The Philippines has joined mounting calls for urgent reform of the international financial system, stressing the need for more inclusive support mechanisms for middle-income countries (MICs) facing global economic and development challenges.
The Department of Finance (DOF) on Wednesday quoted Philippine Finance Undersecretary Joven Balbosa as saying in a speech at the 4th International Conference on Financing for Development (FFD4) in Seville, Spain, that developing nations must have stronger representation, debt rules reform, special drawing rights and quota shares.
“To address the middle-income trap, we need tailored support that goes beyond simplistic income categorization,” Balbosa said.
The DOF said current frameworks often overlook the structural vulnerabilities of MICs, calling for more equitable and responsive access to development finance.
The conference, held from June 30 to July 2, gathered global economic leaders, multilateral institutions and civil society to reassess the 2015 Addis Ababa Action Agenda and propose reforms to the global financial architecture.
Balbosa emphasized that MICs face unique constraints — often too prosperous to qualify for concessional aid, yet too fragile to withstand external shocks without support. He urged multilateral banks to revise income thresholds and adopt a more flexible approach to eligibility and financing.
He also supported calls for restructuring unsustainable debt and enhancing the use of special drawing rights to expand fiscal space for MICs.
The DOF said the Philippines will continue to advocate these reforms in international forums, aligning with a broader push to democratize global financial governance.
The Seville conference outcomes are expected to feed into the preparatory process for the 2025 Financing for Development summit, where countries will revisit global commitments on financing sustainable development.
