The World Bank Group’s new Country Assistance Strategy is focused on “Making Growth Work for the Poor”.
Making growth work for the poor means making sure that no one is left behind when the economy improves. Households and communities, especially the most at risk, should have better income opportunities and less vulnerability to sudden economic difficulties. They should have better education, good health care, and have access to information and infrastructure, thus empowering them to participate in economic activities and transform their lives.
The World Bank Group will also help national government agencies, local government units, and other sectors of society demonstrate improved accountability and transparency for better economic outcomes.
One Bank Group
The World Bank and the International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, will work together in combating poverty and promoting inclusive growth in the Philippines. The Bank is prepared to provide US$700 million to US$1 billion in support per year for the next three years, coupled with a large program of analytical and advisory activities (AAA). IFC’s investment program will be in the range of US$250-US$300 million per year.
The World Bank and the IFC will pursue collaborative programs in infrastructure, agribusiness and in the financial sector which have significant development impact and where a combination of public and private sector actions are needed.
Another member of the World Bank Group, the Multilateral Investment Guarantee Agency (MIGA), will provide guarantees to foreign investors against losses caused by non-commercial risks, as well as technical assistance to help countries disseminate information on investment opportunities.
Response to the Crisis
While the CAS serves as the three-year framework that guides the World Bank’s operations in the Philippines, it was also crafted in response to the evolving global economic crisis.
Four Strategic Objectives, One Cross-Cutting Theme
Anchored in the country’s Medium Term Philippine Development Plan, the new CAS aims to help the Philippines achieve inclusive growth through the following strategic objectives:
Amid the risks posed by the global economic slowdown, the World Bank Group will help ensure that economic stability is preserved and that growth prospects are improved. The Bank will work with the government towards managing public resources more efficiently. It will help generate more revenues by improving tax administration and revenue collection. It will help ensure that public spending is targeted and transparent and that fiscal and financial risks are well managed.
Quality infrastructure, a good regulatory framework for private sector participation, increased investment and employment in rural and urban development, and access to finance are necessary to improve the business climate.
To help reduce the cost of doing business, the World Bank Group will promote private investments in infrastructure, specifically roads and power, through public-private partnerships. Where the private sector is involved, the Bank will help develop transparent and stable regulatory frameworks to balance consumer and investor concerns. The Bank Group will help promote and facilitate access to affordable finance by LGUs, small farmers, and agribusiness firms to enable them to invest in micro, small, and medium enterprises. LGUs, especially the low income ones, will be assisted in increasing their own-source revenues and accessing additional sources of funds to enable them to provide services that will improve the local business environment.
The CAS seeks to address comprehensively the education, health, water and sanitation needs of the poor through an inter-agency and inter-governmental approach. To accelerate the delivery of services, the World Bank will work with government, development partners and civil society organizations to support scaled-up community-driven development (CDD) programs in disaster and conflict areas and in vulnerable and marginalized communities. The role of LGUs in the delivery of health and education services will be strengthened through capacity building and performance-based incentives.
The CAS supports the government’s efforts to protect the poor from sudden economic difficulties. The World Bank Group will assist the government in putting in place a national poverty targeting system and operationalizing the conditional cash transfer program. It will support efforts to enhance the impact of development programs in conflict-affected areas in Mindanao and to scale up provision of basic services and livelihood support in communities affected by armed conflict. The Bank will also help mitigate disaster- and climate change-related risks and reduce greenhouse gas emissions in key sectors.
Helping the government strengthen public institutions is a key objective of the CAS. In line with the Bank’s country governance and anti-corruption framework, the Bank Group will promote good governance as a cross-cutting theme. It will assist the country in improving transparency, accountability, and participation at the national and local levels.
The World Bank will help strengthen core business processes and systems of national government agencies particularly in public financial management, procurement, and decentralization to sustain gains in governance reforms. It will assist in the strict enforcement of the Procurement Law and greater efficiency and transparency in the management of public finances. It will pursue capability building for local government officials and continue to encourage civil society and the academe to demand more transparency in Bank-supported programs and in the country’s own governance systems.
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