SFA-AGR-799-07                                                                                                                                      24 OCT 2007

24 October 2007—Speaking at a top-level  United Nations dialogue on financing for development, Senator Edgardo J. Angara called on wealthy countries and financing institutions to stop  granting aid  that comes with  unfair conditions and do away with donor-driven aid that have hamstrung the development programs  of aid beneficiaries.

 Introducing a novel approach to aid, Angara said that the developed countries and the international financial institutions should likewise increase the level of aid to countries that have ratified the UN Convention Against Corruption and are vigorously undertaking anti-corruption measures.

 Angara said that the  "selectivity and uncertainty" under which donor countries have been giving overseas development assistance (ODA)   should end.

Angara said that  the Philippines have had sad experiences with "tied aid" and "donor-driven aid" and the several anti-development features that come with this type of assistance.

 Angara said that tying ODA with a recipient's capacity-to-pay is anti-development  as ODA should primarily be used to help the developing countries meet their medium-term development goals. “The focus of ODA should be the development goals of the developing countries, not the control of the ODA  donors, whether developed countries or multilateral institutions, over the assistance they give,” he added.

Angara's proposal to step up the ODA grants to countries that fight corruption vigorously is a complement to his similar initiative  at   the  Ottawa-based Global Organization of Parliaments Against Corruption, in which he  has  been an  active participant. “Corruption, squanders funds and  resources  which could have been devoted to financing development goals,” he said.

Angara's call for the review of the developed world's ODA policies represented the Country Statement of the Philippines at the UN 's High Level Dialogue on Financing for Development.

Angara said his call for the recasting of the ODA  thrust  and orientation is timely as the review of the so-called Monterrey Consensus is scheduled next year at the UN.

The Monterey Consensus urges donor countries to fully meet their aid commitments and utilize ODA grants to help meet the development goals of aid recipients. The Consensus also emphasizes domestic resource mobilization to help developing countries finance their development goals.

On this area, said Angara the Philippines can be proud of recording high growth rates and posting solid economic fundamentals despite the decrease in overseas development assistance over the past seven years.  END

/allan