Lesson 11 Issues &

Challenges on
Governance

What to know about the Issues and

Challenges on Governance
This is the fourth and last part of module 1 on governance. In this
module, the instructor presents the issues and challenges that faces governance.
Moreover, to evaluate learners understanding of their own notion on issues and
challenges on governance, recommendations will be given on how to address
these problems, issues and challenges.
Specific Objectives
At the end of the 3hours lesson, learners should be able to:
1.) Describe/discuss the processes/factors pushing for governance and the
capacities needed for good governance;
2.) Identify the key issues and challenges in governance;
3.) Describe corruption as the most challenging issues among key actors in
government; and
4.) Discuss the trends, efforts and challenges for good governance;

Think Critically!
Meta-Planning/Technology of Participation (TOP)
Direction: Learners will be given the following focused questions:
1. What are the issues and challenges that confronts the different key players
of governance today?
Learners will share their answers with a maximum of 8 words.

What to Communicate?
Lesson Proper Presentation
The teacher requests the presentation of the learners’ ideas/concept.

Factors/Processes Pushing for Governance

The International Monetary Fund (IMF) identified several
factors/processes pushing for governance, good governance, in particular.
These are:
1. the quest for growth and development;
2. the environmental movement;
3. globalization; and
4. consolidation.

1. The Quest for Growth & Development

This is the key factor pushing for governance. Since the Industrial
Revolution, the market had the principle role in growth, with the state needed
only to nurture the climate that would allow it to grow. Clearly, no one sector
could manage society by itself but each had a role to play in making it move
forward.

2.The Environmental Movement

The concept of development has changed from the exclusive focus on

economic growth of the 1950s to the inclusion of distributional goals like the
reduction of poverty and inequality during the UN Development Decades, to the
current battle cry for “sustainable human development”.
The environmental movement has provided to governance an urgency
to deal with issues in a holistic manner, to include not only the sector at hand
and the obvious stakeholders, but also other affected by them in other areas
and in future times.
The Environmental Movement (a term that sometimes includes the
conservation and green movements) is a diverse scientific, social, and political
movement. In general terms, environmentalists advocate the sustainable
management of resources, and the restoration and protection of the natural
environment through changes in public policy and individual behaviour. In its
recognition of humanity as a participant in (not enemy of) ecosystems, the
movement is centred on ecological and human health.

