The Structural Drivers And Political Facilitators Of Local...

Question 1. What is relationship between the structural drivers and political facilitators of local government bankruptcy? The main ingredient for a local government bankruptcy to happen is structural weaknesses in the systems and policies of the local government unit (LGU) coupled with political facilitators within the LGU. These weaknesses may refer to rules that are not being followed when issuing licenses or permits, say on building permit or excavation permit in order to favor a friend or a political ally. Poor financial management is another trigger for LGU bankruptcy when an elected official pressures the certain officers and staff in the unit in releasing funds to his/her ambitious project because election time is nearing. This can only be done with the cooperation or collusion of people within the bureaucracy because in return they may also get some paybacks from the elected official. The check-and-balance systems should be in place to prevent getting into the red. T here should be transparency. Periodic audits should be done by an independent party. Even when all mechanisms are present to make the bureaucracy function cleanly and effectively, if there is a political facilitator who comes from the top level of the bureaucracy, these good systems can be compromised with just a phone call or some marginal note from the high-ranking elected official. 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