1. Bangsamoro (ARMM) with 5 provinces;
2. Davao Region and Central Mindanao with 8 provinces;
3. Western and Northern Mindanao with 12 provinces;
4. Central-Eastern Visayas with 10 provinces;
5. Western Visayas and Palawan with 7 provinces;
6. Bicol with 7 provinces;
7. Southern Luzon with 8 provinces;
8. Metro Manila (NCR) with 6 provinces;
9. Central Luzon with 7 provinces;
10. Cordillera (CAR) with 6 provinces; andNorthern Luzon with 9 provinces;

The criteria adopted in this proposed division are:

1. Economic Viability
2. Contiguousness; and
3. Culture

The writer, on the other hand, recommends a “Two-Step Determination of Autonomous States” to ENSURE economic viabilities of these States with Minimum of financial “risk” for both the Federal / National government and State governments.

Here is my proposed initial or first eight States:

1. Bangsamoro (ARMM) with 5 provinces;
2. Davao Region and Central Mindanao with 8 provinces;
3. Western and Northern Mindanao with 12 provinces;
4. Visayas and Palawan with 17 provinces;
5. Bicol and Southern Luzon with 15 provinces;
6. Metro Manila (NCR) with 13 cities and 4 adjacent municipalities;
7. Central Luzon with 7 provinces; and
8. Cordillera and Northern Luzon with 15 provinces

Yes, the criteria of Economic Viability and Contiguousness are initially given more importance.

After 15-20 years, the Second Step will take place. This means that Congress or the New Parliament will mandatorily review these eight States and see if there will be a need to divide one or more of these States into a maximum 9to avoid gerrymandering) of two. Of course, the same three criteria mentioned earlier will guide said review. No need for another Cha-Cha to do this for Congress or the New Parliament Constitution.

This “Two Steps” approach will end once and for all questions about economic viability of some States. This also shows that if we really desire for a Federal Republic of the Philippines in the earliest time, WE CAN DO IT ONE CHA-CHA. No more of this “grassroots/constituent-initiated transition” as proposed by the controversial Consultative Commission (Con-Com) which is actually a design to delay the adoption of a Federal System in the country. No more of this two Cha-Chas before a federal system is finally adopted. Of course sufficient time must be allocated in this regard. No undue rush on Cha-Cha thru Con-Con.

We are aware that some smaller areas would like to become – immediately as autonomous States such as Palawan, Cebu, SoCSarGen (South Cotabato, Saranggani and General Santos), etc. To be honest, such position somehow presents some serious negative reactions especially from anti-federal people which use this argument that some federalists are creating their own “fiefdoms.” That is why we appeal to these federalists to “sober up” a little and support our “Two Steps” strategy. Those places I mentioned can later on pursue this matter after we gained more experience and improved the country’s economic standing in implementing the federal system. How about it guys?

The powers appropriately vested in the autonomous State government must be clearly specified in its State Constitution. These are:

1. Education
2. Health
3. Infrastructure and Public Works
4. Agriculture
5. Industry
6. Police
7. State Judicial System
8. Communication and Transportation
9. Custom and Taxation
10. Others

The autonomous State will have this local government set-up:

Autonomous State

Local Government Units as before:

1. Provinces / Chartered Cities
2. Component Cities / Municipalities
3. Barangays

Just recently, the President of the Philippines called for the expediency to amend the 1987 Constitution. In the eyes of our President, it is high time that we should be sensible of our country’s malady, and, therefore, undertake the necessity of some speedy and powerful remedy. We in the Mindanao business community think that no other alternative is more compelling.

It can be recalled that on September 2004, the pro-active Mindanao business community, through the Mindanao Business Council (MBC), presented the Mindanao Action Agenda to Her Excellency Gloria Macapagal-Arroyo during the 13th Mindanao Business Conference (MinBizCon). As an expression of support to the present administration, we have collectively committed to the quest for the private sector’s important role in the pursuit for just, equitable, and lasting peace in the island.

One of the private sector commitments under the Mindanao Action Agenda is the shift to a federal form of government. To help achieve this goal, the MBC and the local chambers of commerce together with Kusog Mindanaw as the lead non-government organization, commit to pursue local empowerment under a federal set-up through the establishment of the multi-sectoral Mindanao Coalition of Cities for Transparent and Accountable Governance.

There is certainly a great economic force behind this advocacy. Regional disparities with respect to population size, per capita income, administrative capacity and social needs, do not allow for simple solutions. And so it is important thresh out the issues affecting regional development in the context of the proposed reform to a federal state.

Investments and Federalism
In the first place, the new system should give due consideration to sustainable and equitable socio-economic development through the promotion of inter-state and intra-regional cooperation. Thus, policies on trade and investment will be re-evaluated and planned according to the region’s capacity to produce as well as the demand in the local, national and/or international market.

For the business sector, this means an increased concentration on local industries, diversified quality products and greater trade benefits from regional policies. Consequently, businessmen will have a more conducive and competitive business environment and investors will be able to make investment decisions over the longer-term. A well-grounded model country that dashed for economic growth is Malaysia. The success of the Malaysian Government is partly because of diversification of its manufacturing base, diversification of its export markets, and strengthening of its industrial capabilities. In particular, Ipoh, which is in the heart of the tin mining region and close to the rice bowl sections of West Malaysia, is served by trading firms specializing in mining and rice farming equipment and supplies. Businesses specializing in mining and rice farming equipment and supplies and trading centers having countryside marketing facilities are also a significant source of revenue for the locality.

