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BILATERAL
INSTITUTIO
N
Public Fiscal Administration (PA 207)
01. Pamela Joy B. Nandu
 • Bilateral agency is a government
agencies that operates directly between
2
two countries and receive funding from
government in home countries .
What is a
Bilateral • Use funding to aid
Agency? specific developing
02. countries.
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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.
03.
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WHAT IS A BILATERAL FINANCIAL

INSTITUTION?

• set up by one individual country to finance

development projects in a developing
country and its emerging market.

04.
 Bilateral financial institutions (BFIs) are institutions or
funds primarily belonging to or governed by individual
countries examples include:

 DEG (German  CDC Group (British  Japan Bank for

Development Finance Development Finance International
Institution) Institution) Cooperation (JBIC)

 Netherlands  USAID (United States

Development Finance for International
Company FMO Development)
05.
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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.
06.
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As a Development Finance

• 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.
 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.
08.
 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.

10.
 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.
 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.

14.
 CDC Group (British Development Finance Institution)

1 Was established as the

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

11.
 Is a Dutch development bank structured as a
bilateral private-sector international financial
institution base in the Hague, the
Netherlands.

Netherlands Objectives:

Development to maximize the development impact of private

sector investments.
Finance Company
FMO
Objectives:
for instance, the Capacity Development Program
provides funding with the aim to create access to
management and technical know-how.
12.
 • 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.
13.
 USAID and PHILIPPINE BILATERAL
ASSISTANCE AGREEMENT

- A 5 year bilateral agreement to boost the country’s

economic development & growth;

- This agreement is to deepen their commitment to

accelerate inclusive broad- based economic growth
through policies that increase investment and trade
throughout the Philippines.

14.
 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

15.
 BFI can help in mobilization of Public Project

Main delivery Predictable and

1 channel for rapid
2 Allocation of funds 3 flexible delivery.
decided through
financing bilateral government Eligibility to
negotiation. participate in funds
and specific
conditions/criteria
differ from one entity
to the other.

16.
 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.

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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.
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BILATERAL Free Trade Agreements: 

- Under ASEAN, the Philippines has preferential

trade agreements with CHINA, HONGKONG,
JAPAN, SOUTH KOREA AND AUSTRALIA.

19.
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Philippines Bilateral Trade Agreement with China

(which covers infrastructure, trade, customs and communication); Flagship
infrastructure program called Build, Build, Build.
 
• Davao City expressway project to relieve traffic
decongestion within the city.

• Panay-Guimaras-Negros island bridge project.

• The Philippine radio equipment project.

20.
 ADVATAGES 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.
21.
 DISADVATAGES 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.

22.
 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.

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