IDEAS home Printed from https://ideas.repec.org/p/phd/dpaper/dp_2017-29.html
   My bibliography  Save this paper

Federalism: Prospects for the Philippines

Author

Listed:
  • Miral, Emmanuel Jr.

Abstract

The paper aims to consider potential benefits of federalism to the Philippines within the context of two major development constraints, namely, weak economic growth and poverty. The governance and institutional aspects of these development constraints point to how continued centralization of fiscal powers and the resulting common resource pool problem have weakened government capacity to bring about inclusive development. Critical to the success of decentralization and fiscal federalism efforts is a strong middle level government, which is absent in the current setup. The establishment of regional governments, its powers and functions and its relation to the national government and local governments, is the most crucial element in the shift from a unitary to a federal form of government. It is recommended that the proposed shift be carried out in two stages. The first stage will deal with assignment of competencies and the relationship between the national government and regional government, with the power to organize the local governments being one of the competencies exclusively assigned to the latter. The second stage will tackle the regional government and its local governments. Each regional government should come up with its own regional constitution or organic act that could be drafted through a regional constitutional convention.

Suggested Citation

  • Miral, Emmanuel Jr., 2017. "Federalism: Prospects for the Philippines," Discussion Papers DP 2017-29, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2017-29
    as

    Download full text from publisher

    File URL: https://www.pids.gov.ph/publication/discussion-papers/federalism-prospects-for-the-philippines
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Moore, Mick, 2007. "How Does Taxation Affect the Quality of Governance?," Working Papers 12795, Institute of Development Studies, International Centre for Tax and Development.
    2. World Bank, 2003. "Philippines - Improving Government Performance : Discipline, Efficiency and Equity in Managing Public Resources," World Bank Publications - Reports 14616, The World Bank Group.
    3. Roy Bahl & Musharraf Cyan, 2011. "Tax Assignment: Does the Practice Match the Theory?," Environment and Planning C, , vol. 29(2), pages 264-280, April.
    4. Robin W. Boadway & Frank R. Flatters, 1982. "Efficiency and Equalization Payments in a Federal System of Government: A Synthesis and Extension of Recent Results," Canadian Journal of Economics, Canadian Economics Association, vol. 15(4), pages 613-633, November.
    5. World Bank, 2005. "East Asia Decentralizes : Making Local Government Work," World Bank Publications - Books, The World Bank Group, number 7492, December.
    6. Richard A. Musgrave, 1961. "Approaches to a Fiscal Theory of Political Federalism," NBER Chapters, in: Public Finances: Needs, Sources, and Utilization, pages 97-134, National Bureau of Economic Research, Inc.
    7. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    8. Balisacan, Arsenio M. & Mapa, Dennis S. & Briones, Kristine Joy S., 2007. "Robust Determinants of Income Growth in the Philippines," Philippine Journal of Development PJD 2006 Vol. XXXIII Nos., Philippine Institute for Development Studies.
    9. Winer, Stanley L, 1983. "Some Evidence on the Effect of the Separation of Spending and Taxing Decisions," Journal of Political Economy, University of Chicago Press, vol. 91(1), pages 126-140, February.
    10. Teresa Ter-Minassian, 2007. "Fiscal Rules for Subnational Governments: Can They Promote Fiscal Discipline?," OECD Journal on Budgeting, OECD Publishing, vol. 6(3), pages 1-11.
    11. David Carey & Kathryn Gordon & Philippe Thalmann, 1999. "Tax Reform in Switzerland," OECD Economics Department Working Papers 222, OECD Publishing.
    12. Mele, Domenec, 2004. "The principle of subsidiarity in organizations. A case study," IESE Research Papers D/566, IESE Business School.
    13. Joseph J. Capuno, 2005. "The quality of local governance and development under decentralization in the Philippines," UP School of Economics Discussion Papers 200506, University of the Philippines School of Economics.
    14. Alexander Plekhanov & Raju Singh, 2006. "How Should Subnational Government Borrowing Be Regulated?Some Cross-Country Empirical Evidence," IMF Staff Papers, Palgrave Macmillan, vol. 53(3), pages 1-4.
    15. Wallace E. Oates, 1968. "The Theory of Public Finance in a Federal System," Canadian Journal of Economics, Canadian Economics Association, vol. 1(1), pages 37-54, February.
    16. Desiree A. Desierto & Geoffrey M. Ducanes, 2013. "Philippines," Chapters, in: Hal Hill & Maria Socorro Gochoco-Bautista (ed.), Asia Rising, chapter 13, pages 385-407, Edward Elgar Publishing.
    17. Mercado, Ruben G., 1999. "Regional Budget Determination and Allocation: A Policy Revisit," Discussion Papers DP 1999-29, Philippine Institute for Development Studies.
    18. Australia DFAT & World Bank, 2015. "Making Education Spending Count for the Children of Autonomous Muslim Region of Mindanao," World Bank Publications - Reports 22397, The World Bank Group.
    19. Charles E. McLure, Jr. & Jorge Martinez-Vazquez, 1998. "Intergovernmental Fiscal Relations in Vietnam," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper9802, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    20. Bomfim, Antulio N. & Shah, Anwar, 1991. "Macroeconomic management and the division of powers in Brazil : perspectives for the nineties," Policy Research Working Paper Series 567, The World Bank.
