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IF YOU WANT A COPY
OF THIS PUBLICATION,
PLEASE SEND US A
REQUEST LETTER
THROUGH E-MAIL @
secretariat@mincode.org
and we will send you a
PDF file on your E-MAIL
address. Thank You!
FEDERALISM: New Hope for Mindanao and the Philippines
By SYLVIA OKINLAY-PARAGUYA
WE ARE for a federal form of government. This commitment has been enshrined in our advocacy since we
converged in 1991 as the broadest and largest grouping of cooperatives, people's organizations, non-
government organizations and non-government individuals. It is within the context of political parity and
economic equity—the twin goals of genuine people's development-- that firmed up our commitment for a
federal republic of the Philippines. The interrelatedness of political stability and economic empowerment are
clearly manifested as we assist and work with the communities in the six regions, as well as in the 25
provinces in Mindanao. Such relationship can also be gleaned from the national development perspective:
between Mindanao and the central government in Manila.
Federalism as a Peace Option
Our collective quest for peace is anchored on the results of the talks between the government and the Moro
Islamic Liberation Front, between the government and National Democratic Front, and between the
government and the Revolutionary Proletariat Movement in Mindanao. While we remain optimistic on the
mainstream peace process, greater people's participation in the peace talks must also take place.
One of the most important developments contributing to the shift in the world political paradigm from a
centralized government to federalism has been the demonstrated utility of federal arrangements in peace-
making. In a world well advanced in its movement toward federalism as the new paradigm for interstate and
intergroup relations, we must expect it also to offer considerable promise for peace-making. As federalists, we
work hard to find ever better ways to utilize and apply federalism to the cause of peace.
There is a certain justification for this seeming truth in that "federal" is a loaded term, one that, more than
simply describing arrangements and institutions, has to do with serious principles, real attitudes, binding
relationships, specific expectations with regard to mutual trust, in short, the will to federate. Even if the
discussion of federalist political culture is relatively not new on the political science agenda, the sense that
federalism can only succeed where such political culture exists sufficiently also figures into this equation. Even
less expressed is the expectation that federalism has at least one of its major roots in the idea of federal
liberty, that is to say, liberty to do that which is mutually agreed upon in the founding compact or its subsequent
constitutional modifications. Without federal liberty as an accepted principle neither freedom nor responsibility
can develop properly.
One of the ways to overcome the deficiency seems to be by widening the sphere to be encompassed by the
solution. This is necessary for federal peace-making to take place, in some cases from the very first. For
example, efforts to bring together two separate units are inevitably problematic not only because it is easy for
every issue to turn into a zero-sum game with one side winning and the other losing, but it also is difficult to
transform develop or transform issues into ones in which both sides win. It is true that in some cases when
both sides are losing sufficiently, widening the sphere helps them come together to control their losses.
No matter what form federalism takes, how federal institutions are designed, and what federal principles are
emphasized, it is generally clear by now that where there is a positive attitude toward federalism and a will to
build a federal system, where the political society involved rests on sufficient trust, sufficiently widespread to
allow the many leaps of faith that must be taken to make federalism work, where political culture is either
favorable or at least open to federal arrangements, where all of this leads to a wider understanding of liberty
as federal liberty, then federalism has a good chance of succeeding when used for peace-making. It may have
almost as good a chance if most of those elements are present and some chance even if one or two of them
is. But it seems quite clear that without any, the chances of success are extremely limited.
Federalism and the Right to Self-Determination
Asserting and reclaiming their self-determination is essential among Lumad and Bangsamoro peoples.
The Lumad peoples have persistently expressed their own preference for self-determination, having seen that
their absorption into the unitary political system has brought about the establishment and solidification of a
threat to their very own existence and the integrity of their distinct cultures.
The Bangsamoro have their own distinct identity and vested interest that must be respected and cannot be
satisfied by a continued subscription to political uniformity. With the Autonomous Region in Muslim Mindanao,
the central government has allowed, albeit grudgingly, a departure from the stranglehold of central authority.
The passage of the Local Government Code in 1991 further chips away powers from central authority; the local
government units from the regional autonomy to the barangay are able to exercise greater self-determination.
The right to decide and choose that is best for one's self is a sacred right that cannot be taken away from any
individual and citizen. Those deprived of this right are also unable to fulfill their aspirations for the future.
Under a federal set up, greater powers will be devolved to the local citizenry, making grassroots participation
more meaningful and broaden the powers of the citizens over the state.
Self-determination comes in many forms. In the political sphere, it comes in the form of semi-independent
units. In the Philippines: sitio, barangay, municipality, province, regional autonomy, nation. Self-determination
grows with increased political autonomy or the ability to stand on one's own feet. In the political history of the
world, greatest autonomy to political units is experienced by the states of a federal state.
