Critical Perspectives on Federalism for Regional Development
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Critical Perspectives on Federalism for Regional Development Proceedings of the Third Annual Public Policy Conference 2017 Critical Perspectives on Federalism for Regional Development Proceedings of the Third Annual Public Policy Conference 2017 Philippine Institute for Development Studies Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas Copyright 2018 Published by Philippine Institute for Development Studies Printed in the Philippines. Some rights reserved The views expressed in these proceedings are those of the authors and do not necessarily reflect the views of any individual or organization. Please address all inquiries to: Philippine Institute for Development Studies 18th Floor, Three Cyberpod Centris - North Tower EDSA corner Quezon Avenue, 1100 Quezon City Telephone: (63-2) 8774000; 3721291 to 92 Fax: (63-2) 8774099 E-mail: [email protected] Website: http://www.pids.gov.ph This volume is published annually and is under the Creative Commons Attribution Noncommercial License. It shall not be used for commercial purposes. Anyone can use, reuse, distribute, and build upon this material as long as proper attribution is made. ISSN 2546-1761 RP 09-18-600 Editorial and production team: Sheila V. Siar, Jane C. Alcantara, Rejinel G. Valencia, and Carla P. San Diego Rapporteurs/Writers: Jenica A. Ancheta, Lora Kryz C. Baje, Miro Frances D. Capili, Zhandra C. Tam Table of Contents List of Tables, Figures, Appendix, and Box ....................................................................................................................... vii Foreword ...................................................................................................................................................................................... xi Preface ........................................................................................................................................................................................ xiii List of Acronyms ...................................................................................................................................................................... xv About the Conference .......................................................................................................................................................... xvii Keynote Message ...................................................................................................................................................................... 1 Rosemarie G. Edillon MORNING SESSION 1 | Fiscal, Taxation, and Equalization Arrangements in Federal Systems ...................................................... 7 Herwig Mayer 2 | Federalism in Context: Laying the Foundations for a Problem-Driven Process ..................................... 9 of Political Reform Paul D. Hutchcroft Federalism in the context of other types of political reform ................................................................................... 9 Three basic principles of political reform ..................................................................................................................... 9 Defining centralization and decentralization in the administrative and political spheres .................................10 Comparing the Philippines with its neighbors ............................................................................................................10 Lessons from comparative experience, central paradox of federalism, and some critical preconditions .... 11 Problems to be solved .......................................................................................................................................................12 References .............................................................................................................................................................................13 3 | Federalism and the Challenge of Politics and Administration in the Philippines ...............................15 Edmund S. Tayao Abstract ................................................................................................................................................................................15 The vicious cycle politics in the Philippines ...............................................................................................................16 The Philippine state and society ....................................................................................................................................16 The politics of reform .....................................................................................................................................................18 Limited local public administration ...............................................................................................................................20 Federalism in the Philippines ..........................................................................................................................................22 The state and the fundamental role of political institutions ...................................................................................23 References ...........................................................................................................................................................................25 Comments .................................................................................................................................................................................27 Francisco Magno Comments .................................................................................................................................................................................29 Salma Pir Rasul Open Forum ............................................................................................................................................................................ 31 vi AFTERNOON SESSION 4 | Designing the Fiscal Features of a Federal System of Government: Autonomy, ................................35 Accountability, and Equity Considerations Rosario G. Manasan Abstract ..................................................................................................................................................................................35 Introduction ..........................................................................................................................................................................36 Overview of the fiscal federalism framework .............................................................................................................38 Design options for the fiscal features of the proposed federal government ......................................................40 Fiscal cost of adopting federal system of government ............................................................................................69 Conclusion ............................................................................................................................................................................70 References .............................................................................................................................................................................71 5 | Delineation of Philippine Federal State Boundaries Based on Hierarchies and Sizes ......................77 of Urban Centers Arturo G. Corpuz Introduction .........................................................................................................................................................................77 The subjective and political nature of state boundary delineation .......................................................................78 Hierarchy of centers ..........................................................................................................................................................78 Minimum population size of the largest center .........................................................................................................81 Spatial clusters and linkages .............................................................................................................................................85 State boundary scenarios .................................................................................................................................................87 Conclusion ............................................................................................................................................................................89 References .............................................................................................................................................................................91 6 | Political Economy of Federalism: Insights from Data on Guns, Goons, and Gold .............................93 Miann S. Banaag, Ronald U. Mendoza, and John E. Peñalosa Abstract ................................................................................................................................................................................93 Introduction ........................................................................................................................................................................93 Data ........................................................................................................................................................................................94