DECENTRALIZATION

AND
BUREAUCRATIZATION
BY: VICTORIA CLARE JAVIER-LAYUG
 WHAT IS DECENTRALIZATION?

• It is the transfer of authority and responsibility for public functions from the central
government to subordinate or quasi-independent government organizations and/or
the private sector.
• transfer of power and authority from central institution to lower or local levels of a
government system.
• “The decentralization of highly centralized and rigid systems of government in the
aftermath of the colonial periods has been the response towards improving the
delivery of public services and the management of public affairs among newly-
independent nations.” - Danilo de la Rosa Reyes, DPA Professor (Ret.) of NCPAG
 3 FORMS OF DECENTRALIZATION
1. Devolution - transfer of power and authority from the national government to
local government units (LGUs); political and territorial.
2. Deconcentration - transfer of power, authority or responsibility or the discretion
to plan, decide and manage from central to local levels; but within the central
government itself.
3. Debureaucratization - transfer of some public functions and responsibilities,
which government may perform, to private entities or NGOs.
 BIRTH OF COMPREHENSIVE
DECENTRALIZATION IN THE PHILIPPINES
• Philippines embarked on launching an extensive and comprehensive
decentralization policy in 1991 framed within the context of devolution and
local autonomy to local government units (LGUs).

• An all-embracing law was enacted under Republic Act No. 7160, otherwise
known as the “Local Government Code of 1991” as approved on October
10, 1991.
• The intent of the Local Government Code of 1991 is to strengthen the capabilities
of local government as front-line governments and to address critical gaps in the
delivery of services in habitually neglected areas, particularly in aspects of poverty
alleviation and in stimulating development activities.

