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Philippines: Country Governance Assessment

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Philippines: Country Governance Assessment Country Governance Assessment Philippines Copyright: Asian Development Bank 2005 All rights reserved. The views expressed in this book are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank, or its Board of Governors or the governments they represent. The Asian Development Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequences of their use. Use of the term “country” does not imply any judgment by the authors or the Asian Development Bank as to the legal or other status of any territorial entity. Publication Stock No. 010905 Published and printed by the Asian Development Bank, 2005. Contents Abbreviations iv Foreword vi Acknowledgment vii Executive Summary viii I. Introduction to Governance Assessment of the Philippines 1 A. Assessment Framework 1 B. Rationale, Objectives, and Scope 2 II. Political History and Government Structure 5 A. Introduction 5 B. Political History 5 C. Government Structure 6 III. General Public Administration and the Civil Service System 11 A. The Context of and Imperatives for Good Governance 11 B. Policy Support for Governance 13 C. Policy Issues, Concerns, and Challenges 15 D. Recent and Current Initiatives on Governance Reforms 16 E. Government, Private Sector, and Civil Society Partnerships 23 F. Improving Efficiency, Effectiveness, and Economy 24 G. Trends and Patterns in Public Sector Employment and Expenditures 27 H. Issues and Challenges 29 I. Strategic Directions 33 IV. The Legislative System 39 A. Historical Background 39 B. Composition and Membership, Privileges, Limitations, and Discipline 39 C. Organizational Structure and Officers 41 D. Powers of Congress 43 E. Current Issues and Concerns 48 F. Rationalizing the Committee System and Improving Legislative Performance 51 G. Citizen Participation 52 H. Enhancing Legislative Oversight 55 I. Interchamber Policy Gridlock 55 J. Pork Barrel 56 K. Impeachment Power 57 L. Legislative Policy-Making Competence and Capability 57 M. Strategic Directions for Reform 57 V. Public Financial Management 61 A. Components of Public Financial Management 61 B. Process and Key Features 61 C. Current Conditions, Issues, and Concerns 63 D. Reform Initiatives 69 E. Strategic Directions 72 VI. Local Governance and Decentralization 77 A. Introduction 77 B. The Local Government System of the Philippines 77 C. Historical Context 78 D. The Local Government Code of 1991 81 E. Issues and Challenges 82 F. Strategic Directions 87 G. Conclusion 88 VII. The Legal and Judicial System 89 A. Background 89 B. Current Conditions 94 C. Issues and Challenges 96 D. Strategic Directions 103 i Contents (cont’d.) VIII. The Electoral System 109 A. Constitutional and Legal Framework 109 B. Current Condition 111 C. Issues and Challenges 120 D. Strategic Directions 125 IX. Civil Society and Governance 129 A. Introduction 129 B. Historical Background 129 C. Current Conditions 130 D. Issues and Challenges 135 E. Strategic Directions 137 X. Toward an Agenda for Collective Good Governance 139 A. General Observations 139 B. Crafting a National Good Governance Agenda or Plan 142 List of Tables, Boxes, Figures, and Appendixes Tables Table 1: Basic Elements of Good Governance 2 Table 2: Roles of the State and Key Milestones in Governance 3 Table 3: Comparison of Governance Estimates of Selected Countries 13 Table 4: Statistical Report on Criminal Cases Submitted to the Office of the Ombudsman 21 Table 5: Statistical Report on Administrative Cases Submitted to the Office of the Ombudsman 21 Table 6: Administrative Cases at the Civil Service Commission 21 Table 7: Philippine Government Anticorruption Agencies 22 Table 8: Required Shifts in Paradigm 25 Table 9: Feedback and Comments Sent through the Mamamayan Muna, Hindi Mamaya Na Program 26 Table 10: Number of Text Messages Received through the Text Civil Service Commission Program 26 Table 11: Inventory of Government Personnel 28 Table 12: Inventory of Permanent National Government Positions 28 Table 13: Summary of National Expenditures 30 Table 14: National Government Expenditures and Revenues 31 Table 15: Summary Statistics of Foreign and Development Partner-Assisted Governance Projects 34 Table 16: Comparative Data of Measures Processed in the House of Representatives 53 Table 17: Comparative Data of Measures Processed in the Senate of the Philippines 53 Table 18: Comparative Data on the Annual Budgets of the House of Representatives 54 Table 19: Comparative Data on the Annual Budgets of the Senate of the Philippines 54 Table 20: Tax Revenues 66 Table 21: Public Expenditures on Basic Social Services 67 Table 22: Internal Revenue Allotment Shares of Local Governments Unit 82 Table 23: The Annual Budget