Taxation and Federalism
In the second place, a federal form of government results in greater autonomy to revise taxation policies. Since local governments are semi-autonomous entities within the state framework, review of rates is faster and more reflective of the cost of services that a particular region provides. And even though tax rates in general are linked to a broader political process, a federal system would devise and take into consideration the fairer calculation of rates beneficial to all parties involved within the region. The right of the federal government to levy taxes shall, as Hamilton puts it, “contain in their own nature a security against excess. They prescribe their own limit, which cannot be exceeded without the end proposed—that is, an extension of the revenue.” Following the politico-economic by Brennan and Buchanan (Brennan, Geoffrey And James M. Buchanan (1977): Towards a Tax Constitution for Leviathan. Journal of Public Economics 8: 255-273) federalism leads to lower tax burden. The mobile factors that are capital and labor render a mobile tax base in the federal states. This induces the positive force of taxes that matches local situations. Practically, a federal system in relation to taxation translates to savings for investment, which drives economic growth and prosperity.

Simplified Bureaucracy
Lastly, the decentralized decision making structure provides greater proximity to the people and forces the governments to be more responsive to its citizens' (the business sector’s) preferences. Economic development is achieved through inter-sectoral dialogue and equitable distribution of wealth that render significant improvements in local infrastructure. There would be more access to local resources, e.g. developing better privileges to local contractors for infrastructure projects.
Also, a direct impact of a strong link between the government and the business sector opens broad spectrum of business support services in an effort to achieve a consolidated approach when representing the viewpoint of private enterprise in its relations with the government. This would allow the development of small businesses to be competitive with large businesses in any industry. Through direct involvement and community action, we see rapid development and the proliferation of our interests.
With these advantages it can hardly be supposed that the adverse position would have an equal chance for a favorable issue.

The Philippines' present unitary and centralized form of governance is a remnant of its colonial past. It continues to be used as a tool for domination and control; hence the basic issue of inequality still remains to be solved. It has become inutile, unresponsive and irrelevant, and has spawned patronage politics, underdevelopment, poverty and unresponsive governance. These are the specters that continue to haunt and threatened the Filipino people as a nation.

To sustain the country's integrity and sovereignty, the centralized government needs to be corrected via a structural change. In a federal system, powers shall be transferred from the central government in Manila to the regions. Contrary to fears that this will dismember the country, the federal system will foster closer dialogue and interaction between the people and the regional leaders because the center of power is physically closer and accessible to poeple.

A Federal Form of government emphasizes local initiative over national intervention in domestic affairs. This form of government encourages local peoples to take active participation in the local level. In this set-up, the unique cultural and geographical realities of the different regions in the country can be responded accordingly.

“Charter Change should take place after we elect our new leader in 2010.” (Speaker Prospero Nograles)

In the March 13, 2008 issue of the Philippine Star, it was reported that Speaker Nograles reiterated his previous stand on the issue of Charter Change or Cha-Cha to dispel the allegation that the proposed merger of Lakas CMD and KAMPI, both pro-administration political parties, “is designed for another Cha-Cha.” While Speaker Nograles wants Cha-Cha thru Constitutional Convention (Con-Con) immediately after the 2010 elections, he also rightly suggested that Con-Con delegates be elected likewise in the 2010 elections for the government to economize among other valid reasons.

Well, as we pointed out earlier, Cha-Cha thru Con-Con immediately after the 2010 elections – and Con-Con delegates simultaneously elected with the new president in 2010 is also the stand now of Lihuk Pideral Mindanaw. Actually, this is one of the issues we, members of the nationwide Citizens’ Movement for a Federal Philippines (CMFP), will tackle this April 4, 5, and 6 in our scheduled Cebu meeting. We are confident that CMFP will likewise officially adopt this practical stand.

Furthermore, we learned that there are other active groups too in the Philippines who expressed same position anent this question on Cha-Cha. These groups are the newly organized 2010-2016 Movement, and Go-NEGOSYO MOVEMENT OF RFM’s Jose Conception.

Thus, it is safe to say that Cha-Cha thru Con-Con immediately after the 2010 elections – and Con-Con delegates simultaneously elected with the new president in 2010, is gaining ground among well-meaning Filipinos. Thus, we request especially Malacañang, Congress, our different religious leaders, civil society, NGOs, POs, etc. to please ponder on this logical proposition and strongly support such stand for the good of all.

We’ve said this before and we are saying it again that to properly address the crises besetting our country, we must ASAP undertake Genuine Social Transformation (GST). Said GST involves two major reforms namely: 1) Reform in People; and 2) Reform in Structures/Systems/Institutions. Honest-to-goodness Cha-Cha thru Con-Con is about the latter reform. National Moral Renewal (NMR), Values Formation and Character-building, plus attitudinal change and mind-setting are about the former reform. We must pursue both reforms at the same time. We cannot have one without the other.

Apropos Cha-Cha, what is the number one reform should we adopt? In revising our present flawed Constitution, we must firstly reform our obsolete and highly centralized government structure called Unitary System. We must shift to a highly decentralized structure known as Federal Systems.

What are the advantages of doing this – meaning to shift to a Federal System? Well, to some of the advantages are:

1. Free our countrysides from the imperialistic hold of Metro Manila.

2. Promote balance Development.

3. Dismantle the Mother of Political Patronage.

4. Apply the principle of subsidiarity in governance by assigning functions, authorities and funds to local governments which they can effectively and efficiently exercise thus bringing the government closer to the people.

5. Minimize graft and corruption.

6. Finally solve the Mindanao Conflict.

7. Release the creative and competitive spirit of our people while promoting initiative and independence.

Hence, we appeal to all of you to heartily support genuine Cha-Cha thru Con-Con immediately after the term of President Gloria and convince Congress especially Senate President Manuel Villar and Speaker Nograles to pass a law now setting the election of Con-Con delegates together with the presidential elections in the 2010. How about it guys?