WB commends Noy on good governance

WASHINGTON – World Bank President Robert Zoellick on Wednesday praised President Aquino for taking on the challenge of creating more transparent and accountable government to benefit the poor.

“At the heart of President Aquino’s policies is a belief in the power of citizens to hold their government accountable, and that this makes for better governance and a more just society,” Zoellick said.

In an exclusive interview with The STAR, Zoellick also said the World Bank and the International Monetary Fund (WB/IMF) are considering holding their annual conference in Manila in 2015.

He said five or six countries including the Philippines have applied to host the 2015 conference and these applications were under review.

“Obviously I can’t express favorites (wink, wink) but I am here today with President Aquino,” he told The STAR.

If the Philippines is selected to host the World Bank/IMF meeting, it will be a big boost to its lagging tourism industry.

Zoellick introduced Aquino to speak on reforms, good governance, and poverty reduction during the Annual Meetings of the World Bank/IMF.

He said that under the Aquino administration, the Philippines has seen extensive reforms in its budget management process, such as enhancing transparency and calling on more civil society participation.

“Under his leadership, the community-driven development program, which has provided poor Filipinos a voice in the development process, is set to become a national program,” Zoellick said.

Other reforms include the governance of state enterprises and strengthening anti-corruption authorities of the Philippines: the Supreme Audit Institution and the Ombudsman.

“Later this year, I am hoping to visit the Philippines, and I look forward to learning from some of the reforms President Aquino has put in place to improve governance and transparency,” Zoellick said.

In his speech, delivered to around 300 people, Aquino said that honest and transparent budgeting has reduced waste and discretionary spending and opportunities for corruption, so more money for higher social spending – including education, health, and social protection – is available for the poor.

“We are spending significant sums to provide basic healthcare services to the poor. We are also working to widen access to education, and to ensure that this education is of good quality,” said Aquino, highlighting that social services will take up 31.7 percent or nearly a third of Philippines’ national budget in 2012.

He said his government is also expanding the conditional cash transfer program that provides stipends to poor families to keep their children in school and seek health care.

“Governing with integrity, with transparency, and with accountability not only heals a national psyche that has long been characterized by cynicism and mistrust of government. It also provides the foundation for equitable progress. Good governance is good economics,” said Aquino.

Zero-based budgeting process

Aquino said that his administration has adopted a “zero-based budgeting process” that evaluates the effectiveness of government programs. Programs that are not delivering the desired results are eliminated and effective programs get increased funding, he said.

“Good governance is at the center of my country’s socioeconomic strategy, and the people are at the center of good governance.

“Their vigilance, their constant and adamant participation in public discourse, the strength they lend my administration as we dismantle the many obstacles – these, ultimately, are what fuels us on the straight and righteous path toward equitable progress,” Aquino said.

The continuing reforms have also earned the Philippines four credit rating upgrades over the past 15 months and a 10-point jump in the rankings of the World Economic Forum Global Competitiveness Report.

As a result, the country has seen significant commitments in foreign direct investments.

“These foreign investments, and the equally important investments coming from domestic sources, are in large part responsible for the jobs that have been created in the Philippines,” Aquino said.

Fight vs corruption

Underlying his administration’s economic strategy is a continuing campaign to fight corruption. Ending corruption means not only cleaning up the system, but holding accountable those who have done injustice to the Filipino people, he said.

“Without accountability, there will be no certainty that others will not follow in the footsteps of those who have wronged our people,” said Aquino. “Without accountability, the entrenched culture of impunity will remain, the corrupt will continue to flourish and steal, and the atmosphere of doubt and mistrust will continue to linger even as we rebuild our institutions.”

Finance Secretary Cesar Purisima and Bangko Sentral Governor Amando Tetangco sent the formal request for the Philippines to host the WB-IMF conference recently, sources said.

Zoellick did not disclose which other countries have offered to host the 2015 meeting.

The World Bank and the IMF generally hold their annual meeting in Washington. But every three years the meeting is held overseas usually in September.

Next year’s conference which was supposed to have been held in Cairo, Egypt has been moved to Tokyo, Japan because of security concerns following the overthrow of President Hosni Mubarak.

Previous World Bank triennial conference sites include Turkey, Istanbul (2009), Singapore (2006), Dubai, UAE (2003), Prague, Czech Republic (2000) and Hong Kong (1997).

Zoellick told The STAR the World Bank would expand its activities in the Philippines increasing its annual investments to $1.5 billion a year coupled with “another $300 million or so from our private sector.”

He said he would visit Manila next month to assess the situation.

In its country assistance strategy for fiscal 2010-2012 the bank said it was prepared to provide $700 million to $1 billion to combat poverty and promote growth in the Philippines coupled with an investment of $250-$300 million per year from the International Finance Corp. (IFC), the World Bank Group’s private financing arm.

Aquino arrived in Washington for a whistle-stop visit from New York where he spoke at the launch of an Open Governance Partnership forum and addressed a group of business leaders to drum up foreign investments.

On arrival at Dulles airport he was driven in a motorcade with six police outriders and four secret service vans to the Philippine embassy where he and his entourage had a takeout lunch of Fuddruckers’ hamburgers.

Aquino had only four engagements in Washington – visit Capitol Hill to thank Sen. Daniel Inouye for his consistent support of the Philippines, meet The Washington Post editorial board, speak at the World Bank and greet the Filipino community from the District of Columbia (DC), Maryland and Virginia.

After less than eight hours in Washington Aquino flew to San Francisco to take the PAL flight to Manila to recharge himself before going on an official visit to Japan Sept. 26-28. –Jose Katigbak, STAR Washington Bureau (The Philippine Star)