Duterte: Federalism allows regions to keep most of their income

ANTIPOLO CITY, Philippines – Regions with more resources to fuel their development is one promise
federalism can deliver, said the tandem of Rodrigo Duterte and Alan Peter Cayetano on Monday, March
7.

Their call for a federalist form of government was one aspect of their platform the pair highlighted when
they campaigned in vote-rich Rizal province.

They were received at the provincial capitol in Antipolo City by former governor Casimiro Ynares Jr, the
patriarch of the Ynares politican clan. Casimiro’s wife, Rebecca, is the incumbent governor seeking
reelection in May.

With provincial officials and mayors in the audience, Duterte and Cayetano said local government units
(LGUs) will be the primary beneficiaries of federalism.

“The most outstanding feature of a federal set-up is that our resources are ours to benefit from. If it is
P100, you get P30, ipadala mo doon sa federal government (give it to the federal government), you
retain P70,” said Duterte.

The problem with the current unitary form of government, he asserted, is the unfair distribution of
funds between the local government and national government.

LGUs remit all of their income to the national government and receive an Internal Revenue Allotment
(IRA) – 40% of the taxes collected by the Bureau of Internal Revenue.

Duterte said the IRA is a “pittance” compared to how much funds federalism will make available to
regions.

Cayetano said federalism is the only way to turn around the supposedly defective system in place.
“Lahat nangangako sa inyo ng pagbabago, pero lahat gusto pareho sistema eh. Iisang kandidato, si
Mayor Duterte, ang nagsabing palitan natin ang sistema. Federalismo, ang pera ng Rizal, mapupunta sa
Rizal,” said the vice-presidential bet.

(Everyone is promising change, but all of them want to have the same system. Only one candidate,
Mayor Duterte, is saying we need to replace the system. In federalism, the money of Rizal stays in Rizal.)

Duterte, a mayor of Davao City for 22 years, has said his experience as a local government official in
Mindanao has given him the insight to propose federalism.

“Nothing short of federalism will bring peace to Mindanao,” he said one of his oft-repeated mantras on
the campaign trail.

He claims that separatist groups in Mindanao are likely to agree with federalism as long as key aspects
of the configuration in the proposed Bangsamoro Basic Law are retained.

No Ynares endorsement

Despite the Ynareses' warm welcome of Duterte, Casimiro Ynares Jr said their family is still waiting for
Nationalist People’s Coalition founder Eduardo Cojuangco Jr’s decision on who to endorse for president.
Ynares is a member of the NPC, the second largest political party in the country, whose senior leaders
endorsed Grace Poe but was questioned by some local members.

Aside from Duterte, Liberal Party standard-bearer Manuel Roxas II and Vice President Jejomar Binay
have visited Rizal, the 8th most vote-rich province of the country because of its 1.45 million registered
voters.

Ferdinand “Bongbong” Marcos Jr, running for vice president, has also campaigned here.

Rebecca Ynares, Rizal governor, was not present during Duterte’s visit because she was “feeling under
the weather,” said Mayor Ynares.

Duterte’s spotlight on his federalism proposal is his latest addition to his campaign speeches. In previous
speeches, he dealt heavily with his promise to suppress drugs, crime, and corruption.
He delved into explanations of federalism in provinces dominated by political clans: first in Ilocos Norte,
a bailiwick of the Marcoses; second in Ilocos Sur, dominated by the Singsons; and now in Rizal where the
Ynareses fill the top posts.

Some critics, including presidential bet Grace Poe, have pointed out that federalism can only further
entrench political dynasties.

Asked about this con, Duterte told reporters: “That is another form. They will have to reinvent
[federalism] on how to do it.”

Duterte himself is, in a way, head of a political family. His daughter Sara was once Davao City mayor and
is now seeking the same post. His son, Paolo, is serving as his vice mayor.

Asked about whether he will support an anti-dynasty bill, Duterte said: “I’m sure we cannot make a
sweeping statement that just because they are members of a political family or clan or an elite doesn’t
mean to say they are not capable of running government. At the end, it’s the individual.”

During his speech, he said federalism will put pressure on citizens to vote for the right regional officials
precisely because these officials will have more power than in the current system.

