US agency defers approval of Philippines' flagship anti-poverty program

(Updated 11:50 PM) A United States agency promoting good governance has delayed approval of the Philippines’ flagship anti-poverty program, saying it will just wait for the next administration. The Washington-based Millennium Challenge Corp. (MCC) “deferred final consideration" of Philippine poverty-alleviation projects, it said in a statement posted at its website. Deferred projects include the expansion of Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS), the country’s flagship poverty reduction project. KALAHI-CIDSS, which releases funds directly to beneficiaries’ bank accounts, is expected to benefit more than five million people for the next 20 years. The project is implemented by the Department of Social Welfare and Development (DSWD) and is also financially supported by the World Bank. The US-led corporation made the announcement in order to secure the next administration’s “commitment to the ideals and principles of the MCC and to the compact’s objectives and implementation." “We will look to the incoming Philippines’ government to demonstrate its commitment to MCC principles and the compact before final consideration," the agency said, quoting MCC Chief Executive Officer Daniel W. Yohannes. In the meantime, Malacañang expressed disappointment over MCC’s latest move. “We are disappointed with the decision of MCC board to defer approval of our compact proposal as they wanted firm commitment from the next administration on the proposed program," Presidential spokesman Ricardo Saludo said in a briefing. “We worked hard to ensure compact eligibility and the timely submission of a high-quality proposal," he added. “We believe that the approval of our compact proposal will facilitate the implementation of projects to support higher growth." Deferred project involves BIR computerization Chaired by US Secretary of State Hilary Rodham Clinton, the agency handles the Millennium Challenge Account (MCA), one of Washington’s foreign assistance programs. The MCA provides two different kinds of grant assistance, compact and threshold. Compact funding bankrolls a country’s specific programs which aim to cut poverty and stimulate growth. In the meantime, threshold funding seeks to assist nations not yet qualified for compact funding. Nations seeking funds under this category should show commitment to improve performance in good governance, economic freedom, and people investments. The Philippines was considered eligible for MCC Compact Program assistance on March 11, 2008 and was named eligible for MCC Threshold Program assistance on November 8, 2006. In October last year, the agency and the Philippine government signed a $5.57 million 609(g) grant for project development needs. The proposed compact that was deferred would include construction and rehabilitation of the 220 kilometer Samar Road, the MCC said. The project would improve access to markets and services for farmers, fishermen and small enterprises in some of the poorest provinces in the Philippines. The proposed compact would also assist in the redesign and computerization of key business processes in the Department of Finance’s Bureau of Internal Revenue (BIR) that would increase the efficiency and sustainability of revenue collection while reducing opportunities for corruption. Some of the activities within the BIR are extensions of MCC’s threshold program with the Philippines, which concluded in May 2009. The MCC Board also reviewed some of the agency’s program results to date. MCC has signed 20 compacts and has funded 21 threshold programs built on measureable and transparent objectives. To date, some of MCC’s progress to date includes more than 112,000 farmers trained to enhance productivity and food security, the ongoing construction of more than 1,500 kilometers of roads to facilitate access to markets, schools, and health clinics, over 80 educational facilities constructed, and 479,000 rural hectares formalized to strengthen property rights. - RJAB Jr., GMANews.TV