The Challenges of Decentralization Fiscal Regulations: Experience from the Philippines
Abstract
This research aims to understand, analyze, and detail the experience of fiscal decentralization in Indonesia and the Philippines. It explores the main challenges faced in implementing fiscal decentralization policies and valuable lessons that can guide other third countries planning to expand their local entities' fiscal authority. By comparing the experiences of the two, we can explore the similarities and differences in approaches and analyze their impact on economic development and local empowerment. The results show that decentralization in the Philippines is comprehensive and has one of Southeast Asia's most substantial legal bases. Moreover, each tier or each type of local government has a rather direct relation to the central government, especially in fiscal relationships, and is relatively independent compared to other countries in the region.
Keywords
Full Text:
PDFReferences
A’yun, I. Q., W. O. Vianti, and Zalina, ‘Determinants of Original Local Government Revenue (PAD): Case Studies of 34 Provinces in Indonesia’, JAMPE (Journal of Asset Management and Public Economy), 1.2 (2022), 35–46 https://doi.org/10.12928/jampe.v1i2.6046
Ansari, M. A., ‘Re-Visiting the Environmental Kuznets Curve for ASEAN: A Comparison between Ecological Footprint and Carbon Dioxide Emissions’, Renewable and Sustainable Energy Reviews, 168 (2022), 112867 https://doi.org/10.1016/j.rser.2022.112867
Aritenang, A. F., and A. N. Chandramidi, ‘The Spatial Effects of Fiscal Decentralization on Regional Convergence: The Case of Regions in Indonesia’, GeoJournal, 88 (2023), 2011–2030 https://doi.org/10.1007/s10708-022-10724-2
Azizah, N., H. Kusuma, and Z. Arifin, ‘Does Fiscal Decentralization Increase the Economic Growth in Sulawesi Island?’, Economics Development Analysis Journal, 11.1 (2022), 61–74 https://doi.org/10.15294/edaj.v11i1.49957
Azwandi, C. Wibisono, M. G. Indrawan, B. Satriawan, and M. Khaddafi, ‘The Effect Of Financial Performance On The Human Development Index Moderated Economic Growth In Regency/City In The Province Of Riau Island’, International Journal of Educational Review, Law And Social Sciences (IJERLAS), 2.5 (2022), 633–650 https://doi.org/10.54443/ijerlas.v2i5.371
Belvo, M., and G. Ehrstine, ‘The Grundgesetz’, Iowa Historical Review, 9.1 (2022), 1–11 https://doi.org/10.17077/2373-1842.31131
Blumenau, B., ‘Breaking with Convention? Zeitenwende and the Traditional Pillars of German Foreign Policy’, International Affairs, 98.6 (2022), 1895–1913 https://doi.org/10.1093/ia/iiac166
Boneva, L., G. Ferrucci, and F. P. Mongelli, ‘Climate Change and Central Banks: What Role for Monetary Policy?’, Climate Policy, 22.6 (2022), 770–87 https://doi.org/10.1080/14693062.2022.2070119
Budiono, Arief, Absori, Kelik Wardiono, Wardah Yuspin, and Said Saidakhrarovich Gulyamov, Cyber Indoctrination Victims in Indonesia and Uzbekistan: Victim Protection and Indoctrination in Practice, Journal of Human Rights, Culture and Legal System, 2023, iii https://doi.org/10.53955/jhcls.v3i3.127
Cheng, Y., S. Jia, and H. Meng, ‘Fiscal Policy Choices of Local Governments in China: Land Finance or Local Government Debt?’, International Review of Economics & Finance, 80 (2022), 294–308 https://doi.org/10.1016/j.iref.2022.02.070
Dexu, H., and M. Wenlong, ‘Fiscal Decentralization, Financial Decentralization and Macroeconomic Governance’, China Economist, 17.1 (2022), 84–105 https://doi.org/10.19602/j.chinaeconomist.2022.0L07
Digdowiseiso, K., ‘Are Fiscal Decentralization and Institutional Quality Poverty Abating? Empirical Evidence from Developing Countries’, Cogent Economics & Finance, 10.1 (2022), 2095769 https://doi.org/10.1080/23322039.2022.2095769
Fatoni, A., ‘Fiscal Decentralization Dilemma in Indonesia: Between Corruption Accountability and Probability at Local Levels’, Jurnal Bina Praja: Journal of Home Affairs Governance, 12.1 (2020), 103–12 https://doi.org/10.21787/jbp.12.2020.101-110
