Centrist Democratic Party (CDP) Northern Mindanao

+6388-850-8353

www.cdp.ph

SOCIAL MARKET ECONOMY

The socio-economic concept “Social Market Economy” (SME) was first used in Germany when the Germans rebuilt their society after the Second World War. However, its underlying principles are universal and applicable all over the world as an alternative to the then existing economic world order: the planned economy practiced in socialist and communist countries like China & the USSR; and the liberal market economy championed first by the US.

SME is built on three pillars:
An open, well-functioning market mechanism
A strong, subsidiary state, and
A responsible citizenship

In a Social Market Economy:
¨ Citizens are primarily responsible for their own lives and that of their families;
¨ They are responsible for their neighborhoods and the organization of their local, social and professional communities;
¨ Citizens cooperate with one another in solving conflicts of interests, and compromise and find solutions based on consensus;
¨ They support the state’s role as framework provider, coordinator and supervisor of a fair and beneficial order for all parts of the population.


SUBSIDIARITY, DECENTRALIZATION & FEDERALISM

Subsidiarity

Our present government structure is a highly-centralized unitary structure that’s dominated by the national government in Metro Manila. Most local governments have remained weak and dependent on the decisions of national officials and offices and on the meager releases of their internal revenue allotments (IRA). Local and regional development and self-reliance are stifled by this system of central domination and regulation. This structure is not acceptable and the response of CDP to reform and correct this is one of the cornerstones of the Centrist agenda.

Subsidiarity is a political theory or organizing principle which posits that matters ought to be handled by the smallest, lowest or least-centralized competent authority. A central authority should have a subsidiary function, performing only those tasks which cannot be performed effectively at a more immediate local level.

Decentralization

Decentralization is “the process of dispersing decision-making governance closer to the people and/or the citizens. It includes the dispersal of administration of governance to lower structures.”

¨ Decentralized Government. The transfer of authority and responsibility for public functions from the central government to subordinate government structures i.e. raise and spend their own funds and taxes (provided the state, province, city or municipality are economically viable)
¨ Political Decentralization. Gives citizens or their elected representatives more power in public decision-making; supports democratization by giving citizens or their representatives more influence in the formulation and implementation of policies that will affect them
¨ Administrative Decentralization. Redistribution of authority, responsibility and financial resources for public services among different levels of governance; the transfer of responsibility for planning, financing, management of public functions from central governments and its agencies to local governments i.e. de-concentration, delegation, devolution.