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Subject: Decentralization ×

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    Post-decentralization fiscal behavior of metropolitan Manila local governments: has there been a change?
    (2003-04-03) Danao, Merrianne V.; Daway, Sarah Lynne S.; Diokno, Benjamin
    Has there been a change in the fiscal behavior of the 17 Metro Manila local governments after decentralization? This paper intends to answer this main question using panel data analyses. We look at the fiscal behavior of local governments with respect to local revenue mobilization, expenditure allocation, and fiscal balance maintenance, before and after decentralization. The overall results that emerge suggest consequential changes in the fiscal behavior of Metro Manila local governments. On the local revenue-raising behavior, different clusters of local governments (original cities, newly-converted cities, and municipalities) have responded differently to higher intergovernmental grant (Internal Revenue Allotment). On the expenditure side, there has been a significant shift in expenditure priority from economic services to social services. And on the overall fiscal balance, a majority of the local governments increased their average fiscal surpluses (in absolute terms and as percent of total expenditures), though some have become less fiscally responsible.
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    The impact of decentralization of human development: a closer look at Philippine provinces
    (2008-03) Gabinay, Carelyn A.; Ramos, Krystelle Anne E.; Quimbo, Stella
    The success of the country's decentralization program should be ultimately based on how well its policies improve public welfare- and quality of life. However, studies on decentralization in the Philippines have focused merely on its fiscal and budgetary aspects and have placed secondary consideration on the human development dimension. To fill this research gap, this study explores the effect of the decentralization program, enacted through' the Local Government Code (LGC) of 1991, on human development and quality of life. This study investigates the impact of the decentralization program on human development of 77 provinces by determining the effect of the internal revenue allotment (IRA), along with other factors, on the Human Development Index (HOI) using panel data regression analysis. Several dummy variables are included in the estimated model to account for the qualitative factors affecting HOI such as political party and dynasty. In general, this study finds evidence supporting the hypothesis that decentralization in the Philippines improved quality of life primarily through the resource channel. On the other hand, behavioral factors such as leader's interest and political affiliations and the extent of local elite influence also affect human development as manifested through the governance channel.