~~~~~~~~-                                   -- -                  < 
WB Launches New Country
Assistance Strategy for RP
US$ I Billion in Loans for Poverty-Reduction Programs in 3 Years
Fhc World Bank has reaffirmed its support          T.- -
to the development of the Philippines througlh
its nev Coulitry Assistance Strategy (CAS).
which providcs for a three-year development i =-
program (July 1, 2002-June 30, 2005) that  i                           -i
will help the country grow rapidly and reduce e               -K
Tvhe new CASr which the Bank's Exccutive   r
Board recently approvcd, will help the
government re-establish rapid and sustained i
poverty-reducing growti and ensure that the
poor participate in and benefit fully from           5 '
developlllenlr.                              '                                                                                 :-A -J -- t ,  ' 
Poverty-Reducing Growth *>'ll,<'i-t
The Bank will providc about US$1 billion                                  ;X                             t
in loans to the Philippines over the next three  j                            q '4             $     <hi
years to support measures that will increase
cononmic growth and programs that will      Education for young children remains o top pnnty of the Philippines CAS
(*W7
Knowledge for Development Center: Better, More Accessible
ThIC Public Inifoimation Center (PIC) of the  T'hie center offers the followinig services for<
,M.A)EVE,                    World Bank Office Manila has been renamed     free:
jO°nowl efor Development Center (KDC)  * Access to WB project documents,
and is now located at the ground floor of The  publications, and other development-related
Talpan Place, the Bank's office btiilding. It is  publications.
1t  i t  1  ^    ^   8-3      open Tuesdays to Sattirdays, 10am to 6:30pm.  * Access to development sites in the Internet
XC      _    oTheKdCys mo     Ser-friendl and mo          * Special collection of CDs and videotapes on
cThe KDC is ttore user-frieindly and muhidole  development
.accessible to tlle pLibic aild lhas a much wider  * On-lIne access to WB projects, doCuLIlellts
°. \  -   <   ^   /y       range of development literature. It is open to  and reports
researchers, students, government employees,  * Global Jolis cataloguing system that allows
development workers from NGOs who want        users to see the collection of arouLid 60 WB
to know more about the Bank's activities in   PICs around the world.
the Philippines and global developmenit issues.
* GEF Grants for RP Projects p2                     *WB Approves Loan for SEMP 11 p6
In   This      Issue          WBs KDCs & Depository Libraries p3                  Grant for Poverty Reduction Program p6
Top Proposals to SGP p3                             New Publications p8
* Know the Bank's New Staff p4-5



GEF Council OKs US$1 1.95M Grants
For 2 RP Projects
The Global Environmenit Facility (GEF)
Council has approved two new environment
projects in the Philippines with a combined  ..
grant of US$11.95 million.
These are the coastal and biodiversity project
of the Asian Conservation Foundation ($1.6             -'
million), and the promotion of renewable     . . 
energy technologies (REls) under the Bank's  &
rural power-renewable energy component .t         , 
($10.35 millioni).
With these two projects, the total GEF grant  ' -  . .<                                   .
to the Philippines amounts to US$109.55  L        L
million for 26 projects. Created in 1991,
the GEF channels multilateral funds into  a  i
projects initiated by people in developing                             7
narionis to create local and global                          1-
environmental benefits                      _.I _
The GEF, which is administered by the Bank,      ., E                          r.'. :
aims to conserve biodiversity, reduce    The GEF supports projects thot oam to conserve coGstol and monne biodiversity for future generations
greenhouse gas emissions that lead to climate
change, protect the ozone layer, clean up  The ACC/ACF model is highly innovative  RETs in minigrid systems currently suffer
internationial waters, stop land degradation,  because it engages a private equity company  the vicious cycle of persistent high cost and
and eliminate persistent organic pollutants.  to leverage long-term biodiversity support  consequently few applications worldwide.
Coastal, Marine Biodiversity        and conservation finance from investee   Promoting photovoltaic systems builds on
companies.                              successful experiences in other countries.
The first ptoject, which will cost US$16t4  By combining the investment skills of  The two projects are part of the approved
and mrion, e bo iodiervsigyihroghn on iqu  professional fLind managers with the  global work program that includes 20
and marine bodiversity through a umque   biodiversity-related expertise of experienced  environmental projects with total grants of
partnership between aprivate equity
investment company, Asian Conservation   conservation practitioners, the project presents  $113.7 million. Many of the projects provide
Company (ACC), and a conservation        a promising and highly replicable approach  opportunities for the private sector to
foupatin, ACCiand aconservation Fona     to achieving sustained conservation gains  participate by supplying technology or making
(ACF).                                   affecting global biodiversity.          investments.
