MILTON KEYNES, United Kingdom — The Philippines is a nation struggling with high poverty rates, with nearly 20 million Filipinos living in poverty as of 2021. The U.S. has maintained a strong relationship with the Philippines for years, with a recent $135 million announcement of U.S. aid to the Philippines, subject to congressional approval, being the latest of a series of aid packages the U.S. made. The $135 million package is to strengthen the poverty-reducing projects which the U.S. has already in placed and funded.
But in what areas specifically will this new aid announcement benefit?
5G Infrastructure
Part of the new aid package will build on the existing work done on the Philippines’ 5G infrastructure. Prominently this has included the U.S. partnering with Philippine telecom operator NOW Telecom to install and improve 5G technology in the country.
Education
USAID currently funds and supports several education projects in the Philippines. These include:
- ABC+, a scheme that improves the basic education levels for children and youth.
- EdGE, a project aimed at mobilizing the Philippine government and catalyzing policy reforms in education.
- STRIDE, an initiative that USAID launched to spur growth through innovation in science. These have spanned electronics, chemical industries, alternative energy and many more.
The new aid package, however, will target higher education specifically, partnering with universities across the nation and providing $30 million in funding.
Transport Infrastructure
The Philippines’ transport infrastructure is notoriously underdeveloped in comparison to its regional neighbors. However, spending on public infrastructure has doubled over the last decade from 3% between 2011-2016 to 6.3% in 2020, largely due to the government’s advocacy of the Build, Build, Build program initiated in 2017.
Due to the momentum building in this area, significant investment could follow, with the International Trade Administration (ITA) identifying several lucrative opportunities for U.S. companies to get involved in too. From airport builds to rail projects, there are countless opportunities for U.S. businesses to serve as consultants, bid on government projects, partner with Philippine companies and more.
Whilst there are significant investment opportunities for private U.S. companies, USAID is aiming to provide $5 million to support the Philippine government’s funding of infrastructure.
Health
The last two decades have seen $600 million of U.S. aid to the Philippines’ health sector. The U.S. also donated 33 million vaccines for COVID-19. The U.S. plans to invest $8 million further under the new announcement to support Philippine health, with a particular focus on combatting tuberculosis.
Furthermore, USAID will deploy $100 million over five years to improve access to safe drinking water for over 1.2 million Filipinos, which will have a direct positive effect on Philippine health.
Natural Disasters
The U.S. has delivered over $360 million in disaster response and preparation to the Philippines since 2010 and directly responded to over 50 natural disasters since 1990, according to The White House.
USAID will provide an extra $5.3 million to implement several partners such as Action Against Hunger into ongoing efforts to protect the Philippines from natural disasters. This aid focuses on the most vulnerable areas that experience the most intense disasters.
The efficacy of aid in this area will be vital to ensure the longevity of all projects related to U.S. aid to the Philippines and consequently in addressing Philippine poverty.
– Saul Gunn
Photo: Flickr