Think twice Juan dela Cruz

federalism

Everyone have high hopes for the newly inaugurated President Rodrigo Duterte after being elected by sixteen million Filipino voters last May Presidential Elections. He earned the trust of many by living up to his words on his fight against crime, corruption and drugs, as he has proved in Davao City. He indeed came through to his words, as in a few days, crime rates had gone low and the Police Force is really all-out to take punish the people involved in drug trade.

Filipinos truly found the President they are looking for in their newly elected President but they should think twice on the plan of Federalism. Federalism as defined is the distribution of power in an organization between a central unit and the constituent units. The aim of the President is to distribute the power, development and finances of the national Government throughout the whole country, but that is not an easy task to pull trough due to the following:

1. The Bureau of Internal Revenue is not ready

Just imagine, how will the BIR distribute the taxes they collect from the main source of taxes – income tax, which is primarily from the employees. Currently, the policy if you are a new employee to your job, you have to get a TIN on the RDO of your office. If Federalism would be given a go signal, BIR would be doomed as employees would only get a TIN from the RDO of their residency and not need to update in every change of employer.

This policy could go untouched but if this stays untouched, going into Federalism would result to no improvement at all since the ones benefiting from this system are those cities and municipalities capable of providing employment for their territory and are already developed. This policy of the BIR limited the development of other provinces because the taxes paid by the employees are credited to the city or municipality they are working and not on where the employee lives.

2. The SEC and DTI would need to have regional offices

If the aim of Federalism is to have capitalists, then the Government should allot a budget to spread SEC and DTI, the main Government Agencies where people register formally and legally their business, be it a Sole Proprietorship, Partnership or Corporation. Having a legal business should be the priority of every Capitalist. No one would put up their money into a business then be held liable by being unable to register their existence. This should also be done for the Cooperative Development Authority (in case of Cooperatives), Intellectual Property Office (in cases of Copyright, Patents and Trademarks) and even the Bureau of Food and Drugs (for investors in Food and Drugs).

If people are to rely on the main offices of these Government institutions, they may stay employed rather than putting up a business legally and go through the rigorous process of registrations. Travelling from the province trough Metro Manila is not economic especially if you do not know the requirements in setting up your business, you might end up going back and forth between your province and the Metro if you have problems in various requirements.

3. The work force especially those qualified for executive positions are in Metro Manila

This is another hindrance, why would someone put up a business on the province if what they are looking for as executives can be found only in Metro Manila, and those persons are attached to the Metro. If work force or the laborers are to be considered, there will be no problem as they do not require that much qualifications but when it comes to middle to top management, businessmen would think twice if you did not even attain the minimum requirements, some would even require certifications and accreditation from various authorities.

There may be some people qualified in the provinces, but you would go into pirating employees if needed as they are surely working under a reputable organization and might cost big bucks to persuade them to work for you.

4. Business and Politics might collide

Looking at the Philippines, there are notable Politicians who are in control of the City, Municipality or Province. They may be ruling their territories for years or even decades that the people trust them that much. A problem would occur when a business policy might not be favorable to the employees they would report such policy to the mayor, congressman or Governor which would then counter that business policy that might end up not good for the employees if they lost their job in a pull-out or the business that might result to unproductive employees.

We should take note that in the Federal form of Government, policies, circulars and orders can be issued easily and thus, implemented. If the elected officials would not be careful enough to the consequences of their decisions, they might hurt the people, the business and even the whole community.

Having too much freedom might not always be good, but the only thing constant in this world is Change, thus everyone must adopt to the changes to be implemented by the President. It may be good or bad for you, feel free to state your comments below and let’s hope that it would be given attention by the current administration. Thank you for reading.

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