EU-Philippines Partnership

The Bangui Windmills in Ilocos Norte, Philippines. In its latest multiannual program in the Philippines, the EU will contribute to strengthening power sector management in the country, as well as promoting the use of on- and off-grid renewable sources in the country. Photo by: Paolo Dala / CC BY-SA The Philippines has among the fastest growing economies in Asia, but the country continues to exhibit high levels of inequality and uneven distribution of wealth. In addition, according to data, 25 percent of the population remains poor. The European Union, a longtime partner of the Southeast Asian country, has identified various factors behind the high levels of poverty and inequality. These include gaps in infrastructure, limited work opportunities, corruption in the government, weak rule of law, rapid population growth and the presence of insurgent activities. The EU considers shortages in the supply of electricity as a huge setback especially in Mindanao, the country’s southernmost region. On the economic front, limited access to electricity means disruptions in livelihoods and economic activities, leading to fewer employment opportunities. As for its social dimension, power outages cause huge impediments to the delivery of basic social services, including proper health care and education. In the area of governance, the Philippines finds itself at the bottom half of the Worldwide Governance Indicators for the Rule of Law and the World Justice Project Rule of Law Index. Both reports have determined that the country lags behind in areas of fundamental rights, violence, law and order, and civil and criminal justice. While the country exhibited signs of improvement in judicial independence, efficiency of the legal framework for settling disputes and challenging regulation, as well as diversion of public funds, much remains to be done to remedy the cost of violence and organized crime on businesses and the unreliability of police services. Weaknesses in the rule of law are particularly damaging to conflict-affected areas in Mindanao. It is among the causes of separatist movements, and the inability to administer justice has led to numerous human rights violations, exposing major institutional problems, such as the lack of accountability among local authorities and the inability of the justice system to resolve disputes and fight impunity. The EU sees good governance and the rule of law as prerequisites to development as they affect the business and investment climate, which are keys to economic growth and job creation. Further, a strong rule of law and a functioning justice system are crucial to enabling the poor to affect development processes and achieve equitable wealth sharing. The Philippine government has laid out its Philippine Development Plan, which seeks to accomplish inclusive growth, accelerate job creation and reduce poverty through higher investments in infrastructure and improved governance and by creating a better environment for business and investment. The EU has stepped up its aid to the lower-middle-income country and has crafted its multiannual indicative program to support these objectives. Funding levels and priorities Support for the Philippines for 2014-2020 amounts to 325 million euros ($355.91 million) and will be financed through the EU’s Development Cooperation Instrument. This represents a substantial increase from the 130 million euros in DCI financing provided in the previous multiyear program. In accordance with the EU’s new engagement strategy, this partnership will focus on just two sectors to maximize aid impact. Particularly, the EU will carry out interventions aimed at achieving sustained, inclusive growth, as well as strengthening governance and the rule of law. 1. Inclusive growth through access to sustainable energy and job creation EU objectives in this area include scaling up sustainable energy resources to match the demands of the business sector and the poor, while also creating employment opportunities through livelihood support and business development, particularly in disaster-affected and marginalized areas. To increase the production and reach of sustainable energy, the EU will contribute to strengthening power sector management, as well as promoting the use of on- and off-grid renewable sources especially in Mindanao. Efforts will also seek to lower the cost of electricity by increasing energy efficiency and supporting the implementation of feasibility studies for renewable energy projects, including environmental and social impact assessments. As access to energy is seen as a prerequisite for job creation and economic growth, EU’s poverty reduction strategy will be closely linked to increasing access to electricity for the poor. This entails carrying out policy analysis, research and feasibility studies for building disaster-resilient electrical distribution systems in the country. The EU will also support innovative, sustainable solutions for expanding access to energy in remote areas. Such solutions will be developed through collaboration with businesses and nongovernmental organizations and can include mini grids, solar home systems, solar and hydro power pumps, solar lanterns and solar dryers. The EU will also support livelihoods and businesses by contributing to the implementation of the Bangsamoro Development Plan through job creation activities. This includes youth training, reintegration of former combatants and the promotion of inclusive and sustainable business models. The EU will work closely with the Philippine government at both national and local levels to carry out these activities in the Bangsamoro region and disaster-affected areas. The EU will support vocational education and the development of small and medium enterprises to strengthen competitiveness in key areas, such as tourism and agriculture. Finally, support will be given to local governments in disaster-prone areas and conflict zones to create resilient livelihoods. 