Getting ready for federalism

Is the Philippines ready for federalism? How will business prepare for a federal form of government?

There will have to be a transition period; but, the Philippines is much more ready for federalism than most people believe. The Metro Manila centric population will, of course, find it hard to believe that the people in the provinces – outside of Metro Manila – are fully capable of establishing their own institutions. There is also the false notion that the regions are not economically viable to become a federal state.

Transforming regions into states

In many countries, the biggest obstacle is the drawing of geographical boundaries for the different states. If you look at the United States and Canada, the state boundaries are often straight lines. This means that the geographical boundaries are actually artificially or arbitrarily drawn.

In the Philippines, there are existing, widely accepted regional geographical boundaries. Regions like Central Luzon, Southern Tagalog, Bikol, Western Visayas, Central Visayas and the other regions have been accepted as natural divisions since even the Spanish colonial era. Even Mindanao has naturally drawn regional boundaries that separate Southern Mindanao, Northern Mindanao and the Bangsamoro region.

 Pilipino is the common national language. But, the geographical boundaries have also coincided with distinct dialects in the different regions. So we have Ilokano in Northern Luzon; Tagalog in Central and Southern Luzon; Bikolano in Bikol; Ilonggo in Western Visayas; Cebuano in Central Visayas; and Waray in Eastern Visayas. Even in Mindanao there are distinct dialects like Cebuano in parts of Northern and Southern Mindanao; Ilonggo in the Southern Cotabato area; and, Chabacano in the Zamboanga peninsula.

Another evidence of the wide acceptance of regional boundaries is that most national government offices have set up regional offices according to these established regions. The title of Regional Director is very common and widely understood in almost all government offices.

The existence of regional bureaucracies will make it easier for the regional governments to organize their own government bureaucracies. Parts of the regional offices can be swiftly transformed into state-run offices.

Regional economic viability

One of the issues against federalism is the perceived lack of economic viability that will hamper progress in the federal states. It is true that there are poor provinces and even cities. But the federal states will be regional and not province-based. If we examine the economic viability of the different regions, there may be only one or two that may need subsidy from the national government.

One  indicator for potential economic progress in the region is the presence of metropolitan areas that could be transformed into commercial, transportation and financial centers. There are one or two such centers in every region.

In Northern Luzon the potential centers are Laoag and Baguio; in Bikol it is Naga; in Western Visayas, the potential centers are Iloilo and Bacolod; in the rest of the Visayas there is Cebu City. In southern Mindanao, Davao City is the natural center and General Santos City is the possible secondary center. In Northern Mindanao, there is Cagayan de Oro and in Western Mindanao, there is Zamboanga City.

Each of these regional centers can easily be developed into transportation hubs with international airports and ports. These same metropolitan areas are also capable of becoming BPO centers; industrial zones; Asian or even world convention hosts; and, even acquire communication technology that would place them at the same level as Metro Manila.

One of the most important facets of federalism would be the prospect that the quality of education in the regions could strive to be on the same level as Metro Manila. This inequality of education standards has been one of the main reasons for the unequal pace of economic development in the country. The University of the Philippines has universities all over the Philippines. However, UP Diliman has a much higher share of the total UP budget; and, the result is that UP schools outside Metro Manila have a lower standard of education. There should be a conscious attempt to attain a more equal level of quality of education. But this will never happen for as long as research is concentrated in UP  Diliman and the career opportunities for graduates are overly concentrated in the Metro Manila region.

The only region that may initially require subsidies is the Bangsamoro region. But the national government should accept this burden because this is the price of peace; and, the lack of development in this region has been caused by a history of exploitation by the powers in Metro Manila – Spaniards, Americans and fellow Filipinos.

Effects on business

Federalism will mean a devolution of decision making to the regions. For example, bidding of inter regional infrastructure projects will now be done by the regional governments. There will also be regional regulator requirements. This is already in existence. Minimum wage is already based on a regional wage scale. Other labor benefits may be also be promulgated on a regional basis. Even land use regulations may be done on a regional basis. There will be regional economic development plans. This could lead to regional tax incentives and even regional fees.

Aside from a national strategy, companies may need to formulate regional business plans. Corporate structures for companies with nationwide businesses may require  setting up regional subsidiaries, regional branches or offices. There may also be a need for region-based information system and network infrastructure.

The case for federalism will be judged on whether it will provide each Filipino citizen – in Metro Manila and the poorest province – equal economic opportunity, the right to equal justice and the opportunity for a life of human dignity.

Creative Writing Classes

a.) Young Writers’ Hangout for Kids & Teens:August 20 (1:30-3pm), September 3 (1:30-3pm), September 10 (10am-12nn), September 17 (1:30-3pm)

b.) Fiction Writing for Adults with Mechu A. Sarmiento: October 8 (1:30-5:30pm)

Classes at Fully Booked Bonifacio High Street.  For registration and fee details text 0917-6240196 or email [email protected].

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