3. Globalization
The transformation from command to market-oriented economies, the
emergence of democratic political regimes in the former Soviet Union, the rapid
development and global proliferation of new technologies, the pervasive spread
of telecommunications systems, the growing importance of knowledge-based
industries and skills and the continuing integration of the world economy
through trade and investment - all these have created the foundation for a new
age of sustainable human development. But all carry risks as well. Is it to be a
breakthrough or a breakdown?
Changes in the world's economic, political and social systems have
indeed brought unprecedented improvements in human living conditions in
both developed and developing countries. Consider the profound
breakthroughs in communications, transport, agriculture, medicine, genetic
engineering, computerization, environmentally friendly energy systems,
political structures, peace settlements.
The trend towards globalization (6) deserves special attention. It is
manifest in the growth of regional blocs that cooperate in such areas as trade
and legal frameworks, in the power of intergovernmental bodies such as the
World Trade Organization and in the spread of transnational corporations.
Globalization has profound implications for governance the final impact of
which we cannot yet determine. First is the increasing marginalization of
certain population groups. Those who do not have access to the
technological/information revolution are in danger of becoming part of a
structural underclass. Second is the erosion of state sovereignty as
transnational bodies increasingly mediate national concerns and press for
universal laws. Third is the increased globalization of social and economic
problems, such as crime, narcotics, infectious diseases and the migration of
labour. Finally, international capital and trade are decreasingly accountable to
sovereign states.
 Governance can no longer be considered a closed system. The state's
task is to find a balance between taking advantage of globalization and
providing a secure and stable social and economic domestic environment,
particularly for the most vulnerable. Globalization is also placing governments
under greater scrutiny, leading to improved state conduct and more
responsible economic policies.
Because each domain of governance - state, private sector, civil society -
has strengths and weaknesses, the pursuit of good governance requires greater
interaction among the three to define the right balance among them for
sustainable people- centred development. Given that change is continuous, the
ability for the three domains to continuously interact and adjust must be built-
in, thus allowing for long-term stability. UNDP's Initiatives for Change
recognizes that the relationships among government, civil society and the
private sector are key determinants in whether a nation is able to create and
sustain equitable opportunities for all of its people. If a government does not
function efficiently and effectively, scarce resources will be wasted. If it does
not have legitimacy in the eyes of the people, it will not be able to achieve its
goals or theirs. If it is unable to build national consensus around these
objectives, no external assistance can help bring them about. If it is unable to
foster a strong social fabric, the society risks disintegration and chaos. Equally
important, if people are not empowered to take responsibility for their own
development within an enabling framework provided by government,
development will not be sustainable.
Developing countries must ensure that everyone can participate in
economic and social development and take advantage of globalization. They
must build a political system that encourages government, political, business
and civic leaders to articulate and pursue objectives that are centred around
people and a system that promotes public consensus on these objectives.
The term "globalization" has acquired considerable emotive force.
Some view it as a process that is beneficial—a key to future world economic
development—and also inevitable and irreversible. Others regard it with
hostility, even fear, believing that it increases inequality within and between
nations, threatens employment and living standards and thwarts social
progress. This brief offers an overview of some aspects of globalization and
aims to identify ways in which countries can tap the gains of this process,
while remaining realistic about its potential and its risks.
Globalization offers extensive opportunities for truly worldwide
development but it is not progressing evenly. Some countries are becoming
integrated into the global economy more quickly than others. Countries that
have been able to integrate are seeing faster growth and reduced poverty.
Outward-oriented policies brought dynamism and greater prosperity to much
of East Asia, transforming it from one of the poorest areas of the world 40 years
ago. And as living standards rose, it became possible to make progress on
democracy and economic issues such as the environment and work standards.
Economic "globalization" is a historical process, the result of human
innovation and technological progress. It refers to the increasing integration of
economies around the world, particularly through trade and financial flows.
The term sometimes also refers to the movement of people (labour) and
knowledge (technology) across international borders. There are also broader
cultural, political and environmental dimensions of globalization that are not
covered here.
At its most basic, there is nothing mysterious about globalization. The
term has come into common usage since the 1980s, reflecting technological
advances that have made it easier and quicker to complete international
transactions—both trade and financial flows. It refers to an extension beyond
national borders of the same market forces that have operated for centuries at
all levels of human economic activity—village markets, urban industries, or
financial centres.
As globalization has progressed, living conditions (particularly when
measured by broader indicators of well-being) have improved significantly in
virtually all countries.
However, the strongest gains have been made by the advanced
countries and only some of the developing countries. That the income gap
between high-income and low-income countries has grown wider is a matter for
concern. And the number of the world’s citizens in abject poverty is deeply
disturbing. But it is wrong to jump to the conclusion that globalization has
caused the divergence, or that nothing can be done to improve the situation. To
the contrary: low-income countries have not been able to integrate with the
global economy as quickly as others, partly because of their chosen policies
and partly because of factors outside their control. No country, least of all the
poorest, can afford to remain isolated from the world economy. Every country
should seek to reduce poverty. The international community should endeavor—
by strengthening the international financial system, through trade, and
through aid—to help the poorest countries integrate into the world economy,
grow more rapidly, and reduce poverty. That is the way to ensure all people in
all countries have access to the benefits of globalization.
Sources: www.imf.org/external/np/exr/ib/2000/041200.htm

4. Consolidating Peace
 Another force pressing for governance is the need to consolidate peace
in war- torn nations. This issue is rarely recognized as among the processes
pushing for governance. However, this unique perspective was brought to the
force dramatically by Hage Geingob, Prime Minister of Namibia, in his remarks.
Countries that have undergone a civil war, secession movements or the
creation of a new state out of the break-up of national territories have a
specially strong imperative to get everyone involved in the process of building a
nation or affecting a national reconciliation. In these situations, the coming
together of the state, market and civil society to manage societal affairs is not
more rhetoric but a national urgency. It requires bringing together former
adversaries beyond the discussion table to the fields of service in the cities and
farms including those which were battlegrounds. This is not only a lesson
learned in Namibia.

