Finance Secretary Benjamin Diokno lauded the United States Millennium Challenge Corp.’s (MCC) decision to re-engage with the Philippines, calling it a crucial step towards “economic growth and genuine social transformation.”
“We welcome the eligibility of the Philippines under the Millennium Challenge Corp. Threshold Program which we hope will allow us to further access the bigger compact program, “ Diokno said in a statement.
“We appreciate the MCC board’s approval of the selection of the Philippines’ eligibility to the grant-based resources of the US MCC,” he added.
The MCC was created by the US Congress to invest in well-governed countries. It provides time-limited grants promoting economic growth, reducing poverty and strengthening institutions.
The MCC board of directors on Dec. 13 selected the Philippines to develop threshold programs in recognition of its renewed commitment to advancing reforms in good governance, human rights and anti-corruption.
It selected Cabo Verde as newly eligible to develop a compact for the purpose of regional economic integration and Tanzania and the Philippines to develop threshold programs, which are smaller grant programs designed to support policy and institutional reforms that address economic growth constraints.
“The board’s selection of Cabo Verde, the Philippines and Tanzania advances MCC’s mission to forge strong partnerships with countries that have demonstrated a commitment to democratic governance, investing in their people and economic freedom,” said MCC chief executive Alice Albright.
“We look forward to building on prior partnerships and working hand in hand with each country to advance prosperity for their people,” Albright said.
The Philippines previously enjoyed the US government’s support under the MCC’s first compact grant of $434 million which concluded in 2016 and a prior threshold grant of $20.7 million that was implemented between 2006 and 2009.
The threshold program enhanced the anti-corruption efforts of the government by strengthening the Office of the Ombudsman, improving revenue administration and increasing enforcement capacity within the Department of Finance-Revenue Integrity Protection Service (DOF-RIPS).
The Philippines was first named eligible for the MCC Compact Program assistance on March 11, 2008, and was later on named eligible for the MCC threshold program assistance on Nov. 8, 2006 in recognition of the country’s commitment to promote political and economic freedom, investments in education and health, control of corruption and respect for civil liberties and the rule of law.
Diokno said the Marcos administration is committed to improving anti-corruption measures as outlined in Chapter 14, entitled “Practice Good Governance and Improve Bureaucratic Efficiency” of the Philippine Development Plan (PDP) 2023-2028 for genuine social and economic transformation.
The government is mobilizing a whole-of-nation approach in addressing economic growth constraints by investing heavily in infrastructure, modernizing agriculture and agribusiness and accelerating climate action, he said.
“The Philippine government stands ready to work hand in hand with the US government towards developing and implementing important programs that will unlock growth in the Philippines and redound to economic and social transformation for all Filipinos,” Diokno said.