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AFTER announcing its readiness to finance the Philippine
government’s cash-transfer program, the World Bank is now
encouraging the country to further tap its facility to address the
problem of tight and costly commodities.
Bert Holfman, country director, said the World
Bank has $1.2-billion budget for global assistance to countries like
the Philippines that suffer from rapid spike in consumer prices on
the back of skyrocketing oil and rice adjustments.
The World Bank representative said the facility
is specifically intended to address the global food crisis by
investing more in increasing the output of the agriculture sector.
Holfman said tapping the facility would mean
higher budget for the Department of Agriculture’s irrigation
rehabilitation program and farm-to-market road projects.
Saying “the Philippine government is
eligible,” he added the national government will have an easier
time accessing World Bank’s $1.2-billion lending window in light
of the food crisis.
The Country Assistance Program of World Bank has
set aside $950 million for the Philippines every year. To date, the
national government has tapped $230 million of the country’s
allotment.
Rising food prices have sparked widespread
unrest and rising malnutrition, with a number of countries reducing
food exports to ensure domestic supply.
The $1.2-billion rapid-response facility
supports safety net programs, such as food for work, conditional
cash transfers, and school feeding for the most vulnerable.
The fund also provides support for food
production by supplying seeds and fertilizer, improving irrigation
for small farmers, and providing budget support to offset tariff
reductions for food and other unexpected costs.
Due to skyrocketing commodity prices, Finance
Secretary Margarito B. Teves said the government is willing to spend
up to P75 billion more than the P1.2 trillion approved budget.
The Finance department is likewise looking at
the sale of more state assets and fresh borrowings to fund the
government’s higher spending tack.
-- Chino S. Leyco
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