As of 2021, the Philippines is the 12th most populated country, with a population of approximately 109 million people. Industrialization in the country has increased, poverty has decreased — from 23.3% in 2015 to 16.6% in 2018 — and the Philippines has one of the lowest household debts in Asia. However, it has been historically known as a frequent recipient of foreign aid.
Top Aid Givers
Some notable givers of foreign aid in the Philippines are Japan, the United States, Australia, Korea, the World Bank and the Asian Development Bank (ADB). As of 2018, Japan was still the largest source of foreign aid in the Philippines. The aid comes in the form of grants and loans that total $5.98 billion for projects throughout the country. One notable project is a subway in Manila, Philippines. The World Bank comes in next with $3.13 billion, followed by the ADB with $2.24 billion.
The United States is another large investor of foreign aid in the Philippines. The aid provided is used to advance democratic values, promote peace and security and improve education and health. Disaster relief and recovery have become a large part of aid to the Philippines. The U.S. donated more than $143 million to help the country recover from the devastating typhoon in 2013.
The Philippines and Papua New Guinea
In 2018, the Philippines, usually a receiver of foreign aid, had the chance to give foreign aid to another country. Papua New Guinea struggled with the drop in oil prices worldwide; oil was a major export for the country. Papua New Guinea needed to diversify its economy, and the government of the Philippines agreed to give aid to the struggling country through a partnership. The aid took the form of helping with industrial crops, inland fish farming and agriculture, particularly rice production.
Growing rice in tropical countries can be particularly tricky. The Philippines, however, has expertise in many different strains of rice — some of which can even hold up in severe weather like typhoons — and has even previously passed on knowledge to other countries in Africa and Brunei. Through the cooperation between the Philippines and Papua New Guinea, President Duterte believes food security can be ensured.
COVID-19 Aid to the Philippines
As the COVID-19 pandemic spread across the globe, 14 countries sent foreign aid to the Philippines, either in cash or through in-kind aid, such as medical supplies. These countries include Singapore, Taiwan, Vietnam, France, Israel and the United Arab Emirates, among others. Many of the countries donated personal protective equipment (PPE), face masks, test kits and ventilators to help the Philippines combat the novel coronavirus.
China sent a team of experts to help treat patients and shared packs of rice in remembrance of the 45th anniversary of diplomatic ties. Japan sent experts as well, and the U.S. made monetary donations of approximately $4 million and $5.9 million respectively to help prepare labs to process novel coronavirus test kits and to help local governments respond to the outbreak.
South Korea has donated more than $5 million in humanitarian assistance to the Philippines during the pandemic. Korean Ambassador Han Dong-Man said this was to honor what the Filipino soldiers did to help in the Korean War. South Korea has helped with foreign aid in the Philippines for the past 70 years, for disasters both natural and man-made.
The Philippines has been knocked down due to the COVID-19 pandemic, but there is still potential for the country to recover. There is a vast, young workforce and a growing middle class to bolster efforts to regain footing in the country. Foreign aid in the Philippines can help the country regain the progress it had been making leading up to 2020.
– Courtney Roe