The World Bank Group

www.worldbank.org.ph

COUNTRY ASSISTANCE STRATEGY

www. worldbank.org.ph

Maya Villaluz
Senior Operations Officer
March 2010

The World Bank Group in the Philippines 1

Making Growth Work for the Poor
 Bank’s main products

n Investment loans/credits
n

n Development policy lending loans/credits

www. worldbank.org.ph

n Guarantees
n

n Knowledge products

The World Bank Group in the Philippines 2

Making Growth Work for the Poor
 • Philippines a member of
the World Bank since
December 7, 1945
•
• Knowledge sharing
•
• Source of development
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funds
•
• Partnerships
•

The World Bank Group in the Philippines 3

Making Growth Work for the Poor
 Country Assistance Strategy (CAS)

• The WB Group’s strategy and framework of

partnership with the country
• Supports the Medium Term Philippine
Development Plan (MTPDP)
• Prepared in consultation with Government and
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various stakeholders
• Prepared every 3 years. The current CAS is
for July 2009 – June 2012

The World Bank Group in the Philippines 4

Making Growth Work for the Poor
 CAS July 2009 – June 2012
Basis: Medium-Term Philippines Development Plan
Theme: “Making Growth Work for the Poor”
Overall goal: Inclusive Growth
Four strategic objectives:
Ø Stable macro economy
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Ø Improved investment climate

Ø Better public service delivery
Ø Reduced vulnerabilities
One cross-cutting theme: Good Governance
Lending Envelope: US$0.7-US$1.0 billion per year
Partners: National Government, Local Government, Private Sector,
Civil Society, Dev. Partners

• The World Bank Group in the Philippines 5

Making Growth Work for the Poor
 Country Assistance Strategy Fiscal Year 2010-2012

INCLUSIVE GROWTH

SO1:Stable Macro Economy
1.1 Fiscal and financial stability
through consolidation and
improved macroeconomic risk
management
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SO2: Improved Investment
Climate
2.1 Enabling business
environment to promote
competitiveness, productivity
and employment
SO3: Better Public Service
Delivery
3.1 Public service delivery in
key sectors
3.2 Basic service delivery in
poor areas
SO4: Reduced Vulnerabilities
4.1 Social protection system
4.2 Disaster risk management
and climate change
4.3 Stability and peace

2.2 Financial services

De

SO5/Cross-Cutting Theme: Good Governance

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5.1 Governance and anticorruption in selected national government agencies

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5.2 Procurement and public financial management reforms at national and local levels
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5.3 Better local governance through more effective decentralization y

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Engagements: C i
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National and Local Levels

Private Sector

The World Bank Group in the Philippines

Making Growth Work for the Poor
 Shifts in the Philippines CAS
FEATURES FY05-09 CAS FY10-12 CAS
Theme “Supporting Islands of Good “Making Growth Work for the Poor”
Governance” Overall goal: Inclusive Growth
nStrategic Elements Two goals: Economic growth and social Four strategic objectives:
inclusion Stable macroeconomy

n Two levers: fiscal stability and good Improved investment climate

governance Better public service delivery

n Three levels of engagement: national, Reduced vulnerabilities

local and private sector One cross-cutting theme:

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n Good governance
Strategic Shifts Lending to support programs rather than Intensify poverty focus
projects Operationalize governance
Functional (not sectoral) selectivity Include emerging global challenges

Back to basics: replicate and scale up (disaster risk management and climate
successful experiences change)
Emphasize knowledge agenda

Lending Envelope Actual: Average of US$387.5 million per US$.7-US$1.0 billion per year
year

The World Bank Group in the Philippines 7

Making Growth Work for the Poor
 Indicative Financing Program
Strategic Objective 1: Stable Macro Economy
 Development Policy Loan
Strategic Objective 2: Improved Investment Climate
 Transport, Power, Agriculture/Agribusiness, Mindanao, Urban, Water, Sub-
National Finance
Strategic Objective 3: Better Public Service Delivery
Education, Health, Community-Driven Development
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Strategic Objective 4: Reduced Vulnerabilities

 Conditional Cash Transfer, Disaster Risk Management/Climate Change,
Peace and Development
Cross-Cutting Theme: Good Governance
 Judicial Reform, Integrated Financial Management, Local Government
Performance Grants

The World Bank Group in the Philippines 8

Making Growth Work for the Poor
 Strategic Objective 2:
Improved Investment Climate

Transport
Power
Agriculture/Agribusiness
Mindanao
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Urban
Water
Sub-National Finance

The World Bank Group in the Philippines 9

Making Growth Work for the Poor
 Strategic Objective 3:
Better Public Service Delivery
Education
Health
Community-Driven Development
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The World Bank Group in the Philippines 10

Making Growth Work for the Poor
 Strategic Objective 4:
Reduced Vulnerabilities
Conditional Cash Transfer,
Disaster Risk Management/
Climate Change,
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Peace and Development

The World Bank Group in the Philippines 11

Making Growth Work for the Poor
 Indicative Analytical and Advisory
Activities (AAA) Program
Strategic Objective 1: Stable Macro Economy
 Philippines Development Report, Quarterly Economic Update, Public Expenditure Analyses,
Support to Statistics, Crisis/Insolvency Management
Strategic Objective 2: Improved Investment Climate
 Trade Facilitation, Investment Climate, Energy Sector Reform, PPP Support, Environmental
Safeguards, Agricultural Productivity, Urban Strategy, Financing Innovations
Strategic Objective 3: Better Public Service Delivery
 Education, Health, Water Supply and Sanitation, Indigenous Peoples, Population, Synergies for
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Service Delivery
Strategic Objective 4: Reduced Vulnerabilities
 Social Protection, Disaster Risk Management, Conflict-Affected Communities
Cross-Cutting Theme: Good Governance
 Institutional Strengthening, Governance Assessments, Procurement Reforms, Public Financial
Management, Decentralization
Cross Cutting Work
 Discussion Notes and Innovation Notes

