Decentralization and economic development: The Philippine experience

The Philippines embarked on an ambitious decentralization program in 1991 t o strengthen democratic processes and enhance economic growth. The national government devolved major responsibilities and revenues to local governmen ts. Decentralization however goes beyond the transfer of responsibilities a nd resources to local governments. It requires reforming governance and emp owering the community to participate in advocacy and decision making. These areas are the current challenges to local governments since power structur es remain traditional and relationship with central government is still pat ernalistic. Revenue mobilization efforts are weak and LGUs are dependent on grants from the central government. The successful experiences of innovati ve LGUs can inspire confidence that decentralization can work. Sound polici es, political will, systemic reforms and involvement of the community are k ey factors in governance.