Thoughts of a fellow mayor

Antipolo Mayor Casimiro "Jun" Ynares III, a former governor and the son of Casimiro Jr, said he sees the
pros and cons of federalism.

“Because of the present situation as discussed by Mayor Duterte where, number one, there is a problem
with the sharing of funds between the national and local government units, different cultures mean
different laws apply. For several reasons, it’s favorable,” he told Rappler.

But federalism without proper coordination between regions could create a confusing patchwork of
policies, he said.
“For example MMDA, there’s color coding. Color coding in Makati is different from the color coding in
Pasig, different in Marikina. In other countries, there is a tendency to come together. Tayo dito sa
Pilipinas, ang hilig maghiwalay-hiwalay (We in the Philippines prefer to be separated),” Ynares III said. –
Rappler.com

What is federalism?

It is a form of government where sovereignty is constitutionally shared between a central governing

authority and constituent political units called states or regions.

In basic terms, it will break the country into autonomous regions with a national government focused
only on interests with nationwide bearing: foreign policy and defense, for example.

The autonomous regions or states, divided further into local government units, will have primary
responsibility over developing their industries, public safety, education, healthcare, transportation,
recreation, and culture. These states will have more power over their finances, development plans, and
laws exclusive to ther jurisdiction.

The central government and states can also share certain powers.

How is it different from what we have now?

We presently have a unitary form of government. Most administrative powers and resources are with
the national government based in Metro Manila. It's Malacañang that decides how much to give local
government units. The process is prone to abuse, with governors and mayors sometimes having to beg
Malacañang for projects they believe their communities need.

How local government units spend their budget has to be approved by the national government.

In federalism, the states will have the power to make these decisions with little or no interference from
the national government.

Examples of federal countries: United States, Canada, Australia, Brazil, India, Malaysia.

Locals decide for themselves. Regions have their own unique problems,
situations, geographic, cultural, social and economic contexts. Federalism allows
them to create solutions to their own problems instead of distant Metro Manila
deciding for them.
The states can establish policies that may not be adopted nationwide. For example,
liberal Metro Manila can allow same-sex marriage which the state of Bangsamoro,
predominantly Muslim, would not allow. In the United States, some states like Colorado
and Washington have legalized recreational marijuana even if other states have not.

This makes sense in an archipelago of over 7,000 islands and 28 dominant ethnic
groups. For decades, the national government has been struggling to address the
concerns of 79 (now 81) provinces despite challenges posed by geography and cultural
differences.
With national government, and thus power, centered in Metro Manila, it's no surprise
that development in the mega city has spiralled out of control while other parts of the
country are neglected.

More power over funds, resources. Right now, local government units can only
collect real estate tax and business permit fees. In federalism, they can retain
more of their income and are required to turn over only a portion to the state
government they fall under.
Thus, local governments and state governments can channel their own funds toward
their own development instead of the bulk of the money going to the national
government. They can spend the money on programs and policies they see fit without
waiting for the national government's go signal.
Promotes specialization. The national and state governments can specialize in
different policy domains. With most administrative powers now with the regional
governments, the national government can focus on foreign policy, defense, and
other nationwide concerns, like healthcare and taxation.
States have more autonomy to focus on economic development using their core
competencies and industries. The state of Central Luzon can focus on becoming an
agricultural hub. The state of Mimaropa, home to Palawan, can choose to use eco-
tourism as its primary launch pad.
Possible solution to the Mindanao conflict. The creation of the state of
Bangsamoro within a federalist system may address concerns of separatists who crave
more autonomy over the administration of Muslim Mindanao.
Decongestion of Metro Manila. Through fiscal autonomy for state governments,
federalism will more evenly distribute the country's wealth. In 2015, 35% of the
national budget went to Metro Manila even if it represents only 14% of the
Philippine population.
Lessens dependence on Metro Manila. When there is political upheaval in
Metro Manila, other regions that have nothing to do with the chain of events are
left waiting for the resources that only the national government can release. With
federalism, regions work independently of Metro Manila for most concerns.
Brings government closer to the people. If detractors say federalism will only
make local political dynasties more powerful, supporters give the argument that,
in fact, it will make all local leaders, including those part of political dynasties,
more accountable to their constituents. State governments will no longer have
any excuse for delays in services or projects that, in the present situation, are
often blamed on choking bureaucracy in Manila.
Assuming more autonomy for regions leads 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 attract more people away from the jam-packed mega city.