    21. Arsenio M. Balisacan & Hal Hill (ed.), 2007. "The Dynamics of Regional Development," Books, Edward Elgar Publishing, number 4178.
    22. Mr. Jack M. Mintz, 1998. "The Role of Allocation in a Globalized Corporate Income Tax," IMF Working Papers 1998/134, International Monetary Fund.
    23. Solita C. Monsod and Toby C. Monsod, 2003. "Philippines: Case Study on Human Development Progress Towards the MDG at the Sub-National Level," Human Development Occasional Papers (1992-2007) HDOCPA-2003-09, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    24. Ms. Maria A Albino & Mr. Raju J Singh & Mr. Ehtisham Ahmad, 2005. "Subnational Public Financial Management: Institutions and Macroeconomic Considerations," IMF Working Papers 2005/108, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Smoke, Paul, 2016. "Looking Beyond Conventional Intergovernmental Fiscal Frameworks: Principles, Realities, and Neglected Issues," ADBI Working Papers 606, Asian Development Bank Institute.
    2. Szalai, Ákos, 2002. "Fiskális föderalizmus. Áttekintés [Fiscal federalism. A review]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 424-440.
    3. Mr. Luc Eyraud & Ms. Anita Tuladhar & Mr. Julio Escolano & Ms. Marialuz Moreno Badia & Ms. Juliane Sarnes, 2012. "Fiscal Performance, Institutional Design and Decentralization in European Union Countries," IMF Working Papers 2012/045, International Monetary Fund.
    4. Gilberto M. Llanto, 2012. "The assignment of functions and intergovernmental fiscal relations in the Philippines 20 years after decentralization," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 49(1), pages 37-80, June.
    5. Joseph J. Capuno & Maria Melody S. Garcia, 2009. "What difference can performance ratings make? Difference-in-difference estimates of impact on local government responsiveness in the Philippines," UP School of Economics Discussion Papers 200908, University of the Philippines School of Economics.
    6. Samira Bakhshi & Mohammad Shakeri & M. Rose Olfert & Mark D. Partridge & Simon Weseen, 2009. "Do Local Residents Value Federal Transfers?," Public Finance Review, , vol. 37(3), pages 235-268, May.
    7. Ana B. Ania & Andreas Wagener, 2021. "Laboratory federalism with public funds sharing," Economic Inquiry, Western Economic Association International, vol. 59(3), pages 1047-1065, July.
    8. Gustavo Canavire-Bacarreza & Jorge Martinez-Vazquez & Cristian Sepúlveda, 2012. "Sub-national Revenue Mobilization in Peru," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1209, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    9. Horacio L. P. Piffano, 2007. "Argentina and Brazil: Fiscal Harmonization and Subnational Sales Taxation – State / Provincial VAT versus State / Provincial Retail Sales Tax," Department of Economics, Working Papers 069, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
    10. Mann, Stefan & Wustemann, Henry, 2008. "Multifunctionality and a new focus on externalities," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 293-307, February.
    11. Takahiro Akita & Mark Saliganan Pagulayan, 2014. "Structural Changes And Interregional Income Inequality In The Philippines, 1975–2009," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 26(2), pages 135-154, July.
    12. M. Mar㈠& M. Sarcinelli, 1994. "The European Union: how to assign the functions of government," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 47(191), pages 341-377.
    13. Maxime Desmarais-Tremblay, 2014. "On the Definition of Public Goods. Assessing Richard A. Musgrave's contribution," Documents de travail du Centre d'Economie de la Sorbonne 14004, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    14. Joseph J. Capuno & Stella A. Quimbo & Aleli D. Kraft & Carlos Antonio R. Tan, Jr. & Vigile Marie B. Fabella, 2012. "Perks and public provisions : Effects of yardstick competition on local government fiscal behavior in the Philippines," UP School of Economics Discussion Papers 201208, University of the Philippines School of Economics.
    15. Jeongwan Kim, 2014. "Intergovernmental Distribution of VAT Revenue in Korea: Local Consumption Tax," Korean Economic Review, Korean Economic Association, vol. 30, pages 109-131.
    16. Joseph J. Capuno & Maria Melody S. Garcia, 2008. "Can information about local government performance induce civic participation? Evidence from the Philippines," UP School of Economics Discussion Papers 200808, University of the Philippines School of Economics.
    17. Llanto, Gilberto M., 2009. "Fiscal Decentralization and Local Finance Reforms in the Philippines," Discussion Papers DP 2009-10, Philippine Institute for Development Studies.
    18. Albouy, David, 2012. "Evaluating the efficiency and equity of federal fiscal equalization," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 824-839.
    19. Reingewertz, Yaniv, 2014. "Fiscal Decentralization - a Survey of the Empirical Literature," MPRA Paper 59889, University Library of Munich, Germany.
    20. Ananya Kotia & Victor Duarte Lledo, 2016. "Do Subnational Fiscal Rules Foster Fiscal Discipline? New Empirical Evidence from Europe," IMF Working Papers 2016/084, International Monetary Fund.

    More about this item

    Keywords

    Philippines; federalism; decentralization; autonomous region; local government;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2017-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aniceto Orbeta (email available below). General contact details of provider: https://edirc.repec.org/data/pidgvph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.