THE PHILIPPINES’ eligibility to receive grants from the United States through the Millennium Challenge Corp. (MCC) has been upheld, a move welcomed by Finance Secretary Carlos Dominguez III, who, nevertheless, said the government will study the offer first.

As stated on its Web site, the MCC has included Philippines as one of the 45 qualified states to recieve grants from the foreign aid agency in 2018.

The MCC was crafted by the US Congress to provide large-scale grants as part of its thrust to reduce global poverty via sustainable economic development.

A country can only be eligible for a grant when the state demonstrates “a commitment to just and democratic governance, economic freedom, and investing in their people, as well as on the opportunity to reduce poverty and generate economic growth in the country.”

The Philippines’ first compact – “large, five-year grants for countries that pass MCC’s eligibility criteria” – was for $433.08 million that finished in May 2016. The MCC declared the Philippines qualified for a second compact in December 2014, and reaffirmed this view in December 2015.

As stated in its Web site, the foreign aid package was: “aimed to reduce transportation costs through road rehabilitation, expand the fiscal space through improved tax collection efforts, and empower communities by investing in small-scale, community-driven development projects.”

Meanwhile, the Finance Department welcomes MCC’s move to provide the Philippines with foreign aid.

“We welcome the decision of the Millennium Challenge Corp. (MCC) to approve a new compact for the Philippine government and thank them for this fresh grant offer. The government under the Duterte administration continues to vigorously implement initiatives that reinforce the Philippines’ commitment to good governance, peace and order and the rule of law,” Mr. Dominguez was quoted saying in a statement.

He said that the MCC’s decision is a “testament to the fact that despite the political noise emanating from certain quarters, our development partners recognize our government’s commitment to reduce poverty and make growth inclusive while maintaining peace and order and upholding the rule of law.”

Mr. Dominguez, however, noted they will still look into the conditions set by the MCC for the compact and “determine if they are aligned with our priorities.” – Janine Marie D. Soliman

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