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The case for amalgamation in the Philippines

Will Philippine local governments ever amalgamate? Will city governments merge in the immediate future? What would Ilocos Norte be like if municipal and city councils are reduced from twenty two to four or two metropolitan councils? What would the region be if provincial governments are abolish to create a super region, a hybrid type of metropolitanism that redistributes power, alters boundary adjustments, and redefines the extent of resource sharing and cooperative arrangements between and amongst local government units?  The rise of the Asian century, the emergence and implications of the ASEAN integration, climate change, sustaining community sustainability, information technology, socio-demographic pressures and wealth generation may, sooner than later, push local governments to merge in the next twenty years.

Amalgamation has emerged as a buzzword particularly in the Asia-Pacific. Last year, some State Governments in Australia announced their decision to merge many of its cities to create their versions of future cities. The purpose was to create a new structure and metro design that could accommodate growth and sustain the suite of services their communities will need in the future. To reduce the disruptive socio-political, legal and economic impacts of consolidation, proposed boundaries, community interests, the history of a community, socio-economic indicators and efficient delivery of local government services were taken into consideration.

Using the feedbacks derived from public hearings, research, studies, surveys and public submissions, new models were proposed and submitted for the government and community’s approval. The reason for merging and abolition of local governments are: first, community sustainability is threatened by socio-demographic pressures. Migration, food security, natural disasters, employment needs, energy consumption, water, the future of transport, environmental protection and lifestyle were drivers of amalgamation. Second, some local governments were not generating enough revenue to meet their operating requirements. These LGs could not meet long-term infrastructure funding requirements. Experts noted that many of their cities were operating on deficit and their financial stability outlook was either moderate or weak. Their fiscal position was steadily deteriorating and not improving.  Australian local governments perceived amalgamation as crucial to creating sustainable futures for Australian communities.

Since the Meiji Restoration, for 150 years, Japan, partly because of a strong central government and a well synchronized zoning, planning and growth agenda, reduced its local governments from 71, 314 municipal governments to 1,871 local governments today. Still amalgamating, I learned that political parties and scholars continue to explore and experiment on the most optimal sizes of LGs given resource requirements, population decline, fiscal viability, tsunamis, natural disasters, education, health and sanitation needs and welfare.   A law on special measure for municipal mergers was passed to give its citizens the choice and power to propose or reject consolidation through a referendum. A World Bank study took the Japanese experience as a model and found some gains in amalgamation. Lower cost and cost-efficiency in public service delivery; enhance administrative capacity in responding to natural disasters and better fiscal position were seen as positive gains.  

Now, what are the prospects for local government amalgamation in the Philippines? What might be the drivers or events that could push the abolition (barangay, municipal and provincial governments) and creation of new local governments (metropolitan local governments, stronger regional local and national administrative bodies)? Is amalgamation the silver bullet to improve, once and for all, local and national capacity to deliver efficient and effective public services? Is metropolitanism good enough? What are the positive and negative impacts of amalgamation to political dynasties, corruption, local economic growth, tourism, environmental management and local finances?

There are more questions than answers to the future of amalgamation in the Philippines but these drivers may likely influence citizens and decision-makers to consolidate local government units in the future: pressure from international financing institutions given emerging trends. They may require nation-states to commit ad amalgamate as a pre-condition for future loan applications and approval; the worsening impact of natural disasters, food and water security and socio-demographics will push the idea; rationalization of local government internal revenue allotments and government subsidy due to the deteriorating local finances, fiscal perception and revenues of municipal and secondary city governments and the call for more transparency and accountability and of course future rankings and advocacies on local government corruption could also push the amalgamation agenda. 

In a crisis or state of emergency scenario where the national government compels the merging of municipal and city governments, multi-municipal metropolitan city governments or a mega-city plus municipal governments may be created.  Ilocos Norte via a Metropolitan Laoag City may in the future pioneer the creation of agglomerated councils. Here some municipalities may merge with Laoag in a two or three city districts consolidation scenario. If Batac sustains its cityhood and fiscal viability say in the year 2030, it could implement, adopt or pioneer other forms of metropolitanism otherwise it will be absorbed by a more efficient city in the future.  

Today it appears that the country is over-governed. We have too much of a fragmented government. We have a huge lot of councilors, local chief and administrative executives running the affairs of local governance. Imagine the current local government structure by the numbers: 81 provinces, 144 cities, 1,490 municipalities, and yes, this is just amazing, 42, 028 barangays! If you add them all up, you would get a ridiculous total of 43,743 local government units in the Philippines. Well, that is pioneering, I guess and it drives multiple redundancies (we get too many signatures, fees, taxes, and missed opportunities) and local government corruption. 

At present, Malaysia has around 146 local councils and Indonesia with roughly 900 million citizens only have 419 local government s. Based on recent studies, local government consolidation can help increase transparency and accountability levels, end wasteful spending, reduce or help fight corruption and increase public participation at the local level. The country’s local government code provides a couple of mechanisms for citizens to initiate mergers. Voters do have the power to streamline their governments. 


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