RP receives $434-million Millennium Challenge grant

NEW YORK – The United States pledged continued support for President Aquino’s administration during the signing of the $434-million grant to the Philippines by the Millennium Challenge Corp. (MCC), citing his commitment to fight corruption and help uplift the lives of the poor.

“It is my personal commitment that we will do everything we can to help you help yourselves. Because at the end of the day, I know that the spirit of entrepreneurship, the drive to succeed, the love of family and commitment to the next generation has been a hallmark of Filipinos forever,” US Secretary of State Hillary Clinton said in a speech before the signing of the compact witnessed by Mr. Aquino and other Philippine officials at the Waldorf Astoria Hotel here.

“And I am absolutely convinced, Mr. President, that under your leadership, your country will show great strides forward,” she said.

“The compact we are signing is only possible because for the past few years, we have seen evidence of a commitment to deliver for the people that we believe is represented in the promise of President Aquino’s election,” Clinton said.

She said that what the US wanted was for Filipinos to accomplish more and enjoy the fruits of their investments.

“This was a negotiated agreement. This was not a decision just to give the Philippines some money – although I’m sure that’s welcome to our friends – this was a negotiation,” she said. “Because that’s the whole idea behind the MCC; there are certain principles that we believe in, and the Philippines has made a commitment to these principles,” Clinton said.

“We believe that you can unleash the human potential in a country like the Philippines by tearing down the barriers to economic growth and fighting corruption, which is like a cancer in the economy and society,” she noted.

Clinton said that although many Filipinos have left for abroad to look for economic opportunities, many of them would like to come back for good and raise their children and grandchildren in the country.

“They love the Philippines. I know because I know many of them. They try to go home when they can afford to do it. We hope that, Mr. President, the people of your country will be able to make a good living in their own country. And in order to do that, there must be a partnership that creates the conditions for economic opportunity,” she said.

“I know how smart the Filipino people are. I know how hard they work. I’m not sure there’s any group of people anywhere in the world that work harder than Filipinos,” she said. “But let’s be very honest here. Too many of them feel that they cannot progress in their own country. Too many of them feel that the elite in business and politics basically call the shots, and there’s not much room for someone who’s hardworking but not connected,” she added. “Too many of them believe that even if they get the best education they can, that there won’t be an opportunity for them, and so they take that education and help build someone else’s economy, very often here in the United States,” Clinton pointed out.

Clinton said MCC assistance is based on the needs of a specific country. “Each will be responsible for designing and driving its own project and for showing results. Now, these are not American ideas, these are not MCC ideas; all of these ideas came from the Filipino people. They are designed to be self-sustaining and they build on efforts that have already begun,” she said.

“So we look forward to working with you and linking arms in the fight against poverty and on behalf of a better future for the people of the Philippines,” Clinton said.

“It is an exciting moment in the relationship between the United States and the Philippines, a very long relationship that is now focused on the future. And it is a great privilege and honor to welcome President Aquino here,” Clinton added.

“One of the joys of my job as chair of the Millennium Challenge Corporation Board is watching countries make gains because of their own hard work, but with the help of the United States,” she stated.

Vote of confidence

In an acknowledgement speech, President Aquino said the MCC grant was also a vote of confidence for his administration.

In Manila, US Ambassador Harry Thomas Jr. called the signing “a historic day in US-Philippine relations.”

“The MCC grant will support President Aquino’s efforts to reduce poverty, stimulate economic growth, combat corruption, and ensure a better future for all Filipinos. Through this grant, we will make our strong partnership even stronger,” Thomas said.

“This agreement was made possible by Filipinos and Americans working together to give us the tools to finish the job of fighting poverty,” Mr. Aquino said in his speech.

He vowed not to squander the confidence earned by the country.

“And yet, as (US statesman Benjamin) Franklin reminds us, God helps those who help themselves. All the aid, all the assistance in the world, would be meaningless if it ended up stolen or misspent. We share the same view – a key to unlocking the potential for growth and prosperity among nations is good and honest governance. If the American people through their government can commit resources to their friends, their friends owe it to those pledging assistance and to themselves to be worthy stewards of what they will receive,” Mr. Aquino said.

He said the Philippine compact proposal had undergone a rigorous process, including four congressional notifications and countless MCC missions to the Philippines.

MCC chief executive officer Daniel Yohannes and Finance Secretary Cesar Purisima signed the agreement.

Aquino said the MCC Board of Directors praised the compact for the Philippines for its creativity, innovation and relevance. Each of the three projects in the compact has integrated several key components to combat corruption, he said.

According to the President, the Revenue Administration Reform Project directly targets improvements in governance or internal integrity within the Bureau of Internal Revenue; the Kapit-Bisig Laban sa Kahirapan- Comprehensive and Integrated Delivery of Social Services (Kalahi-CIDSS) is designed to ensure that resources are provided to communities directly where they are needed most and enforces transparency and accountability for local development investments; the Secondary National Roads Project introduces a number of checks on construction standards and road contractors.

“And these are the compact projects that, in the words of MCC executives, demonstrates my country’s ‘high capacity’ as an MCC partner,” Aquino said.

The President said the country would use the grant wisely and would continue the Revenue Integrity Protection Service or lifestyle checks programs.

“We will ensure that the Policy Improvement Process Plan of Action will be implemented in parallel with the compact projects to effectively address performance issues such as Control of Corruption. We are currently refining our indicators for the Performance Governance System, which was already introduced in six national government agencies, namely education, health, public works, transportation, internal revenue and the police,” Aquino said.

“We will revive the Philippine Development Forum this year so that the Philippines will remain on track when it comes to our 2015 Millennium Development Goal targets, especially in meeting targets in primary education and health services delivery,” the President said.

The $434-million MCC compact provides funding for three major projects – construction and repair of the 220-kilometer Samar Road for $214 million, expansion of the Kalahi-CIDSS development project for $120 million, and the $54.3-million computerization of the Bureau of Internal Revenue. The Kalahi-CIDSS empowers communities by encouraging their participation in poverty reducing activities.

“Reflecting the policies articulated by President (Barack) Obama in his speech at the Millennium Development Goals Summit (at the United Nations), the Philippines’ compact is a results-focused program promoting sustainable economic growth. This example of country-designed solutions strives to move the poor from poverty to prosperity,” Yohannes said. – Aurea Calica, Pia Lee-Brago –(The Philippine Star)