Business Models for Collective Governance and the Proposed Federal Government of the Philippines: A Comparison as Business Models

In the context of a  business model solution, the Business Models for Collective Governance  is compared with the federal government model proposed in the draft “Constitution of the Federal Republic of the Philippines.”  The draft constitution divides the country into  18 federated governments. This federal government model, in essence, is a business model as a whole.  While our business models do not propose a change in the form of government, on the other hand,  the federal form of government requires a change in the charter of the Philippine constitution. 

Once the federal government is activated, it entails a risky transition process.   Nonetheless, the parameters used in comparing the two business models provide a more objective way of analyzing the federal government as an enterprise. While both approaches desire to improve the system of governance in the Philippines for national development and progress, they must be both evaluated based on the technical merits and appropriateness for the time.

The parameters used in the comparative analysis are a) the background and purpose, b) the application as a national economic development strategy,  c) the preparedness in implementation, d) the legal mandates for implementation,  e) the relevance in addressing graft and corrupt practices in governance, f)  the tangible results to be attained in ensuring the trust of the people, g) the system to be followed in the implementation of the business models, h) the assumed risks, i)  the responsiveness when there is an available fund, and j) the appropriateness of the business models to the generation of the adequate fund.

Narrative Summary of Comparison

· Background and Purpose

Business Models for Collective Governance

  •  Introduces collective governance as a participatory development approach that does not usurp the role of the government
  •  Opens to changes in the structure and the  systems of governance through progressive trial and verification of the most appropriate business and governance models by following the grand experiment approach
  • Introduces business models through a progressive approach, by heavily relying on the advancements in science and technology, hence the application of a science-based national development agenda
  • Contributes to updating the government business models through sound collective governance approach
  • Provides a framework for a structured and more sustainable fund generation as international  investors and funders  and the domestic business communities  are largely attracted first to good business models

Draft Constitution of the Federal Republic of the Philippines

 The  federal government system equitably allocates national government resources by creating federal government structures for regional autonomy

  • Each of the  federated governments must develop its own regional development plans that are aligned  with the national development agenda but the present local and regional planning capabilities are still weak, therefore, the transition is risky; furthermore, the government has no track records in fast-paced national and regional development planning
  • Before shifting to the federal government business model,  it must be taken into account  that regional autonomy and equitable distribution of resources and benefits can be attained without changing the form  of government through a science-based national development approach,  the application of artificial intelligence and geographic information systems technologies  in particular
  • Presented as a policy experiment but there is no clear-cut methodology in carrying out the federal government model experiment


Business Models for Collective Governance

  • The business and governance models can be ready for full-swing implementation within one year because it is fitted to the existing system of governance taking into account the prevailing organizational and technical capabilities in the government, local communities,  and the private sectors
  • The business models for collective governance approach  institutionalizes framework for collaboration that holds Filipinos together, and even those  expatriates dispersed all over the world, are given the chance to participate actively in nation-building
  • Laws are not a hindrance to the execution of the business models because existing enabling laws such as the Local Government Code, the Agricultural and Fisheries Modernization Act, the Renewable Energy Act, the Free College Tuition Law, and other laws serve as the anchor of  the business models

Draft Constitution of the Federal Republic of the Philippines

  • The transition towards the  creation of the 18 federated governments under one national government is a long and uncertain process and an expensive and time-consuming contingency plan for this uncertainty is necessary; in other words, the government has no preparation at this time
  • The regions and the provinces do not have the appropriate organizational and technical preparations  for autonomous governance, a fact that is taken for granted or being denied,  but this is a glaring reality all over the country 
  • Even the best universities in the country do not have the academic and research programs for human resources capability building  in line with strengthening the organizational and technical capabilities of the government, the private sector, and the local communities  on the regional levels 
  • It still requires the preparation of a new national development agenda  and the federal development direction for each of the 18 federal governments; national development planning in the Philippines is still following an outdated system
  •  The business models for the  18 federated governments are still to be developed and it will take a period of at least five years to attain proficiency in  regional development planning and the preparation of business models

