The document discusses concepts related to states and governments. It defines a state as having four essential elements - people, territory, sovereignty, and government. It describes different forms of government according to factors like the number of rulers and the relationship between national and local levels. Various functions of governments are also outlined, including lawmaking, policy implementation, and interpreting laws. Local governments play an important role in areas like health, agriculture, and small infrastructure. However, Philippine local governments rely heavily on income from the national government.

1. CONCEPT OF STATE
AND GOVERNMENT

2. According to James Garner, the STATE
is a community of persons more or
less numerous occupying a definite
portion of territory completely free
of external control and possessing
an organized government to which a
great body of inhabitants render
habitual obedience.

3. S TATE VS. NATION

4. FOUR ESSENTIAL ELEMENTS OF STATE :
1. People
2. Territory
3. Sovereignty
4. Government

5. People refer to the inhabitants
of the state. There is no strict
requirement on their number, but
they must be of sufficient number
to be self-sufficing.

6. Territory is a fixed portion on the
surface of the earth inhabited by
the people of the state.

7. Sovereignty is the supreme and
uncontrollable power inherent in a State.

8. 2 KINDS OF SOVEREIGNTY
1. Legal- is the authority which has the power to issue final
commands;
2. 2. Political – is the power behind the legal sovereign, or the sum
total of the influences that operate it.

9. Government is the instrument that provides
mechanisms in determining, formulating, and
implementing the policies of the state. It is the
essential instrument or machinery of the state
that carries out its will, purposes and objectives.

10. TWO FUNCTIONS OF GOVERNMENT
1. CONSTITUENT – Compulsory
function
2. MINISTRANT- Discretionary
function

11. ADMINISTRATION
Refers to the
group of persons
in whose hands
the reins of the
government are
held for the time
being.

12. A. According to the F ORMS OF
number of People GOVERNMENT
who rule
1. MONARCHY
2. OLIGARCHY
3. DEMOCRACY

14. F ORMS OF
GOVERNMENT
1. FEDERAL B. According to
2. UNITARY the relationship
between the
National & Local

18. F ORMS OF GOVERNMENT
C. According to the status of
those who hold the rein of
1. CIVIL Government
2. MILITARY

19. F ORMS OF
GOVERNMENT
D. According to the
Relationship
between the
Executive &
Legislature
1. PARLIAMENTARY
2. PRESIDENTIAL

22. F ORMS OF GOVERNMENT
E. OTHER FORMS
1. DESPOTIC
2. TOTALITARIAN
3. REPUBLICAN
4. CONSTITUTIONAL
5. DE JURE
6. DE FACTO
7. REVOLUTIONARY

23. LAW-MAKING,
EXECUTE, IMPLEMENT,
FORMULATION OF
ENFORCE
POLICIES INTERPRET LAWS,
JUSTICE
PRESIDENT, GOVERNOR, MEMBERS OF THE
MAYOR, PUNONG HOUSE OF
BARANGAY, SK REPRESENTATIVES, JUSTICES, JUDGES
CHAIRMAN SENATORS, BOARD
MEMBERS,
COUNCILORS

25. PRINCIPLES GOVERNING THE OPERATIONS
OF GOVERNMENTAL POWERS
(3 BRANCHES)
1.SEPARATION OF POWERS
2. SYSTEM OF CHECK AND BALANCE
3.BLENDING OF POWERS

27. POLICE POWER is the
power of promoting the
general welfare by
restraining and regulating
the use of liberty and
property. Basis is the latin
maxim salus populi est
suprema lex (the general
welfare is the supreme law)

28. EMINENT
DOMAIN
enables the
State to
acquire
private
property upon
payment of
just
compensation
for some
intended
public use.

29. TAXATION it means the
State is able to
demand from the
members of society
their proportionate
share or contribution
in the maintenance
of the government.