During the project's initial years, ACF will  Renewable Energy for Rural Areas   "Co-financing of GEF projecrs is critical
channel GEF grant finds and other donor  The rural power-renewable energy project,  because it brings additional resources to the
finds to local entities such as non-government  with a total cost of US$36.85 million, will  goal of obtainding glhbamenro EAhry chief
organzations and local governments to carry  help mitigate climate change caused by  ene  
organization                    .                         ,    ,..           executive of ficer and chairmanl of GEF
out conservation activities.             greenhouse gas emissions through wider use  cunil. He sad the projct in tE
of cean,reneabl eiirgy echolge    C ouncil. He said the projects in the work
The activities will include conservation  of clean, renewable energy technologies  program attracted an additional US$497.2
management, marine enforcement,         (RETs) in power generation.              million in funding from other sources. This
information-education-communication,     For an archipelago like the Philippines,  co-financing brings the value of the portfolio
sustainable livelihood, biodiversity research  decentralized systems are expected to be the  reflected in the work program to US$610.9
and monitoring, and development of       Icast cost solution for many barangays that  million."
institutional and financial sustainability  still do not have electricity. It is also expected  The work program also involves significant
mechanisms.                              that if market barriers to the adoption of
RETs are reduced, photovoltaic systems (solar  Lamount of pocy support beig committed
Moreover, ACC investee companies will    R        rc ho                          by governments for pro)ects in their countries.
channel somne of their revenues into an  power), small hydros, and biomass power  GEF's operational policy states that projects
endowment fund to be managed by ACE      systems will be competitive as power sources,  should be country-driven and based on
After the grant funds are fully utilized, ACF  Since a significant component of the project  national priorities designed to support
will sustain the conservation activities through  entails the establishment of small independent  sustainable development.
ongoing contributions from ACC investee  grids, opportunities for the feasible use and
companies - additional contributions will be  demonstration of stand alone RETs or                "
catalyzed from other private sector operators  diesel/hybrid RETs in minigrid situations
- and proceeds from the endowment.       will be sotight.
2



E -s
WB Partners with University Libraries in Mindanao
Selected World Bank publicationis and        The Bank now has 10 KDCs X
documCilts are now available in the Bank's   antid depository libraries in the         .          .
Knowledge for Developmienit Ceniters         P~hiippinies-5 in Luzon, 2 In
(KDCs) in three universities in Minidaniao.  Visayas and 3 in Mindanao. #
A Memorandum of Agreement (MOA) has          At the same time, the Bank and        .1Av
each been signed between the Bank and        the Asian Institute of
Notre Dame University in Cotabato City,      Management (AIM) have agreed         sr 
Uniiversity of Southeastern Philippi nes     t to establish and operate the AIM-       -
Davao City, and Westertn Mindanao State      WB Developmcnt Resource
University in Zamboanga City.                Center.
The Bank designates the library of each      The Development Resource                                                (         __
university as a depository for documenits    Center aims to provide the
print publicationis, and CD-ROM products     public, particularly policy      The newKnowledge forDevelopmentCenteratTheToipon Place
published by the Bank.                       makers, facilities and scrvices  is open from lOam to 6.30pm, Tuesdoys to Saturdoys
that will inspire advocacy and
"As a knowledge bank, it is important for    action through the latest knowledge and      of the Bank through its Global
the World Bank to reach out to the regions   informationi on development, as well as      Development Learning Network and
and provinces, where information about       through videoconferencing and other          various programs for the past two years.
the Bank and its activities throLigh         distance learniing initiatives.              Since June 2001, for instance, AIM has
publications and reports are made available,"                                                        *       r 2            r
Couintiy Director Robert Vance Pulley said.  AIM has been an active strategic partner     served as a site host for 20 videoconferences.
