Phl regains MCC slot

The Philippines is back in the folds of the US government-backed Millennium Challenge Corporation, a development that implied that the administration of President Ferdinand Marcos Jr. has passed the democracy yardstick of the organization.

The country was a beneficiary of MCC's first compact grant of $434 million, which concluded in 2016, and a prior threshold grant of $20.7 million that was implemented from 2006 to 2009.

MCC withheld engagement with the Philippines during the term of President Rodrigo Duterte amid concerns over human rights issues.

The United States Congress created the MCC to invest in well-governed countries. It provides time-limited grants promoting economic growth, reducing poverty, and strengthening institutions.

The Philippines was one of three nations the MCC considered eligible for a grant after its meeting last 13 December.

Cabo Verde was tagged eligible to develop a compact for regional economic integration, and Tanzania to establish threshold programs, which was the same eligibility level as the Philippines.

Threshold grants are smaller than compact financing. The aid allotted to the Philippines is designed to support policy and institutional reforms.

"The MCC board's selection of Cabo Verde, the Philippines, and Tanzania advances MCC's mission to forge strong partnerships with countries that have demonstrated a commitment to democratic governance, investing in their people, and economic freedom," MCC's chief executive officer Alice Albright said.

Both the Philippines and Tanzania have demonstrated renewed commitments to advancing critical reforms to strengthen democratic governance, protect human rights, and fight corruption, according to MCC.

In recognition of its efforts, MCC said it selected the Philippines as a partner in developing threshold programs that focus on the policy and institutional reforms for reducing poverty and generating economic growth.

Finance Secretary Benjamin Diokno welcomed the readmission of the Philippines to the US program, considering it a vote of confidence in the Marcos administration's commitment to strengthening democratic governance, upholding human rights, and combating corruption.

"We appreciate the MCC board's approval of the selection of the Philippines' eligibility to the grant-based resources of the US MCC," Diokno said in a statement.

Diokno said MCC provides three different kinds of grant financing which are compact, threshold and regional.

Introduced in 2018, the MCC regional compact intends to promote cross-border economic integration, trade, and collaboration and for regional integration.

The Philippines was first named eligible for the MCC Compact Program assistance on 11 March 2008 and was later named eligible for the MCC Threshold Program assistance on 8 November 2006.