Federalism is concerned with the sharing of sovereignty. Among whom?

One national (or federal government) that encompasses all of a

country, and several lower state or regional governments that make up that country. This sharing of sovereignty or powers can mean that in
a federal setup, the federal government has the final say on matters such as monetary policy, national defense, and foreign relations, whilst
the regional or state governments have the last word on areas such as agriculture, education, health, among others. In short, a federal
government is so designed so that these two levels of government are self-determining in there constitutionally-determined spheres of
influence.

This is unlike the current unitary setup in the Philippines. In a unitary setup, the final say on all government matters emanate from one central
government. But although our country is unitary, its central government delegates some powers and functions to legally recognized lower
levels of government. According to Professor Atienza, the central government maintains supervisory powers and an important financial
role (i.e., as funder) over these lower levels of government. This is called devolution, a campaign issue that Senator Grace Poe has raised on
several occasions.

Pros

Breaking political dynasties. While acknowledging that federalism can open up the system to more dynastic influences, the creation of
regional governments in a federal setup can become a way of widening the playing field. Dynasties are extremely predatory within provinces
but should fully functioning regional governments be created, the provincial dynasties who would aspire to hold the regional power would find
the contest to be more competitive. Theres a chance that the best performing dynasty would emerge.

Subsidiarity. Decentralized governance is also related to the principle of subsidiarity: Problems should be attended to at the lowest level in
which they can be solved, by the people directly concerned, without elevating the problems for decision at higher levels.

With more power, authority and resources managed by the leaders in the States and their local governments which will be more visible and
accessible to the people all over the country, the people will be more aware of the importance of electing good leaders.

The federal structure devises a flexible arrangement for varying forms of self-government to suit different circumstances and contingencies.

Locals decide for themselves. Regions have their own unique problems, situations, geographic, cultural, social and economic contexts.
Federalism allows them to create solutions to their own problems instead of distant Metro Manila deciding for them.

The states can establish policies that may not be adopted nationwide. For example, liberal Metro Manila can allow same-sex marriage which
the state of Bangsamoro, predominantly Muslim, would not allow. In the United States, some states like Colorado and Washington have
legalized recreational marijuana even if other states have not.

This makes sense in an archipelago of over 7,000 islands and 28 dominant ethnic groups. For decades, the national government has been
struggling to address the concerns of 79 (now 81) provinces despite challenges posed by geography and cultural differences.

With national government, and thus power, centered in Metro Manila, it's no surprise that development in the mega city has spiralled out of
control while other parts of the country are neglected.

More power over funds, resources. Right now, local government units can only collect real estate tax and business permit fees. In federalism,
they can retain more of their income and are required to turn over only a portion to the state government they fall under.

Thus, local governments and state governments can channel their own funds toward their own development instead of the bulk of the money
going to the national government. They can spend the money on programs and policies they see fit without waiting for the national
government's go signal.

Promotes specialization. The national and state governments can specialize in different policy domains. With most administrative powers
now with the regional governments, the national government can focus on foreign policy, defense, and other nationwide concerns, like
healthcare and taxation.

States have more autonomy to focus on economic development using their core competencies and industries. The state of Central Luzon can
focus on becoming an agricultural hub. The state of Mimaropa, home to Palawan, can choose to use eco-tourism as its primary launch pad.

Possible solution to the Mindanao conflict. The creation of the state of Bangsamoro within a federalist system may address concerns of
separatists who crave more autonomy over the administration of Muslim Mindanao.

Decongestion of Metro Manila. Through fiscal autonomy for state governments, federalism will more evenly distribute the country's
wealth. In 2015, 35% of the national budget went to Metro Manila even if it represents only 14% of the Philippine population.

Lessens dependence on Metro Manila. When there is political upheaval in Metro Manila, other regions that have nothing to do with the
chain of events are left waiting for the resources that ony the national government can release. With federalism, regions work independently
of Metro Manila for most concerns.

Brings government closer to the people. If detractors say federalism will only make local political dynasties more powerful, supporters
give the argument that, in fact, it will make all local leaders, including those part of political dynasties, more accountable to their constituents.
State governments will no longer have any excuse for delays in services or projects that, in the present situation, are often blamed on choking
bureaucracy in Manila.

Assuming more autonomy for regions leads to economic development, there will be more incentive for Filipinos to live and work in regions
outside Metro Manila. More investors may also decide to put up their businesses there, creating more jobs and opportunities to attract more
people away from the jam-packed mega city.
Encourages competition. With states now more self-reliant and in control of their development, they will judge themselves relative to how
their fellow states are progressing. The competitive spirit will hopefully motivate state leaders and citizens to level up in terms of quality of
life, economic development, progressive policies, and governance.

http://www.rappler.com/nation/politics/elections/2016/120166-federalism-pros-cons-explainer