World Bank Group To Boost Philippine Agriculture Sector

Finance Secretary Ralph G. Recto kicked off the 2024 World Bank-International Monetary Fund (WB-IMF) Annual Meetings in Washington, D.C., with a high-level dialogue, securing World Bank Group (WBG) support for the Philippines' agriculture sector and human capital development.

The World Bank Group reaffirmed its commitment to supporting projects aimed at improving productivity and incomes for Filipino farmers while modernizing the agriculture sector to make it more commercially viable and export-oriented.

The discussions also covered efforts to attract more private investments.

Regional Vice President for East Asia and the Pacific Manuela Ferro reaffirmed the WBG’s commitment to supporting projects aimed at improving productivity and incomes for Filipino farmers while modernizing the agriculture sector to make it more commercially viable and export-oriented.

Secretary Recto welcomed the support, emphasizing that accelerating the agriculture sector’s growth could help reduce inflation and boost economic expansion.

The WBG also expressed its support for strengthening the Philippines’ human capital development, particularly in education, to help the country capitalize on its demographic dividend.

Recto stressed the need to improve the quality of education, especially in basic education, to prepare the country’s workforce for future demands.

The WBG recognized the Philippines' business-friendly reforms and pledged to help attract more private investments, particularly in high-value manufacturing sectors like semiconductors.

Recto also highlighted the need for investments in renewable energy to support the country's green transition. Additionally, he sought WBG assistance in strengthening the country’s cybersecurity framework, which is critical to the Department of Finance's digitalization program.

Secretary Recto requested grants and technical assistance for project preparation to ensure smoother delivery of WBG-funded initiatives.

The WBG responded positively, citing reforms like grace periods for paying commitment fees and the removal of prepayment premiums to reduce borrowing costs.

Another package of pricing reforms is also under consideration. These key priorities will be reflected in the new country partnership framework that the WBG is crafting for the Philippines for 2025-2028.