The more obvious advantage is greater power-sharing between the national or federal government and the
state/local government. Since the states will have their own legislatures, real decision-making is brought
closer home to the people. This is the immediate consequence of the political re-structuring. But, in fact, the
citizens can push further to ensure that in the federal constitution and the state laws, greater people
participation in the decision-making process is institutionalized.
Federalism and Diversity
This year's Human Development Report of the United Nations Development Programme highlights cultural
diversity. At our end, we also delight in UNDP's 2004 report because that has been our general advocacy for
Mindanao: that we promote respect and understanding among the diverse and unique groups of people
whether they are Lumad, Bangsamoro or Christian settlers.
Diversity and development might seem to sit oddly together. But they are intimately linked, and the report seeks
to show that they are not related in the way many people assume. The UNDP's press release says
unambiguously that “there is no evidence that cultural diversity slows development”, and dismisses the idea
that there has to be a trade-off between respecting diversity and sustaining peace. In countries like the
Philippines, and in regions such as Mindanao, there is enough to argue that indeed diversity plays an
important role in development given the composition of the ethnic groups: 13 ethnolinguistic groups
representing the Bangsamoro people, 18 ethnolinguistic groupings of the Lumad, and the settlers who are
Ilonggo, Ilocano, Cebuano, Boholanon, and so on.
The not too obvious but significant advantage of federalism is its ability to address the demands of a pluralistic
society, meaning one that has a mixture of populations of diverse cultures and ethnolinguistic identities. This
is nowhere more pronounced than in Mindanao, with its Moro population of about 4 million and the Lumads
numbering about 2 million, altogether making about 40% of the total Mindanao population.
It is noted that only in a federal structure of government it is possible to “properly and correctly rule such a
society in such a manner as to accommodate the distinctiveness of each nationality while orchestrating them
all towards the common national goal which comprehends their diversities.”
Federalism and Fiscal Management
Although there is a need to establish correlation, it has been noted that the most of the politically stable and
economically advanced countries in the world follow a federal set-up. These include Germany, the United
States of America, Canada, Australia, Brazil, Mexico, Austria, Argentina, and closer to home, India and Malaysia.
It is interesting to note that seven of the top twelve countries in the world in terms of per capita income in 1997
were federal, while six of the top 12 in gross domestic product were likewise federal, while six of the top 12 in
gross domestic product were likewise federal.
Assuming that we are under a federal structure, would the economic crisis faced by the nation today be
isolated in Manila only? It is definitely possible.
Decentralized fiscal systems offer more potential for improved macroeconomic governance than do centralized
fiscal systems, because they require greater clarity about the roles of various players and decision-makers
and-to ensure fair play-greater transparency in rules governing interactions.
Challenges of globalization usher in fiscal reforms in developing countries. Among federalist countries, the
following are noticeable:
Monetary policy is best entrusted to an independent central bank with a mandate for price stability.
Fiscal rules accompanied by “gatekeeper” intergovernmental councils or committees provide a useful
framework for fiscal discipline and coordination of fiscal policy.
The integrity and independence of the financial sector contribute to fiscal prudence in the public sector.
To ensure fiscal discipline, government at all levels must be made to face the financial consequences of their
decisions.
Societal norms and consensus about the roles of various levels of government and limits to their authority are
vital to the success of decentralized decision-making which can happen only under a federal structure.
Tax decentralization is a prerequisite for sub-national access to market credits.
Higher-level institutional assistance may be needed to finance local capital projects.
An internal common market is best preserved by constitutional guarantees.
Intergovernmental transfers in developing countries undermine fiscal discipline and accountability while
building transfer dependencies that cause a slow economic strangulation of fiscally disadvantaged regions.
Periodic review of jurisdictional assignments is essential to realign responsibilities with changing economic
and political realities.
Finally, and contrary to a common misconception, decentralized fiscal systems offer more potential for
improved macroeconomic governance than do centralized fiscal systems.
The New Hope for Mindanao and the Philippines
Indeed the federal system is worth looking into as a more ideal set-up for Mindanao and the Philippines. More
importantly, it is one system that may be able to effectively address the current and peculiar situation of
Mindanao not only as a victim of neglect but also as a unique island-region that harbor three peoples of
diverse backgrounds, customs, culture, traditions, and social systems. More specifically, it is a political option
that may help prevent a stalemate that can lead to another Mindanao war.
Clearly, what Mindanao needs is unity in diversity—not integration, not assimilation-or at least harmony in
diversity. Admittedly, a federal system is friendlier to this idea than the unitary and centralized system that we
have.
Sources:
1. MINCODE Development Agenda: A Socio-Cultural and Political Approach to Mindanao Peace and
Development. 2003.