WB's KDCs and Depository Libraries in the Philippines
University of the Philippines               Asian Institute of Management               University of San Carlos
Los Banos                                   Development Resource Center-                P Del Rosario Street, Cebu 6000
University Library                          Knowledge for Development Center            Contact Person. Dr MarilouTadlip
College, Laguna 4031                        Joseph R. McMicking Campus
Contact Per-son. Ms Leonor Gregorio         123 Paseo de Roxas, Makati City             Western Mindanao State University
lbg@mudspring uplb.edu.ph                   (632) 892-401 1 loc. 296                    College of Public Administration & Development
Contact Person' Ms. Kookie Kapulungan       Studies
University of Philippines Diliman           kookie@aim edu ph                            Normal Road, Baliwasan, Zamboanga City
School of Economics Library                                                             (062) 993-0944
Diilman, Quezon City                        Saint Mary's University                     Contad Person' Ms Salud Laguio
Philippines 1 101                           University Library
(632) 927-2044                              Bayombong, NuevaVizcaya                     Notre Dame University
Contact Person' Ms. Rosemarie Rosalie        Contact Per-son Mr Enrique Cayaban          University Data Resource Center
f1`Xnicole.upd.edu,ph                       library@smu.edu.ph                           Notre Dame Avenue, Cotabato City
(064) 4121-2698 loc. 325
National Economic and DevelopmentAuthority  Panay State Polytechnic College             Contact Person' Ms Sonia de la Cruz
Library                                     Department of Library Services
Development Information Staff               Mambusao, Capiz 5807                        University of Southeastern Philippines
Amber Avenue, Pasig City 1600               Contact Per-son: Ms Aurea G Bernabe         Obrero, Davao City
(632) 63 1-0945 to 56 loc I I I                                                         (082) 221-7741
Contact Person Flor Don-Santos                                                           Contad Person: Ms.Teresita Eco      m
FDGdonsantos@neda.gov ph
7 NGOs Get Funds from Small Grants Program
TheWorld Bank Small Grants Program (SGP) has     Aetas, $ 10,000.                            7, Misamis Occidental Development Institute for
selected for fiscal year 2002 the top seven proposals  3. Balay Alternative Legal Advocates for  Community Empowerment, Empowering People
from vanous non-government organizations (NGOs)  Development in Mindanaw, Strengthening of     to Uplift Human Dignity and Participate in
that ame mostly based and operating in the provinces.  Barangay Justice Systems in I I Barangays in  TransformingTheir Communities. $7,436
For fiscal year 2002 (July 1, 2001 to June 30, 2002).  Northern Mindanao, $103 12            The maximum amount appiroved for each
the SGP focused on supporting activities for the  4 Nazareth Street Home, Inc., Increasing the  proponent is $1 0,000.The proponent is expected
empowerment of marginalized and vulnerable       Participation of Children in Local Governance,  to cover for the amount in excess of the grant
groups.                                          $10,000                                      ceiling
The top 7 proposals, whose total requested budget  5. ABS-CBN Foundation Inc., Production of aVideo  The SGP supports activities that promote
amounts to US$63,682, are as follows'            Documentary on the Peace-Building Efforts in  networking, dialogue and dissemination of
I. Women's Forum of Region IX, Reproductive      Central Mindanao, $6.246                    stakeholders.
Health and Reproductive Rights, $10,000     6 Institute for the Development of Educational  Such actvities may include, but not limnited to,
2 Samahan ng Katutubong Ayta sa Pastolan,        and Ecological Alternatives, Commnunity-Based  wor-kshops, seminars, pub cation or- pr-oduction of
Development of an Ancestral Domain Sustainable  Ecological Waste Management Program, $1 0,625  audio-visual materials, information disseminat on,
Development and Protection Plan for-the Pastolan                                           dialogue and other innovative networking efforts
1w1                 3



Get to Know the Bank's New Staff
The pastfiscalyear (July 1. 2001 to June 30,
2002) has seen a number of newfaces in the Bank.  oblivious and indifferelit to the things  for 12 years, going through two mergers in the
We introduce some of them to you. -EDITOR  happening around me. I even stopped reading  process. By the third merger, I decided to leave
_____ _  -the newspaper to keep me from getting   the company when a redundanicy package was
S /   rl} - depressed with the news," she said. "Now,  offered." At the time, she was a field support
r  .I '       llwith financial inscitutions like the World Bank        specialist who took care of the procurement
. .- n _really trying to help the government implemenit  of promotional materials, incentive program
mLich needed reforms and providing loans and  management, and competitive intelligence
* _  r7J  3  ;       _^     grants, maybe, just maybe, we have hope."  database.