Legal Mandates

Business Models for Collective Governance

  • The Local Government Code and other enabling laws are enough to introduce new business models
  • The existing enabling laws are taken into account for inclusive national and regional development; in other words, there are no special laws needed to introduce the business models through collective governance

Draft Constitution of the Federal Republic of the Philippines

  • A plebiscite that ratifies the  new constitution is the only legal mandate and providing authoritarian power to the incumbent President during the transition is risky for abuse of authority and losses of time and opportunities due to lack of firm strategic national development direction
  • New laws are needed to legalize the federal government model, which may take at least five years

Addressing Graft and Corruption

Business Models for Collective Governance

  • Graft and corruption can be addressed by good  business models, which is a long-term but a certain solution for managing graft and corrupt practices in the government and the private sector through good collective governance models

Draft Constitution of the Federal Republic of the Philippines

  • Assumes that federalism will improve public governance but another layer in the bureaucracy is added, in other words, federalism has an added cost
  • There is a need for additional taxes to maintain the offices of the federal governments, taxation is  prone to graft and corrupt practices

Implementation of Business Models

Business Models for Collective Governance

  • New business models progressively replace the old ones that basically cover every economic and development enterprise such as rice self-sufficiency, jeepney re-fleeting for transport modernization, coconut industry rehabilitation, waste to energy, agricultural infrastructure modernization, disaster preparedness, healthcare, cooperatives and other vital development enterprises
  • Funding options are clearly laid out without incurring sovereign loans because the projects are  financially self-sustaining investments with the ability to repay for themselves
  • The mechanisms for people’s participation in project ownership and accountability are embedded in the business models through collective governance

Draft Constitution of the Federal Republic of the Philippines

  • There are no available business models that can be used to negotiate for investments for the federal government
  • It takes at least five years to form the new federal structure of government, which delays the implementation of development projects
  • It requires business models to absorb the available fund, which the present government is not yet prepared, how much more a new federal government

If Adequate Fund Should Be Generated

Business Models for Collective Governance

  • The business models are aligned in the context of the fund generation program presented, which implies that there is a built-in mechanism for  securing the needed funding
  • The business models are ready to be transformed into detailed project studies for immediate funding negotiation

Draft Constitution of the Federal Republic of the Philippines

  • Relies on traditional loan through the national government  in the beginning because the federal government has no capability
  • There are adequate appropriate business models to be transformed into project studies that are ready for investment


The political drama in the Philippines is just serving as a  venue for a continuous grandstanding and sowing fear that always attract the attention of the population. On the other hand, both the mainstream media and the alternative media are just reporting events without giving emphasis on the basic operating systems and programs that are going to improve the system of governance in a grand fashion. The politicians from both ends of the spectrum rely heavily on partisan crowds that propagate bias opinions and disseminate fake information. The political base is always important to them. Neither side though can provide a picture of the country’s real development perspective in the context of modern technologies.

Changing the structure and the system of government is not the right approach at this time.  The existing form of government is not a perfect model, but definitely, it can be remodeled using the latest advancements in science and technology. Furthermore, our present form of government has been tested for economic and political stability but can be amended for purposes of adjusting to the needs of the people and the time as well. Apparently, neither side of the political divide has the appropriate solution.

The problem is not the system, but the inappropriate business models and the people who are still maintaining obsolete business models within the current system. Apparently, changes in governance that are even going to divide the country into 18 federated governmental structures have no convincing advantages because the federal governments managed by the same people get the same experimental results. 

Furthermore, the transition to the proposed federal government model is very critical and the risks of failure at this stage is so high. What we need at the moment are just new business models to be injected into the existing system. These business models are designed to first enlighten and empower the people. Eventually, every  Filipino, wherever we are,  are given the fair chance to participate in nation-building.

The political illusion by  anybody in power that the only solution to national economic development is to change the form of government must stop. For instance, Palawan is being divided into three provinces for better delivery of services. This is contrary to any human logic but the law to divide the province passed the Philippine Congress. What Palawan needs is a new development agenda with adequate participation of every party.

The  national development agenda must be through people’s initiative but equipped with new business models and empowered with the collective governance approach to national development. What we need as a country is purely a collective wisdom to be used in agreeing together for the best business models and operating systems.


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