News Column

World Bank hails Philippines as next Asian 'miracle'

July 16, 2014



Kim heaped praise on Aquino's anti-graft fight, which has seen the president's predecessor and three sitting senators charged with corruption, as well as the impeachment of a Supreme Court chief justice.



World Bank president Jim Yong Kim on Tuesday described the Philippines as the next "Asian miracle" and a global model in fighting corruption, as it emerges from decades as a regional economic laggard.







Kim said President Benigno Aquino should take much of the credit for the turnaround, highlighting his anti-corruption campaign, efforts to build transparency in government and focus on "inclusive growth".







"Can the Philippines be the next Asian miracle? (After) coming here, I think there is no question that is the case," Kim, who was on a two-day visit, told a forum at the presidential palace.







Kim heaped praise on Aquino's anti-graft fight, which has seen the president's predecessor and three sitting senators charged with corruption, as well as the impeachment of a Supreme Court chief justice.







"Among the most important things you can do is tackle corruption and... that is one of things that the (Aquino) government is doing frankly better than any government in the world," Kim said.







"Around the world, the spread of information technology is converging with grassroots movements for transparency, accountability and citizen empowerment.







"Under your leadership, President Aquino, the Philippines is absolutely at the forefront of this transformation."







Kim said the Philippines, where one quarter of the roughly 100 million people live in deep poverty, had huge potential. He cited its strong macroeconomic fundamentals, prudent monetary policies and young workforce.







He said the World Bank expected the Philippines' economy would expand by 6.6 per cent this year, maintaining its status as one of the fastest growing in Asia.







The economy grew by 7.2 per cent last year, second only to China.







The World Bank said on Tuesday that it and its private sector arm have committed concessional loans of up to $4.2 billion to the Philippines to help the country reduce poverty, create jobs and sustain growth as it recovers from the impact of a devastating typhoon and separatist rebellion.







The World Bank will provide $3.2 billion in development financing to the Philippine government, while the International Finance Corp will offer another $1 billion for investment in business and industry under a 2015-18 aid program, World Bank President Jim Yong Kim said.







Kim had announced a day earlier that the World Bank Group was planning a separate $528 million rural development project this year to boost the income of farmers and fishermen, including $62 million for areas hit by Typhoon Haiyan last year.







The Philippines posted a first-quarter growth rate of 5.7 per cent, down from 7.7 per cent for the same period last year and 6.3 per cent in the last quarter of 2013, due largely to the impact of Haiyan and an earthquake during the last quarter of last year.







Despite the disasters, the Philippines was still Asia's third-fastest growing economy during the quarter, behind China and Malaysia.




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Source: Khaleej Times (United Arab Emirates)


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