The World Bank Group in the Philippines 12

Making Growth Work for the Poor
 World Bank Support in the Philippines
As of January 2010
Trust Funds
www. worldbank.org.ph

25 active projects 83 trust funds

Net commitments: US$ 1.81 Net grant amount: US$ 148.7M

The World Bank Group in the Philippines 13

Making Growth Work for the Poor
 Philippines Environment and
Natural Resources Management
Strategy

______________________________
www. worldbank.org.ph

__

The World Bank Group in the Philippines

Making Growth Work for the Poor
 Outline
• Sector challenges
• Why Continue to Support the Sector
• WBOM ENRM Strategy
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• Programs, Projects, AAA

•

February 4, 2010 The World Bank Group in the Philippines 15

Making Growth Work for the Poor
 Sector Challenges (1)
Institutional
• Comprehensive laws but weak ENR institutions and
enforcement
• Conflicting mandates and functions (utilization vs.
conservation)
• Incomplete devolution of ENR functions
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• Fragmented program
• Traditional focus on the green agenda as opposed to
emerging issues
•
•

February 2, 2010 The World Bank Group in the Philippines

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Making Growth Work for the Poor
 Sector Challenges (2)

• High pollution levels in urban centers

• Outdoor air pollution (>1 m sick/yr; 15,000 premature
death/yr; morbidity cost is Php1 b/yr; income loss
is Php6b/yr)
• Indoor air pollution (0.5 million illness/yr; 6,000
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premature death/yr; cost of illness is Php1.5b/yr;

income loss is Php5b/yr)


•


February 4, 2010 The World Bank Group in the Philippines 17

Making Growth Work for the Poor
 Sector Challenges (3)
• Continued degradation of natural resources
• Lost rent to coastal and marine resources is about
Php6b/yr
• Over-extraction and conversion of forest cost
Php3b/yr
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• On-farm cost of land degradation is Php8b/yr; off-

farm cost is Php27b/yr
•
•

February 2, 2010 The World Bank Group in the Philippines

Draft 18
Making Growth Work for the Poor
 Why Continue to Support the
Sector
• Majority of the population dependent on
natural resource base (60m dependent on
coastal and marine resources; 20m
dependent on forest and upland activities)
• Tremendous value derived from the sector
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• Environmental sustainability a key to

economic growth and sustainable
development
• Abandoning the sector will worsen the current
situation and the governance condition
•
February 4, 2010 The World Bank Group in the Philippines 19
• Making Growth Work for the Poor
 PH ENR Strategy (1)
• Strengthen ENR institutions
 - strengthen DENR to perform its policy and
regulatory functions
 - improve the effectiveness and allocative
efficiency of the DENR
- support the transition of ENR devolution to LGUs
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 - re-tooling of DENR and capacity building of LGUs

 - improve transparency and access to information
 - continue to support strengthening safeguards
implementation in Bank-assisted projects


•
•
February 4, 2010 The World Bank Group in the Philippines 20
• Making Growth Work for the Poor
 PH ENR Strategy (2)
• Investment support on
 - integrated community-based NRM
 - sustainable alternative livelihood systems to
address the problems of poverty, natural resource
degradation and climate change impacts
vulnerability
- pollution control and adoption of cleaner
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production and renewable energy technology

February 2, 2010 The World Bank Group in the Philippines

Draft 21
Making Growth Work for the Poor
 PH ENR Strategy (3)

• Adoption of innovative approaches

 - use of economic instruments to complement
regulations (e.g., user fees, PES)
 - private sector mobilization and support
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•
•

February 2, 2010 The World Bank Group in the Philippines

Draft 22
Making Growth Work for the Poor
 WB Priority Support
• Ongoing Projects
 - National Program Support for Environment and
Natural Resources Management Project
 - Laguna de Bay Institutional Strengthening and
Community Participation Project
 - Second Mindanao Rural Development Project
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 - Control of Ozone Depleting Substances Project

 - Manila Third Sewerage Project
 - Carbon Finance Operations

February 4, 2010 The World Bank Group in the Philippines 23

Making Growth Work for the Poor
 WB Priority Support

• AAA/TA

- Country Environmental Analysis
 - Safeguards Diagnostic Review
 - Innovation Note on Integrated Water
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Quality Management for Manila Bay

 - PH CC Strategy Note
 - PH CC Discussion Note
 - Norwegian TF on CC in Coastal Areas


February 2, 2010 The World Bank Group in the Philippines

Draft 24
Making Growth Work for the Poor
 WB Priority Support

• Pipeline and Future Lending

 - Integrated Water Quality Management for
Manila Bay-Pasig River-Laguna Lake
 - Support to Sustainable Alternative
Livelihood Systems/Community-based NRM
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February 2, 2010 The World Bank Group in the Philippines

Draft 25
Making Growth Work for the Poor
 WB Priority Support

• Pipeline Global Programs

 - Control of Persistent Organic Pollutants
 - Chillers Replacement Project
 - HCFC Phase-out and the ODS Disposal
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project


February 2, 2010 The World Bank Group in the Philippines

Draft 26
Making Growth Work for the Poor