The five-year program is a signature inter-agency effort of President Barack Obama’s Presidential Policy Directive on Global Development, which elevates economic growth in countries committed to good governance as a core priority for U.S development efforts. The PFG aligns with policy reform areas outlined by President Benigno S. Aquino III in the Philippine Development Plan.
Secretary Clinton and Secretary del Rosario signed a Statement of Principles that reflects our governments’ mutual goal to place the Philippines on a path to sustained, more inclusive economic growth, and elevate it to the ranks of high-performing emerging economies. We anticipate that the PFG will better position the Philippines in its goal of joining the Trans-Pacific Partnership in the future.
The PFG aims to address the most significant constraints to growth and to stimulate enhanced, inclusive economic expansion. A rigorous joint analysis identified governance and fiscal space as the top constraints to growth in the Philippines.
Both countries have affirmed a five-year Joint Country Action Plan that prioritizes creating a more transparent, predictable, and consistent legal and regulatory regime; fostering a more open and competitive business environment; strengthening the rule of law and increase efficiency in the court system; and supporting fiscal stability through better revenue and expenditure management.
The PFG will also support the Government of the Philippines’ efforts to boost investment in priority sectors such as tourism, infrastructure, and energy; increase tax revenues to support additional spending for essential social services such as health and education; and accelerate export growth by making the Philippines more competitive on the world market.
The PFG embodies a new approach to development cooperation that embraces both traditional and non-traditional forms of assistance. The United States and the Philippines intend to take a comprehensive approach to development that reaches beyond traditional aid. The PFG will consider all the instruments both governments can bring to bear on these constraints to growth, including strategies to leverage the resources and tools of partners, especially the private sector, and to increase effectiveness of policies and institutions necessary for development.