ADB Official Cites PH Development Path

The Asian Development Bank (ADB), the country director for the Philippines mentioned last Wednesday that the Philippines is one of the good examples of countries taking path of development from an agricultural economy to one that is largely supported by services.

Neeraj Jain said at a briefing, that the traditional path is to move from agriculture to industries and then to services.

“This is happening amid the revolution in telecommunications in the Philippines, and experts are now raising the question of whether economies like these are conducive to growth that is inclusive or employment-friendly,” he said.

Also, the ADB official said that the Philippines financial market would need to acquire long-term instruments to help government efforts in encouraging investments in infrastructure.

Improved infrastructure

He stated that improved infrastructure would help efforts in the Philippines to move up to higher value-added activities, particularly the manufacturing and services sectors.

An example that Jain said as an example for the better infrastructure is that it can help in the push for the business process outsourcing sector to develop service offerings other than voice-based call centers.

He said longer-term loans had to be made available for undertakings such as public-private partnership (PPP) projects.

Funding for PPP

“Banks are now providing (loans) that mature in 10 or 12 years,” he said, adding that longer intentions will provide a greater boost to infrastructure projects.

The ADB announced last month the funding support for the PPP initiative “to help sustain the positive reform momentum.”

On the other hand, Australia, through the means of the Australian Agency for International Development, has set aside $15 million for the project development and monitoring facility (PDMF) that the ADB administers. The amount was on top of the $7 million provided to the facility last year.

Jain said the additional fund would mean that the PDMF would be able to support the preparation of more PPP projects than what was previously expected as doable.

With the additional fund, it is estimated that at least 12 PPP projects would be implemented or ready by 2016, more than twice the government target of five projects by the end of 2013.

ADB sets aside $4.3B in aid for RP

Institution hopes to make dent on poverty.

MANILA, Philippines – The Asian Development Bank has earmarked at least $4.3 billion in aid for the Philippines through 2012 to push the domestic economy to a “sustained high-growth path.”

Neeraj K. Jain, ADB’s country director for the Philippines, said in a briefing that disbursements for 2009 alone would likely exceed $1.3 billion.

“Normally, the ADB [releases] $400 million to $600 million yearly,” Jain said. “This year’s amount is more than double the usual as the country feels the impact of global economic developments.”

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ADB sees economy growing 2.5% this year

MANILA, Philippines — The Asian Development Bank said the Philippines would feel the pinch of the global crisis and growth would decelerate this year, but noted that the country would be in a much better position than most of its neighbors to cushion the impact of the turmoil.

In its Asian Development Outlook report, released Tuesday, the ADB said the Philippine economy would grow 2.5 percent this year, compared with 4.6 percent in 2008 and 7.2 percent in 2007.

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World Bank: Economies of RP, Asia to recover in 2010

The World Bank (WB) expects the Philippines and other East Asia and Pacific economies to post slower 2008 growth rates, skid further in 2009, before exports pick up and credit and investments start flowing again in 2010.

In its Global Economic Prospect (GEP) 2009 report released Wednesday, the World Bank said the Philippines will grow by only 3 percent in 2009, slower than its 4 percent forecast for this year.

These projections are lower than the Philippine government’s own economic growth targets of between 4.1 to 4.8 percent this year, and 3.7 and 4.7 percent in 2009.

World Bank’s projections showed the Philippines lagging behind peer countries’ growth prospects in 2008 up to 2010.

This year’s 4 percent growth forecast for the Philippines is lower than South East Asian countries, like Thailand (4.6 percent), Malaysia (5.5 percent), Indonesia (6 percent).

Even previous laggards in the neighborhood, like Vietnam (6.5 percent), Lao (7 percent), and Cambodia (6.7 percent) will also slowdown in 2008, but their growth rates still outpace the Philippines’.

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