(Photo courtesy of MCC Facebook()
MANILA – Department of Finance (DOF) Secretary Benjamin Diokno has welcomed the United States Millennium Challenge Corporation’s (MCC) decision to re-engage with the Philippines through the development of threshold programs that will support policy and institutional reforms towards economic growth.
In a statement on Sunday, Diokno said MCC's move is a vote of confidence in the Marcos administration’s commitment to strengthen democratic governance, uphold human rights and combat corruption.
The MCC was created by the US Congress to invest in well-governed countries.
It provides time-limited grants promoting economic growth, reducing poverty and strengthening institutions.
“We welcome the eligibility of the Philippines under the Millennium Challenge Corporation Threshold Program which we hope will allow us to further access the bigger Compact Program. We appreciate the MCC Board’s approval of the selection of the Philippines’ eligibility to the grant-based resources of the US MCC,” Diokno said.
The MCC provides three different kinds of grant financing: compact, threshold and regional compact.
On Dec. 13, the MCC Board of Directors selected the Philippines to develop threshold programs in recognition of its renewed commitment to advancing reforms in good governance, human rights and anti-corruption.
Cabo Verde and Tanzania were also selected.
“We look forward to building on prior partnerships and working hand in hand with each country to advance prosperity for their people,” MCC chief executive officer Alice Albright said in a statement.
A compact program is a multi-year agreement between the MCC and an eligible country to fund specific programs targeted at reducing poverty and stimulating economic growth.
A threshold program, on the other hand, is a contract between the MCC and a country that provides financial aid to assist countries meet requirements to access large scale grants resources by becoming “compact eligible” through support for policy and institutional reforms.
Introduced in 2018, the MCC Regional Compact intends to promote cross-border economic integration, trade and collaboration, and for regional integration.
The Philippines previously enjoyed the US government’s support under the MCC’s first compact grant of USD434 million which concluded in 2016, and a prior threshold grant of USD20.7 million that was implemented between 2006 and 2009.
The threshold program enhanced the anti-corruption efforts of the government by strengthening the Office of the Ombudsman, improving revenue administration and increasing enforcement capacity within the DOF-Revenue Integrity Protection Service.
The Philippines became eligible for the MCC Threshold Program assistance on Nov. 8, 2006 in recognition of the country’s commitment to promote political and economic freedom, investments in education and health, control of corruption, and respect for civil liberties and the rule of law.
On March 11, 2008, it was named eligible for the MCC Compact Program assistance.
“The Philippine government stands ready to work hand in hand with the US government towards developing and implementing important programs that will unlock growth in the Philippines and redound to economic and social transformation for all Filipinos,” Diokno added. (PNA)
