary administration for LGUs as an exception to the Salary Standardization Law,

the provision for tax-free bond flotation, an increase in the IRA, and the mandate to LGUs to

establish performance standards.

Dr. Sosmea concluded his presentation by saying that with the exception of the US

which has a presidential-federal system, the more stable countries have a parliamentary-federal

system of government.

Chairman Fernando suggested that a deeper study of the issues be made and that the

order of priority among the objectives be established, that is, whether it is political stability oreconomic development or more efficient administration that must come first. He stated that

fragmentation will not be advantageous.

Mayor Sema said that problems of peace and order are better solved by locals. From the

economic perspective, it is a fact that Manila is often given preference over Visayas and

Mindanao. For example, Cebu's shipping sector is often left at a disadvantage, ODA forCotabato's own fish port is not given priority, etc.


5/6

Chairman Fernando pointed out that foreign funding decisions are backed up by studies

based on economic viability. As far as shipping is concerned, Manila has no control over thedecisions. Manila's ports are actually very bad while those of Cebu are good. In general, Manila

has suffered since the time of Marcos as a result of the dispersal of industries. The existence of

flyovers is not a sign of advantage since they just had to be built out of necessity, given the

circumstances.

Ambassador Romero commented that the present situation is not sustainable. Pressure to

change ought to be brought about by the national and local governments creating and supportinggrowth centers. On the other hand, it is natural that local officials will advocate change more

than central officials.

Gov. Mandanas pointed out that the regions and LGUs can do much right now without

waiting for the central government to act. For example, now that private parties are not

investing, the LGUs can try to prime local economies by taking the lead with public investment.The national government is already giving some support for this type of public investment, for

example, LGUs are allowed to use ODA funds.

Chairman Fernando added that LGUs should try to attract investments to the countrysideby building the necessary infrastructures. One cannot legislate that industries should not set

themselves up in Metro Manila. Again the problem is not with imperial Manila but with the

system of central government. Activating the RDCs is crucial and could work but experienceshows that a lot still depend on the persons who exercise national leadership.

Co-Chairman Montelibano pointed out that in the shipping sector there is a real problem,shown in the fact that it comes out more expensive to ship from Bacolod to Manila than from

Manila to Japan because of the high cost of freight and arrastre services. The solution to theproblem is in the hands of PPA, a national government agency. He urged the body to choose

legislators who understand business well.

Gov. Mandanas urged the RDCs to be pro-active. The LGUs should not blame the

central government for everything but should assert their rights. For example, he has sued the

PPA because the latter did not bid out the cargo-handling contract at Batangas Port and

proceeded with port development without an Environmental Clearance Certificate. He also has apending case against the National Government because of the latter's failure to release the IRA of

Batangas Province. He urged everyone to see to it that the law is followed because without order

there can be no development.

Chairman Fernando added that there are provisions of law that can be utilized more. For

example, LGUs can impose more taxes such as imposing higher taxes on unproductive land in toavoid speculation, as Marikina is doing. Now Metro Manila is using its power to revalue land

every 3 years. Oftentimes LGUs do not tax enough for fear of political backlash. The result is

that LGUs continue to depend heavily on IRA for survival and feel no urgency to promotebusiness and industry in their own localities. Federalism may be advantageous in this sense as it

will force LGUs to fend for themselves.


6/6

FRDC Minutes 20 August 2003

Documents

Transcript of FRDC Minutes 20 August 2003