v  About her co-workers, she doesn't have any  During her "semi-retirement" - which she
complaints. "They are very nice and easy to  enjoyed because she spent more time with her
:- -  . -  get along with, owing to the fact that they  family - she set two conditions before applying
: x ~~~~work in a multi-cultural enivirotimetir. They    againi for a job. First, she wantcd to join aniother
are used to dealing wirh different types of  multinational company, Second, the office
E ~   . _  -slF people of different cultures. Personal differences  should be close to home so she could spend
5.. _  v  F_are accepted and handled maturely," she said.  more time with her family. Then rhe Bank
|. -~  "I also treasure my new-found friends."     was looking for a temporary personnel in Jtine
:   Cielo enjoys watching movies going out with  2001. "I took that job at the Bank, which again
:   _     .                                '                ~~~~~~~~~~~~~~~~~~was aboLut IO minutes away from honme. My
-.. .'                friends, and doing crossword puzzles. She's  i    c       w
. .   K '  = -     alsoilitobowlingnowbecauseoftheupcoming    initial contract was for a month, but it was
- -'-                        ~~~~~~~~~also inito bowling now because of the Lipcoming exnddfrsvalm thutiapraet
(seoted) Monchette Bokle, (standing) Cielo Sy and  yeryBn  ora1et Weed,Ised           cxteiided for several moniths until a permanent
sea   Mo    edyearly Bank tournament. "Weekends, I spend                               position was opened late last year and I applied
Joe Tuyor                                   with my family; going to theme parks, and  for it."
CONSUELO "CIELO"                           visiting relarives."
AMORANTO SY                                MONSERRAT "MONCHETTE",                     "I enjoy working at rhe Bank. It's a whole new
Office Assistant                           BALCE                                       experience for me after working in the
OfficeaAssistantAssist                     pharmaceutical industry for 12 years," she said.
"Now, withfinacial institutions like the    eam Assistant                             "It's funny when some people learn that I work
World Bank really trying to help the       "It'sfinny when some people learn that     at the World Bank, I inevitably get questions
government implement much needed           I ivork at the World Bank, I inevitably    like "May I take otit a loan?" or "How's the
reforms andproviding loans andgrants,      get questions like "May I take outa loan?"  baniking industry?" I have to explain to them
maybe, just maybe, we have hope."          or "How's thje banekintg industry? "I ave  that we're a different kind of bank."
to explain to them that we're a different  Born and raised in Zamboanga City, Monchette
She's called Cielo, the tall and fair lady at the  kind of bank."                     is married, and has a five-year-old son."l enjoy
Bank's reception desk, who smiles and greets                                          cooking, baking, knitting and ribbon
every visitor, "Good morninig Sir. What can I  Monchette joined the Bank in March 2002 as  embroidery, trying out new restaurants, and
do for you?" She's the first person you get to  a team assistant. She provides administrative  going to the bookstore with my family on
see wheni you enter the Bank's lobby on the  support to the Program Officer, as well as to  weekends."
23rd floor.                                the Country Director in the absence of the
Executive Assistant. A graduate of BS in Hotel  JOE TUYOR
Cielo has been working with the Bank for 13  and Restaurant Administration, Monchette  Operations Officer-Environment
nionths - nine months as a contractual     worked for a pharmaceutical firm for 12 years  "Ifi. d the job meaningful and
employee and four months as a regular      and had been in "semi-retirement" for four  r    ding t    on  bea  us ofm
employee effective January 24, 2002 She said  months before joining the Bank.          rewarding not only because of my
she joined the Bank because of the working                                            personal contribution towards
hours and proximity of the Bank to her home.  She remembered how she found her first job.  sustainable development, but also
"Not to forget of coursc, that you have the  "While waiting for hotel jobs, I applied as a  because I am able to influence a great
privilege of working for a very prestigious  sales assistant in a pharmaceutical firm located  deal ofstakeholders towards achieving
financial institution."                    about 10 minutes from where I lived. I was  dt
accepted. After a year, I became an        that goal.
She described working for the Bank as "an  administrative assistant. I stayed in the company  Joe Tuyor joined the bank on May 2, 2002 as
awakening of some sort." "I used to be
4



Operationis Officer -Environment. Plrior to
joining the Bank, he was an Environmental    KEITH OBLITAS                             SZOPAD Social Fund, Land Administration
TFechniical Services Specialist at the Philippinie  Lead Operations Officer and        and Managemenit, and Agrarian Reform
National Oil Company (PNOC) -Energy          Team Leader                               Communities Development (ARCDP).
Development Corporation, where he worked     Rural Development and                     Projects under preparation include ARMM
for seven years.                             Natural Resources SectorTeam              Social Fund for Peace and Development,
l  _ _____________   ?    ARCDP II, Diversified Farm Income and
"It is both an honor and a privilege to be                                             Market Development, and River Basin and
working with the Bank," he said. "My greatest                      *.,                 Watershed Devclopment.
challenlge as Operations Officer for the             j                                 - Keith is an agricultural economist who has
Environimnciit is to ensure that the Bank's                   , ~                     worked primarily in Africa and South Asia
policls on environml11en1tal safeguards are in                  ,      i               on rural development and water resources
place both in the design and implementation   l                  '                     management. Hia assignment was asTeam
Leader of the India Water leam, handling
phases of the projects antd subprojecrs."     i                - e $ '                 water resources management, irrigation and
Joe explained that this would mean working                                              rural water supply, and sanitation projects.
