Regions and Countries

	Table of Contents
p. 15 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Subregional Economic Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Philippines

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IV. Subregional Economic Cooperation

66. The Philippines is a member of the BIMP-EAGA which was created in 1994 with a view to enhance regional cooperation by making use of:

1. cross-border complementarities and economies of scale in production;
2. joint infrastructure provision; and
3. closer cooperation in trade and finance.

Philippine constituent areas in BIMP-EAGA are the islands of Mindanao and Palawan. Mindanao’s numerous small-and medium-scale entrepreneurs could find new trade outlets in the BIMP-EAGA region or collaborate with entrepreneurs in other EAGA countries to access inputs, raw materials, and technology to improve competitiveness of their products. However, the physical infrastructure in the region is still largely inadequate; major investments in BIMP-EAGA, apart from tourism, have not been undertaken. Economic complementarities are actually constrained and capacities to enhance regional economic cooperation among the member countries are still weak.

67. The BIMP-EAGA initiative has aroused considerable interest among private investors, including foreign investors. However, actual investment flows have not been significant so far, due to inadequate progress in infrastructure development, and the temporary dampening of economic activity caused by the economic crisis. Plans to improve transport infrastructure linkages, particularly in air transport and shipping, are now under implementation. ADB is assisting the Government in the development of roads and airports, in social development, in capacity building initiatives for local governments in the area, and in the development of private sector activity. As the recent economic crisis in the region subsides, economic activity has resumed in most countries in the ASEAN region, and the BIMP-EAGA initiative could gain momentum if supported, provided the current conflict in Mindanao is not prolonged. ADB is resuming TA assistance for capacity building of the Mindanao Economic Development Council in its new role as coordinating office for the BIMP-EAGA. A RETA for developing SMEs in the BIMP-EAGA area is also underway.

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