KEY ISSUES and CHALLENGES IN GOVERNANCE

Considered key issues and challenges in governance were: (1) Policy issues,
concerns and challenges, (2) Problem in the bureaucracy, (3) Issues on fiscal
management and (4) Deficiencies in the Political and Electoral System
1. POLICY ISSUES, CONCERNS AND CHALLENGES (7)

Most people agree that the constitutional and legal frameworks in the
Philippines provide the foundations for good governance. The policy
environment allows people’s participation and public scrutiny and criticism of
government operations and outputs. Further, the country has adequate laws,
rules, and regulations to establish order and move forward. While
underdevelopment can easily be attributed to a lack of institutional capacity
and professional competencies to implement policies and enforce laws, certain
lessons learned and issues related to public policy making deserve mention.
The Philippine public policy-making process bears the following features: (i)
policy decisions and programs are arrived at through institutional mechanisms
provided for in the Constitution of the Republic of the Philippines and other
laws; (ii) policy-making process is then characterized as precedent bound,
based on laws and forged by such structures as a bicameral legislative body
and the executive branch of the Government; (iii) legislative branch is
composed of the Senate and the House of Representatives, while the president
heads the executive branch of the Government and is the prime initiator and
implementer of policies and programs; and (iv) the decisions of the legislative
and executive branches are subject to judicial review by the Supreme Court
and inferior courts on questions of constitutionality and statutory
construction.
Different sets of forces each influence the different stages of public policy
making, namely, decisions on (i) including items in the agenda, (ii) developing
any particular agenda item, (iii) passing legislation, and (iv) implementing new
laws. Different constituencies exert their influences at different stages of policy
development and execution. Many policies have nonetheless missed out in
giving importance to meaningful public consultations, constructive debate and
criticism, and needed consensus building and development of a sense of
ownership of different stakeholders. Without these elements, and with
extensive graft and corruption in the country (which undermines and subverts
the rule of law), many policies fail to command respect and compliance.
It should also be made clear that policy initiatives for governance reforms
could be undertaken by the Government even without legislation. In these
cases, one might consider whether legislation is useful or not. The value of
legislation is that it binds public institutions to certain decreed directions. If
one wants to assure the future sustenance of any initiative currently carried
out by the Government, legislation may be considered. However, the
Government tends to be too legalistic and rule bound in addressing most of its
problems.
Legislation is complicated, not under the complete control of any person
or group, and may have unpredictable results. Embarking on a campaign to get
something legislated cannot be a decision taken lightly or casually. In addition,
successful legislation generally occurs when the problems deemed important
meet the solutions deemed highly probable by political personalities or groups
in positions of power. Problems, policies, and politicians have to intersect for
proper action to occur.
Legislation as an instrument for achieving desirable societal goals
and institutionalizing reforms is advisable when the underlying
assumptions of policies have any or all of the following characteristics:
(i) policies can only be optimally effective when adopted by the whole
Government and supported by stakeholders;
(ii) policies can yield best results only when implemented over the life of
several administrations;
(iii) policies can be accomplished only with adequate and judicious use of
resources;
(iv) policies can be accomplished by the Government’s applying cost-
effective measures and using available technology and resources;
(v) policies, when deliberated and agreed, would create a framework for
many people and groups to assume broader responsibilities on an
institutional basis.
A policy needs to be very clear and specific about the:
(i) nature and magnitude of the problem being addressed;
 (ii) basic mechanism for responding to the problem;
(iii) standards and provisions for making the mechanism work;
(iv) system of responsibilities and accountabilities for coordination,
implementation, control, and review of results; and
(v) organizational and budgetary implications. These elements are often
deficient in many public policies. It is common to have layers of rules
and regulations to clarify policy provisions, not to mention sets of
procedures to inform and guide implementers and stakeholders.
Some policy initiatives may not be ready to be pursued because the data
and analysis necessary to make a decision may be unavailable. In these cases,
research is probably more appropriate than formulating a new policy or draft
legislation. Some policies are haphazardly and hastily developed and scarcely
take into account deliberate and careful planning and effective use of objective
and accurate information. Public policy making in the Philippines boldly
underscores the need to improve its capacities in undertaking knowledge-based
policy analysis and development.
Access to timely and correct information about public policies also
precludes overall efficiency, effectiveness, and productivity. Those who are
affected may sometimes be unaware of or improperly informed about their
rights, duties, and responsibilities provided for in relevant policies.

