Bringing Power to the Local Level

Before 1991, most public services in the Philippines were run directly by national agencies based in Manila. Local officials often had to wait for decisions and funds from the capital. The Local Government Code of 1991, or Republic Act No. 7160, changed this arrangement by devolving many functions to provinces, cities, municipalities and barangays. Health services, agricultural extension, social welfare and the maintenance of local roads became local responsibilities. To finance these functions, local governments received a share of national taxes, along with greater power to raise their own revenues. The code also encouraged citizen participation through local development councils and the recognition of non-governmental organizations. Decentralization was meant to bring government closer to the people, on the assumption that local leaders understand local needs best. Its results have been mixed: some local governments have become models of innovation, while others have struggled due to limited capacity, weak revenue bases or entrenched local political families.