DECENTRALIZATION AND DEVELOPMENT BY: MA. BEVERLY C. DAET APPLE CHARMAYNE R. POTESTAD
DECENTRALIZATION Decentralization refers to the systematic transfer of powers, functions, responsibilities, and resources from the central or national government to lower levels of government, local communities, or even private and non-government actors. Its primary aim is to make governance more responsive, accountable, and participatory by bringing decision-making closer to the people. Through decentralization, citizens are given more opportunities to take part in shaping policies, programs, and projects that directly affect their lives.
TYPES OF DECENTRALIZATION Th is is the weakest form of decentralization. 01 02 03 Deconcentration It involves redistributing decision-making authority and financial responsibilities from the central government to its regional or field offices. Wh ile decision-making remains under the central government’s control, deconcentration allows better local coordination and efficiency.
TYPES OF DECENTRALIZATION Th is occurs when the central government transfers decision-making and administrative authority to semi-autonomous organizations, local bodies, or specific agencies. 01 02 Delegation These entit ies are not fully independent but are given some flexibility to manage functions in line with agreed policies.
TYPES OF DECENTRALIZATION Th is is the strongest form of decentralization. 01 02 Devolution It transfers powers, function s, responsibilities, and resources directly to local government units (LGUs). 03 LGUs, in turn, are granted political, administrative, and fiscal autonomy, allowing them to design and implement their own development programs.
TYPES OF DECENTRALIZATION Th is involves granting local governments the authority to raise their own revenues through taxes, fees, and charges, and to determine how these funds are spent. 01 02 Fiscal Decentralization It includes the allocation of national resources to LGUs through mechanisms like the Internal Revenue Allotment (IRA), now called the National Tax Allotment (NTA). 03 Fiscal decentra lization ensures that local governments have the financial means to carry out devolved functions effectively.
DEVELOPMENT Development is a broad and dynamic process that goes beyond mere economic growth. It refers to the sustained improvement in the quality of life and well-being of people, communities, and societies. Development is multidimensional—it encompasses not only economic progress but also social equity, political empowerment, cultural enrichment, and environmental sustainability.
Dimensi ons of Development 01 02 03 F ocuses on generating wealth, creating employment opportunities, and improving income levels. It includes infrastructure development (roads, ports, energy), industrial growth, agricultural productivity, and technological advancement. Econ omic growth is important, but development also ensures that benefits are distributed equitably to reduce poverty and inequality. ECONOMIC DEVELOPMENT
Dimensi ons of Development 01 02 Inv olves improving the living conditions of people through education, healthcare, housing, social protection, and community services. It seeks to reduce social inequalities, uplift marginalized groups, and ensure equal access to opportunities SOCIAL DEVELOPMENT
Dimensi ons of Development 01 02 Ref ers to strengthening governance, political institutions, and citizen participation in decision-making. It emphasizes transpa rency, accountability, rule of law, and protection of human rights. POLITICAL DEVELOPMENT 03 Political development empowers people to influence governance and ensures that leaders are responsive to public needs.
Dimensi ons of Development 01 02 Rec ognizes the role of culture, traditions, and identity in shaping societies. It promotes respect for diversity, preservation of heritage, and integration of cultural values in development planning. CULTURAL DEVELOPMENT
Dimensi ons of Development 01 02 E nsures that economic and social progress does not come at the expense of the environment. Sustainable development promotes the responsible use of natural resources, disaster preparedness, and climate change adaptation. ENVIRONMENTAL DEVELOPMENT (SUSTAINABILITY)
Decent ralization and development are closely interconnected. Decentralization provides the framework for empowering local governments and communities, while development is the ultimate goal of this empowerment. By transferring authority, resources, and decision-making closer to the people, decentralization becomes a vital tool for promoting inclusive, participatory, and sustainable development. LINK BETWEEN DECENTRALIZATION AND DEVELOPMENT
WAYS DECENTRALIZATION PROMOTES DEVELOPMENT CLOSER TO THE PEOPLE Local governments are more familiar with the unique needs, problems, and resources of their communities. They can tailor development initiatives to fit local contexts, ensuring that projects are relevant and beneficial. ENHANCED PARTICIPATION AND EMPOWERMENT De centralization opens opportunities for citizens to engage in planning, decision-making, and monitoring of local projects. This strengthens democratic governance and ensures that development reflects people’s aspirations. EFFICIENCY AND RESPONSIVENESS Local governments can respond quickly to urgent needs, emergencies, and development challenges without waiting for central approval. This reduces bureaucratic red tape and accelerates service delivery.
WAYS DECENTRALIZATION PROMOTES DEVELOPMENT ACCOUNTABILITY AND TRANSPARENCY When leaders are closer to their constituents, they can be more easily held accountable for their performance. This promotes good governance and reduces misuse of funds, as citizens can directly monitor local projects. EQUITY IN RESOURCE DISTRIBUTION De centralization helps ensure that resources are not concentrated only in the capital or developed regions. With fiscal decentralization, even far-flung communities receive funds for basic services and infrastructure.
THE PHILIPPINE CONTEXT
In th e Philippines, decentralization was formally institutionalized through the passage of the Local Government Code of 1991 (Republic Act 7160). This landmark legislation devolved significant powers and responsibilities from the national government to local government units (LGUs) — provinces, cities, municipalities, and barangays. The Code also strengthened LGUs’ fiscal autonomy through the Internal Revenue Allotment (IRA), now called the National Tax Allotment (NTA), which guarantees a share of national government revenues. This fiscal empowerment enables LGUs to fund their projects, innovate local services, and exercise greater accountability to their constituents.
