Revisiting local government autonomy

What do I like about the local government code? From a layman’s vantage view, it is difficult to disregard the fact that many local governments have now solved their earlier fiscal deficits, and are actually earning money that goes to paying for basic city or municipal needs.

Unlike the National Government, these local governments have become cash-rich to a point that some can even give their local senior citizens free passes to movies or, the case of Makati City, provide a cake and P1,000 cash to every resident on his or her birthday.

It is also not easy to ignore the air-conditioned buildings where one can comfortably wait while paying local taxes and fees. Many of our civil servants can be seen truly busy behind computer terminals keying in financial transactions that goes straight to a shared local government database.

The Local Government Code, enacted in 1991, is definitely taking root in the country’s governance system, and for cities and municipalities that have been able to take advantage of the change, this has translated to unchallenged benefits to local residents.

Uneven growth

Of course, we can expect uneven growth. Usually, it is the smaller cities or municipalities that find the task of local development daunting, and are especially fazed by poor revenue collections, and consequently, deficit budgeting.

Ironically, it is these small local government units that need more funds since a bigger part of their constituency belong to the low-income and poverty-stricken levels. These are people who need more help in terms of health and other social services.

Many local governments rely on real estate and business taxes to generate the funds needed for the delivery of basic services, and if a municipal or city is poor, then there is consequently less revenue coming from economic activity, more so, valuation of real property.

The challenge to local executives of these poorer localities is greater, but not insurmountable. Unless there is grave threat coming from civil unrest or peace and order, i.e., in rebel-infested provinces, there are ways that these less privileged cities and municipalities may grow.

National government linkages

On the economic side, there is merit in adopting a One-Town, One-Product (OTOP) approach to encouraging enterprise, and consequently increasing local employment opportunities. Several local governments have seen this work for them in a big way.

Actually, it’s the discipline that is inculcated by OTOP, of actually driving the local whole bureaucracy to focus on just one major activity. We’re seeing this in Aklan, a province that is admitted one of the poorest in the country.

But by choosing to promote its hemp weaving, the province has found new use for native pineapples that be economically grow in the area and at the same time allowed them to harness an indigenous weaving skill of its natives to make gifts, fashion accessories and clothing.

Aklan found support from various government agencies, particularly the Department of Trade and Industry and the Department of Science and Technology to put together a plan to bringing pina cloth and other derivative products to markets abroad.

Linkages with national government, however, may come in the form of infrastructure support. This is the case with Bicol, another region where the incidence of poverty is one of the highest in the country, and where transportation logistics has become a perennial problem because of typhoons.

With the completion of the Philippine National Railway Company’s Manila-Bicol line, a new option for a more efficient and less expensive form of transport of people and products has been opened. This would allow more trade opportunities that in turn would translate to increased economic activity.

Business support

Another opportunity to raise money for local government spending could be done with business support, as Mandaue City in Cebu has demonstrated.

Mandaue, like many localities adjacent to the main city, does not get enough income that will allow it to finance infrastructure projects which are needed for the transport of goods and services, as well as encouraging tourism.

The local government offered businessmen a deal: instead of raising sales taxes, businesses were asked to set aside an equivalent sum of money in a fund that the city could use for infrastructure projects. There was a lot of trust involved in this, but the local government chief executive in the end was able to win the cooperation of businessmen.

What these examples tell us is that local governments are learning to exercise participatory governance in a productive way that helps stimulate economic growth at the grassroots level. In turn, this empowers more people by getting them involved in nation-building.

Little stories like those mentioned, and many more that unfortunately we don’t have space in today’s column, are helping our local government officials to transcend the limited world of political maneuvering, and instead deliver to what their constituents really need.

It has taken two decades to reach the level that we’re in now, and we will need more years to do more. If it’s any small consolation, it seems we’re moving on the right track. There’s hope that our elected officials will get this nation to move forward.

National Collegiate Championship

The collegiate basketball season is down to its last playing day, or possibly two, if the Ateneo de Manila University Blue Eagles manage to pull through and extend the San Sebastian College-Recoletos Golden Stags in the championship series of the Champions League (PCCL) National Collegiate Championship. Game time is 4 p.m. at the FilOil Flying V Arena, San Juan City.

The Blue Eagles, back-to-back National Collegiate Champion and four-peat UAAP Champion, has to beat twice the inspired Golden Stags which was frustrated in their NCAA campaign and would like to finish the season as the first NCAA team to win in the nine years of PCCL National Collegiate Championship.

Games today start at 2 p.m. with NCAA champion, San Beda College Red Lions, battling with CESAFI (Cebu) champion, University of Cebu Webmasters for third place.

The major prizes at stake are sponsored by ABS-CBN Sports and M. V. Pangilinan, president of Samahang Basketbol ng Pilipinas and chairman of PLDT and SMART.

Athletic equipment and items, gift certificates and grants are to be awarded to the schools and team members as follows: Champion- P900,000; Runner-up- P400,000; Third Placer- P200,000; and Fourth Placer- P100,000.

The M. V. Pangilinan Achievement Awards will also be given to the finals’ Most Valuable Player, five members of the Mythical Team, Best Coach and Best Referee. 

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Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.