Metro Manila (CNN Philippines, December 11) — The World Bank has granted the Philippine government $600 million in new loans to finance the country’s economic rebound.
The Philippines Promoting Competitiveness and Enhancing Resilience to Natural Disasters Sub-Program 3 Development Policy Loan seeks to help fund the government’s reforms, including the amendments to Retail Liberalization Act to promote private investment, reduction in the cost of doing business, and expansion of broadband services to promote investments in information and communications technology.
A World Bank official said the reforms are critical to ensure a more inclusive recovery from the COVID-19 pandemic.
“Reforms that promote competition in broadband and mobile telecommunications will benefit a large portion of underserved populations by increasing coverage and quality of service, increasing their access to markets, as well as access to remote education and health services,” Ndiamé Diop, World Bank country director for Brunei, Malaysia, Philippines and Thailand, was quoted as saying in a World Bank statement released on Saturday.
Almost two years into the COVID-19 pandemic, Filipinos and businesses were forced to rely on internet connectivity as the government continues to limit the movement of people to lessen the spread of infections.
“Similarly, reforms that lower the costs of trade and improve the business environment are expected to benefit all firms but especially small and medium enterprises, which will have access to a larger market for their products and services,” Diop added.
The World Bank said the Philippines remains a laggard in enticing foreign investments. But once the reforms in the retail trade sectors are in place, these would provide a level playing field for both local and foreign investors—subsequently creating more jobs and increasing the inflow of new technologies.
The lending program also supports the Philippines’ goal of bolstering its digital infrastructure.
“The government has introduced the Philippine Identification System or PhilSys as a digital identification platform to foster the digital economy and increase access to public services,” said Rong Qian, World Bank senior economist.
“This is expected to increase access to and improve delivery of public services by providing Filipinos with a unique, verifiable digital identity,” Qian added.