Establ ishing and operating barangay health centers to ensure that primary health care is accessible even in remote communities. HEALTHCARE DELIVERY C onstructing farm-to-market roads that connect rural farmers to trading posts and urban markets, thus reducing transportation costs and increasing farmers’ incomes. AGRICULTURAL DEVELOPMENT Inv esting in Disaster Risk Reduction and Management (DRRM) programs, such as the establishment of early warning systems, evacuation centers, and local rescue teams. DRRM Supporting liv elihood initiatives that harness local industries and resources — such as fishing and aquaculture in coastal municipalities, eco-tourism in scenic provinces, or handicraft and weaving in indigenous communities. LIVELIHOOD AND LOCAL ECONOMY
In summary, decentralization in the Philippines has reshaped the development landscape by making it more inclusive, people-centered, and sustainable. By empowering local governments and citizens, it transforms communities from passive recipients of centrally designed programs into active architects of their own growth and progress. While challenges remain — such as disparities in capacity and resources among LGUs — the framework has laid the groundwork for stronger local governance and a more resilient nation.
CHALLENGES Whil e decentralization offers significant opportunities for enhancing development, its success is not automatic. Many countries, including the Philippines, face difficulties in ensuring that decentralization leads to real progress. These challenges often revolve around institutional capacity, governance, resources, and political dynamics.
Many lo cal governments lack the technical expertise, skilled personnel, and modern systems to effectively manage devolved responsibilities. This results in poor planning, weak program implementation, and difficulty in sustaining development initiatives. WEAK LOCAL CAPACITY KEY CHALLENGES IN DECENTRALIZATION AND DEVELOPMENT LIMITED FINANCIAL RESOURCES Despite fiscal decentralization, not all LGUs have sufficient revenue sources to finance their projects. Smaller municipalities and barangays often rely heavily on the National Tax Allotment (NTA), which may not be enough for infrastructure, health, education, and social services. INEQUALITIES BETWEEN LOCALITIES Wealthier c ities and provinces with strong industries or businesses can generate higher revenues, while poorer areas lag behind. This creates uneven development and widens the gap between rich and poor communities.
D ecentralization can sometimes empower local elites who use resources for personal or political gain instead of genuine development. Patronage politics and vote-buying remain challenges at the local level. POLITICAL INTERFERENCE AND CORRUPTION KEY CHALLENGES IN DECENTRALIZATION AND DEVELOPMENT COORDINATION PROBLEMS Poor coordinat ion between national and local governments can lead to overlapping responsibilities or gaps in service delivery. Conflicts may arise over which level of government is responsible for certain functions. CITIZEN PARTICIPATION BARRIERS Although decentral ization aims to involve citizens in decision-making, many people are not fully aware of their rights or how to engage with local governance. Lack of participation can weaken accountability and reduce the effectiveness of local development.
CASE IN THE PHILIPPINES The Philippines provides a strong example of how decentralization has been institutionalized as a governance strategy to promote development. The most significant milestone was the passage of the Local Government Code of 1991 (Republic Act 7160), which remains the cornerstone of decentralization in the country. This law devolved substantial powers, functions, and responsibilities from the national government to local government units (LGUs)—provinces, cities, municipalities, and barangays.
KEY FEATURES OF DECENTRALIZATION IN THE PHILIPPINES DEVOLUTION OF BASIC SERVICES LGUs were given responsibility over critical areas of service delivery. These include health services, agriculture extension, social welfare, environmental protection, and public works.
KEY FEATURES OF DECENTRALIZATION IN THE PHILIPPINES FISCAL AUTONOMY THROUGH THE NATIONAL TAX ALLOTMENT (NTA) Formerly called the Internal Revenue Allotment (IRA), the NTA allocates a share of national taxes to LGUs. This guaranteed funding stream allows LGUs to finance their operations and implement local development projects.
KEY FEATURES OF DECENTRALIZATION IN THE PHILIPPINES ENHANCED LOCAL LEGISLATION Local councils (Sangguniang Panlalawigan, Sangguniang Panlungsod, and Sangguniang Bayan) were empowered to pass ordinances and resolutions addressing local issues. This gave LGUs the authority to enact development policies relevant to their context.
KEY FEATURES OF DECENTRALIZATION IN THE PHILIPPINES STRENGTHENED LOCAL AUTONOMY LGUs gained the power to enter into contracts, implement local development plans, and raise revenues through taxes, fees, and charges.
KEY FEATURES OF DECENTRALIZATION IN THE PHILIPPINES CITIZEN PARTICIPATION MECHANISMS The Code institutionalized people’s participation through barangay assemblies, public consultations, and the involvement of civil society organizations in local development councils.
IMPACT ON DEVELOPMENT H EALTH LGUs operate barangay health stations, rural health units, and municipal hospitals, making basic healthcare more accessible to communities. AGRICULTURE Local governments provide farmers with seeds, irrigation projects, and training through devolved agriculture offices. EDUCATION LGUs support schools by providing facilities, supplies, and scholarship programs. INFRASTRUCTURE DECENTralization enabled the construction of local roads, water systems, and community facilities tailored to local needs. DISASTER RISK REDUCTION LGUS established their own Local Disaster Risk Reduction and Management Offices (LDRRMOs), making community-level disaster preparedness and response more effective.
CHALLENGES IN THE PHILIPPINE EXPERIENCE CAPACITY GAPS SMALLER LGUS LIMIT THEIR ABILITY TO DELIVER QUALITY SERVICES. 01 02 03 04 OVER-DEPENDENCE ON NTA REDUCES Local initiative to develop alternative revenue sources. INEQUALITY AMONG LGUS REMAINs, as richer cities like Makati and Cebu generate more revenue than rural municipalities. POLITICAL DYNASTIES AND PATRONAGE POLITICS Sometimes weaken accountability.