DECENTRALIZATION
AND LOCAL
GOVERNANCE
GROUP 7
GAS 11
LESSON 1:
LOCAL GOVERNANCE IN THE CONTEXT OF THE 1991 LOCAL GOVERNMENT CODE
(LGC) OF THE PHILIPPINES AND NATIONAL-LOCAL GOVERNMENT DYNAMICS
DECENTRALIZATION AND
LOCAL GOVERNANCE
Decentralization refers to the transfer of powers
from central government to local levels in a political-
administrative and territorial hierarchy. This process
Components of Decentralization:
allows the participation of the people and the local
government.
Political Decentralization
Fiscal Decentralization
Decentralization hands over political, financial and ◦ Institutional Decentralization
administrative authority from central to local
governments, so that the government can facilitate
and guarantee better public services for the people.
Decentralization of power is made to challenge the monopoly of central government decision-making. This reform
aims to:
• Make a more stable democratic system
• Increase government efficiency and effectiveness
• Stimulate the creation of a stable basis for economic development in local and national level
• Make more transparent governance
• Involvement of citizens in decision-making.
Decentralization strengthens the principle of transparency and accountability. The principle of
accountability works best at local level, devolution of power makes government more accountable for the
implementation of its tasks. Decentralization also increases the level of citizen participation in making major
decisions and directly affecting the community. As an integral part of democratization, this process is closely linked
with the strengthening of citizen participation in decision making.
Indicators of Political
Decentralization:
1. Accountability – local committees consisting of men and
women work in selected LGUs according to the guidelines
of the Local Government Code of 1991 to implement
result-oriented & target-relevant decisions and measures.
Indicators of Political
Decentralization:
2.Transparency – selected LGUs and national
organizations/departments publish their annual budgets in media
accessible to citizens such as newspapers, bulletin boards at the
town hall and churches; and report semi-annually on the
implementation status of programs in citizen’s assemblies.
Indicators of Political
Decentralization:
3. Responsibility and Participation – The portion of
programs and projects realized by LGUs through
active and quantifiable participation, such as job
performance & financial contributions of citizens.
The Role of Decentralization in Civic
Participation in Decision-Making.
Decentralization of local government is a process whose application brings results, which affect almost
every aspect of human activity. One of the goals of this process is to bring citizens to the decision-
making
By recognizing the needs of citizens, local government units "broadcast" their needs to the central
government, and so the citizens become participants in formulating policy.
Local governments should possess financial autonomy, which means that they have the right to collect
and spend revenue for service delivery that they are responsible for.
The main goal of fiscal decentralization is the increase of efficiencies for the provision of public services.
Local government accountability increases the response to the interests and needs of citizens, so they
have more confidence on body’s government.
To increase the responsibility, the citizens should know the requirements, their needs, in order to return
to the issue per priority from government
Political Decentralization
Political Decentralization focuses among others on
improved planning and monitoring of development
measures, formulating strategies for the active integration
of civil society and the economic sector, and the promotion
of information exchange and management.
Impact of Political Decentralization:
It empowered Local Leaders to take greater control over
their region’s destinies. Local Leaders, citizens and other
stakeholders are given more freedom in determining their
development paths. Political Decentralization delegated
some powers from the central authority to the local
authorities, who are much familiar with the cultural, social
and economic aspects of their respective regions.
Impact of Political Decentralization:
The main objective is for the provinces, cities and
municipalities to use their financial resources more
efficiently, generate additional resources and tap
alternative resources.
Fiscal Decentralization
implies the transfer of responsibility for revenue and expenditures from central to local.
involves shifting some responsibilities for expenditures and/or revenues to lower levels of government.
One important factor in determining the type of fiscal decentralization is the extent to which
subnational entities are given autonomy to determine the allocation of their expenditures.
generally refers to the devolution of taxing and spending powers from the control of central
government authorities to government.
The main goal of fiscal decentralization is to increase the efficiency in bringing public services.
Indicators of Fiscal Decentralization:
The dependency of the cooperating LGUs on national funds is
reduced by generating additional funds
Improved fiscal systems, especially just taxation for a measurable
and transparent improvement of tax revenues; and
The participating institutions (LGUs, selected government
departments) on national, regional and municipal level present
coordinated, harmonized and gender-sensitive development plans
and budgets are properly implemented.
Impact of Fiscal Decentralization:
Fiscal Decentralization 1) improved financial management
including qualification of participants in areas of financial
management, 2) strengthening cooperation on different
levels, 3) promoting exchange of experiences, formulating
strategies for an improved integration of the business
sector and civil society in social and economic programs.
Administrative|Institutional
Decentralization
consists in the transfer of authority, responsibility and decision-making
resources for public service delivery by central government to lower levels of
government.
involves redistributing authority, responsibility and financial resources for
providing public services from the national government to local units of
government agencies, sub national government or semi-autonomous public
authorities or corporation.
seeks to redistribute authority, responsibility and financial resources for
providing public services among different levels of government.
Impact of Institutional Decentralization:
Better service delivery is a matter of coordination& collaboration.
Bridging and empowering the public and private sectors of different regions in the
country through forums, seminars, workshops, studies and researches.
Working within networks is a strategic element in achieving sustainability, reliability and
a broad effect, especially for the forging of “strategic alliances”.
Exchange of ideas and mutual understanding among local chief executives, police and
military is crucial in achieving sustainable peace and development.
CONCLUSION
Decentralization can be a way of improving access to services, tailoring government actions to private
needs, and increasing the opportunities for state-society interactions. Subnational governments, however,
will only be effective when they have access to the necessary human and financial resources to undertake
the services they have been conferred.
The democratic local governance initiatives currently under way in many countries hold much promise for
developing effective systems of public accountability that will ensure that government servants are
responsible to elected officials, and that the latter are in turn responsible to the public that elected them
in the first place. In the process these systems of accountability should increase the pressure for more
transparent local governance, in which corruption will be easier to bring to light and thus to curtail. But
just as it took many decades for such efforts to make much headway in the industrial countries, so too
quick results cannot be expected elsewhere.
