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Philippines
>> Regional Overview >> Philippines Overview Program Data Sheet
492-002
USAID MISSION: Philippines
PROGRAM TITLE: Economic Governance (Pillar: Economic Growth, Agriculture, and Trade)
STRATEGIC OBJECTIVE AND NUMBER: Investment Climate Less Constrained by Corruption and Poor Governance, 492-002
STATUS: Continuing
PLANNED FY 2002 OBLIGATION AND FUNDING SOURCE: $5,592,000 DA; $6,700,000 ESF
PROPOSED FY 2003 OBLIGATION AND FUNDING SOURCE: $9,192,000 DA; $5,000,000 ESF
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2004Summary: USAID’s Economic Governance program addresses the two reform areas most fundamental to ending the Philippines’ pattern of stunted economic growth, and to improving the distribution of benefits. Particular attention is being given to delivering the benefits of USAID assistance to Mindanao, the poorest area of the country and the locus of armed conflict with separatist groups and terrorist activities, including kidnapping of Americans. The reforms are to—
- increase transparency and reduce opportunities for corruption in governance, finance and commerce; and
- end monopolies and increase transparent, competitive management of key infrastructure.
Success will benefit the Philippines by generating the investment and job growth needed to reduce poverty, and stem the unrest and conflict in Mindanao. It will further U.S. interests in combating terrorism and promoting stability in Asia, and will enhance U.S. trade and investment opportunities by such means as opening new markets, i.e., for biotechnology and energy-related products; making commercial and financial transactions with the Philippines more transparent; and protecting intellectual property rights.
Inputs, Outputs, and Activities: Inputs consist primarily of technical assistance and training engaged in such functions as information collection and dissemination; consultations; analysis; development of policies, legislation and regulations; providing support for passage of reform legislation and for an open and informed legislative process; strengthening institutions responsible for implementing or enforcing reforms; developing the capacity of civil society to advocate for reforms and to monitor their implementation and enforcement; and encouraging decentralized, competitive service delivery by local governments and the private sector.
FY 2002 Program: Activities will focus on—
- passage and/or implementation of key commercial laws governing money laundering, e-commerce, intellectual property rights, bankruptcy, and financial-sector regulation; strengthening regulatory institutions; and addressing tax and customs administration, public expenditure management, government procurement, and audit practices; and
- privatization, open and equal access to markets and inputs, transparency and public participation; and competitive procurement for infrastructure in the areas of roads, ports, shipping, aviation, railways, power, telecommunications, and information technology.
Planned FY 2003 Program: USAID will continue implementing reform efforts as described above; will expand the public-information component; and will initiate assistance to strengthen legal-judicial enforcement of new laws and regulations and to address other priority reform targets that may be identified.
ESF will focus on combating corruption in governance, particularly at the local level and in Mindanao; and in addressing national level policy, institutional, and regulatory issues relating to corruption in governance, finance and commerce. DA will address the need to increase competitiveness of the economy, and will also support anticorruption and good governance, particularly at the national level.
Performance and Results: Rapid passage of an Anti-Money Laundering Law in September 2001 strengthened the war on terrorism. Rules were established to ensure the security and validity of electronic transactions and enable growth of e-commerce and related job-creation. Formulation and adoption of guidelines for restructuring retail pricing of telephone services resulted in a cost-based structure that has expanded competition in telecommunications. USAID’s past and on-going initiatives to reduce costs associated with corruption and inefficiency at the ports resulted in President Arroyo mandating development of a program to reform ports-management policy. USAID assistance also facilitated a new air-services agreement with Singapore, preservation of competition on the Philippines-Taiwan route, and an end to monopolies on other international air routes. In the judicial sector, the Philippine Judicial Academy issued guidelines on the doctrine of primary jurisdiction to ensure consistent enforcement of commercial law and economic regulations by trial-court judges and quasijudicial regulatory agencies. A court-managed mediation system reduced the cost and time involved in seeking justice. Over 200 mediators were trained and accredited under the new procedures.
Principal Contractors, Grantees, or Agencies: USAID’s implementing contractors are Development Alternatives, Inc., PricewaterhouseCoopers, Louis Berger International, and Management and Communications Corporation. Implementing grantees include The Asia Foundation and various local non-governmental organizations.
US Financing in Thousands of Dollars
492-002 Investment Climate Less Constrained by Corruption and Poor Governance DA ESF MAI Through September 30, 2000 Obligations 12,997 0 60,244 Expenditures 5,039 0 60,244 Unliquidated 7,958 0 0 Fiscal Year 2001 Obligations 6,402 3,991 0 Expenditures 5,060 0 0 Through September 30, 2001 Obligations 19,399 3,991 60,244 Expenditures 10,099 0 60,244 Unliquidated 9,300 3,991 0 Prior Year Unobligated Funds Obligations 0 0 0 Planned Fiscal Year 2002 NOA Obligations 5,592 6,700 0 Total Planned Fiscal Year 2002 Obligations 5,592 6,700 0 Proposed Fiscal Year 2003 NOA Obligations 9,192 5,000 0 Future Obligations 0 0 0 Est. Total Cost 34,183 15,691 60,244
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Last Updated on: May 29, 2002 |
