CIDA grants $8M for PHL's poverty alleviation programs

CEBU, Philippines - The Canadian International Development Agency (CIDA) has allocated eight million Canadian dollars this year, to intensify its programs geared towards development and uplifting poverty in the country.

Canadian Ambassador to the Philippines Christopher Thornley said the program under the bilateral program with the Philippine government through the National Economic and Development Authority (NEDA) and Department of Finance (DOF) will focus on providing economic sustainability, better environment, improving business registration process, and helping women entrepreneur by providing micro-credit finance for identified subsidiaries.

Thornley said CIDA is working closely with NEDA to identify the areas that will be benefitted by the Canadian development program, which is also well coordinated with other international funding agencies, under the Philippine Development Forum.

In the entire region in Asia, CIDA is allocating a total of 18 million (Canadian dollars) to implement new programs geared towards development, and sustain existing programs.

Based on the latest CIDA report, the Republic of the Philippines has made progress in meeting the “Millennium Development Goals.”

So far, it has achieved gender equality in education, reduced the mortality rate among children aged five and under, and reduced the incidence of tuberculosis cases, and increased access to water and sanitation services. The country has strong potential for development because of its natural and human resources.

Nevertheless, the Philippines still ranks 97 out of 169 countries on the United Nations Development Programme's 2010 human development index.

According to the report, progress is threatened by economic and social inequality, as well as by regional disparities, especially in the conflict-affected provinces of the island of Mindanao. Ensuring that social services reach the poor remains a major challenge.

Women in the labor force are confined largely to low-wage, low-productivity jobs and have limited access to land ownership, credit, and training. Natural disasters such as hurricanes and floods have resulted in severe losses of life and property and have constrained efforts to reduce poverty. Almost one out of four Filipinos lives on less than US$1.25 a day.

Although economic growth in the last five years has averaged around 5.1 percent, it is vulnerable, relying heavily on remittances from millions of overseas Filipino workers.

These remittances fluctuated with job losses during the recent global financial crisis. At the same time, there was a reduced demand for the country's exports. The investment climate suffers from low competitiveness and a high cost of doing business.

Weak governance is recognized as a key constraint to sustained economic growth and poverty reduction in the country. However, as a strong democratic republic, the government has been able to initiate a number of governance reforms. The Philippines has a vibrant private sector and an active civil society, both important partners in development.  (FREEMAN)