Ferrazzi, G., ‘Decentralization, Local Governance, and Localizing the Sustainable Development Goals in Indonesia’, in Decentralization, Local Governance, and Localizing the Sustainable Development Goals in Asia and the Pacific: 1st Edition (London: Asian Development Bank Institute, 2022), pp. 253–74 https://doi.org/10.4324/9781003282297
Fry, C. V., J. Lynham, and S. Tran, ‘Ranking Researchers: Evidence from Indonesia’, Research Policy, 52.5 (2023), 104753 https://doi.org/10.1016/j.respol.2023.104753
Gao, Yajuan, Congqing Zhang, Yilin Wang, Shuaihao Wang, Yunjin Zou, Junhong Gao, and others, ‘Fiscal Decentralization and Rural Resource Utilization Efficiency: Evidence from Quasi-Natural Experiment in China’, Resources Policy, 87 (2023), 104320 https://doi.org/https://doi.org/10.1016/j.resourpol.2023.104320
Go, J. R. R, ‘Decentralisation Experiences in the Philippines: Social Services Sectors and the Local Government Code of 1991’, in A Better Metro Manila? Towards Responsible Local Governance, Decentralization and Equitable Development, ed. by Teresa S Encarnacion Tadem and Maria Ela L Atienza (Singapore: Springer Nature Singapore, 2023), pp. 157–92 https://doi.org/10.1007/978-981-19-7804-3_5
Goedeking, N., ‘What Political Institutions Support Bus Rapid Transit? Evidence from a Survival Analysis of 92 Cities in Low- and Middle-Income Countries’, Energy Research & Social Science, 100 (2023), 103084 https://doi.org/10.1016/j.erss.2023.103084
Gonschorek, G. J., The Political Economy of Redistribution in Indonesia: Political Patronage and Favoritism in Intergovernmental Fiscal Transfer Allocations (London: Routledge, 2023) https://doi.org/10.4324/9781003302865
Hanson, A. H., ‘Decentralization’, in Planning and the Politicians (London: Routledge, 2022), pp. 104–26 https://doi.org/10.4324/9781003259787
Hasanah, Uswatun, and Bakhouya Driss, ‘The Policy on Tourism MSMEs in Indonesia and Algeria: Sustainability and Challenges’, Journal of Human Rights, Culture and Legal System, 3.3 (2023), 383–411 https://doi.org/10.53955/jhcls.v3i3.131
Hu, Bangyong, Man Guo, and Shuwen Zhang, ‘The Role of Fiscal Decentralization and Natural Resources Markets in Environmental Sustainability in OECD’, Resources Policy, 85 (2023), 103855 https://doi.org/https://doi.org/10.1016/j.resourpol.2023.103855
Hu, X., Li. Li, and K. Dong, ‘What Matters for Regional Economic Resilience amid COVID-19? Evidence from Cities in Northeast China’, Cities, 120 (2022), 103440 https://doi.org/10.1016/j.cities.2021.103440
Jia, J., S. Ding, and Y. Liu, ‘Decentralization, Incentives, and Local Tax Enforcement’, Journal of Urban Economics, 115 (2020), 103225 https://doi.org/10.1016/j.jue.2019.103225
Jiang, Ke, Daming You, Ryan Merrill, and Zhendong Li, ‘Implementation of a Multi-Agent Environmental Regulation Strategy under Chinese Fiscal Decentralization: An Evolutionary Game Theoretical Approach’, Journal of Cleaner Production, 214 (2019), 902–15 https://doi.org/https://doi.org/10.1016/j.jclepro.2018.12.252
Jiang, Weijie, and Yidong Li, ‘Effect of Fiscal Decentralization on Pollution Reduction: Firm-Level Evidence from China’, Economic Modelling, 129 (2023), 106541 https://doi.org/https://doi.org/10.1016/j.econmod.2023.106541
Kesale, A. M., C. Mahonge, and M. Muhanga, ‘The Quest for Accountability of Health Facility Governing Committees Implementing Direct Health Facility Financing in Tanzania: A Supply-Side Experience’, PLOS ONE, 17.4 (2022), e0267708 https://doi.org/10.1371/journal.pone.0267708
Lepage-Richer, T., and F. McKelvey, ‘States of Computing: On Government Organization and Artificial Intelligence in Canada’, Big Data & Society, 9.2 (2022), 20539517221123304 https://doi.org/10.1177/20539517221123304
Lipsky, M., ‘The Critical Role of Street Level Bureaucrats’, in Social Work (London: Routledge, 2023), p. 5 https://doi.org/10.4324/9781003178699
