A lot of help from friends

The Filipino-Chinese business federation has a continuing program to build two-classroom structures in underdeveloped areas across the country, at a cost that is 60 percent lower than what would be declared if undertaken by the government.

The Brits have built a schoolhouse out of old shipping containers in the former Smokey Mountain dump in Manila, and are offering quality education to the very poor in Tondo.

The US and UK, with security provided by the military (ours and the US), are providing computer facilities with Internet access and helping in other education projects, both Christian and Islamic, in the high-risk provinces of Sulu and Basilan plus other conflict areas in Mindanao.

And the Australians, who devote about 50 percent of their official development assistance (ODA) to the Philippines to various projects in Mindanao, are focusing their global aid programs on education.

The poor quality of education is one of the biggest problems bedeviling our country. We have to stand on our own feet when it comes to improving our competitive edge, but for now we get by with a lot of help from the private sector and the international donor community.

Peter Baxter, director general of the Australian Agency for International Development (AusAID), visited Manila earlier this week and had a first-hand look at one successful program in which his government is playing a major role: conditional cash transfers to the very poor.

Designed by AusAID together with the World Bank and implemented (effectively) by Esperanza Cabral when she was social welfare secretary, the cash transfer has a component that requires parents to keep their children in school in exchange for direct cash assistance.

“Education is really the key to development,” Baxter told me in an interview hours before he flew back to Canberra last Tuesday. “If you have an educated population, then you are able to make progress towards all of the Millennium Development Goals, whether they be goals relating to health, goals relating to environment or sustainability, and particularly to address poverty and hunger.”

* * *

Baxter, a career diplomat, took over the helm of AusAID last month. He picked Manila for his first trip overseas in his new position because he wanted to know the development priorities of the incoming administration, according to AusAID country representative Titon Mitra.

In a visit to Taguig, Baxter chatted with beneficiaries of the conditional cash transfer. AusAID is also proposing to provide grants for hazard mapping of flood-prone areas and for low-cost housing where people living in high-risk areas can be relocated. The government of Taguig will have to provide the land, which will account for about 40 percent of the total housing cost.

AusAID may have to repeat the proposal in the near future because Taguig will soon have a new mayor.

Politics is just one of the many issues the donor community has to contend with in this country. But politicians, regardless of party affiliation, tend to welcome foreign aid if it will benefit their constituents.

Another issue, as we all know, is corruption. That large percentage of construction cost saved by the Filipino-Chinese federation in building schoolrooms is not just because the Tsinoys know how to get good discounts.

“Corruption is an enormously important issue,” Baxter told me. “We have very strict accountability requirements… Of course if there is any Australian aid that is involved in some sort of corrupt activity, we take that very seriously. We have risk management strategies to try and prevent fraud.”

Australia is prepared to prosecute anyone found employing fraud in utilizing its aid, Baxter said.

Like many members of the donor community, the Australians have developed an effective system of monitoring the utilization of their aid and promoting transparency. In the Philippines, AusAID has more than 40 personnel tasked to monitor implementation of its programs.

Some emerging new donors, however, do not have rules on accountability and transparency, especially when it comes to soft loans. The only requirement is for the aid recipient to hire contractors from the donor country to implement projects funded through the donor’s loan facility.

Without mentioning any particular country, I asked Baxter about these new players in the aid community. His comment, also without citing any particular country: “On the issue of new donors, what we want to see is all donors operating in a transparent and open way, with high levels of accountability for the expenditures that they incur in providing assistance to developing countries.”

AusAID, which provides only grants, not loans, worldwide, is increasing its ODA budget from the current A$3.8 billion to A$9 billion by 2015, with its aid program expanding in Africa, South America and the Caribbean island states.

The growth “highlights Australia’s commitment to be a good international citizen,” an embassy statement explained.

In the Philippines, Australia has provided over P20 billion in grants over the last five years, with basic education as the flagship sector.

“Development is a very difficult business,” Baxter told me. “We have a great belief that investing in education… is a very important catalyst for development.”

Australian aid has built 236 community learning centers and 400 classrooms and provided alternative learning programs in 253 underdeveloped community nationwide, benefiting some 30,000 children. Australia also helps provide training for teachers as well as develop appropriate curriculum for indigenous and Muslim students.

A scholarship program is also being expanded worldwide. The program has brought about 400 high-achieving Filipinos to Australian universities in the past five years.

“We’ll know we’re effective when we’re no longer needed in the Philippines,” Baxter told me.

I asked Baxter if the Philippines could “graduate,” like Thailand, from foreign aid programs in the near future. His diplomatic reply: “The challenges in the Philippines are very significant.”