closely and patiently with both the Bank's task                                        He beleves that water is both an economic
teamscand the borrowers, other cncerned . _'l                                          and social good and that water is best managed
teams and the borrowers, othier conicerned                                             at the lowest appropriate level. Recent
agencies, and even civil society. "I find the job  Keith Oblitas recently joined the Bank's  publications incltide a report on the state of
meaniingful and rewarding, not only because  Manila Office as the Team Leader of the Rural  water resource management in India and co-
of my personal contribution towards sustainable  Development and Natural Resources     audiorship of a BankTechnical Paper entitled,
development, but also because I am able to   ManagementTeam, which promotes sustained   Transferring 1-rzigation Management to Farmers
influenicc a grcat deal of stakeholders towards  agricultural development, investmennt in rural  in Andhra, Pradesh, India.
achieving that goal."                        infrastructure, researcha anid extension  He likes the decentralized and community-
programs, and natural resource management.  driven development approaches being
Joe is a devoted family man. "After work, I go  His team has 10 ongoing projects in varying  developed in the Plhilippines, commentinig
straight homic. I enjoy playing with my kids.  stages of implementation. Some of these  that "this is likely the bcst way to go if the
I love moun1tain climbing, bird watchinig, and  projects are Rural Finance III, Water Resources  country's natural resources are to be protected
scLiba diving."                              Development, Commnuniity-Based Resource   and for rural development to effectively reach
Management, Mindanao Rural Development,   the poor."
SUSAN HUME                                 _                                         worked on telecommunllicatiolIs projects in
Country Program Coordinator for the                                          ,       East and South Asia and Latin America.
Philippines                                                                          In addition, Susan acquired several years of
"I'm especially excited about workitzg on                                           experience in the Caribbean and Latin
the Philippines. From what I've heatrd                                               America, including taking a leave of absence
and seen sofar, this is oize ofathe best jobs                                        from the Bank to work with nonl-governiment
in the Bank. "                                   _           |   <  :, ]   Sa        organizations in Nicaragua. Earlier in her
career, Susan worked in the Bank's economic
Susan Home recently joined the World        _    s     1             ^     11        research complex and also in the Mtiltilateral
Bank's team in the Philippines as the Country                                        Investment Guarantee Agency (MIGA), a
Program Coordinaror based in Washington,                                             Bank affiliate.
DC. She replaces Heidi Hennrichi-H-anson,                                            Susani carncd economic degrees from
who has moved to anotlher position and    countries and cultures. For this reason, I'm  Georgetown University (BS) and Johns
region. Her job involves xvorkinig closely with  especially excited about working on the  Hopkins University (MIA). She also attended
the Bank Cotintry Director and staff in   Philippines. From what I've heaid and seen  Stanford University GradLiate Business School
Manila and Washington, as well as the     so far, this is one of the best jobs in the Bank."  for an executive development program.
Government, to ensure that the Bank's
program is coordinated and effectively    Since joining the Bank Group in the mid-   Susani commutes to work from Virginia,
implemenited                               1980s, Susan has held a variety of positions.  where she lives with her journalist husband
Before joining the Philippines team, Susan  and 14- year-old daughter. Any spare time
"I feel very privileged to have a career with  was a member of the Bank's Private Sector  that she has is spent on house and garden
the World Bank Group. Not only becatise   Advisory Services Department, where she    projects, her daughter's activities, her book
of the challenging and interesting work, but  was involved in promoting private      club, and family outings.  MM
the opportunity to learn about different  participation in infrastructure. She has also                        LIU
5



WBNews
WB Approves US$100 Million Loan for SEMP II
T                              ~~~~~~~~~~~~~school building stem
The World Bank has approved a US$100-                     i
mi'lion oaiifor he Pilipineprogram being implemenited
million loan for the Philippine           , by th Depatmen oflz Public
government's Second Social Expend't      r by the Departmeiit Of PublC 1 ic
govrnmnts Scon  Scia Exeniture    Works and Highways.
Management Project (SEMP 11).
Task Team Leader Jayshree
The approval of the loan was consistent   BalachaIander said the poor, wvho
with the Bank's new Country Assistance    rely heavily on publicly-                                                     A
Strategy, which focuses on improving the  provided basic social services, 
quality of and efficiency oF basic education,  wlrl benefit most from this                          .E
public health, and social services in the  projet. /
Philippines.                              project.
