MANILA, Philippines — The Enhanced Defense Cooperation Agreement between the Philippines and the United States is seen to open more jobs and opportunities for business, but it may also have "social costs."
In a primer released Monday following the signing of the agreement, the Department of Foreign Affairs (DFA) said that the United States military will build facilities in "agreed locations"--properties which the Philippines will own.
"The agreement will further benefit the Philippines economically through the provision of jobs and other economic opportunities in the construction activities ... and procurement of local goods and supplies by the US military and personnel," DFA said.
Local construction firms, professionals and experts are expected to be hired for the projects, while other companies and entrepreneurs will benefit from the influx of American personnel needing basic services and products.
Rommel Banlaoi, a defense academician and chair of the Philippine Institute of Peace, Violence and Terrorism Research, said in an interview with Philstar.com that the new agreement, however, has "social costs" to the Philippines.
Banlaoi said that while rotational presence of American troops will bring in money for the economy and government coffers, prostitution and environmental risks may arise production and consumptions patterns triggered by the accord.
He said in another interview that such external costs could be seen in the now defunct US military base in Pampanga, where prostitution and night businesses still persist years after the base was cleared.
The DFA explained, however, that construction activities will not be similar to the establishment of a foreign military base, the use and ownership of which is only exclusive to the foreign forces.
Construction projects under the new defense deal can only be undertaken by the US when requested to do so by the Philippine government, DFA said.
"The [Enhanced Defense Cooperation Agreement] does not authorize the establishment of US bases. It allows the US military access to agree locations," the statement read.
The Armed Forces of the Philippines base commander will similarly have full access to the entire facilities shared by both militaries.