Liu, C., L. Xin, and J. Li, ‘Environmental Regulation and Manufacturing Carbon Emissions in China: A New Perspective on Local Government Competition’, Environmental Science and Pollution Research, 29.24 (2022), 36351–75 https://doi.org/10.1007/s11356-021-18041-w
Liu, D., and D. Wang, ‘Evaluation of the Synergy Degree of Industrial De-Capacity Policies Based on Text Mining: A Case Study of China’s Coal Industry’, Resources Policy, 76 (2022), 102547 https://doi.org/10.1016/j.resourpol.2021.102547
Marwan, A., D. O. Garduño, and F. Bonfigli, ‘Detection of Digital Law Issues and Implication for Good Governance Policy in Indonesia’, BESTUUR, 10.1 (2022), 22–32 https://doi.org/10.20961/bestuur.v10i1.59143
Michael, K., P. R. Dick, and K. Peersit, ‘Conditions That Work: Reconnecting Fiscal Decentralization to Responsiveness in Uganda and Thai Municipal Governments’, Journal of African Studies and Development, 14.2 (2022), 35–45 https://doi.org/10.5897/JASD2020.0608
Mohapi, T. J., V. T. Sambo, and G. M. Ferreira, ‘Fiscal Decentralisation’, Administratio Publica, 31.2 (2023), 113–35 https://doi.org/10.10520/ejc-adminpub_v31_n2_a7
Nasri, H., N. Nurman, A. Azwirman, Zainal, and I. Riauan, ‘Implementation of Collaboration Planning and Budget Performance Information for Special Allocation Fund in Budget Planning in the Regional Development Planning Agency of Rokan Hilir Regency’, International Journal of Health Sciences, 6.S4 (2022), 639–51 https://doi.org/10.53730/ijhs.v6nS4.5597
Nath, S., and Y. N. Madhoo, ‘Emerging Challenges in Urban Local Finance’, in Vanishing Borders of Urban Local Finance (Singapore: Springer Nature Singapore, 2022), pp. 1–27 https://doi.org/10.1007/978-981-19-5300-2_1
Nurfatriani, F., Ramawati, G. K. Sari, W. Saputra, and H. Komarudin, ‘Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme’, Land, 2022, 1–24 https://doi.org/10.3390/land11091452
Ojo, T. A., ‘Financial Inclusion and Women Empowerment in BRICS Countries: Perspectives on India and South Africa’, in The Political Economy of Intra-BRICS Cooperation: Challenges and Prospects, ed. by Siphamandla Zondi (Cham: Springer International Publishing, 2022), pp. 175–203 https://doi.org/10.1007/978-3-030-97397-1_10
Oluyko, V., I. Samsin, O. Stohova, and T. Filipenko, ‘Fiscal Decentralization Practices in Developing Countries’, Cuestiones Políticas, 40.73 (2022), 128–50 https://doi.org/10.46398/cuestpol.4073.06
Önder, M., and Ü. N. Zengin, ‘A Framework for Comparative Analysis: Public Administration Across the Globe’, in He Palgrave Handbook of Comparative Public Administration (Singapore: Springer Nature Singapore, 2022), pp. 51–76 https://doi.org/10.1007/978-981-19-1208-5_3
Onofrei, M., F. Oprea, C. Iaţu, L. Cojocariu, and S. G Anton, ‘Fiscal Decentralization, Good Governance and Regional Development—Empirical Evidence in the European Context’, Sustainability, 2022, 7093 https://doi.org/10.3390/su14127093
Owusu-Akomeah, M. N., J. Asare, S. O. Afriyie, and E.A. Kumah, ‘Public Sector Financial Management Reforms in Developing Economies: Insights from Ghana’, Universal Journal of Accounting and Finance, 10.4 (2022), 838–51 https://doi.org/10.13189/ujaf.2022.100406
Panao, R. A. L, ‘IRA and Local Fiscal Governance in the Philippines’, in A Better Metro Manila? Towards Responsible Local Governance, Decentralization and Equitable Development, ed. by Teresa S Encarnacion Tadem and Maria Ela L Atienza (Singapore: Springer Nature Singapore, 2023), pp. 443–64 https://doi.org/10.1007/978-981-19-7804-3_14
Ramos, G. B., J. G. T. Martinez, M. R. S. B. Madamba, C. D. C. Tipudan, and S. R. M. Tabugo, ‘Composition and Distribution of Free-Living Nematodes in Lake Apo, Bukidnon, Philippines’, 1–21 https://doi.org/10.2139/ssrn.4606169
Riwanto, Agus, Sukarni Suryaningsih, and Delasari Krisda Putri, ‘Reform and Breakthrough in Business Regulations for Empowering MSMEs in Indonesia and the Netherlands’, Journal of Human Rights, Culture and Legal System, 3.3 (2023), 513–40 https://doi.org/10.53955/jhcls.v3i3.109