of the Judiciary as a Percentage of the National Budget 97 Table 24: Summary Report of Cases 101 Table 25: Existing Judicial Positions and Vacancies 102 Table 26: Salaries of Justices and Judges 105 Table 27: Basic Data on Election Administration 123 Table 28: House Representatives Who Are Members of Political Families 124 Table 29: Primary-Level People’s Organizations Registered, Accredited, and Recognized by the Government 132 ii Boxes Box 1: List of Laws Related to Graft and Corruption 18 Box 2: Commission on Elections Departments and Corresponding Divisions 114 Figures Figure 1: Organizational Structure of the Philippine Government 7 Figure 2: Critical Components of Developing Capacities for Good Governance 14 Figure 3: Patterns of National Government Expenditures 29 Figure 4: Sector Allocation of National Government Expenditures 31 Figure 5: National Government Expenditures as Percentage of Gross National Product 32 Figure 6: Legislative Process Flowchart 44 Figure 7: The Financial Management Process 61 Figure 8: National Government Deficit as Percentage of GDP 63 Figure 9: National Government Revenues and Expenditures as Percentage of GDP 64 Figure 10: Tax Effort on Selected Types of Tax as Percentage of GDP 65 Figure 11: Distribution of National Government Expenditures by Section 67 Figure 12: Structure of Local Governments in the Philippines 78 Figure 13: Automated Counting and Canvassing 116 Appendixes Appendix 1: Policy Framework, Strategies, and Measures for Good Governance 144 Appendix 2: Summary of Key Result Areas and Strategies for Civil Service Reform 147 Appendix 3: Governance Map of the Philippines 149 Appendix 4. List of House and Senate Committees in the 13th Congress 150 References iii Abbreviations ADB Asian Development Bank AGILE Accelerated Growth, Investment, and Liberalization with Equity APJR Action Program for Judicial Reform BEI Board of Election Inspectors BIR Bureau of Internal Revenue BOC Bureau of Customs BOT build-operate-transfer BTr Bureau of Treasury CA Commission on Appointment CDF Countrywide Development Fund COA Commission on Audit CODE-NGO Caucus of Development NGO Networks COMELEC Commission on Elections CSC Civil Service Commission CSO civil service organization DBCC Development Budget Coordination Committee DBM Department of Budget and Management DILG Department of Interior and Local Government DOF Department of Finance DOJ Department of Justice EO executive order GDP gross domestic product GFI government financing institution GOCC government-owned and -controlled corporation GR general record GSIS Government Service Insurance System HRD human resource development IAAGCC Inter Agency Anti-Graft Coordinating Council IRA internal revenue allotment IT information technology JGU junior graft watch unit LAKAS-NUCD Lakas ng EDSA-National Union of Christian Democrats LEDAC Legislative-Executive Development Advisory Council LGU local government unit LMB Land Management Bureau LTO Land Transportation Office MTEF Medium-Term Expenditure Framework MTPDP Medium-Term Philippine Development Plan MTPIP Medium-Term Public Investment Program NAMFREL National Movement for Free Elections NCA notice of cash allocation NEDA National Economic and Development Authority NGAS New Government Accounting System NGO nongovernment organization OMB Office of the Ombudsman OP Office of the President OPIF Organizational Performance Indicator Framework OSG Office of the Solicitor General PAO Public Attorney’s Office PDAF Priority Development Assistance Fund PEMIP Public Expenditure Management Improvement Program PO people’s organization SC Supreme Court SEC Securities and Exchange Commission SEER Sector Effectiveness and Efficiency Review iv UNDP United Nations Development Programme USAID United States Agency for International Development VAT value-added tax Notes (i) In this document, "$" refers to US dollars. (ii) The fiscal year (FY) of the Government ends on 31 December. v Foreword This study provides an overview of the state of governance in the Philippines. It identifies key development issues and the strategic measures that need to be pursued. With support from the Asian Development Bank (ADB), the study focuses on seven critical concerns of public management: (i) general public administration, (ii) fiscal administration, (iii) public policy making, (iv) local governance, (v) jurisprudence, (vi) electoral processes, and (vii) civil society. Among other things, the study argues that most problems confronting the country are attributable to the lack or absence of good governance. To significantly improve the quality of life of the greater number of Filipinos, the public policy making and service delivery systems must be accountable, participative, client-focused, demand-driven, responsive, and results-oriented
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