The Philippines recently passed governance tests by the Millennium Challenge Corp. making it eligible for a second grant from the United States agency.
The Department of Finance (DOF) yesterday reported that the MCC Board of Directors highlighted the Philippine government’s efforts toward good governance and improved policy performance in promoting inclusive economic growth, including the control of corruption indicator.
The scorecard system is a mechanism developed by MCC to measure a country’s performance, as compared with countries of similar per capita income, in 20 third-party indicators divided into three broad categories: Economic Freedom, Investing in People and Ruling Justly and contributing as basis for eligibility of a country to access Compact grants from the US Government.
The DOF noted that in the MCC Scorecard FY2015, the Philippines earned improved scores in Rule of Law (from 42 percent to 54 percent); and Control of Corruption (from 46 percent to 61 percent) under the Ruling Justly category.
This, coupled with consistent passing scores in indicators in Economic Freedom and Investing in People (such as fiscal policy, inflation, regulatory quality, natural resource protection, and child health), earned the Philippines eligibility for a new compact with MCC, the agency said.
Scheduled to be completed in May 2016, the Philippines is currently in the latter stage of implementation of the first compact with MCC amounting to $433.91 million worth of grants to support rehabilitation of the Samar Road of the Department of Public Works and Highways, Kalahi-CIDSS community-driven development projects of the Department of Social Welfare and Development, and revenue reform and anti-corruption efforts of the Department of Finance through the Bureau of Internal Revenue and the Revenue Integrity Protection Service.
“The Philippines’ eligibility adds to the virtuous cycle we began with good governance in our bid to promote inclusive, sustainable growth,” Finance Secretary Cesar Purisima said.