2. Rule of law through legal and judicial reform The EU intends to heighten efficiency in the legal sector while increasing access to justice, especially for the poor, as well as empower oversight bodies and civil society to demand greater accountability from public institutions. The capacity of regional authorities and civil society in the Bangsamoro region to ensure public safety and deliver legal services will be developed as well. Coordination across the sector will be strengthened to aid in reforms and governance of the justice sector. The EU also intends to bolster case management systems to support case buildup and processing to reduce backlogs and caseloads. Further, administrative and financial procedures in key institutions, such as the Department of Justice and the Department of Interior and Local Government, will be supported to increase efficiency. Assistance will be delivered to oversight bodies, such as the Philippine Commission on Human Rights as well as civil society organizations, to increase accountability and enable such groups to improve their services and advocacy functions. Measures against impunity and human rights violations will also be enhanced, while compensation schemes for the families of human rights victims will be developed and put in place. With regards to peace and security, the EU will help decommission former combatants and strengthen the capacity of Bangsamoro law enforcement authorities to ensure higher levels of public safety and compliance with international human rights standards. Formal and informal adjudicators will also be supported to address land disputes. As EU support will be limited to two focus sectors, several cross-cutting themes will be embedded in its development programs, including good governance, human rights, gender and youth, indigenous peoples’ rights, globalization, cultural awareness, disaster risk reduction and resilience, environmental protection and conflict prevention. Additionally, the EU has allocated 5 million euros for support measures in program preparation and implementation. This amount will cover feasibility studies, consultation and planning workshops, outreach, audits, evaluations and other related activities. Devex analysis With the Aquino government committed to enacting change, a chief justice that will be in office for the next 18 years and a promising peace process going on in Mindanao, the EU believes that the Philippines is primed to undertake key reforms that could elevate the country to upper-middle-income status and achieve lasting peace in its southern region. However, with the presidential election coming up in 2016, there is a risk that the new administration might deviate from current policies and priorities. As a precaution, the EU intends to carry out awareness-raising initiatives to brief stakeholders on the importance of broadening access to sustainable sources of electricity. Mindanao will also be a high priority for the EU as achieving stability in the south would greatly ease the implementation of programs in the energy sector, as well as spur economic development not only for the region but for the country as a whole. Over the past few decades, the EU has established its presence in Mindanao being an active contributor to development programs in the region. Some of its past initiatives include support for internally displaced persons, institutional development and increasing incomes of the most vulnerable members of the population. More recently, the EU has stepped up its involvement in the Mindanao peace process. Part of its work in the southern region involves peacekeeping and monitoring the work of the International Monitoring Team, particularly its Civilian Protection Component. The EU also supports peace negotiations by assisting the Center for Humanitarian Dialogue in carrying out its functions as an adviser to all stakeholders. The EU is involved in confidence and peace-building measures as well, which include demining, in partnership with Fondation Suisse de Deminage or the Swiss Foundation for Mine Action. Both the Moro Islamic Liberation Front and the Philippine government have likewise received technical assistance and advice from EU-supported NGOs and technical advisers. Further, the EU facilitates workshops and dialogues to raise awareness across sectors and communities and educate civil society about its role and the importance of its involvement in public consultations. Lastly, the EU continues to provide grants in support of human rights, particularly for the benefit of indigenous peoples in Mindanao. Similar peace-building initiatives are expected to continue in coming years, as the EU shows considerable interest in the Mindanao effort. Recently, it has launched four projects in the region to promote inclusiveness through mediation and advocacy, support monitoring efforts and strengthen civil society and local institutions in the Bangsamoro ahead of the 2016 election. Contact Delegation of the European Union to the Philippines Tel: (63-2) 859-5100 Fax: (63-2) 859-5109 Email: