Finance Secretary Ralph G. Recto has kicked off the 2024 World Bank-International Monetary Fund (WB-IMF) Annual Meetings in Washington, D.C. with a high-level dialogue with the World Bank Group’s (WBG) top officials where he secured support for the Philippines’ agriculture sector and human capital development, alongside efforts to attract more private investments.

In a meeting led by Regional Vice President for East Asia and the Pacific Manuela Ferro on October 22, 2024, the WBG reaffirmed its commitment to supporting projects aimed at increasing productivity and incomes for Filipino farmers as well as modernizing the agriculture sector to make it more commercially viable and export-oriented.

Secretary Recto welcomed the Bank’s assistance, noting that accelerating the expansion of the agriculture sector will help further reduce inflation and grow the economy faster.

In addition, the WBG reaffirmed its support for strengthening the Philippines’ human capital development, particularly in education, to help the country take advantage of its demographic sweet spot.

On this front, the Finance Chief emphasized the need to improve the quality and learning outcomes of the country’s education system, with a special focus on basic education.

Meanwhile, the Bank recognized that investor confidence in the Philippines remains strong driven by wide-ranging business-friendly reforms, and conveyed its keen intent to help the country attract more private investments.

In this regard, Secretary Recto underscored the Philippines’ great potential to integrate into the global supply chain of high-value manufacturing, especially in the semiconductor industry.

He likewise called for more investments in renewable energy to facilitate the country’s green transition.

Additionally, the Finance Chief sought the Bank’s assistance in strengthening cybersecurity, which is a critical aspect of the Department of Finance’s (DOF) digitalization program aimed at boosting revenue collection and improving public service delivery.

To improve the delivery of WBG-funded projects, Secretary Recto requested the Bank to provide grants and technical assistance for project preparation.

He also reiterated his call for the WBG to provide more concessional financing, to which the Bank responded positively by citing reforms recently approved by the WBG Board such as the introduction of grace periods in paying commitment fees and removal of prepayment premium, among others.

The Bank also mentioned that another package of pricing reform is under discussion to further lower borrowing costs.

The Bank assured the Secretary that the above key priorities will be aligned and reflected in the new country partnership framework that it is crafting for the Philippines for 2025 to 2028.

As of June 2024, the World Bank’s International Bank for Reconstruction and Development (IBRD) is the Philippines’ third-largest official development assistance (ODA) partner, with a total ODA amounting to USD 8.84 billion. This represents 18.86% of the Philippines’ total ODA.

The meeting took place on the sidelines of the WB-IMF Annual Meetings held from October 22 to 25, 2024, in Washington, D.C.

Secretary Recto was joined by Agriculture Secretary Francisco P. Tiu Laurel, Jr.; Undersecretary Domini S. Velasquez; National Treasurer Sharon P. Almanza; WBG Alternate Executive Director Erwin Sta. Ana; and OIC Assistant Secretary Donalyn U. Minimo.

Representing the WBG were Vice President for Infrastructure Guangzhe Chen; Vice President for Digital Transformation Sangbu Kim; Vice President for the Planet Vice Presidency Juergen Voegele; East Asia and Pacific Regional Director for Human Development Alberto Rodriguez; Regional Director for Europe and Central Asia Region in Equitable Growth, Finance and Institutions Lalita Moorty; Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu; and IFC Country Manager for the Philippines Jean-Marc Arbogast.