1 ANALYSIS ON THE STRATEGIC ROLE OF LOCAL GOVERNMENT UNITS IN LOCAL DEVELOPMENT IN THE PHILIPPINES JON LEO J. LICAYAN, CPA I. INTRODUCTION This section provides an overview of the strategic role of local government units pursuant to the Local Government of 1991, and the impact of Mandanas- Garcia Ruling in full devolution. The Role of Local Government Units Article X, Section 2 of the 1987 Philippine Constitution provides that “the territorial and political subdivisions shall enjoy local autonomy.” Further, Section 3 provides that the Philippine Congress shall “enact a local government code which shall provide for a more responsive and accountable local government structure instituted through a system of decentralization.” Accordingly, on October 10, 1991, the Philippine Congress approved the Local Government Code of 1991, later enacted by then-President Corazon C. Aquino as Republic Act No. 7160. The Local Government Code (LGC) of 1991 serves as the bible of local government officials in discharging their dual functions, which are political and corporate, to develop their community as a self-reliant and active partner of the national government in attaining its goals. This law effectively devolved national administration – but not power - to the local levels (Guanzon v. Court of Appeals, 1991). Thus Section 16 provides that local government units shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and