T he project will increase the  More textbooks, more classrooms for school children
The new project follows the first SEMP    aviabl*     of tetoks-e
which has been supported by the Bank      andiimprovedoclassrooms, nd
with U$ I 0-milloii lon. Th Firs  and Improved classrooms, and
with US$100-million loan. The first       drugs for key public health programs. It  improved allocation and utilization of
SEMP has led to systemic reforms and      will also support barangay-centered       resources, improvements in the work
resuited in a niet budget savings of US$20  Wl
resulted in a.net budget savings of US$20  activities for social services in poor  environment of the relevant agencies, and
million to the Department of Education.   aciite fo soia sevie in poo
municipalities," she said.                increased transparency, accountability, and
The second SEMP aims to improve basic     The second SEMP also aims to enhance      responsiveness through public expenditure
services by enhanicing performance and    the efficiency and effectiveness of public  tracking.
governance in three social sector            .,           .  .     ,      ,                            MM
deatet         dcain      elh   n         social sector agencies through strengthenedl 
departments - education, health, anid     procurement and financial management,                       iL
social welfare. It will also support the
Grant for RP's Poverty Reduction Program
Te                                      the results of the surveys through technical  shocks and disasters
The World Bank has approved a            assistance and workshops. The activities, which  Th Kal
US$294,000 ASEM Grant for Poverty         will be carried out by the Bank on behalf of  c  ahi Program will differ from the CIDSS
Reduction through Community               the Philippine government, are expected to be  as it will introduce the following innovations:
Empowerment for the Philippinies.         completed by August 31, 2002.             * An open menu for selection of project
The grant came from the ASEM Asian        The Kalahi Program will be the flagship   activities
Financial Crisis Response Fund, which is  nationial anti-poverty program of the Arroyo  Selection of proposals through an inter-
administered by the World Bank. ASEM stands  Administration.                        barangay competitive forum
for Asia- Europe Meeting.                 The program aims to improve the ongoing   * Community management of project funds,
It aims to help the Philippine government  Comprehensive and Integrated Delivery of  includinig community contracting
strengthen and expand its Kalahi Program, a  Social Services (CIDSS), which has been one
pilot community-driven poverty reduction  of the government's most successful anti-  Depning of faciitatin and broadenng of
program which will be supported by the Bank  poverty programs.                      transparency requirements
with a proposed US$100-million loan. Kalahi                                         CIDSS is one of the social services programs
stands for Kapit-Bisig Laban sa Kabirapan or  The Kalahi Program will be built on the  being supported by the Bank's ongoing Social
"linking hands in the fight against poverty."  following five pillars:              Expenditure Management Project (SEMNI). It
The grant will be used to finance activities  * Asset reform - redistributing physical and  aims to reduce the tinmet minimumil basic
related to technical assistance from poverty  resource assets to the poor           needs of disadvantaged families within poor
experts and systematic client feedback.   * HLiman development services - access to  communities. It is implemented by the
Specifically, poverty experts will review and  basic education, health and nutritioni, shelter,  Department of Social Welfare and
recommend improvements to the Kalahi      potable water, sanitarion and electricity  Development and local government units.
Program and will help do the following:   . E                                       These basic needs include health, food and
* Em-ploymieint and livelihood activities -  .ltiin cltig wae ai saliaton
* Design, institutional delivery mechanism  boosting agriculture and fisheries activities and  nutrition, clothing, water and santation,
monitoring and evaluation systems;        providing seed capital to micro and small  pubic sanety basicod,shlter, peaece and order,
* Measure the impact of the Kalahi Program  businesses of the poor                  family care, and people's participation in
on poverty; and                           * Participation in governance of basic sectors  community affairs.
* Track the flow of funds under the Kalahi  - strengthening political participatiol and  After eight years of implementation, CIDSS
Program from the central government to local  cultura expression                    now covers 1,084 municipalities and 3,893
communities.                              * Social protection and security against violence  barangays.
The grant will also be used in disseminating  by reducing the risk and vulnerability of the
poor to the immediate effects of economic
6



-~                                                    ~~~~~~~~~~ -
~) I WB Launches New Country Assistance Strategy for RP
improve the access of the poor to basic services  to winl thc war against poverty at the end of  donors.
suclh as healtlh, education, electricity, water  the decade, the econom11y must grow on a  The new CAS was prepared In consulation
and roads, as well as to productive assets like  sustained basis and across all sectors while  with the government, private sector, academic
land and cre(dit,                          generating the greatest employment.         inStins. non-govern ment organizauns
Btit thc amouLnt of lending could go as high  Further, the Directors were pleased to see that  (NGOs) and civil society across thc cOuntly.
