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The World Bank has held multi-stakeholder consultations to help the Bank prepare the Country Assistance Strategy (CAS) for the Philippines for fiscal year 2006-2008. It has discussed development issues with the government, private sector, academic institutions, non-government organizations, civil society, and even with the country’s opinion leaders.

The CAS governs the Bank’s program of development assistance to the Philippines. It is reviewed every three years to ensure that it remains responsive to the development needs of the country.

The Bank, led by Country Director Joachim von Amsberg, has met various stakeholders in Luzon, Visayas, and Mindanao and discussed issues and ways to improve
development in these regions. The meetings also allowed the different sectors to discuss macro-economic and fiscal stability, growth, social inclusion, and good governance.

The Bank, which has been encouraging discussions on development policy issues relevant to the Philippines, believes that the Philippines has valuable assets—highly educated and entrepreneurial people and rich natural resources—that offer vast potentials for development. But the country’s economic growth has been relatively slow compared to its neighboring countries, and investments have been low. Further, poverty and inequality have remained high and access to basic services like health, education, water and security has been limited.

The Bank thinks that better development outcomes could be achieved if governance would improve. Many public institutions could work better for the common good if issues on inefficiency, capacity, corruption and capture would be addressed.

Growth and Social Inclusion
Given this situation, the Bank , in all the multi-stakeholder consultations, has asked for ideas on how to assist the Philippines achieve higher economic growth and improve social inclusion or equity.

The Bank believes that growth can be realized by restoring fiscal sustainability, enhancing investment climate, deepening financial system, improving quality and distribution of infrastructure, balancing urban growth, and creating competitive labor force. Social inclusion, meanwhile, can be achieved by improving access to key public services, sustaining agrarian reform, and improving sustainability of natural resources.

Further, it identifies two major levers for reform—restoring fiscal stability and improving governance, both at the local and national levels.

In addition to multi-stakeholder consultations, the Bank has conducted a client survey and will come up with a completion report on the CAS for fiscal year 2003-2005.

These consultations, client survey and CAS review will help the Bank prepare the new CAS for the Philippines.

The new CAS will be based on the Bank’s experience in implementing the current strategy and the priorities identified in the government’s Medium-Term Development Plan. It will be presented to the Bank’s Board of Executive Directors in the first half of 2005.

Under the current CAS, the Bank is prepared to provide up to US$1 billion in loans to the Philippines over the three-year period to support measures that will increase economic growth and improve the access of the poor to basic services such as health, education, electricity, water, and roads, as well as to productive assets like land and credit.

The Bank also provides the government policy advice and technical assistance to improve the delivery of services to the poor, strengthen the business environment, and support peace and development in Mindanao.

As of July 2004, there are 23 World Bank-assisted projects that aim to invest in people, develop the rural areas, make cities more livable, strengthen infrastructure, stimulate the private sector, and improve governance. More than half of the projects aim to directly reduce poverty.

 Download the presentation given by World Bank Philippines Country Director Joachim von Amsberg (PDF version - 346 KB, PowerPoint version - 460 KB)

More information:
 Discussion Briefs for Development Policy Debate
 Philippines 2003-05 Country Assistance Strategy