2. PROBLEMS IN THE BUREAUCRACY

Bureaucracy is a distinctive arrangement used by human beings to
organize their activities. The invention of Western bureaucracy several
centuries ago helped solve the problem for leaders of governing human systems
that grew larger and more complicated with each passing year. The great virtue
and probably defining characteristic of bureaucracy, according to the one of the
founders of sociology, German Max Weber (1864-1920), is as “an institutional
method for applying general rules to specific cases, thereby making the actions
of government fair and predictable” However, in the governance process, there
are two problems in a bureaucratic type of government: inefficiency and
arbitrariness.
For nearly half a century, the Philippines was caught in an endless
cycle of reform exercises that hardly produced tangible and lasting results.
Structural issues— such as (i) duplicated functions and overlapped
jurisdictions, (ii) outdated and slow government procedures, (iii) various
loopholes in administrative procedures, and (iv) limited capacity for policy
analysis and strategic long-range planning that caused delays and higher costs
in handling business—made maintaining objectivity, accountability, and
transparency in decision making and government operations difficult and gave
rise to a host of other problems, including poor implementation and
coordination. (ADB, 2005).

2. 1. Corruption
Corruption damages the development process in many ways. It
undermines social confidence in the willingness and capacity of public
institutions to fulfil their obligations to the people and it reinforces existing
power relationships that are themselves typically part of the development
problem. Losses due to corruption deepen poverty as they deprive the
disadvantaged sectors of much needed programmes and environmental
stewardship. Incidences of bribery and graft are often front page news,
The Government has recently introduced affirmative actions toward
addressing this problem such as the passage of the Procurement Act, the
implementation of lifestyle checked among government officials, and the
reactivation of the Inter-Agency Anti-Corruption Committee (IAGCC) to
synchronize the various anti-corruption initiatives of the national government.
Despite these efforts, large scale and petty corruption is pervasive throughout
various levels of the Philippine government. The draft report of the
“Consultations on the UN Conference on Financing for Development cited that
out of a total national budget of Php 781 billion in 2001, PhP100 billion, or
13% was at risk of being lost to corruption; 70% involved in public works
contracts while 30% involved the purchase of supplies and equipment. The
Office of the Ombudsman estimated that a total of USD48 billion was lost to
graft and corruption over the past 20 years, and that only 60% of the national
budget was actually spent on government programmes and projects.
Numerous laws addressing graft and corruption exist in the
Philippines, and these date back to 1955. At present, the main references are
the Revised Penal Code of 1960, referred to as the Anti-Graft and Corrupt
Practices Act, and Article XI of the 1987 Constitution of the Republic of the
Philippines. Box 1 presents a summary list of related laws, presidential decrees
and proclamations, and other regulations on corruption prevention.
I:List of Laws Related to Graft and Corruption 1946–1971
• Republic Act (RA) 1379 (1955). This act declared forfeiture in favour of the
state any property found to have been unlawfully acquired by any public officer
or employee, and provided for the proceedings.
• RA 3019 (1960). This act provided for the repression of certain acts of public
officers and private persons alike, which constitute graft or corrupt practices or
which may lead thereto, also known as Anti-Graft and Corruption Practices
Act.
• RA 6028 (1969). This act provided for the promotion of higher standards of
efficiency and justice in the administration of laws as well as to better secure
the right of the people to petition the government for redress of grievances,
creating the office of the citizen’s counsellor.
• Presidential Decree (PD) 6 (1972). This decree amended certain rules on
discipline of government officials and employees.
• PD 46 (1972). This decree made it punishable for public officials and
employees to receive and for private persons to give gifts on any occasion,
including Christmas.
• PD 677 (1975). This decree amended Section 7 of RA 3019 (as amended).
• PD 749 (1975). This decree granted immunity from prosecution to givers of
bribes and other gifts and to their accomplices in bribery and other graft cases
against public officers.
• PD 807 (1975). This decree provided for the organization of the Civil Service
Commission, in accordance with provisions of the Constitution of the Republic
of the Philippines (repealed under President Aquino’s administration).