• The Local Government Code is a fulfillment of the provision of the 1987

Philippine Constitution, which provides among others, that Congress shall enact a
local government code that will institutionalize a system of decentralization (Sec. 3)
whereby local government units shall be extended more power, authority,
responsibilities and resources.
 FROM CENTRAL GOVERNMENT TO
LGU
Several basic services delegated to LGU:
• agricultural extension and on-site research, community-based forest projects
• field health and hospital services
• public works and infrastructure projects derived from local funds
• school building programs
• social welfare services
• tourism facilities
• housing projects for provinces and cities
• such other services pertaining to industrial support.
 FROM CENTRAL GOVERNMENT TO
LGU
Several regulatory powers delegated to LGU
• the reclassification of agricultural lands
• enforcement of environmental laws
• inspection of food products
• quarantine
• enforcement of the national building code
• operation of community public utility conveyances (tricycles and jeeps)
• processing and approval of subdivision plans
• the establishment of cockpits and the holding of cockfights.
CHALLENGES THAT LGU IS FACING IN
RELATION TO DECENTRALIZATION
• 1. The problematic of the absorptive capacities of LGUs has not matched the
demands of responsibilities entrusted by the Code.
• 2. Many local governments continue to be dependent on their shares of the Internal
Revenue Allotment especially those LGU in rural areas.
• 3. The financial capacities of LGUs leave much to be desired. Because of their
limitations in taxing power, some LGU have a hard time to finance the services
assigned to them which result to service levels fall short of what is required.
• 4. The National Government continues to hold and control the bulk of productive
sources of revenue even in the Post-Code period.
CHALLENGES THAT LGU IS FACING IN
RELATION TO DECENTRALIZATION
5. There is a wide disparity in the distribution of government personnel
between the National Government and the LGUs. Decision- making processes
are unsystematic, mechanisms of accountability between officials and elected
representatives are inadequate, and there is a shortage of officials with the
necessary technical, managerial and financial skills. This is often due to the lack
of financial resources to attract and retain high caliber staff.
6. The poverty incidence has not been contained.
 TYPES OF DECONCENTRATION
• Shifting of workload- simply shifts the workload from a central government
office to its field offices which does not necessarily include the transfer of
the appropriate authority to decide
• Field administration- it allows field offices some degree of discretion to
decide and plan and carry out such plans and adjust the implementation of
central directives to suit local conditions. Despite the grant of relative
authority, the field staffs remain as employees of the national government
and subject to its direction and control.
 TYPES OF DECONCENTRATION
• Integrated local administration- regional, provincial, or district offices of a
national line agency are established and each is headed by a chief executive
who is appointed by or is responsible to the central government.
• Unintegrated local administration- it describes an arrangement by which the
field staff, usually doing technical functions, and the administrative staff in
the area, who are both responsible to the same national office, operate
independently of and with little or no formal power over each other.
 WHAT IS DEBREAUCRATIZATION?
• It is a form of decentralization which involves the transfer of powers and
functions from the government to nongovernment organizations (NGO’s)
and people’s organization (PO’s), including the private sector, all of which
are sometimes referred to collectively as the “civil society” (Brillantes
2002:28).
• More recently, the concept has been broadened to include harnessing the
activities of various organizations in the voluntary sector. This concept
recognizes that development is not the job of the government alone.
 Rationale for Debureaucratization
• It allows for the greater involvement and participation of various
stakeholders and sectors of society in the affairs of the State. It is thus
consistent with the concept of participatory governance.
• Civil society and the private sector could be the source of additional
resources that enable governments to meet increasing demand for services
and infrastructure,. The civil society and the private sector are
“complements” that extend the government’s service delivery system.
 Rationale for De-bureaucratization
• It promotes better coordination of actions and activities of the government
and non-government organizations. Separate action by the two sectors often
create redundancies and missed opportunities for optimizing the use of
scarce resources; collaboration could greatly improve the situation.
FORMS OF DEBREAUCRATIZATION
• Cooperatives. Cooperatives can position themselves to be the service
providers for certain (often poorer, informal) areas of a locality and manage
facilities in these areas. Often used in rural areas, in conjunction with NGOs.
• Service Contracts. Public authority retains overall responsibility for the
operation and maintenance (O&M) of the system, and contracts out specific
components. Service contracts last 1-3 years and include services such as
billing and maintenance of facilities.
FORMS OF DEBREAUCRATIZARION
• Management Contracts. Public authority transfers responsibility for the
management of a full range of activities within a specific field, such as
O&M. Remuneration is based on key performance indicators. Public
authority typically finances working and investment capital and determines
cost recovery policy. Usually contracts last between three to five years.
• Lease Contracts. Private operator rents the facilities from a public authority
and is responsible for O&M of the complete system and tariff collection.
Lessor effectively buys the right to the revenue stream and thus shares
significant commercial risks.
FORMS OF DEBREAUCRATIZARION
• B O T (Build-Operate-Transfer) Usually used to procure large discreet items of
infrastructure that require significant finance. The private operator is required to
finance, construct, O&M the facility for a specific period of time (usually more than
20 years) before transferring the facility back to the public authority. Variations:
BOT (Build, Own, Operate, Transfer) and BOO (Build, Own Operate).
• Joint Venture Agreements. Usually a joint business venture between the government
and the private sector. Both sectors contribute equity, agree on a management
structure and subsequently share in the revenues generated. The equity contribution
of government usually takes the form of a public asset or property.
FORMS OF DEBREAUCRATIZARION
• Concessions. Private operator takes responsibility for O&M and investment;
ownership of assets still rests with the public authority. Concessions are
substantial in scope (usually a whole city or region) and tenders are usually
bid on the tariff for 25-30 years.
• Privatization/Divestiture. Full private ownership and responsibility under a
regulatory regime.
 Roles of the State
De-bureaucratization does not connote a state or government in retreat.
Rather:
• It is a government that has a palpable presence in the economy and society
without dominating it.
• It is a strong entity that recognizes the sectors but does not overwhelm
them.
• It is a reinvented government that “steers but does not row.”
 In the context of de-bureaucratization, the
following roles of the State become prominent:
• As Enabler. The State provides the regulatory framework and political order
with which civil society and the private sector can plan and act. Enabling
mechanisms include just laws, a fair judicial system, politically accountable
lawmaking and an effective, reform-minded public bureaucracy.
• As Facilitator. In this role, the State renders easier the performance of (an
action), the attainment of (a result), to afford facilities for, and help forward
(a process). As facilitator, the State provides resources to assist markets and
communities.
 In the context of de-bureaucratization, the
following roles of the State become prominent:
• As Regulator. In this role, the government or the State sets out the rules and the
performance standards under which the civil society and the private sector should
operate. It is exercised to maximize welfare, and to protect the interests of the
public, especially of the disadvantaged sectors of society.
• As Collaborator. In this role, the government becomes a partner of the private
sector. Partnership does not only come in the delivery process, but in phases of
community organization, including planning, fund-raising, social preparation and
other processes. As partners, both sides may agree to contribute toward a common
program or project, based on comparative advantages of each.
THANK YOU!
 Question:
What are the advantages and
disadvantages of decentralization?
As Public Administrator what can we
do to alleviate (if not completely be
removed) these disadvantages?