BILATERAL

INSTITUTIO
N
Public Fiscal Administration (PA 207)
Pamela Joy B. Nandu
PRESENTATION OUTLINE
TOPICS FOR DISCUSSION
• What is a Bilateral Agency?
• What are the Bilateral Activities?
• What is a Bilateral Financial Institution?
• Sample of a Bilateral Institution Assistance
• Bilateral Agreements of the Philippines entered into with other
countries?
• What is Bilateral Trade?
• Types of Bilateral Trade
• Advantages and Disadvantages of Bilateral Trade
BILATERAL INSTITUTION
 • Bilateral agency is a government
agencies that operates directly between
1
two countries and receive funding from
government in home countries .
What is a
Bilateral • Use funding to aid
Agency? specific developing
01. countries.
 2

Bilateral
The main activity of bilateral agencies is
Agency:
the provision of aid to the poorest
developing countries to help facilitate
Activities
policies, encourage trade, coordinate
finances and facilitate the flow of
financial assistance to the developing
nations.
02.
 3

WHAT IS A BILATERAL FINANCIAL

INSTITUTION?

• set up by one individual country to finance

development projects in a developing
country and its emerging market.

03.
DEVELOPING NATIONS – are countries with
economies that have a low gross domestic product (GDP) per capita
and rely heavily on AGRICULTURE. Countries like Malaysia,
Indonesia, Philippines, India and etc.

DEVELOPED NATIONS – also called an

industrialized country—has a mature and sophisticated economy, usually
measured by gross domestic product (GDP) and/or average income per
resident. They have advanced technological infrastructure and have
diverse industrial and service sectors. Countries like Japan, Singapore,
Germany, Netherlands and etc.
12.
 Bilateral financial institutions (BFIs) are institutions or funds
primarily belonging to or governed by individual countries
examples include:

DEG (German Japan Bank for

Development Finance International
Institution) Cooperation (JBIC)

USAID (United States CDC Group (British

for International Development Finance
Development) Institution)

04.
DEG (German Development Finance Institution)

• has been a reliable partner to private-sector companies operating

in developing and emerging countries.

• they provide a long-term financing and promotional programmes, and advise

clients as they implement their investment which enable them to open up
new markets, develop and compete successfully.

• DEG impact on the ground: the companies they co-finance create more
than two million jobs, generate local income in the billions and improve
the infrastructure, for example by using renewable energies.

05.
 As a Development Finance

AGRICULTURAL INFRASTUCTURE INDUSTRIAL

• they invest in companies operating in the agricultural, industrial, infrastructure

and services sectors as well as in financial institutions and funds. Currently
finance and advise over 700 companies with around EUR 9 billion.

06.
 CONTRIBUTION TO THE SUSTAINABLE
DEVELOPMENT GOAL ADOPTED BY UNITED
NATION
• Among this goal is the
reduction of POVERTY by
promoting JOB
CREATION and
INCOME GENERATION
in less developed and rural
regions.
07.
 JAPAN BANK FOR INTERNATIONAL
COOPERATION
• is a Japanese public financial institution and export credit agency
that was created on October 1, 1999, through the merger of the
Japan Export-Import Bank (JEXIM) and the Overseas Economic
Cooperation Fund (OECF);

• JBIC became the international wing of the Japan Finance

Corporation (JFC);

• The bank is wholly owned by the Japanese Government, and its

budget and operations are regulated by the JBIC law.

08.
 The main purpose of the institution is to promote
economic cooperation between Japan and overseas
countries by providing resources to foreign investments
and by fostering international commerce.

09.
 • USAID is an independent agency that provides economic
development and humanitarian assistance around the
world in support of the foreign policy goals of the United
States.
• USAID provides aid to countries in Sub-Saharan Africa,
Asia, Europe, Latin America and Caribbean, and the
Middle East to initiate development work in the area of
education, healthcare, poverty reduction, agriculture, the
environment etc.
10.
 CDC Group (British Development
Finance Institution)

1 2
Was established as the
Colonial Development
Corporation by the overseas
resources Development Act,
1948 with the mission to
“do good without losing
money”
It is the world’s first impact
investor with over 70 years
of experience of successfully
people out of poverty, and to
supporting the sustainable,
long-term growth of
businesses in Africa and
South Asia.
3
They invest to achieve two
objectives. To support the
business growth that lifts
make a financial return,
which they reinvest to
improve the lives of people
in Africa and South Asia.
.

Bilateral Institution

11.
 Types of Bilateral Agencies:

DEVELOPMENT EXPORT-IMPORT
• are designed to provide grants or FINANCING AGENCIES
AGENCIES
concessional financing to promote
economic or political goals of the • provide the funding advances so
organizing government in the exchanging of goods can
developing nations. transpire.

JICA, OXFAM, KOICA, SIDA,USAID,

SAVE THE CHILDREN,
AUSTRALIAN AID, etc.

12.
 BILATERAL AGREEMENTS
of the PHILIPPINES with;

JAPAN
CHINA
UNITED STATE OF AMERICA
13.
 JICA, Philippines sign JPY 50 billion COVID-19 crisis response
emergency support loan to address health crisis
• The Japan International Cooperation Agency (JICA) and the Philippine government
signed a JPY 50 billion Official Development Assistance (ODA) loan to curtail the
spread of COVID-19 in the Philippines and support government efforts in addressing
the health crisis.