• PD 1606 (1978). This decree revised PD 1486 (creating a special court to be
known as Sandiganbayan—the main anti-graft court that adjudicates criminal
cases brought to it by the Office of the Ombudsman (OMB); it deals only with
cases filed against high-ranking government officials.
• 1987 Constitution of the Republic of the Philippines. Article XI,
Accountability of Public Officers; Article II, Section 27 and Section 28 policy of
the State to maintain honesty and integrity in the public service and take
positive and effective measures against graft and corruption; and Article III,
Section 7, provides for the right of people to have access to public information.
• 1987 Administrative Code (Executive Order [EO] No. 292). This code
instituted the administrative code of the Philippines.
• EO 243 (1987). This order created OMB and restated its composition,
powers, functions, and other salient features in the 1987 Constitution of the
Republic of the Philippines.
• RA 6713 (1989). This act established a Code of Conduct and Ethical
Standards for Public Officials and Employees.
• RA 6770 (1989). This act provided for the functional and structural
organization of OMB and delineated its powers and functions.
• RA 7055 (1991). This act strengthened civilian supremacy over the military
by returning to the civil courts the jurisdiction over certain offenses involving
members of the armed forces, other persons’ subject to military law, and
members of the Philippine National Police.
• RA 7080 (1991). This act defined and penalized the crime of plunder.
• RA 8249 (1997). This act further defined the jurisdiction of the
Sandiganbayan, amending PD 1606 (as amended).
• Proclamation 189 (1999). This proclamation declared war against graft and
corruption and authorized the Philippine Jaycee Senate, through the Graft Free
Philippines Foundation, Inc., to institutionalize public awareness of clean,
efficient, and honest governance.
• EO 317 (2000). This order prescribed a code of conduct for relatives and
close personal friends of presidents, vice-presidents, and members of the
Cabinet.
• EO 12 (2001). This order created the Presidential Anti-Graft Commission and
provided for its powers, duties, and functions and for other purposes to
investigate complaints or hear administrative cases filed against presidential
appointees.
• EO 25 (2001). This order established The Governance Advisory Council to
encourage more active involvement of the business sector in curbing graft and
corruption.
• Code of Corporate Governance (2002). This code further provided to actively
promote corporate governance reforms aimed to raise investor confidence,
develop capital market, and help achieve high sustained growth for the
corporate sector and the economy.
• Code of Judicial Conduct (1989). This code provided for the appropriate
conduct of judges in performing their duties; otherwise known as the Code of
Judicial Conduct.
• RA 9160 (2001). This act defined the crime of money laundering and provided
for the penalties of such act.
• RA 9184 (2002). This act provided for the modernization, standardization,
and regulation of procurement activities of the Government, also known as the
Government Procurement Reform Act.
• EO 38 (2001). This order reorganized and extended the life of the Special
Task Force created under EO 156 dated 7 October 1999 entitled "Creating a
Special Task Force to Review, Investigate and Gather Evidence Necessary to
Successfully Prosecute Irregularities Committed at the Bureau of Internal
Revenue, Bureau of Customs and Other Government Offices or Agencies Under
or Attached to the Department of Finance.”
• EO 40 (2001). This order consolidated procurement rules and procedures for
all national government agencies, government-owned or -controlled
corporations, and government financial institutions, and required the use of
the Government electronic procurement system.
• EO 72 (2002). This order rationalized the agencies under or attached to the
Office of the President.
• EO 109 (2002). This order streamlined the rules and procedures on the
review and approval of all contracts of departments, bureaus, offices, and
agencies of the Government including government-owned or controlled
corporations and their subsidiaries.
• EO No. 114 (2002). This order restructured the Bureau of Internal Revenue
toward a Taxpayers’ Focused Organization.
• EO No. 251 (2003) This order required the Bureau of Internal Revenue to
furnish OMB with income tax returns filed.
• RA 9194 (2003). This act amended RA 9160 (Anti-Money Laundering Act).
Source: http://www.tag.org.ph/phillaw
Corruption is becoming global. Hence, anti-corruption efforts also require a
global action. It is in this premise that the United Nation Convention Against
Anti- Corruption (UNCAC) is being pushed for ratification by UN member states
(8). Dimitri Vlassis (2006) in his discussions on UNCAC highlighted four
elements of anti-corruption which include:

