The World Bank Group (WBG) has reaffirmed its commitment to boost the Philippines’ agriculture sector and human capital development, as well as conveyed its keen intent to help the country attract more private investments.
In a statement yesterday, the Department of Finance (DOF) said Finance Secretary Ralph Recto has kicked off the 2024 World Bank-International Monetary Fund Annual Meetings in Washington, D.C. with a high-level dialogue with the WBG top officials where he secured support for the Philippines’ agriculture sector and human capital development, alongside efforts to attract more private investments.
In a meeting led by Regional Vice President for East Asia and the Pacific Manuela Ferro on October 22, the WBG reaffirmed its commitment to supporting projects aimed at increasing productivity and incomes for Filipino farmers as well as modernizing the agriculture sector to make it more commercially viable and export-oriented.
Recto welcomed the Bank’s assistance, noting that accelerating the expansion of the agriculture sector will help further reduce inflation and grow the economy faster.
In addition, the WBG reaffirmed its support for strengthening the Philippines’ human capital development, particularly in education, to help the country take advantage of its demographic sweet spot.
On this front, the finance chief emphasized the need to improve the quality and learning outcomes of the country’s education system, with a special focus on basic education.
The Bank recognized that investor confidence in the Philippines remains strong driven by wide-ranging business-friendly reforms.
Recto underscored the Philippines’ great potential to integrate into the global supply chain of high-value manufacturing, especially in the semiconductor industry.
He likewise called for more investments in renewable energy to facilitate the country’s green transition.
Additionally, the finance chief sought the Bank’s assistance in strengthening cybersecurity, which is a critical aspect of the DOF’s digitalization program aimed at boosting revenue collection and improving public service delivery.
To improve the delivery of WBG-funded projects, Recto requested the Bank to provide grants and technical assistance for project preparation.
He also reiterated his call for the WBG to provide more concessional financing, to which the Bank responded positively by citing reforms recently approved by the WBG Board such as the introduction of grace periods in paying commitment fees and removal of prepayment premium, among others.
The Bank also mentioned that another package of pricing reform is under discussion to further lower borrowing costs.
The Bank assured Recto that the above key priorities will be aligned and reflected in the new country partnership framework that it is crafting for the Philippines for 2025 to 2028.
As of June 2024, the World Bank’s International Bank for Reconstruction and Development is the Philippines’ third-largest official development assistance (ODA) partner, with a total ODA amounting to $8.84 billion.
This represents 18.86 percent of the Philippines’ total ODA.