30. INHERENT IN THE STATE

35. SIMILARITIES OF THE 3
FUNDAMENTAL POWERS
 NOT ONLY NECESSARY BUT INDISPENSABLE
 METHODS TO INTERFERE PRIVATE RIGHTS
 PRESUPPOSES AN EQUIVALENT
COMPENSATION
 EXERCISED BY LEGISLATURE

36. National Government
Highly Urbanized,
Province Chartered, Independent
City
Component City
Municipality
Barangay Barangay

37. National Government
REGION
Congressional District Congressional District
Province Highly Urbanized,
Chartered, Independent
City
Component City
Municipality
Barangay Barangay

38. 1 President of the Republic of the Philippines
229 Congressional/Legislative Districts
17 Regions
81 Provinces
33 Highly Urbanized Cities
5 Independent Component Cities
84 Component Cities
1,494 Municipalities
42,000 Barangays

39. IMPACT OF LOCAL
DECENTRALIZATION ON THE
ECONOMIC GROWTH OF NORTHERN
MINDANAO

40. Comparative Philippine and China Central and Local
Government Share in Revenue and Expenditure
The Philippines China
(2007; in Million Pesos) (2004 ; 100M Yuan)
Central* Local** Central Local
Revenue 1,096,875 234,760 14,503 11,893
% to Total 82.37% 17.63% 54.90% 45.10%
Expenditure 1,029,377 194,736 7,894 20,592
% to Total 84.09% 15.91% 27.70% 72.30%
Net of IRA of P146,591.95 million
**Inclusive of IRA of P146,591.95 million
Sources: Philippine Commission on Audit 2007 Financial Reports; National Bureau of Statistics of China

41. Philippine Central and Local Government
Revenue Breakdown (in percent)
Central Local
Total Revenue 82.37% 17.63%
Tax Revenue* 93.08% 6.92%
General Income
Permits and
Licenses 77.03% 22.97%
Service Income 94.24% 5.76%
Business Income 68.65% 31.35%
Other Income 94.65% 5.35%
Gain on Forex 100.00% 0.00%
*Central-Net of IRA
Source: Philippine Commission on Audit 2007 Financial Reports

42. General Functions of Local Governments
The Philippines
Run the Health and Social Welfare Systems
Provide Agricultural and Fishery Support
Solid Waste Management
Local Business Development
Small Infrastructure Construction and
Development
Tourism Development
Social Forestry / Mining
Sources: Country Report-United Nations Economic and Social Commission
for Asia and the Pacific; Philippine Local Government Code

43. Local Government Revenue Sources
The Philippines
Local Taxes such as:
Business Tax
Real Property Tax
Transfer Tax
Franchise Tax
Printing and Publication Tax
Amusement Tax
Community Tax
Share in National Taxes
Internal revenue Allotment (IRA) representing 40% of internal revenue
collections based on the third preceding year (Regional distribution is as follows:
Provinces 23%; Cities 23%; Municipalities 34%; and Barangays 20%
Non-Tax Revenue
Share in national wealth exploitation in their area
Share in the earnings of government agencies or government-owned or
controlled corporations engaged in the utilization and development of national
wealth in their area based on the following: 1% of the gross sales or receipts of
the preceding calendar year or 40% of mining taxes, royalties, forestry or fishery
charges and such other taxes, fees or charges including related surcharges,
interests, or fines, whichever is higher Country Reports China and the Philippines-United Nations
Sources:
Economic and Social Commission for Asia and the Pacific

44. United States : Sources of State Revenue
Source Percentage (US
Average)
General Sales Tax 23.5%
Selective Sales Tax 10.9%
Property Taxes 30.1%
License and Other 8.2%
Fees
Corporate Income 4.7%
TaxesTax Foundation Report : stateline.org
Source:
Individual Income 22.6%
Taxes

45. LGU Income Generation
• Region X - Northern Mindanao Php Millions
• Total Province Cities Towns
• 9,236 2,462 3,691 3,082 2006
• 11,072 2,913 4,570 3,588 2007
• 20% Growth Mostly due to IRA
• IRA Dependency in 2006 = 82.6%
• IRA Dependency in 2007 = 90.9%

