Topic: Classifications of Public Corporations under Political Law and Public International Law

I. Introduction to Public Corporations

Public corporations are legal entities created by law, vested with certain public powers to manage local affairs and administer governmental functions. These entities operate for public purposes and benefit, differing from private corporations that pursue commercial objectives. The most common form of public corporation in the Philippines is the local government unit (LGU).

The Philippine Constitution, the Local Government Code of 1991 (Republic Act No. 7160), and various special laws govern the formation, classification, powers, and functions of public corporations. Understanding the classifications of public corporations is crucial in political law and public international law, as these classifications determine the extent of powers, fiscal autonomy, and responsibilities of such entities.

II. Classifications of Public Corporations

Public corporations in the Philippines are primarily classified based on their nature and functions, as well as the scope of authority they exercise. The following are the classifications:

A. Local Government Units (LGUs)

Local Government Units (LGUs) are political subdivisions of the state that are autonomous to a certain extent, granted certain rights and powers under the Constitution and the Local Government Code. LGUs in the Philippines are classified into different levels, with each level having varying degrees of political, fiscal, and administrative autonomy.

Provinces
- Definition: A province is the largest political unit in the country and is comprised of component cities and municipalities. It acts as an intermediate level between the national government and the municipal or city government.
- Powers and Functions: Provinces exercise both executive and legislative functions. The executive power is vested in the Provincial Governor, while the legislative power is vested in the Sangguniang Panlalawigan (Provincial Board).
- Examples: Cebu, Laguna, Bulacan.
Cities
- Definition: A city is a political unit that is often more autonomous than a municipality, with a larger population and more economic activity. Cities are classified into highly urbanized cities (HUCs), independent component cities (ICCs), and component cities (CCs).
  - Highly Urbanized Cities (HUCs): Cities with a population of at least 200,000 inhabitants and an annual income of at least PHP 50 million. These cities are independent of the province and do not vote for provincial officials.
  - Independent Component Cities (ICCs): Cities that are not under the administrative supervision of the province but are not HUCs. ICCs are independent in terms of their operations.
  - Component Cities (CCs): Cities that are part of the province and subject to provincial supervision.
- Powers and Functions: Cities are empowered with more autonomy than municipalities, with extensive fiscal powers and broader jurisdiction over services.
- Examples: Quezon City (HUC), Iloilo City (ICC), Baguio City (CC).
Municipalities
- Definition: A municipality is a political unit that is generally smaller in size and scope compared to cities. It serves as the local government entity for more rural or less densely populated areas.
- Powers and Functions: Municipalities are governed by a Mayor (executive) and the Sangguniang Bayan (legislative). They are responsible for delivering basic services to their constituents.
- Examples: Pagsanjan, Taal, Kalibo.
Barangays
- Definition: The barangay is the smallest political unit in the Philippines, functioning as a grassroots government unit.
- Powers and Functions: Barangays are responsible for delivering basic local services, including public safety, sanitation, and community-level dispute resolution through the Lupong Tagapamayapa. The barangay is headed by a Punong Barangay (Barangay Captain), with the Sangguniang Barangay as its legislative body.
- Examples: Barangay San Antonio (Makati City), Barangay Poblacion (Mandaluyong).

B. Special Metropolitan Political Subdivisions

Metropolitan Manila Development Authority (MMDA)
- Definition: The MMDA is a special public corporation created by Republic Act No. 7924, tasked with the management of Metro Manila, an area comprised of multiple highly urbanized cities and municipalities.
- Nature: It is not an LGU but a government agency with both administrative and regulatory functions over Metro Manila.
- Powers and Functions: The MMDA handles urban planning, transportation management, waste management, flood control, and other regional concerns across the National Capital Region (NCR).
- Example: Metro Manila.
Autonomous Regions
- Definition: Autonomous regions are political subdivisions that have been granted administrative and fiscal autonomy due to historical, cultural, and geographical considerations. Currently, the only autonomous region in the Philippines is the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
- Legal Basis: Autonomous regions are established under the Constitution, and the details of their powers and functions are specified in organic laws (Republic Act No. 11054 for BARMM).
- Powers and Functions: Autonomous regions have legislative power through their regional assemblies and executive power through a regional governor. They enjoy broader fiscal autonomy than other LGUs, with control over natural resources, taxation, and revenue-sharing schemes.
- Example: Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

C. Quasi-Public Corporations

Quasi-public corporations are entities that perform certain public functions, but they are either privately controlled or semi-governmental. These corporations may not be directly classified as LGUs but are still involved in the management of public services or public infrastructure.

Government-Owned and Controlled Corporations (GOCCs)
- Definition: GOCCs are entities created by law, owned by the government, and organized to conduct both commercial and public service functions.
- Powers and Functions: GOCCs have varying degrees of autonomy and operate with a certain degree of financial independence. They are subject to rules on transparency, accountability, and governance provided in the GOCC Governance Act of 2011 (Republic Act No. 10149).
- Examples: Philippine National Oil Company (PNOC), Philippine Amusement and Gaming Corporation (PAGCOR), Land Bank of the Philippines (LBP).

D. Other Special Districts and Authorities

Local Special Bodies
- These are bodies created within LGUs for special purposes, such as the Local School Board, Local Health Board, and Local Development Council. They function to assist in specific aspects of local governance and are composed of both government officials and private sector representatives.
Economic Zones and Development Authorities
- Special economic zones are created under Republic Act No. 7916 (Special Economic Zone Act) to attract investment and provide employment in specific areas. These zones are governed by development authorities or corporations, such as the Subic Bay Metropolitan Authority (SBMA) or the Philippine Economic Zone Authority (PEZA), which regulate business operations within these zones.

III. Conclusion

Public corporations in the Philippines are categorized into various classifications, each designed to serve distinct governmental functions or specific territorial jurisdictions. From local government units to special metropolitan authorities, autonomous regions, and quasi-public corporations, these entities play a critical role in decentralized governance, public service delivery, and regional development. Each classification of public corporations possesses varying degrees of political, fiscal, and administrative autonomy, as specified by law, contributing to the overall structure of governance in the Philippines.