4. Deficiencies in the Political and Electoral System

Public confidence in election outcomes is low because of widely alleged
irregularities in the Philippine electoral processes. The modernization of the
electoral system in the country today is an attempt to enhance public
confidence in election outcomes and address traditional election anomalies
such as cheating, intimidation and bribery. The government has initiated
concrete efforts to institutionalize electoral reforms through the passage of laws
on Election Modernization (Election Modernization Act or RA 8436), Party-List
System and the Absentee Voting for Overseas Filipinos. A democratic and
effective political and electoral system is important to ensure that a
development agenda, primarily addressing the needs of poor and
disadvantaged, is promoted and sustained beyond administrations. Civil
society organizations are currently working with their government counterparts
of pending reform bills in Congress that also seek to address issues on political
dynasties, the continued practice of party turn-coatis and the diminution of the
electoral process into mere contests of personalities.

Let us Collaborate!
Apply what you have learned…
Action Planning Assessment:
Direction: Answer the following questions. Write your answer on a whole sheet of
yellow pad/intermediate pad/short bond paper. DO NOT FORGET TO WRITE YOUR
NAME ON YOUR ANSWER SHEET. PAPER IS DUE ON NOVEMBER 13, 2020 AT 2:00
PM. YOU WILL SUBMIT YOUR PAPER TO YOUR GOOGLE DRIVE
1. What is the current chaos brought about by COVID 19 pandemic
around governance in your barangay?
2. Discuss the trends, efforts and challenges in terms of good
governance facing your locality brought about by COVID 19
pandemic?

Be Creative!
DO THIS! Creative-Critical Thinking Assessment
Direction: Answer the following questions. Write your answer on a whole sheet of
yellow pad/intermediate pad/short bond paper. DO NOT FORGET TO WRITE YOUR
NAME ON YOUR ANSWER SHEET. PAPER IS DUE ON NOVEMBER 13, 2020 AT 2:00
PM. YOU WILL SUBMIT YOUR PAPER TO YOUR GOOGLE DRIVE.

Your output will be assessed in terms of the following criteria:

- content-relatedness 50%
- coherence 20%
- organization 30%
100%
 EVALUATION
Critical Thinking Assessment:
A. Learners are going to critique and analyse the issues
encompassing COVID 19 pandemic in governance.
1. What do you think are other issues and challenges confronting
governance in your locality? Why do you think these issues occur?
2. What are current government initiatives and reforms employed to
combat issues and challenges in governance brought about by COVID
19 pandemic?
B. Concept Paper
1. What can you suggest to further improve the performance of
government in a governance processes, particularly in this time of
COVID 19 pandemic?
2. What reforms can you recommend to your local government unit in
addressing health issues caused by COVID 19 pandemic?