• The COVID-19 Crisis Emergency Response Support Loan, is designed to strengthen

the country's capacity to respond to COVID-19 and revitalize economic activities
largely hit by the pandemic. It is the first budgetary support extended by the bilateral
donor to address the COVID-19 situation in the Philippines.

• The Philippines is the first recipient country of the new facility designed by the
Government of Japan to help developing countries globally in augmenting COVID-19
response program and stimulating economic activity.

14.
 JICA, Philippines sign JPY 50 billion COVID-19 crisis response
emergency support loan to address health crisis
• This emergency support loan would complement JICA other projects in the Philippines
to help boost the economy by providing jobs to many Filipinos, including the recent
agreements for the Cebu Mactan 4th Bridge and Davao City Bypass Road
infrastructure projects in support of the Build Build Build program.

• As the Philippines' largest ODA partner with the total value of JICA programs in the
Philippines amounting to 60.135 billion yen in fiscal year 2018, JICA is supporting
efforts to achieve sustainable economic growth and poverty alleviation, overcoming
vulnerability, and promoting peace and development in Mindanao.

15.
 Philippines, China ink 6 bilateral accords
• The governments of the Philippines and the People’s Republic of China have signed and
exchanged six bilateral documents on the feasibility studies for two big-ticket projects
under President Duterte’s centerpiece “Build, Build, Build” program and four other
agreements covering areas of cooperation in trade, customs and communication;

• The Chinese leader noted that as a result of the concerted efforts between the Philippines
and China, bilateral trade between the two countries, based on Chinese data, amounted to
USD55 billion in 2018 and reached USD 44 billion in the first three quarters 2020;

• The two sides also exchanged views on how to further enhance trade relations
and speed up the implementation of Philippine infrastructure projects with
funding support from China.

16.
 Coverage of the Cooperation Agreements:
• Feasibility study for the Davao City
Expressway Project conducted by CCCC
Highway Consultants Co., Ltd., and
funded by grant financing from the
Chinese government.
• The Philippine Radio Equipment Project,
which provides for the Chinese donation of
broadcasting equipment to the Philippine
Broadcasting Service (PBS) of the Presidential
Communications Operations Office (PCOO).
17.
• Feasibility study for the Panay-Guimaras-
Negros Island Bridge Project, which was
also conducted by CCCC Highway
Consultants Co., Ltd., and funded by a
grant from the Chinese government.
• The China-Aid Container Testing
Equipment covering the donation of four
sets of Mobile Container/ Vehicle
Inspection System and two sets of CT Scan
Inspection System to the Bureau of
Customs (BOC).
 United States This agreement enables USAID and the Philippines to
deepen their commitment to accelerate inclusive,
and Philippines broad-based economic growth through policies that
increase investment and trade throughout the
Sign New Philippines. 

Php10.5-Billion New programs and activities will promote inclusive,

Agreement to market-driven growth; improve the business
environment; expand economic opportunities through
Boost Economic private-sector led innovation for medium and small
businesses;
Growth and
Development and increase information and communications
technology access for the digital economy that
benefits both producers and consumers.

18.
 This bilateral agreement with the DOF is one of four new, five-year
USAID-Government of Philippines Development Assistance Agreements
launching in 2020, with an anticipated total value of Php32.7 billion ($675
million) over five years.  The other new agreements include:

To improve early grade

To improve underserved To protect ecosystems reading, expand science
Filipinos’ health by by promoting and mathematics curricula,
strengthening health
D systems while improving N sustainable use of D and increase out-of-school
youths’ access to
natural resources,
O
the quality of health
E enhance energy security, E education, professional,
services, especially in and technical skills
and build capacity to P
H treating tuberculosis, D mitigate risks and
development that will lead
providing access to those to new job opportunities,
who seek family planning A respond to natural E and strengthen education
services, and community- disasters; governance.
based drug dependence
D
treatment;
19.
 The Bilateral Agreement will promote inclusive

 Market driven  Improve business

growth environment

 Increase information &  Expand economic

communication opportunities through
technology access for private sector
digital economy

20.
18.
BILATERAL TRADE
• Bilateral trade is the exchange of goods between two nations promoting
trade and investment. The two countries will reduce or eliminate tariffs,
import quotas, export restraints, and other trade barriers to encourage
trade and investment.

• The goals of bilateral trade agreements are to expand access

between two countries’ markets and increase their economic growth.

• Compared to multilateral trade agreements, bilateral trade agreements

are negotiated more easily, because only two nations are party to the
agreement.
21.
 What is an Import and export financing,

EXPORT-
as their titles imply, pay for
the accompanying expenses
associated with receiving
IMPORT TRADE and shipping goods to and
from companies in other

FINANCING parts of the world.

From tariffs to freight

rates, duties and fees,
capital requirements
run the gamut.

22.
23.
ADVANTAGES OF BILATERAL TRADE AGREEMENTS

• Since it involves only two • It gives companies access to

countries, entering into a bilateral new markets.
agreement is much easier as
compared to multilateral trade
agreements.

• When the parties involved see • Bilateral agreements also enable

demand, they will open more job consumers to buy goods at lower
opportunities. prices. For instance, some types of
products may be more expensive
without an agreement.
24.
 DISADVANTAGES OF BILATERAL TRADE
AGREEMENTS

Just like in any other trade- A bilateral

related agreement, less
successful companies will
likely find it hard to keep their
business going as they will not
be able to compete with more
successful industries in
another country.
The elimination of
trade taxes means agreement can result
companies lose their in competing
price advantage. agreements between
other countries.

25.