Decentralization and Economic Development: The Philippine Experience

Abstract

The Philippines embarked on an ambitious decentralization program in 1991 to strengthen democratic processes and enhance economic growth. The national government devolved major responsibilities and revenues to local governments. Decentralization however goes beyond the transfer of responsibilities and resources to local governments. It requires reforming govemance and empowering the community to participate in advocacy and decision making. These areas are the current challenges to local governments since power structures remain traditional and relationship with central government is still paternalistic. Revenue mobilization eff;orts are weak and LGUS are dependent on grants from the central government. The successful experiences of innovative LGUS can inspire confidence that decentralization can work. Sound policies, political will, systemic reforms and involvement of the community are key factors in