After assessing an ongoing five-year compact with the Philippines, the Millennium Challenge Corp. CEO says the agency may no longer have to give grants to the Asian country after 2016.
In an interview with the ABS-CBN News Channel, Daniel Yohannes said: “If you look in terms of what’s been accomplished in this country, if it continues to grow at the current rate, there may not be a need for a second compact particularly if it graduates to a middle-income country.”
In 2010, MCC provided $434 million to fund various projects in the Asian country under the leadership of President Benigno Aquino III. Entered into force in 2011, the compact is scheduled to end the same year the Philippine president finishes his six-year term.
The CEO cites a social services delivery program, which includes subprojects such as farm-to-market roads, water-distribution facilities, classrooms and health centers; provincial road constructions; and the physical infrastructure and software investments in the tax and revenue department as some of the notable projects under way in the country.
Aside from the programs, the MCC head highlighted significant signs of growth in the Philippines — a growth forecast of 6 percent, a budget deficit 37 percent lower than in 2011, and a sustained commitment to a stable playing field and good governance.
“I am proud of the progress being made. I am pleased that MCC’s investment in the Philippines is creating a solid foundation for the future,” Yohannes said in a speech addressing Filipino government officials and private sector leaders.
“By making the tough policy changes, this administration is putting the country firmly on the path to growth,” Yohannes added commending the current government leadership in relation to the MCC mission which is to reduce poverty through economic growth.
Read more development aid news online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day.
About the author
Adrienne Valdez
Adrienne Valdez is a former staff writer for Devex, covering breaking international development news. Before joining Devex, Adrienne worked as a news correspondent for a public-sector modernization publication.
