Rethinking Democratization in the Philippines
193
process, it can ignite either a virtuous process of accessing and using power in a
more democratic manner or a vicious cycle of further entrenching the already
well-established power holders who lack public accountability. In assessing the
country's decentralization experience, Holmes starts by noting three initial
positive developments: 1) the provision of additional fiscal support to local
government units (LGUs) through the internal revenue allotment (IRA) as
mandated by the Local Government Code (LGC) passed in 1991; 2) the
provision of technical and capability-building support by both national
government agencies and multilateral and bilateral funding agencies; and 3) a
generally satisfactory citizen appraisal as seen in public opinion surveys which
seem to be supported by the many awards for exemplary governance practices
and innovations given to selected LGUs (for instance, the Galing Pook
Foundation awards started in 1994).
In further analysing the decentralization process, Holmes proceeds by
identifying three major problems: statutory, organizational, and systemic.
Reflecting the first major flaw, no enabling law has been passed to implement
the LGC's mandate to have sectoral representatives in the local legislative
councils . The local legislative councils have to be distinguished from the special
boards such as the Pre-Qualification, Bids and Awards committee, the local
health board and the local school board which already include private
representatives in many LGUs. The lack of this enabling law means that private
citizens and civil society groups are denied access to the local legislative
councils which can serve as an additional mechanism for advancing the public
accountability of local officials. A second statutory flaw lies in the “archaic,
martial law-vintage” fiscal provisions in the LGC that have constrained the
taxation powers of LGUs and in turn made them overly dependent on the IRA
from the national government.
The second problem discussed by Holmes concerns the organizational
constraints faced by LGU personnel particularly in the area of development
planning and tax administration. This has been aggravated by the lack of
participation by the private sector and civil society groups in the local
legislative and planning councils in the absence of an enabling law to enforce
the original mandate of the LGC. Finally, Holmes examines the systemic
constraints on the entire process of decentralization with the pervasive
networks of patronage and clientelist ties linking national elites and local power
holders. These constraints have resulted in what a World Bank-ADB document
states as an “excessively politicized system of rewards and allocations, and by
uneven institutional strength and resourcefulness among national executive,
congressional, provincial, and city or municipal actors” as quoted by Holmes.
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