2. B.R. Rodil. Suitability of the Federal System in Mindanao. Undated.
3. Rey Magno Teves. A Federal Republic of the Philippines. Undated.
4. Rey Magno Teves. Impasse Breaker: An Islamic State Within a Federal Philippines? Intersect. Intersect.
September 1999.
By SYLVIA OKINLAY-PARAGUYA
WE ARE for a federal form of government. This commitment has been enshrined in our advocacy since we
converged in 1991 as the broadest and largest grouping of cooperatives, people's organizations, non-
government organizations and non-government individuals. It is within the context of political parity and
economic equity—the twin goals of genuine people's development-- that firmed up our commitment for a
federal republic of the Philippines. The interrelatedness of political stability and economic empowerment are
clearly manifested as we assist and work with the communities in the six regions, as well as in the 25
provinces in Mindanao. Such relationship can also be gleaned from the national development perspective:
between Mindanao and the central government in Manila.
Federalism as a Peace Option
Our collective quest for peace is anchored on the results of the talks between the government and the Moro
Islamic Liberation Front, between the government and National Democratic Front, and between the
government and the Revolutionary Proletariat Movement in Mindanao. While we remain optimistic on the
mainstream peace process, greater people's participation in the peace talks must also take place.
One of the most important developments contributing to the shift in the world political paradigm from a
centralized government to federalism has been the demonstrated utility of federal arrangements in peace-
making. In a world well advanced in its movement toward federalism as the new paradigm for interstate and
intergroup relations, we must expect it also to offer considerable promise for peace-making. As federalists, we
work hard to find ever better ways to utilize and apply federalism to the cause of peace.
There is a certain justification for this seeming truth in that "federal" is a loaded term, one that, more than
simply describing arrangements and institutions, has to do with serious principles, real attitudes, binding
relationships, specific expectations with regard to mutual trust, in short, the will to federate. Even if the
discussion of federalist political culture is relatively not new on the political science agenda, the sense that
federalism can only succeed where such political culture exists sufficiently also figures into this equation. Even
less expressed is the expectation that federalism has at least one of its major roots in the idea of federal
liberty, that is to say, liberty to do that which is mutually agreed upon in the founding compact or its subsequent
constitutional modifications. Without federal liberty as an accepted principle neither freedom nor responsibility
can develop properly.
One of the ways to overcome the deficiency seems to be by widening the sphere to be encompassed by the
solution. This is necessary for federal peace-making to take place, in some cases from the very first. For
example, efforts to bring together two separate units are inevitably problematic not only because it is easy for
every issue to turn into a zero-sum game with one side winning and the other losing, but it also is difficult to
transform develop or transform issues into ones in which both sides win. It is true that in some cases when
both sides are losing sufficiently, widening the sphere helps them come together to control their losses.
No matter what form federalism takes, how federal institutions are designed, and what federal principles are
emphasized, it is generally clear by now that where there is a positive attitude toward federalism and a will to
build a federal system, where the political society involved rests on sufficient trust, sufficiently widespread to
allow the many leaps of faith that must be taken to make federalism work, where political culture is either
favorable or at least open to federal arrangements, where all of this leads to a wider understanding of liberty
as federal liberty, then federalism has a good chance of succeeding when used for peace-making. It may have
almost as good a chance if most of those elements are present and some chance even if one or two of them
is. But it seems quite clear that without any, the chances of success are extremely limited.
Federalism and the Right to Self-Determination
Asserting and reclaiming their self-determination is essential among Lumad and Bangsamoro peoples.
The Lumad peoples have persistently expressed their own preference for self-determination, having seen that
their absorption into the unitary political system has brought about the establishment and solidification of a
threat to their very own existence and the integrity of their distinct cultures.
The Bangsamoro have their own distinct identity and vested interest that must be respected and cannot be
satisfied by a continued subscription to political uniformity. With the Autonomous Region in Muslim Mindanao,
the central government has allowed, albeit grudgingly, a departure from the stranglehold of central authority.
The passage of the Local Government Code in 1991 further chips away powers from central authority; the local
government units from the regional autonomy to the barangay are able to exercise greater self-determination.
The right to decide and choose that is best for one's self is a sacred right that cannot be taken away from any
individual and citizen. Those deprived of this right are also unable to fulfill their aspirations for the future.
Under a federal set up, greater powers will be devolved to the local citizenry, making grassroots participation
more meaningful and broaden the powers of the citizens over the state.
Self-determination comes in many forms. In the political sphere, it comes in the form of semi-independent
units. In the Philippines: sitio, barangay, municipality, province, regional autonomy, nation. Self-determination
grows with increased political autonomy or the ability to stand on one's own feet. In the political history of the
world, greatest autonomy to political units is experienced by the states of a federal state.
The more obvious advantage is greater power-sharing between the national or federal government and the
state/local government. Since the states will have their own legislatures, real decision-making is brought
closer home to the people. This is the immediate consequence of the political re-structuring. But, in fact, the
citizens can push further to ensure that in the federal constitution and the state laws, greater people
participation in the decision-making process is institutionalized.
