RP Has High 'Capacity to be Good Partner in Reducing Poverty' - Millennium Challenge Corporation

12 March 2008 – Ambassador Willy C. Gaa said that among the other reasons the Millennium Challenge Corporation (MCC) selected the Philippines as a Compact-eligible country was the fact that the country has a high capacity to be a good partner in reducing poverty.

Ambassador Gaa made this observation today after the press conference held by top officials of the MCC. At that press conference, Ms. Maureen Harrington, MCC Vice President for International Policy and International Relations said that among the other reasons the MCC Board selected the Philippines was because it believed that the Philippines has “a high capacity to be a good partner in reducing poverty.”

The Millennium Challenge Corporation Board of Directors announced yesterday (11 March) that the Philippines had been selected as eligible to apply for an MCC compact. The MCC Board determines eligibility for this large-scale grant funding based on independent indicators that measure good governance, the country’s investments in its people and policies that encourage economic freedom.

At today’s press conference, “the MCC one again expressed confidence in the Philippines as a strong partner for development.” Ambassador Gaa said, citing the statement of Ms. Harrington who said that “there are good opportunities for growth in the Philippines. There has been improved economic management in recent years which have been acknowledged by both the World Bank and the International Monetary Fund.”

On his part, Ambassador John Danilovich, MCC’s Chief Executive Officer said that the Philippines was among the best performers based on MCC’s indicators. He reiterated that the Philippines has done well in its Threshold Program and the MCC is pleased that the Philippines met or exceeded the program’s targets.

Ms. Harrington also emphasized that there are good opportunities for growth in the Philippines. “There has been improved economic management in recent years which has been acknowledged by both the IMF and World Bank.” With the government bringing down its fiscal deficit from over 4.3 in 2003 to approximately 1.5 in 2007, she added that this is “a significant effort and we’re also seeing private investment increasing and responding to these policies.”

The Philippines has “strong administrative capacity and an active and organized civil society,” Ms. Harrington emphasized. END.