Before federalism, strengthen country’s democratic institutions

Federalism is so complex that simplistic, politically-tempered views must be debated on, and their antecedents made clear.

The “federal scenario” is as vibrant as it is ruefully dangerous. Dividing our country into states without first strengthening our institutions is a recipe for anarchy and economic capitulation. Why change the structure if the debacle was not in being able to execute the current strategy because of incompetent leadership? The existing Local Government Code, despite its imperfections, must be implemented with finesse.

Let us look at the facts: Nearly 80 percent of our country’s GDP comes from four regions—National Capital Region and Regions 3, 4-A and 7.

I come from Northern Samar (Region 8). Our poverty index is 50 percent. Our infrastructure is vintage World War I.  Private capital/investors, for cogent and strategic sense, will only invest in areas where basic infrastructure exists. Clearly, no big business in its right mind will invest in my province today.

Let us check out federalism in tandem with development. Our development-expenditure ratio to GDP is nil. Our national budget spends nearly 80 percent on operational concerns, salaries, etc. Our debt-service to GDP ratio is almost 30 percent. The budget deficit is planned at 3 percent of GDP.  Our political leadership is composed of bundles of families and cohorts that, with due respect, are less concerned about nationhood.

We are a nation in distress. Federalism, if done outright, will breed, propagate and embolden the rise of political dynasties; it will throw the economy into a cruel spiral. God forbid, this could be a menu for division, not unity.

Let us not be tempted into copying the experiences of other countries. They all went through the struggles of planned development, rooted in their unique cultures and ethnicities. Federalism is a process. It is not about perfection.

—OSCAR L. MORADO, president, OLM Consultants and Associates, [email protected]