Encourages competition. With states now more self-reliant and in control of

their development, they will judge themselves relative to how their fellow states
are progressing. The competitive spirit will hopefully motivate state leaders and
citizens to level up in terms of quality of life, economic development, progressive
policies, and governance.

CONS

Possibly divisive. Healthy competition among states 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 states. Some states may not be as ready for
autonomy as others. Some states may not be as rich in natural resources or
skilled labor as others. States with good leaders will progress faster while states
with ineffective ones will degrade more than ever because national government
will not be there to balance them out.
But in some federal countries, the national government doles out funds to help poorer
states. A proposed Equalization Fund will use a portion of tax from rich states to be
given to poorer states.

Confusing overlaps in jurisdiction. Where does the responsibility of state

governments end and where does the responsibility of the national government
begin? Unless these are very clearly stated in the amended Constitution,
ambiguities may arise, leading to conflict and confusion. For instance, in times of
disaster, what is the division of responsibilities between state and national
governments?
May not satisfy separatists in Mindanao. Separatists are calling for their own
country, not just a state 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.
How the Philippines would look when federal

In some proposals, there will be 10 or 11 autonomous states. Senator Aquilino Pimentel

Jr envisioned 11 states plus the Federal Administrative Region of Metro Manila.

Here's how the Philippines will look like as laid out in Pimentel's 2008 Joint Resolution
Number 10.

What is federalism?

It is a form of government where sovereignty is constitutionally shared between a

central governing authority and constituent political units called states or regions.

In basic terms, it will break the country into autonomous regions with a national
government focused only on interests with nationwide bearing: foreign policy and
defense, for example.

The autonomous regions or states, divided further into local government units, will have
primary responsibility over developing their industries, public safety, education,
healthcare, transportation, recreation, and culture. These states will have more power
over their finances, development plans, and laws exclusive to ther jurisdiction.

The central government and states can also share certain powers.

How is it different from what we have now?

We presently have a unitary form of government. Most administrative powers and

resources are with the national government based in Metro Manila. It's Malacañang that
decides how much to give local government units. The process is prone to abuse, with
governors and mayors sometimes having to beg Malacañang for projects they believe
their communities need.

The founder assured that this system of government will bring more power on the part of the LGUs.
“Kung mamarapatin pupunta na tayo sa federalismo na ating naiisip, mas makadagdag yun sa
kapangyarihan ng ating gobyernong lokal,” former senator said. (If it pleases, we are now heading to the
federalism we always thought of, it will give more power to our local government.) He said that the
Local Government Code of 1991 or Republic Act 7160 would be amended so that the regions will be
entitled to more funds for various development programs, which would meet the need of different
provinces. He also assured that the provinces will not be abolished. “Ilalagay lang sila sa isang federal
government para mas madali ang pagbigay ng solusyon sa kanilang pangangailangan imbes na pupunta
pa sila sa Metro Manila,” he explained. (The will just be placed in a federal government to provide easier
solutions to their needs instead of going to Metro Manila.) Presumptive President and Davao City Mayor
Rodrigo “Digong” Duterte is working on the overhauling of the three-decade-old 1987 Constitution of
the Philippines and is proposing a shift to a federal-parliamentary form of government, according to the
mayor’s spokesman, Peter Laviña. "There will be a major rewriting of the constitution," Laviña said. "We
have seen the failure of the presidential form (of government)," he added. Mayor Duterte will request
the Congress to pass a law for the election of members to a constitutional convention that will draft the
necessary amendments to the charter. This will be done within the first six months of his term. "That will
require a wide national consensus beginning with asking congress to call for a constitutional
convention," Peter Lavina said in a media interview. He also said that such amendments would be
submitted to a plebiscite by year 2019. The first federal elections could possibly be held in 2022 or at the
end of his term. Duterte desires to keep foreign affairs, customs, and national defense under a central
government and decentralize the rest. "He (Duterte) will be president towards that transition," Lavina
stressed. Read more: https://kami.com.ph/10235-benefits-ph-will-get-dutertes-federal-
government.html#10235