Federalism and Diversity
This year's Human Development Report of the United Nations Development Programme highlights cultural
diversity. At our end, we also delight in UNDP's 2004 report because that has been our general advocacy for
Mindanao: that we promote respect and understanding among the diverse and unique groups of people
whether they are Lumad, Bangsamoro or Christian settlers.
Diversity and development might seem to sit oddly together. But they are intimately linked, and the report seeks
to show that they are not related in the way many people assume. The UNDP's press release says
unambiguously that “there is no evidence that cultural diversity slows development”, and dismisses the idea
that there has to be a trade-off between respecting diversity and sustaining peace. In countries like the
Philippines, and in regions such as Mindanao, there is enough to argue that indeed diversity plays an
important role in development given the composition of the ethnic groups: 13 ethnolinguistic groups
representing the Bangsamoro people, 18 ethnolinguistic groupings of the Lumad, and the settlers who are
Ilonggo, Ilocano, Cebuano, Boholanon, and so on.
The not too obvious but significant advantage of federalism is its ability to address the demands of a pluralistic
society, meaning one that has a mixture of populations of diverse cultures and ethnolinguistic identities. This
is nowhere more pronounced than in Mindanao, with its Moro population of about 4 million and the Lumads
numbering about 2 million, altogether making about 40% of the total Mindanao population.
It is noted that only in a federal structure of government it is possible to “properly and correctly rule such a
society in such a manner as to accommodate the distinctiveness of each nationality while orchestrating them
all towards the common national goal which comprehends their diversities.”
Federalism and Fiscal Management
Although there is a need to establish correlation, it has been noted that the most of the politically stable and
economically advanced countries in the world follow a federal set-up. These include Germany, the United
States of America, Canada, Australia, Brazil, Mexico, Austria, Argentina, and closer to home, India and Malaysia.
It is interesting to note that seven of the top twelve countries in the world in terms of per capita income in 1997
were federal, while six of the top 12 in gross domestic product were likewise federal, while six of the top 12 in
gross domestic product were likewise federal.
Assuming that we are under a federal structure, would the economic crisis faced by the nation today be
isolated in Manila only? It is definitely possible.
Decentralized fiscal systems offer more potential for improved macroeconomic governance than do centralized
fiscal systems, because they require greater clarity about the roles of various players and decision-makers
and-to ensure fair play-greater transparency in rules governing interactions.
Challenges of globalization usher in fiscal reforms in developing countries. Among federalist countries, the
following are noticeable:
Monetary policy is best entrusted to an independent central bank with a mandate for price stability.
Fiscal rules accompanied by “gatekeeper” intergovernmental councils or committees provide a useful
framework for fiscal discipline and coordination of fiscal policy.
The integrity and independence of the financial sector contribute to fiscal prudence in the public sector.
To ensure fiscal discipline, government at all levels must be made to face the financial consequences of their
decisions.
Societal norms and consensus about the roles of various levels of government and limits to their authority are
vital to the success of decentralized decision-making which can happen only under a federal structure.
Tax decentralization is a prerequisite for sub-national access to market credits.
Higher-level institutional assistance may be needed to finance local capital projects.
An internal common market is best preserved by constitutional guarantees.
Intergovernmental transfers in developing countries undermine fiscal discipline and accountability while
building transfer dependencies that cause a slow economic strangulation of fiscally disadvantaged regions.
Periodic review of jurisdictional assignments is essential to realign responsibilities with changing economic
and political realities.
Finally, and contrary to a common misconception, decentralized fiscal systems offer more potential for
improved macroeconomic governance than do centralized fiscal systems.
The New Hope for Mindanao and the Philippines
Indeed the federal system is worth looking into as a more ideal set-up for Mindanao and the Philippines. More
importantly, it is one system that may be able to effectively address the current and peculiar situation of
Mindanao not only as a victim of neglect but also as a unique island-region that harbor three peoples of
diverse backgrounds, customs, culture, traditions, and social systems. More specifically, it is a political option
that may help prevent a stalemate that can lead to another Mindanao war.
Clearly, what Mindanao needs is unity in diversity—not integration, not assimilation-or at least harmony in
diversity. Admittedly, a federal system is friendlier to this idea than the unitary and centralized system that we
have.
Sources:
1. MINCODE Development Agenda: A Socio-Cultural and Political Approach to Mindanao Peace and
Development. 2003.
2. B.R. Rodil. Suitability of the Federal System in Mindanao. Undated.
3. Rey Magno Teves. A Federal Republic of the Philippines. Undated.
4. Rey Magno Teves. Impasse Breaker: An Islamic State Within a Federal Philippines? Intersect. Intersect.
September 1999.
