Regions and Countries

	Table of Contents
p. 16 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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V. Donor Activities and Aid Coordination

68. The consensus among donors is to promote a more equitable sharing of the benefits of economic growth, reducing poverty at a faster pace, and enhancing self-reliance and service delivery capacities of local governments. As of December 1999, there were 185 ongoing donor assisted projects in the Philippines involving investment of $12.2 billion. Japan remains the largest donor to the Philippines, accounting for 50 percent of the total donor commitments, followed by ADB (25 percent) and the World Bank (21 percent).

69. Japan provides official development loans and untied loans through JBIC, and grants and technical assistance through the Japan International Cooperation Agency (JICA). Japan’s country strategy for official development assistance emphasizes:

1. strengthening of economic infrastructure, especially in power, transport, and industry;
2. poverty reduction and regional development through promoting rural development and improving basic social services;
3. environmental conservation and disaster management; and
4. human resource development.

70. The main thrust of the World Bank’s current country assistance strategy for the Philippines is reducing poverty through restoring economic growth and improving equity. The following seven areas have been identified as its operational priorities:

1. economic recovery;
2. human development and social services for the poor;
3. rural development;
4. urban development and urban poverty;
5. infrastructure development, particularly in the provinces;
6. private sector development; and
7. governance, including anti-corruption.

71. The UN agencies (UNDP, UN Children’s Fund [UNICEF], and UN Population Fund [UNFPA]) are active in poverty alleviation, environmental improvement, good governance, human development, child welfare, and family planning. UNDP, in cooperation with bilateral donors, has been actively supporting post-conflict peace building and capacity building of Muslim communities in Mindanao to initiate a process of sustainable development.

72. The major bilateral donors to the Philippines include the United States, Australia, and Germany. Through the United States Agency for International Development (USAID), American assistance aims at promoting economic transformation in Mindanao, trade and investment, health and family planning, environmental management, and participation in public policy. It is also involved in policy work in capital market development. The Australian Agency for International Development (AusAID) mainly supports rural income generation, health, education and the environment. Geographically, Australian assistance focuses on the Southern Philippines, particularly Mindanao. German assistance gives priority to natural resources management, vocational training, industrial and urban environmental management, maritime safety, and health and family planning. It is also active in promoting small and medium enterprises (SME) development. The assistance will focus on the Visayan region, with specific measures for Muslim Mindanao.

73. Annual consultative group (CG) meetings provide opportunities for the Government and donors to conduct policy discussions on the Government’s socioeconomic management of the economy and coordinate foreign development assistance. The 2000 CG meeting was held in Tagaytay City, Philippines, in June 2000 where donors pledged a total of $2.6 billion in assistance. In addition to CG meetings and general coordination activities during programming and project processing, donors to the Philippines have been collaborating closely to improve the performance of the Official Development Assistance (ODA) portfolio, particularly since 1999 (see also para. 26), and in important strategic areas such as poverty alleviation (see also paras. 8 and 29 above).

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