THE switch to a federal system of government should be carried out in five phases spanning 15 years to avoid disruption to the economy’s growth momentum, the National Economic and Development Authority (NEDA) said.
In a presentation at the cabinet-level Economic Development Cluster (EDC) meeting on Wednesday, NEDA Undersecretary for Policy and Planning Rosemarie G. Edillon detailed NEDA’s proposed transition roadmap, which was earlier submitted to the Constitutional Review Committee.
“Government has been working hard to address regional inequality. And the national development agenda has always been about decentralizing growth and promoting sustainable development,” Edillon said.
Phases
The first phase, or one year of the transition, should be devoted to doing spatial analysis of federated regions and their socioeconomic profiles, accounting of government workforce and functions, and mapping of existing laws, regulations, and policies. This can be accompanied by an extensive review and amendment of provisions of the 1987 Constitutions that have limited the country’s opportunities to achieve inclusive growth and development.
The second phase, or five years of laying the foundation for federalism, must include preparing the regions and rationalizing government structures and functions. This should include an extensive review and amendment, as necessary, of the Local Government Code and the Administrative Code. During this period, a transitional period charter should be adopted and the federal transition commission must be established.
The transitional government can be activated in the third phase which spans three years. During this time, the government will be prepared for genuine devolution.
Pilot areas
NEDA proposed that the operationalization of five pilot federated regions based on readiness and willingness be done in the fourth phase for five years.
During the last phase of the transition, the transition government should be deactivated along with the ratification of the amended constitution. The regional development councils may serve as interim regional governments.
“We need a forward-looking strategy to strengthen the capacities of the bureaucracy at both the regional and local levels to take on central office functions,” Edillon said.
The NEDA presentation also pointed out concerns about uncertainty in the business environment and the cost of doing business, as implied by the proposed Federal Charter.
In reply to the EDC officials’ comments, Puno said all points were well taken and would be reviewed by Constitutional Review Committee. PR