as US$1.7 billion depending on how the      the scracegic objectives were consistent with  A series of multi-stakcholder conIsulrationis
government could quickly initiate policy' and  the Millenniunsi Devclopmncit Goals, which  were held durinig the last quarter of 2001 to
i1stitUlional reforms, mobilize revcnues and  were endorsed by the member countries of  ICview the Banki's past CAS for the Philippines
btidget management, and improve            the United Nations in September 2000. The   (July 1999 to June 2002) and prepare the new
performance of programs and projects assisted  goals are mtItually reinforcing and are directed  CAS.
by the Bank.                               at reducing poverty in all its forms.       The AS for the Philippines Is ieviewed every
Further, the Bank will provide analysis and  One of the goals, for instance, is to halve,  thiee yeais to ensuire that it remalin responsivc
technical assistance to improve the delivery of  between 1990 and 2015, tIlC iltlilber of poor  to the developlmenit needs of the cuotiurts'. The
services to the poor, strengtlheni the business  people whose income is less than US$ I a day.  resulting assistance program IS thcn icflectcd
ciivirolmiiielit, aind stIpport peace and  Today, 1.2 billion people exist on less thain  in a nlew CAS.
development in Mindaiao.                   US$1 a day and about 3 billion survivc oin  T1he Bank's illissioln Is ro hlcip coLIFuries liglit
"As the Philippines emerges from a period of  less thatn US$2 a day.                   poverty by providing member-couLItrics with
miodest cconlomilic giowth and persistent     Multi-stakeholder Consultations          loanis and policv advicc, technical assistanicc
poverty, it is more iillportairt tclan ever that  The Banks Directors also noted that the  and other non0-lenIdilig scrvices Its assistance
the Bank support programs that improve the  preparation of the Bank's strategy benefited  to the Philippines is goveiined by the Counltry
lives of Filipinos, especially the poor," said  from government inpuis and broad       Assistance Straiegy, wvhiclh identifics anid
Country Director for the Philippines Robert  multistakeholder constiliations, and that the  specifies various development ohjectives and
Vance Ptilley.                             strategy builds on partnerships with other  priorities for the membei-eotiir'
Mr. Pulley' emplhasized that priority' svould be
giveln to spurrinig investment, creating jobs,
and mobilizinig adequate public resoLirces for
edLication, health, rtiral infrastructUre, and
agricultural modernization.                               Growth to Benefit the Poor
He also cited the recent government actions
tO restore fiscal discipline by' meetin1g its 2002
deficit target and commitment to fiscal      Through its new Country Assistance Strategy  - Improving governance in public and
deficoidtaretiond byc2006mimment  key fisfor the Philippines (July 2002-June 2005), the  corporate sectors.
consoidatin by2006;implt-nen keyWorld Bank wlill help the government re-
strucrural reforms such as the passage of the  establish rapid and sustained povernty eduction  To ensure that the poor participate in and
Power RestruCtLring Bill anid the enacrtnsenir  bl apidvand sustained povty  and      fully benefit from development, the Bank will
of the Anti-Money Laundering Law; and        ensuring that the poor parecipate In and  assist in:
continue initiatives to achieve peace and    benefit fully from development.             Improving investments in education and
development in conflict-affected areas in                                                health, and ensure access by the poor
Mindanao.                        ~~~~~~~~The Bank will assist the government achieve
Mindanao.                                    poverty-reducing growth by.                 Focusing on efficient provision of other
'Fuller Participation in Development'                   , fiscal policy by improving the  basic services such as shelter, water supply
* Stengtenin fical olic byzmprvingthe and sanitation, and rural power and other
The Bank's Executive Board also agreed with   tax collection efforts and containing      infrastructure.
the strategy's key objectives of sustained growth  contingent liabilities.
and fuller participationi of the poor in* Addressing banking vulnerabilities and         Increasing access to productive assets such
dcvelopment.                                   deepen the capital'markets.               as land, technical extension services and
development,                                   deepen the caprtal markets.               credit.
The Directors also noted that the new CAS      Enhancing competitiveness through tiade   Strengthening organizational and financial
was built on the governmenit's Medium-Term     and regulatory reforms, especially in     capacity of the poor to engage in local
Philippine Development Plan (MTPDP),           agriculture, services, and small-and -    development activities.
which identifies poverty and unemployment      medium enterprise development.
as the country's serious economic problems.    Raising productivity by addressing       Improve programs to protect the
country's                                                     ~~~~~~~~~~~~~~~~~~~environment and natural resource base.
