Local units are closer and thus better able to

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Unformatted text preview: er and thus better able to understand and respond to the needs of their constituents (Oates, 1993). As an intermediary they are accountable to both the regulations issued by the central government and the wishes of their citizens. Reflecting on these arguments, Bird states that 'the most efficient allocation of public sector resources can be secured only if services are provided (and paid for) by governments responsible to those most directly affected' (Bird, 1993). Following similar logic, the Philippines 1991 LGC devolved to the local units the power and the responsibility to provide services and raise their own revenues by levying user charges, additional taxes, and higher rates on existing taxes. In addition, they have been given increased shares from the collection of nationally levied individual and corporate income taxes. Through the case study, I express that while policy can be based on general principles', its implementation is highly dependent on effectively understanding the organization and the activities of the institutions it is designed for. An analysis and revie...
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