Rocamora, J. T, ‘The Philippines Tourism Officers’ Competencies Based on Tourism Act of 2009 and Local Government Code of 1991’, in Tourism in the Philippines: Applied Management Perspectives (Singapore: Springer Nature Singapore, 2022), pp. 137–49 https://doi.org/10.1007/978-981-19-4497-0_7
Schulz, C., and J. Skinner, ‘Hydropower Benefit-Sharing and Resettlement: A Conceptual Review’, Energy Research & Social Science, 83 (2022), 102342 https://doi.org/10.1016/j.erss.2021.102342
Shiohara, K., ‘Factors Influencing Climate Change Adaptation Investment by Local Government Units in the Philippines’, in Financing Investment in Disaster Risk Reduction and Climate Change Adaptation: Asian Perspectives, ed. by Mikio Ishiwatari and Daisuke Sasaki (Singapore: Springer Nature Singapore, 2022), pp. 71–87 https://doi.org/10.1007/978-981-19-2924-3_5
Smith, P., P. Gendreau, and C. Goggin, ‘Correctional Treatment’, in Correctional Counseling and Rehabilitation (New York: Routledge, 2022), p. 10 https://doi.org/10.4324/9781315668079
Syaprillah, Aditia, Yahya Ahmad Zein, and Tove H. Malloy, ‘A Social Justice Legitimacy to Protect Coastal Residents’, Journal of Human Rights, Culture and Legal System, 3.3 (2023), 541–68 https://doi.org/10.53955/jhcls.v3i3.159
Tadem, T. S. E., and M. E. L. Atienza, ‘The Evolving Empowerment of Local Governments and Promotion of Local Governance in the Philippines: An Overview’, in A Better Metro Manila? Towards Responsible Local Governance, Decentralization and Equitable Development (Singapore: Springer Nature Singapore, 2023), pp. 29–86 https://doi.org/10.1007/978-981-19-7804-3_2
Thomas, N. D., M. C. Sevidzem, and T. M. Wiykiynyuy, ‘Fiscal Decentralization and Intergovernmental Fiscal Relations in Sub-Saharan Africa: A Critical Literature Survey and Perspectives for Future Research in Cameroon’, PanAfrican Journal of Governance and Development (PJGD), 3.2 (2022), 166–93 https://doi.org/10.46404/panjogov.v3i2.3944
Tunio, F. H., and A. A. Nabi, ‘Political Decentralization, Fiscal Centralization, and Its Consequences in Case of Pakistan’, ed. by Robert Read, Cogent Social Sciences, 7.1 (2021), 1924949 https://doi.org/10.1080/23311886.2021.1924949
Udeagha, M. C., and N. Ngepah, ‘Striving towards Environmental Sustainability in the BRICS Economies: The Combined Influence of Fiscal Decentralization and Environmental Innovation’, International Journal of Sustainable Development & World Ecology, 30.2 (2023), 111–25 https://doi.org/10.1080/13504509.2022.2123411
Wirandana, P. A., and Khoirunurrofik, ‘Educational Inequality in Indonesia: Are Intergovernmental Fiscal Transfers Effective in Reducing the Gap?’, Educational Studies, 49.6 (2023), 1–20 https://doi.org/10.1080/03055698.2022.2103647
Xin, F., and Y. Qian, ‘Does Fiscal Decentralization Promote Green Utilization of Land Resources? Evidence from Chinese Local Governments’, Resources Policy, 79 (2022), 103086 https://doi.org/10.1016/j.resourpol.2022.103086
Zeng, M., L. Zheng, Z. Huang, X. Cheng, and H. Zeng, ‘Does Vertical Supervision Promote Regional Green Transformation? Evidence from Central Environmental Protection Inspection’, Journal of Environmental Management, 326 (2023), 116681 https://doi.org/10.1016/j.jenvman.2022.116681
Zhang, Z., G. Zhang, Y. Hu, Y. Jiang, C. Zhou, and J. Ma, ‘The Evolutionary Mechanism of Haze Collaborative Governance: Novel Evidence from a Tripartite Evolutionary Game Model and a Case Study in China’, Humanities and Social Sciences Communications, 10.69 (2023), 1–14 https://doi.org/10.1057/s41599-023-01555-8
Zhao, L., K. Shao, and J. Ye, ‘The Impact of Fiscal Decentralization on Environmental Pollution and the Transmission Mechanism Based on Promotion Incentive Perspective’, Environmental Science and Pollution Research, 29.57 (2022), 86634–50 https://doi.org/10.1007/s11356-022-21762-1
DOI: https://doi.org/10.20961/bestuur.v11i2.75247
Refbacks
- There are currently no refbacks.
Copyright (c) 2023 Elvira, Susanto, Elmer Micu Soriano.
This work is licensed under a Creative Commons Attribution 4.0 International License.
|