The pandemic had caused extreme devastation and continues to destroy the worldwide economy. Even wealthy countries feel the effects, what more of the developing countries? Different nations turn to World Bank loans to help their dwindling economy. Recently, it granted the Philippines $600M to help fund its various reforms.
World Bank Grants New Loan to Boost Philippine Reforms
World Bank recently granted the Philippines $600M for economic recovery. The country will also use it to fund different reforms. It will help the “Pearl of the Orient Sea” become competitive with robust financial resources.
The Philippines trails other Asian Pacific countries in foreign investments, including retail. The World Bank said that reforms to the sector could drive investment. That’s why it’s important to have an equal opportunity for both domestic and foreign investors.
The loan supports mechanisms to provide retail services, foster private investments, and reduce business costs. At the same time, it will boost broadband services to progress investments in information and communications technology.
During the pandemic, access to the Internet becomes essential for education and business. It’s because teachers and students depend on distance learning. Likewise, most employees who work in the office need to work from home temporarily.
“Reforms that promote competition in broadband and mobile telecommunications will benefit a large portion of underserved populations by increasing coverage and quality of service, increasing their access to markets, as well as access to remote education and health services,” Ndiamé Diop said in a statement.
According to him, such reforms are critical to achieving accelerated and extended barriers to growth. Diop is World Bank’s country director for the Philippines, Brunei, Thailand, and Malaysia.
Development Policy Loan
The new World Bank loan granted to the Philippines is a development policy loan. It provides quick-outlay assistance to countries carrying out reforms.
Usually, it supports institutional changes and support policy. These are necessary because they will establish a landscape beneficial to constant and reasonable growth. Additionally, it will support expanding community tenacity through a better digital framework.
World Bank Senior Economist Rong Qian noted that the government had already initiated the Philippine Identification System or PhilSys. It’s a digital identification platform that upholds the digital economy and increases access to public services.
Qian added that it would increase access to and optimize the delivery of public services by offering Filipinos an exclusive, valid, and digital identity.
The Filipinos can use the PhilSys ID for major public and private transactions. They can use it to open bank accounts, validate and certify social assistance beneficiaries. Moreover, they can use it to make pension payments by next year.
Diamond Jubilee for the World Bank and the Philippines
The World Bank has continuously supported the Philippines for 75 years now. It helps boost its development projects as well as various programs.
The World Bank started helping the country in 1945 to organize funding and worldwide knowledge. It includes partnerships to champion the Philippines’ various endeavors, such as promoting peace. It involves alleviating poverty, upgrading infrastructures, and improving education, health, and nutrition. Moreover, the bank helps strengthen the nation’s adaptability to climate change and natural disasters and develop global competitiveness.
In December 2020, World Bank approved two separate loans to support the country’s projects. The first is a $600M for Promoting Competitiveness and Enhancing Resilience to Natural Disasters Development Policy Loan. The second is $300M to fund social services, including water and sanitation improvement, health stations construction, and COVID-19 isolation facilities.
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