EDITORIAL - Nurturing confidence

In a vote of confidence, the World Bank approved last week an increase that could amount to more than 100 percent in its overall aid package to the Philippines. WB Country Director Bert Hofman said the increase, approved last week in Washington, was in the order of $1.3 billion to $1.5 billion – up from this year’s $650 million.

The increase comes on the heels of Washington’s approval of more assistance for the Philippines from the Millennium Challenge Corp., which was signed in the presence of President Aquino during his recent trip to New York. Approval of the five-year MCC compact, which will make available to the country $434 million in aid starting this year, was stalled because of the failure of the previous administration to meet certain criteria in fighting corruption.

Transparency and good governance also played a big role in persuading the World Bank to double its aid to the Philippines. Hofman said ongoing transparency initiatives of the Philippine government made the WB more comfortable in the utilization of its money. In January last year, the bank had debarred three Philippine and four Chinese companies plus one individual from participating in WB-funded projects after finding evidence of collusion in rigging the bid for road projects worth $33 million. E.C. de Luna Construction Corp. and its sole proprietor Eduardo C. de Luna were permanently blacklisted from WB-funded projects.

The Philippines remains heavily dependent on foreign assistance for many of its needs. That aid is best sustained through proper utilization. After the string of corruption scandals that hounded the previous administration, the rise to power of a man who campaigned on a platform of fighting graft helped restore confidence in Philippine aid utilization within the donor community. But that confidence must be nurtured and sustained.

As the country gains access to more aid, the government must ensure that assistance is utilized efficiently and with transparency. A country that needs help must show that it is deserving of assistance.