In his paper “Understanding Federalism,” Raphael Montes Jr. of UP-NCPAG enumerates some important points in support of a federal system of government. Montes argues that markets can work well in a free environment. Businesses usually thrive when there is less government interference. The promotion of a free market means independence in terms of economic policy. Federalism paves the way for the unimpeded flow of market goods at the local level. This will reduce the influence and dominance of multi-national corporations headquartered in the capital and encourage entrepreneurship at the local level, thereby creating more jobs.
Federalism is a state-centric approach that is anchored in two basic principles – “self-rule” and “shared rule.” By self-rule, the federal state empowers the regions by giving them some form of political autonomy. This includes the power to decide when it comes to the use of natural resources for the improvement of the quality of life of the people. By shared rule, some of the usual functions of the national government that are related to health, education, and public works are split or devolved to the regions and the respective state governments.
Self-rule is rooted in the idea of subsidiary. Subsidiarity refers to the capability of local governments to take action on particular problems. In a unitary system, the central government makes the final decisions on international trade, taxation, including the school curriculum. The centralized form of government that we have did not happen by chance. It was imposed by Spain during its colonial rule. Fiscal federalism will allow local governments to propose line items in their respective budgets which will deal directly with the recruitment of the needed personnel for health care, public works, and education.
Centralized planning sometimes stifles local growth because of the usual delays in the implementation of infrastructure projects and other programs. In fact, in solving the problem of climate change, local governments depend on the national government when it comes to solutions when local scientists and scholars can help in the design of public policy meant to mitigate the impact of natural disasters. Montes believes that “the tendency of the central government to control economic policy making needs to be limited and local units must be empowered” in terms of the implementation of their economic plans and policies “based on their basic needs and capacities.”
Meanwhile, local conflicts can be addressed with expected positive results given the solidarity of the various stakeholders at the local level. Federalism, as a matter of principle, makes possible the sharing of political power between the majority and the minority. Local conflicts are due to the manifest disregard of the rights of minorities. Federalism is one way of addressing the root of such conflicts since a federal system of government will empower the minority to determine their own vision of a just society.
The point is that federalism is an instrument for democratic participation. For instance, by means of the devolution of power, local political units will be able to exercise their decision-making without influence from powerful interests. This will make regional governments more responsible for their own future. This idea is grounded in the contextualization of government power.
The Bangsamoro is the pilot test if federalism can actually work in the Philippines. By giving them autonomy, Muslim Filipinos now have a say on social policy, including the design of regional laws pertaining to healthcare, education, and revenue generation. While the division of power between the federal government and the regions as constituent units are to be constitutionally determined, the duty pertaining to national defense, foreign affairs, currency, and international trade will remain at the federal level of government.
For Montes, the devolution of political power is “crucial to foster growth and sustainable development by means of a competitive market.” As an institutional mechanism, reforming the way Filipinos do politics is expected to improve the delivery of services to the people by means of streamlining the decision-making processes of governance. This is important since Philippine society “must reflect its people’s aspirations and hopes to live under a political system in which they desire to truly enjoy their just entitlements as citizens of the state.”