46. Philippine LGU Total Income vs Central Govt. Expenditure per Region
Local Government Total* Central Central
P000 Income Government Government
Expenditure Expenditure
% to LG Total
Income
Grand Total 234,642,572.58 762,534,007.59 324.98%
National Capital Region 46,778,401.48 560,070,716.35 1197.28%
Region 1 11,410,059.53 14,371,248.27 125.95%
CAR 6,223,710.33 7,499,513.73 120.50%
Region 2 9,160,569.36 10,132,758.94 110.61%
Region 3 20,888,920.59 21,590,013.29 103.36%
Region 4 35,866,590.31 27,646,932.60 77.08%
Region 5 10,993,973.34 15,101,341.54 137.36%
Region 6 16,679,840.96 18,419,954.59 110.43%
Region 7 15,555,455.12 14,027,680.75 90.18%
Region 8 8,687,321.73 98,317,599.17 1131.74%
Region 9 7,781,531.08 9,821,773.23 126.22%
Region 10 11,300,406.23 11,512,490.21 101.88%
Region 11 10,170,596.06 10,980,183.03 107.96%
Region 12 8,285,249.49 8,623,777.18 104.09%
Region 13 7,545,245.07 7,146,537.05 94.72%
ARMM 7,354,701.68of IRA
*Inclusive 8,753,883.18 119.02%
Source: Figures are from the Philippine Commission on Audit 2007
Financial Reports

47. If A Federal State…
• And with a Tax Effort of Efficiency of just 15%..
• Total Region 10 Government Revenues would
amount to P58 Billion…
• 200% higher than what it is today

49. GROSS NORTHERN MINDANAO
DOMESTIC PRODUCT
• Current Prices, in Millions of Pesos
• 2000 2003 2006 2010
•
• 124,524 197,101 277,269 389,624

50. Top Manufacturing Outfits in Northern
Mindanao
• Asia Brewery,
• CATIMCO,
• Coca-Cola,
• Del Monte Phils.,
• LKKS Manufacturing,
• Nestle Phils.,
• Phil Agro,
• PICMW, Pilipinas
• Kao,
• RI Chemicals,
• Mindanao Silicon,
• STEAG State Power Inc
• Elegant Chemical Alloy

51. AVERAGE FAMILY INCOME IN
NORTHERN MINDANAO
• IN YEAR 2000 CONSTANT PRICES
• 2006 2009
• 102,000 98,000
• Poverty rate of Population in 2006: 43%

52. PHILIPPINES
• INCOME BRACKET 2001 (%) 2010 (%)
• Class AB 2 2
• Class C 18 12
• Class D 56 64
• Class E 24 23
• Despite the best years of GDP growth!

53. VIETNAM
• INCOME BRACKET 1999 (%) 2010 (%)
• Class AB 7 21
• Class CD 31 55
• Class EF 62 24

54. Results of PINATULO OR SUPERIORITY PRINCIPLE
“WHAT DOES GDP HAVE TO DO WITH ME?”

55. GDP INDICATORS
COMPUTING PROGRESS FROM
CORPORATE ACCOUNTS

56. A change of crew
& a direction.
WANTED!

57. Change.
From superiority
to subsidiarity.
From pinatulo to
pinatubo.

58. GDP = NATIONAL INCOME in the
Philippines
Pinatubo
Pinatulo • Environment, households,
Man-made assets =
• Land, labor , capital = community income
enterprise
• Community++ = towns /
• Enterprise ++ = cities
industry
• Towns/ / Cities = Regions
• Industry++ = sector
& Provinces
• Sector++ = National
Economy • Regions ++ = National
Economy

59. Restoring
Filipino dignity.

61. A STATE EXISTS SO THAT A NATION’S CHILDREN
MAY GROW UP WITH DIGNITY
Subsidiarity starts with the Individual

62. Trickle Down System
• Or PINATULO has been around with us since the
colonial period…
• Independence merely Filipinized it but it is still Trickle
Down or the Superiority Model…
• Only substantial change is the shift towards Pinatubo
or Subsidiarity
• It is the SYSTEM that is incompetent, not the Filipino