Decentralization has a long history in the Philippines. Originally, governance was highly localized to barangays led by datus. The Spanish introduced a more centralized system through provinces, municipalities, and cities ruled from Manila. Some decentralization occurred under American rule but centralization increased in the 1930s. The postwar period saw moves toward greater local autonomy through legislation, but Martial Law re-centralized power. The 1987 constitution mandated autonomy for local governments and created autonomous regions, resulting in the Local Government Code of 1991 and self-governance for LGUs.

1. Decentralization, Democratization, and Governance
The process that involves the transfer of planning, decision-making, or administrative authority
from the central government to its field organizations, local government, or nongovernmental
organizations is known as decentralization (Rondinelli and Cheema, n.d. in Atienza 2006).
There are four major forms of decentralization:
What Have I Learned So Far?
1. What is decentralization for?
2. Why is decentralization the trend among governments, not only in the Philippines, but also in
other countries?
Reflect Upon
1. Will local government units be able to think of and address their own issues instead of the
national government?
2. Is more autonomy synonymous to better governance? Explain your answer

2. Local Government Units in the Philippines
Historical Overview
Devolution is not new to the Philippines. Even before the coming of the Spaniards, almost
everything was localized. The barangay, the most basic unit, was comprised of about 30 to 100
households. The datu rules the barangay and exercised governmental powers as discussed in the
previous modules.
The barangays would later on be incorporated into the Spanish colonial regime. These
indigenous and autonomous political institutions have not attained a level of organization beyond the
kinship principle.
It was during the time of the Spaniards that a centralized system of governance was introduced.
The barangay or the barrio was retained as the most basic administrative unit while other tiers were
created: pueblos (municipalities), cabildos/ayuntamiento (cities), and provincias (provinces). The
governor-general was supreme over all affairs including local ones. While the Maura Law of 1893 gave
greater autonomy to towns and provinces in Luzon and Visayas, its effects were not felt because of the
Revolution that broke in 1896.
Nonetheless, the Spanish occupation had its influence on the development of local
governments—the most important of which was the high degree of centralization in Manila, which
thereafter characterized centrallocal relations. During the Malolos Republic, local governments were
also created under the Malolos Constitution. Among the important provisions of the said constitution
were the creation of municipal and provincial assemblies, autonomous local units, and popular and
direct elections. However, these did not function as expected due to the continuing revolution.
The coming of the Americans saw changes in the structure of local governance. The Americans
promulgated a number of policies recognizing local autonomy, emphasized local self-government with
the objective of building democracy from below, and introduced municipal and provincial elections. The
new colonizers, however, moved toward greater centralization to prevent the negative effects of
unrestricted Filipino rule by maintaining a highly centralized politico-administrative structure.
Thus, Manila became not just the political, but the economic and cultural center as well.
However, the bureaucracy created by the Americans was weak, which reinforced the decentralized
nature of the Philippines. After all, the American rule focused more on the creation of representative
institutions rather than on the creation of a central bureaucracy. It was only during the 1934–1935
constitutional convention that centralization became a key governmental policy. Formal centralization
continued during the Japanese occupation and an even greater degree of central control on local
governments was imposed. The Japanese collaborators imposed authority on the local governments.
The postwar period (1946–1972) saw a trend on decentralization. Significant legislations were
passed including Republic Act (RA) 2264 (Local Autonomy Act), RA 2370 (The Barrio Charter), and RA
5185 (The Decentralization Act of 1967), among many others. While instances of decentralization
existed in the Martial Law period, these were mere extensions of central governmental power.
Martial Law and the strength of the military paved the way for a centralized system under a
dictatorship. The post-1986 period saw the move toward greater decentralization. The 1987
Constitution (Article II, Section 25) provided that “the state shall ensure the autonomy of local
government.” Article X of the present constitution is devoted to the general provisions of local
governments in the Philippines.

3. It provided for the creation of the Autonomous Region in Muslim Mindanao (ARMM) and the
Cordillera Administrative Region (CAR). Moreover, LGUs were given the power to create their own
sources of revenue and to levy taxes and charges (Section 5). LGUs shall also be provided with a just
share from the national taxes (Section 6) and shall have an equitable share in the proceeds of the
utilization and development of national wealth within their respective areas (Section 7). The provisions
in the constitution gave rise to the enactment of RA 6766 and RA 6734, which created the CAR and
the ARMM, respectively; and RA 7160 or the Local Government Code of 1991.
What Have I Learned So Far?
1. How did the past experiences of the country influence the course of decentralization in the
Philippines at present?
Reflect Upon
1. How important is history in shaping the political landscape of a country, with reference to the
structure of local government?
2. Do you think your own local government is a product of the evolution of our society? Explain
your answer.