Recast aid policies, Philippines asks development partners

The government is seeking a change in the development classification of countries, as the Philippines, which has been elevated to the rank of middle-income nations, had resulted in lesser aid from rich countries. 

Socioeconomic Planning Secretary and National Economic and Development Authority (Neda) Director-General Ernesto Pernia called for a review of the classification of middle-income countries (MICs) from being solely based on income to a “multidimensional transdisciplinary approach,” at the First Ministerial Meeting of Like-Minded Group of Countries Supporters of Middle-Income Countries (MICs), which was held last week at the United Nations (UN) headquarters in New York.

In his keynote speech on “Overcoming The Middle-In come Classification Through a Multidimensional Approach to Development,” Pernia said that supporters of MICs, in classifying countries, should consider other poverty and inequality indicators, as well as the susceptibility of such countries to shocks.

A multidimensional approach would better capture the development status of a country and would allow for more targeted and relevant responses, he added.

Development assistance and cooperation under the UN and the international financial and economic system are currently based on the World Bank classification of countries, which only measures countries’ Gross National Incomes (GNIs).

Pernia said development challenges could be more properly addressed through a multidimensional approach.

Development partners would likewise be guided in determining the type, mode, level and timeliness of assistance that they should extend to each country that would allow MICs to engage in “vertical and horizontal partnerships” for more responsive policies and programs to attain the SDGs.

The Philippines is a founding member of the Like-Minded Group of Countries Supporters of MICs, whose members include Armenia, Belarus, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Mexico, and Panama.

A declaration was reached during the meeting to:

*Advance the establishment of a comprehensive UN-wide system and a long-term strategy to facilitate sustainable development cooperation and coordinated support toward MICs.

*Conduct an outreach strategy within the UN community and with the general public to raise the awareness of MICs and advocate and promote their views on sustainable development-related processes within UN bodies, specialized agencies and funds.

UN Secretary General Ban Ki-Moon recognized the crucial role of MICs in achieving the Sustainable Development Goals (SDGs) of the world organization.

He said that, although MICs have achieved remarkable progress in recent decades as major engines of global growth, they still faced major economic, social and environmental challenges.

UN General Assembly President Peter Thomson and UN Economic and Social Council President Frederick Shava also addressed the meeting and they acknowledged the need to find innovative ways to engage with MICs.

The formal consideration of MICs by the UN General Assembly started in 2008.

The 2030 Agenda for Sustainable Development mainstreamed MICs into the UN by drawing attention to the specific challenges of this group of countries whose development needs remained invisible.

During the high-level side event on “measuring and tackling poverty in all its dimensions,” Pernia stressed the importance of tackling poverty with a “multidimensional, transdisciplinary approach.”

He cited the inclusion of a Multidimensional Poverty Index (MPI) in the last Philippine Development Plan that paved the way for accelerated poverty-reduction initiatives like the conditional cash-transfer (CCT) program and many wide-ranging government reforms in the Philippines.

Pernia affirmed that addressing multidimensional poverty to attain poverty- and inequality-reducing economic growth would, thus, be integrated in the 2017-2022 Philippine Development Plan (PDP).

“The main strategy in the upcoming PDP is to rebalance growth and development opportunities across regions, sectors, and socioeconomic groups in the country,” Pernia said.

“This will be key to addressing multidimensional poverty as it means more economic opportunities for marginalized socioeconomic groups.”

In line with this, Pernia also said economic growth should be brought to outlying lagging regions where the rural poor reside. He said that stimulating economic activity in the regions could be achieved by developing human capital and physical infrastructure, and by scaling up agriculture production through crop diversification.

“Given the complexity of the development process, achieving genuinely inclusive growth requires a range of policy reforms, some of which are politically difficult and costly to implement and, thus, require both leadership and cooperation,” Pernia said.

“These include game- changing structural and governance reforms that address the unresponsiveness of critical institutions, the weaknesses in human capital, the limited room and capacity for innovation, reclusive business environment, and weak financial systems, among other things,” he added.

Protection for migrants

Meanwhile, consistent with inclusivity, Pernia also called for the protection of the rights of migrants through the strengthening of anti-human trafficking laws, the lowering remittance costs, and providing reintegration support to returning migrants. He delivered his statement during the high-level segment to commemorate the 30th anniversary of the Right to Development on Sept. 22.

“We would like to call particular attention to migrants, as they are one of the most vulnerable groups that needs empowerment,” the Cabinet official said.

Pernia said there are 10 million permanent and temporary Filipino migrants worldwide who contribute more than $25 billion to the Philippines economy annually.

The right to development, which was adopted by the UN in 1986, entitles everyone the right to participate in, contribute to, and enjoy economic, social, cultural and political development.

“This right must, thus, be at the core of the implementation of the 2030 Agenda for Sustainable Development and all other internationally agreed development goals. This will ensure the realization of all human rights and fundamental freedoms for all,” Pernia added.

He shared the country’s recent El Niño experience, to which the government was able to properly respond by way of the timely importation of rice, the timely imposition of price freezes, and the provision of production support for affected farmers, fishermen, and vulnerable workers.

Nonetheless, considering the country’s vulnerability to extreme climate events, he said government must strengthen its capacities for disaster preparedness and disaster mitigation. LUIS LEONCIO