World Bank pledges support for PH agri and human capital dev't

The World Bank has pledged continued support for the Philippines in its efforts to modernize the agriculture sector and enhance human capital development, according to Finance Secretary Ralph Recto. The commitment was made during a high-level meeting between Philippine officials and World Bank Group (WBG) executives on October 22 in Washington, D.C., coinciding with the WB-IMF Annual Meetings.

The discussions, led by Manuela Ferro, Regional Vice President for East Asia and the Pacific, emphasized initiatives aimed at improving productivity and income for Filipino farmers. The World Bank reaffirmed its dedication to helping the Philippines transform its agriculture sector into a more commercially viable, export-oriented industry.

Finance Secretary Recto highlighted the importance of these efforts, noting that accelerating agricultural growth could contribute to lowering inflation and boosting the country’s overall economic progress. He welcomed the World Bank’s support in these crucial areas.

In addition to agriculture, the World Bank reiterated its commitment to human capital development in the Philippines, with a focus on education. The bank acknowledged the country's ongoing reforms and affirmed that investor confidence in the Philippines remains robust due to its favorable business environment.

Recto also called for increased World Bank assistance in enhancing the country’s cybersecurity infrastructure and sought grants and technical support for improving the implementation of WBG-funded projects. He emphasized the potential for the Philippines to strengthen its position in the global supply chain, particularly in high-value manufacturing sectors like semiconductors.

The World Bank, in turn, shared recent updates on financing changes aimed at easing borrowing costs. These included introducing grace periods for commitment fees and eliminating prepayment premiums. The bank noted that further pricing reforms are being discussed to lower borrowing costs for partner countries.

As the two parties move forward, the World Bank assured that the Philippine government’s priorities would be at the forefront of the new country partnership framework, which will guide their collaboration from 2025 to 2028.

The meeting included top officials such as Agriculture Secretary Francisco Tiu Laurel Jr., Finance Undersecretary Domini Velasquez, and National Treasurer Sharon Almanza. On the World Bank side, participants included Guangzhe Chen, Vice President for Infrastructure; Sangbu Kim, Vice President for Digital Transformation; and Juergen Voegele, Vice President for the Planet Vice Presidency, among others.

As of June, the World Bank’s International Bank for Reconstruction and Development (IBRD) remains a key partner for the Philippines, ranking as the country’s third-largest source of official development assistance (ODA) with a total commitment of $8.84 billion, representing 18.8 percent of the country’s total ODA.