By Nick Mann | 20 March 2013
The World Bank is lending the Philippines $300m to help it achieve ‘sustained, inclusive’ growth by improving its public financial management and increasing access to basic education and health care.
The Development Policy Loan, approved by the Bank’s board of directors yesterday, is also aimed at boosting the competitiveness of the Philippines economy. It will be used to reduce the cost of doing business and support infrastructure investment.
World Bank country director Motoo Konishi said: ‘The Philippines is vigorously implementing a comprehensive reform agenda centred on restoring people’s trust in government through improved governance and empowering them to rise above poverty.
‘We are pleased to support the programme through the DPL as well as through our broader engagement under the Bank’s country assistance strategy.’
The Philippines is one of the fastest growing economies in East Asia. Last year, it recorded 6.6% growth, up from 3.9% the year before. The country’s finance secretary, Cesar V Purisima, said the World Bank loan would boost the country’s efforts to ensure that more of the country’s population, and in particular the poor and vulnerable, were able to contribute to and benefit from this growth.
‘With this new financing programme, we are ramping up investments in infrastructure to make the country more conducive to doing business. We have increased allocation for tourism infrastructure in order to attract more tourists from within the country and abroad. All these measures help generate more jobs,’ he added.
This is the Philippines’ second DPL. An earlier $250m loan, approved in May 2011, was used to improve transparency and accountability in government budgeting and spending. It was also spent on improving and increasing basic education and health care services for low-income families.
Philippines budget secretary Florencio B Abad added: ‘The government has opened up the budget preparation process to civil society organisations and has launched the “people’s budget” website, containing citizen-friendly information about the budget. Measures like these improve transparency and social accountability as well as help ensure better delivery of public service.’
