MANILA, MARCH 20, 2009—World Bank Group announced today that it has completed consultations with the representatives of the Philippine Government on the World Bank Group’s emerging Country Assistance Strategy (CAS), the framework that guides the Bank’s program of assistance for the Philippines. The proposed new CAS is scheduled to be discussed by the Bank’s Board of Executive Directors in end April 2009, and will cover the period July 2009 to June 2012.
Anchored in the Government’s Medium-Term Philippine Development Plan (MTPDP) 2004-2010, the proposed CAS—a joint assistance strategy of the World Bank, International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) — puts greater emphasis on poverty alleviation and good governance. Its overall goal is to support the Government in achieving inclusive growth by pursuing the following strategic objectives: stable macro economy; improved investment climate; better public service delivery; and reduced vulnerabilities. A fifth and cross-cutting objective, good governance, will involve further operationalization of governance in all Bank-supported activities.
Mr. Bert Hofman, World Bank Country Director, said that the new CAS—forged out of extensive nationwide consultations initiated since June 2008 with Government and various groups including development partners, civil society organizations, academe, private business, church-based organizations, labor, and other groups — aims to help the Government make growth work for the poor. “In times of uncertainties like the current global financial crisis, inclusive growth calls for greater social protection for the poorest of the poor to help them cope with economic shocks as well as the impacts of disasters and calamities induced by climate change,”Mr. Hofman added.
Mr. Rolando Tungpalan, Deputy Director General of the National Economic and Development Authority (NEDA) who led the Government team at the CAS/Program Meeting, said, “The fact that the World Bank Group is coming up with a three-year strategy for the Philippines, consistent with our MTPDP, is an affirmation of its continued support for the country’s development agenda. The flexibility offered by the emerging CAS in terms of the indicative financing program is welcomed by the Philippine Government, particularly given the current global economic crisis which may impact on the priorities of the Government. The Government also appreciates the results orientation of the new CAS, as well as its support to the Government’s harmonization program, which is very much consistent with the principles of the Paris Declaration and Accra agenda.”
The IFC is the private sector financing arm of the World Bank Group providing project financing and advisory services to businesses and countries, and is actively engaged in the Philippines primarily in the areas of infrastructure, access to finance, business enabling environment, agribusiness and sub-national financing. Also part of the World Bank Group, MIGA provides guarantees to foreign investors against losses caused by non-commercial risks as well as technical assistance to help countries disseminate information on investment opportunities.
The World Bank Group will operationalize the CAS through engagements at the national, local, and private sector levels.
During the latest consultations, representatives of the Philippine Government and the World Bank discussed indicative financing and analytical and advisory activities (AAA) programs under the new CAS. The proposed indicative World Bank financing program for the Philippines is in the range of US$700 million-US$1bilion per year, together with a robust program of analytical and advisory activities.
To support a stable macro economy, possible operations for the CAS period include program-based development policy operations, and various AAA. To support improvements in the investment climate, operations and AAA discussed include those relating to transport, rural power, agriculture and agribusiness development, urban renewal, private-public partnerships in sub-national water projects, and local government finance.
To support better public service delivery, continuing support to ongoing programs in the education and health sectors, and community-driven development will be pursued, as well as relevant AAA. To reduce vulnerabilities, programs will be supported in the areas of: social protection system; disaster risk management and climate change; and stability and peace.
Finally, as a cross-cutting objective, governance will be mainstreamed in all Bank activities. In addition, specific operations and AAA to support good governance will be pursued in the areas of governance and anti-corruption in selected agencies; procurement and public financial management reforms; and better local governance through more effective decentralization.
Mr. Bert Hofman commended the Government and other development partners for their active participation throughout the formulation of the Bank’s strategy. “This signifies a strong partnership for development, which we believe to be a strong asset for the country and crucial for achieving results on the country’s development goal,” said Mr. Hofman.
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