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By Chino S. Leyco And Katrice R.
Jalbuena Reporters
The Philippines may have passed a
perceived anti-corruption test given
by the Millennium Challenge Corp. but the American firm is
withholding a possible aid grant until the government of President
Gloria Arroyo shows sincerity in hurdling blocks to curbing poverty
and sustaining growth.
In apparent recognition of steady
inroads achieved through economic reforms and good governance, the
Philippines has achieved Compact Country Status under the
corporation’s Millennium Challenge Account.
In a report by the Philippine
Embassy in Washington, D.C., the Board of Directors of the
corporation has designated the Philippines as a Compact Country.
“Congratulations to the
Government of the Philippines for its demonstrated commitment to
tackling difficult challenges and improving the lives of its
people,” Ambassador John Danilovich, the corporation’s Chief
Executive said.
But while eligibility is an
essential first step toward a poverty-reduction grant, Danilovich
pointed out, selection does not guarantee funding.
“The Philippines, like
all countries eligible for a compact, must maintain its performance
on (our) selection criteria and must now begin a broad-based
consultative process with its people to develop a proposal that
addresses the country’s barriers to poverty reduction and economic
growth,” he said.
“As partners, we agree
that ending corruption and finding long-term ways to reduce poverty
are urgent priorities that deserve our full attention,” Danilovich
added.
Proposals for poverty
reduction required
Countries selected as eligible
for a large-scale grant, or compact, have the opportunity to submit
a proposal for a five-year program to lessen poverty through
long-term growth.
Once selected as eligible, they
begin a consultation process that includes citizens, non-government
organizations, and representatives of the private sector and the
government to identify the barriers to poverty reduction and
economic growth.
Teams from the corporation then
work in partnership with the countries on their compact proposals to
ensure that projects meet targets on sustaining growth and reducing
poverty.
The resulting compact also sets
forth how a country plans to manage and implement its Millennium
Challenge Account program, including how it will ensure financial
accountability, transparency, fair and open procurement, and
measurable results.
The Millennium Challenge Corp. is
a US government company designed to work with developing countries.
The partnership is based on the principle that aid is most effective
when it reinforces sound political, economic, and social policies
that promote poverty reduction through economic growth.
By being designated a Compact
Country, the Philippines is eligible for enhanced and
intensified development assistance from the United States under a
program to be developed by the corporation.
A study team from the corporation
is set to visit and evaluate the Philippines further to better
prepare the program in three key areas of governance.
President Arroyo welcomed the
announcement from the Board of the Directors headed by US Secretary
of State Condoleezza Rice.
“We will maintain our gains and
continue to improve in these areas because the Filipino people
deserve good and just governance. They are worthy of a government
that invests in their future and well-being. They deserve an economy
that continues to grow and provide opportunities, “ she said.
In its selection of the
Philippines, the corporation assessed the degree to which the
political, social and economic conditions in the Philippines promote
broad-based, sustainable economic growth.
The evaluation used objective and
quantifiable policy indicators in the three key areas: Ruling
Justly, Investing in Health and Education, and Encouraging Economic
Freedom.
The corporation based its
decision on policy indicators provided by independent third-party
institutions that relied on objective, publicly available data, and
an analytically rigorous methodology.
It identified 17 indicators for
evaluation including, under Ruling Justly: rule of law, control of
corruption, government effectiveness, voice and accountability.
Under Investing in Health and
Education, the indicators were: health expenditures, primary
education, and natural-resources management.
Under Encouraging Economic
Freedom, the indicators were: sound fiscal and trade policy and
controlling inflation.
The corporation sought indicators
that have broad country coverage, cross-country comparability, and
broad consistency in results from year to year.
It also sought indicators that
are linked to economic growth, poverty reduction, and government
policies.
Recently, the Philippines
successfully concluded a two-year Threshold Country Program on
anti-corruption from the corporation.
Tanzania, the latest to be
granted Compact Status Country last month, received a development
assistance package of $698 million.
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