The MTPDP, which outrlinies rhe Arroyo         infrast-ucture bottlenecks.
government's development program from
2001-2004, believes that if the government is
7



Global            Global Development Finance                         _               Combating Corruption in the
Finance           2002 (Analysis and Summary Tables):                                Philippines: An Update
Financing the Poorest Countries                                    Philippiuie CountyManagement Unit
East Asia and Pacific tegional Office
-       April2002                                                         bSepteeuler 2001
268 pages                                                          51 pages
:-  -    f AvaiLable free, uiponi request
Due to increased global integrationi, the prospects for developing  f The report, an update of the World Bank's May 2000 report on
countries are now more closely tied to trends in global growth and  ! combating corrtiptioln in the Philippines, reviews and assesses the
trade patterns. This year's Global Development Finance (GDF) 2002   pr-ogress of the Philippine government's anti-corruption activities
examines the current global economic slowdown and the prospects for  during 2000-2001.
global economic recovery.
mThe report reviews developmenits related to fighting corruption in
The key themes that emerge from this report stress thar furrher progress  the Philippines since the last report. Further, it presents a set of
in poverty reductioni will require improvements in the investment   updated recommendations fur consideration by the government and
climate in developing countries, an increase in the financial assistance  other anti-corruiption champions in the country.
from industrial countries, and an opening of industrial coun1try markets.
The recommendations incltide a list of eight priority action areas
The two volumes, Analysis anid Summary Tables and Country Tables,   where faster paced and results-oriented implemilenitationi will enhance
are available as a set. Both provide expert commentary and analysis on  theanti-corruption program and help improve investors confidence.
global ecoiionoic growth and complcte statistical data on 136 coutuiries
that report debt under the World Bank Debtor Reporting System.      * Increase the involvement of civil society in the oversight of
There are over 30 summary tables, wlhich provide a statistical overview.  government activities
The Analysis and Summary Tables is also available separately. It offers  * Accelerate reforms in procurement, budget anid finance management
expert commenitary on prospects for globil economic growrh, private  -Strenigthicin mechanisms for the disclostire of public officials assets
capital flows to developing countries, aind trends in net official finance.  and liabilities
The Coutitry Tables presents detailed data on 136 countries that report  Implement reforms in the judiciary, as outlined in the Supreme
public and publicly guaranteed debt under the World Bank Debtor       CoIurt's judicial Reform Action Program
Reporting System. Internal debt stocks and flows, major economlic
aggregates, and debt restructuring are provided for 1970, 1980, 1990,  * Amend bank secrecy laws, pass and implement an anti-money
and 1993 through 2000.                                                laundering bill, and improve the qLiality and transparenicy of
This year's edition presents ais overview of developments in capital  bank supervision
flows in 2000, along with summary tables designed to facilitate cross-  * Introduce electoral and campaign finance reforms
councry comparisons of key debt staristics and tables on debt and
resource flws for selaed countr groups.           *Implement corruption prevention programs for the most corrupt-
resource flows for selected country groups.                           prone government agencies
As in past editions, GDF 2002 is also available in CD-ROM, which
contaists~~~~ ~~ ~ al nomto  nbt  rn  oue . Itlt,yuwr      * Create a strong management structure to push the implementation
contaits all information in both print volumes. It lets yoLI work      faec-pcfc orIto             rga
interactively with data, display maps and graphs, and export data into  of agency-specific corruption program
many popular formats.
To orderWorld Bank Group publications,  Asian Institute of Management  Or vsit our 24-hour online websrte at  To borrow, contact      i
contact:                          Development Resource Center-        www.worldbank.orglpublications  Knowledge for Development Center
International Booksource Center Inc.  Knowledge for Development Center                                Ground Floo.rTl heTaipan Place,
I 1 27-A Antipolo Street Barangay Venezuela  Joseph R McMicking Campus                               Emerald Ave, Ortigas Center Pasig City
Makati City. Tel. (632) 896-6501 / 6505/  123 Paseo de Roxas, Makati City                            Tel 917-3034 637-5855
6507 Fax (632) 896-1741           (632) 892-4011 loc. 296
The World Barsk Country Office Manila                                       Place
23/F lise'laipars Place                                                    Stamp
Par~                    c     h    0 JEmerald Ave., Ortigas Ceniter, Pasig City                                                     Here
InTouch is a quarterly newsletter of the
World Bank Country Office Manila.
All correspondence may be addressed to:
TheWorld Bank Country Office Manila
23/F,TheTaipan Place
Emerald Ave., Ortigas Center, Pasig City
Tel. 637-5855 to 64
Editorial Staff Robert Vance Pulley, editorial adviser
Leonora A. Gonzales, editor
Charito C. Sanalila, production assistant