MANILA – Finance Secretary Ralph Recto announced that the World Bank Group (WBG) has pledged to help enhance the agricultural sector and human capital development in the Philippines.
In a statement released on Thursday (24 Oct 2024), the Department of Finance (DOF) reported that this commitment was made during a high-level dialogue with key WBG officials in Washington, D.C., on October 22.
The meeting was held on the sidelines of the World Bank – International Monetary Fund Annual Meetings taking place from October 22 to 25.
Led by Manuela Ferro, the Regional Vice President for East Asia and the Pacific, the WBG expressed its commitment to continue supporting initiatives aimed at increasing the productivity and income of Filipino farmers. The organization also pledged to assist in modernizing the agriculture sector, making it more commercially viable and export oriented.
Secretary Recto welcomed the bank’s support, emphasizing that expanding the agricultural sector could further alleviate inflation and stimulate economic growth.
In addition to agricultural support, the WBG reiterated its commitment to the Philippines’ human capital development, particularly in education.
The World Bank acknowledged that investor confidence in the Philippines remains robust, bolstered by ongoing business-friendly reforms.
Recto highlighted the Philippines’ potential to integrate into the global supply chain for high-value manufacturing, particularly in the semiconductor industry. He also urged the World Bank to enhance its assistance in strengthening cybersecurity and provide grants and technical aid for project preparation to improve the execution of WBG-funded projects.
Moreover, Recto called for increased concessional financing from the WBG.
In response, the World Bank announced that its Board recently approved new measures, including grace periods for commitment fees and the elimination of prepayment premiums. Additionally, discussions are underway regarding another pricing reform package aimed at reducing borrowing costs further.
The DOF stated that the World Bank has assured that the Philippine government’s priorities will be integrated into the new Philippine Country Partnership Framework for 2025 to 2028.
As of June, the World Bank’s International Bank for Reconstruction and Development (IBRD) is the Philippines’ third-largest official development assistance (ODA) partner, with total ODA amounting to USD 8.84 billion, accounting for 18.8 percent of the Philippines’ total ODA.
Recto was accompanied by Agriculture Secretary Francisco Tiu Laurel Jr., Finance Undersecretary Domini Velasquez, and National Treasurer Sharon Almanza, along with WBG officials including Vice President for Infrastructure Guangzhe Chen and Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu, among others.
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