CONCEPT OF STATE

AND GOVERNMENT
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.
STATE VS. NATION
FOUR ESSENTIAL ELEMENTS OF STATE:
1. People
2. Territory
3. Sovereignty
4. Government
People refer to theinhabitants
of the state. There is no strict
requirement on their number, but
they must be of sufficient number
to be self-sufficing.
Territory is a fixed portion on the
surface of the earth inhabited by
the people of the state.
 Sovereignty is the supreme and
uncontrollable power inherent in a State.
 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.
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, purposesand objectives.
TWO FUNCTIONS OF GOVERNMENT
1. CONSTITUENT – Compulsory
function
2. MINISTRANT-Discretionary
function
ADMINISTRATION
Refers to the
group of persons
in whose hands
the reins of the
government are
held for the time
being.
A. According to the F ORMS OF
number of People GOVERNMENT
who rule
1. MONARCHY
2. OLIGARCHY
3. DEMOCRACY
 F ORMS OF
GOVERNMENT

1. FEDERAL B. According to
2. UNITARY the relationship
between the
National & Local
 F ORMS OF GOVERNMENT
C. According to the status of
those who hold the rein of
1. CIVIL Government
2. MILITARY
 F ORMS OF
GOVERNMENT
D. According to the
Relationshi
p between
the
Executive &
Legislature
1. PARLIAMENTARY
2. PRESIDENTIAL
F ORMS OF GOVERNMENT
E. OTHERFORMS
1. DESPOTIC
2. TOTALITARIAN
3. REPUBLICAN
4. CONSTITUTIONAL
5. DEJURE
6. DEFACTO
7. REVOLUTIONARY
 LAW-MAKING,
EXECUTE,IMPLEMENT,
FORMULATION OF
ENFORCE
POLICIES INTERPRETLAWS,
JUSTICE
PRESIDENT,GOVERNOR, MEMBERS OFTHE
MAYOR, PUNONG HOUSEOF
BARANGAY,SK REPRESENTATIVES, JUSTICES,JUDGES
CHAIRMAN SENATORS,BOARD
MEMBERS,
COUNCILORS
PRINCIPLES GOVERNING THE OPERATIONS
OF GOVERNMENTAL POWERS
(3 BRANCHES)
1.SEPARATIONOFPOWERS
2..SYSTEMOFCHECK AND BALANCE
3.BLENDING OF POWERS
POLICEPOWER 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)
 EMINENT
DOMAIN
enables the
State to
acquire
private
property upon
payment of
just
compensation
for some
intended
public use.
TAXATIONit means the
State is able to
demand from the
members of society
their proportionate
share or contribution
in the maintenance
of the government.
INHERENT IN THESTATE
 SIMILARITIES OF THE 3
FUNDAMENTAL POWERS
 NOT ONLY NECESSARY BUT INDISPENSABLE
 METHODS TO INTERFERE PRIVATE RIGHTS
 PRESUPPOSESAN EQUIVALENT
COMPENSATION
 EXERCISED BY LEGISLATURE
 National Government

Highly Urbanized,
Province Chartered, Independent
City
Component City

Municipality

Barangay Barangay
 National Government

REGION

Congressional District Congressional District

Province Highly Urbanized,

Chartered, Independent
City
Component City

Municipality

Barangay Barangay
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
 IMPACT OFLOCAL
DECENTRALIZATION ON THE
ECONOMIC GROWTH OFNORTHERN
MINDANAO
 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 P146,591.95million

**Inclusive of IRA ofP146,591.95 million
Sources: Philippine Commissionon Audit 2007 Financial Reports; National Bureau of Statisticsof China
Philippine Central and Local Government
Revenue Breakdown (in percent)
Central Local
Total Revenue 82.37% 17.63%
TaxRevenue* 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
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
 Local Government Revenue Sources
The Philippines
Local Taxessuch 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 Barangays20%
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 hSigouhrecers:Country Reports China and the Philippines-United Nations
Economic and Social Commission for Asia and the Pacific
 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%
TaSoxue
r ces:TaxFoundation Report : stateline.org

Individual Income 22.6%

Taxes
 LGUIncomeGeneration
• 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

• IRADependency in 2006 = 82.6%
• IRADependency in 2007 = 90.9%
Philippine LGUTotal Income vs Central Govt. Expenditure per Region
Local Government Total* Central Central
P000 Income Government
Government
Expenditure Expenditure
%to LGTotal
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%
Region1 11,410,059.53 14,371,248.27 125.95%
CAR 6,223,710.33 7,499,513.73 120.50%
Region2 9,160,569.36 10,132,758.94 110.61%
Region3 20,888,920.59 21,590,013.29 103.36%
Region4 35,866,590.31 27,646,932.60 77.08%
Region5 10,993,973.34 15,101,341.54 137.36%
Region6 16,679,840.96 18,419,954.59 110.43%
Region7 15,555,455.12 14,027,680.75 90.18%
Region8 8,687,321.73 98,317,599.17 1131.74%
Region9 7,781,531.08 9,821,773.23 126.22%

Region 10 11,300,406.23 11,512,490.21 101.88%

Region11 10,170,596.06 10,980,183.03 107.96%
Region12 8,285,249.49 8,623,777.18 104.09%
Region13 7,545,245.07 7,146,537.05 94.72%
Source: Figures are from the Philippine Commission on Audit 2007
ARMM 7,35*Financial
4In,c7l0us1iv.6Reports
e8ofIRA 8,753,883.18 119.02%
 If A FederalState…
• And with a Tax Effort of Efficiency of just15%..

• Total Region 10 Government Revenues would

amount to P58Billion…

• 200% higher than what it is today

 GROSSNORTHERN MINDANAO
DOMESTIC PRODUCT
• Current Prices, in Millions of Pesos
• 2000 2003 2006 2010
•
• 124,524 197,101 277,269 389,624
Top Manufacturing Outfits in Northern
Mindanao
• Asia Brewery,
• CATIMCO,
• Coca-Cola,
• Del Monte Phils.,
• LKKSManufacturing,
• Nestle Phils.,
• PhilAgro,
• PICMW, Pilipinas
• Kao,
• RI Chemicals,
• Mindanao Silicon,
• STEAGState PowerInc
• Elegant ChemicalAlloy
 AVERAGEFAMILY INCOME IN
NORTHERN MINDANAO
• IN YEAR2000 CONSTANTPRICES

• 2006 2009

• 102,000 98,000

• Poverty rate of Population in 2006: 43%

 PHILIPPINES
• INCOME BRACKET 2001 (%) 2010 (%)
• Class AB 2 2
• Class C 18 12
• ClassD 56 64
• ClassE 24 23

• Despite the best years of GDPgrowth!

 VIETNAM
• INCOME BRACKET 1999 (%) 2010 (%)

• Class AB 7 21

• Class CD 31 55

• ClassEF 62 24
Results of PINATULO ORSUPERIORITYPRINCIPLE

“WHAT DOES GDP HAVE TO DO WITH ME?”

GDPINDICATORS

COMPUTING PROGRESSFROM
CORPORATE ACCOUNTS
A change of crew
& adirection.

WANTED!
 Change.

From superiority
to subsidiarity.
From pinatulo to
pinatubo.
 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
& Provinces
• Industry++ = sector

• Sector++ = National • Regions ++ = National

Economy Economy
Restoring

Filipino dignity.
ASTATEEXISTSSOTHATANATION’S CHILDREN
MAY GROW UP WITH DIGNITY

Subsidiarity starts with the Individual

 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 towardsPinatubo

or Subsidiarity

• It is the SYSTEMthat is incompetent, not the Filipino