This paper attempts to trace and find evidence for the linkages between the
quality of governance, and development at the local level since the adoption of the fiscal
decentralization policy in the Philippines in 1991. The concern since then over the links
has been prompted by the observed persistent imbalances in local development — across
and within regions — which many believe is due to the less than prudent exercise of the
devolved powers and responsibilities — hence, low quality of local governance. To be
sure, the decentralization has led to not a few innovations in local service delivery and
financing, and in increased people’s participation in local civic activities. However, the
spread of innovation has been slow and there has been less than genuine participation in
the mandated local special bodies. The uneven quality of local governance thus may have
contributed to imbalanced regional growth. Evidence also indicate that the initial level of
economic conditions determine the acceptable quality of local governance, which
explains why certain poor areas remain in the vicious circle of penury and
misgovernance. To help improve the quality of local governance, some policy inputs are
suggested.
