Topic: Poverty

Country: Philippines
Resolution: Be it resolved that European member states extend financial support and loan
assistance to African developing countries without interest

One thing is for sure: No country has ever lifted itself out of poverty without international
trade. Trade is the key to help countries develop. People need to make sure that everyone in the
world’s poorest countries has access to markets, to create jobs and encourage growth as a result.
But trade needs the right conditions to flourish. Bottlenecks and inefficiencies – whether at
border crossings or in the way the economy is regulated, or even within the private sector – get
in the way of progress and prosperity. That’s where Aid for Trade comes in: as financial
assistance to to help developing countries “trade” their way out of poverty. Today, the EU and its
Member States provide more trade-related development assistance than the rest of the world put
together. Also, the EU is stepping up financial support to developing countries. In relation to
that, the developing countries in Africa are one of the most vulnerable to financial crisis. Thus,
there is a resolution to whether the European member states should extend financial support and
loan assistance to African developing countries without interest and what would be the stand of
other developing countries specifically the Philippines in regarding with this matter.

The Philippines comprises over 7,000 islands and has a population of 102 million in
2016. It is ranked as a lower-middle-income country but there is an unequal distribution of
wealth. Economic progress over the past decades has had only a limited impact on poverty
reduction mainly owing to high population growth, unemployment, corruption, feudal politics
and local conflicts. The EU's support to the Philippines focuses on governance, job creation,
renewable energy, health and assistance to vulnerable populations, specifically in Mindanao
which has been affected by population displacement. The EU remains one the biggest foreign
development partners to provide support to Mindanao and the Peace Processes through a
comprehensive approach supporting directly the political settlement with the Instrument
contributing to Stability and Peace (IcSP) and longer term development mainly through the
Development Cooperation Instrument (DCI). The EU-Philippines relationship has deepened
further in recent years especially with the signing of the EU-Philippines Partnership and
Cooperation Agreement in July 2012. EU development assistance is closely aligned with the
Philippine Development Plan 2017-2022 as an excellent medium term strategy for poverty
reduction and achievement of the SDGs. The PDP provides a framework that allows the EU to
align all its development cooperation programs with Government policies and programs with
clear leadership and ownership on the part of the Philippine authorities. The EU support strategy
for the period 2014-2020 more than doubles EU grant assistance to the Philippines compared
with the period 2007-2013, from EUR 130 million (PHP 7 billion) to EUR 325 million (PHP 17
billion). Most of the EU funds are given as grants making the EU jointly with EU Member States
the largest grant donor in the Philippines. The Multiannual Indicative Programme 2014-2020
focuses on: The rule of law which is that, EU and the Philippines share a vision of improved
governance and want to strengthen cooperation in the justice sector to support the Philippine
Justice Sector Reform Strategy. Another, inclusive growth through access to sustainable energy
and job creation, the EU is keen to help the Philippine Government to achieve its ambitious
electrification targets for poor areas. Moreover, promotion of renewable energy in the
Philippines is crucial to jointly address the global challenge of climate change. Job creation will
target the poorest rural communities of Mindanao. Bilateral EU-Philippines development
cooperation is complemented by projects financed through regional and thematic programs and
instruments that are often implemented by civil society organizations addressing social issues,
environment, indigenous peoples, human rights, peace building, and migration.

Overall, EU is one of the most important donors to support the Philippines. This country
has always been supported by the EU so it is necessary that they should also cover their
assistance to other developing countries. The African developing countries are one of the most
vulnerable to suffer from financial crisis so the European member states could extend financial
support and loan assistance to them without interest. However, they should also help other
developing countries who are also facing this similar crisis such as in Syria, North Korea, and
others. Hence, it is only through their collective effort to deliver a well-funded, effective policy
that they will achieve their objective and that is to see developing countries, particularly the
poorest amongst them, make the most of globalization. As far as the European Union is
concerned, that means at both Member State and European level, each must therefore do their
very best to maintain these levels of commitment.
 REFERENCES:

European Commission. (2019). Philippines. Retrieved from

……….https://ec.europa.eu/europeaid/countries/philippines_en

Economic Essays. (2019). Impact of the Economic Crisis on Countries in Africa. Retrieved from
……….http://economicsessays.com/impact-of-the-economic-crisis-on-countries-in-africa/

Mimica, N. (April 2016). The EU is stepping up financial support to developing countries.

…………Retrieved from
https://ec.europa.eu/commission/commissioners/2014-.............2019/mimica/blog/eu-stepping-
financial-support-developing-countries_en

OECD Insights. (2013). Aid for Trade: Helping developing countries trade their way out of
…………poverty. Retrieved from http://oecdinsights.org/2013/01/14/aid-for-trade-
helping-.............developing-countries-trade-their-way-out-of-poverty/

Perlberg, S. (2013). The 12 Countries Most Vulnerable To A Financial Crisis. Retrieved from
https://www.businessinsider.com/countries-most-vulnerable-to-crisis-2013-11