Washington hikes aid for Manila

Manila: The US Congress has increased its development and security assistance outlay for Manila for fiscal year (FY) 2010, a Philippines official said.

Foreign Affairs Secretary Alberto Romulo, in a statement, announced that the US Congress increased 2010 development and security assistance to $135.1 million (Dh496 million) from $119.7 million in 2009.

"The US Congress has always played a key role in ensuring that the alliance between the Philippines and the US remains strong and is supportive of peace and development efforts in the Philippines, particularly in Mindanao,"

Romulo said adding that the amount is even higher than the $118.7 million requested by President Barrack Obama.

Romulo said that based on the US Congress budget, "two-thirds of US assistance is devoted to Mindanao for livelihood, basic services, and re-integration of ex-combatants."

He added that the development and security assistance outlay is awaiting Obama's signature anytime soon.

Increased funds

Specifically, the combined Development Assistance and Economic Support Fund was raised to $70.3 million in FY2010 from $60 million in FY2009. Foreign Military Financing (FMF) was also increased to $32 million from $15 million over the same period.

Also included in the FY2010 appropriations is the amount of $198 million for the Filipino Veterans Equity Fund that will benefit Filipino World War II veterans.

As of December 1, 2009, over $128 million had been awarded to eligible Filipino veterans who fought alongside their American allies during the war in the Pacific.

Finally, the Philippines also stands to receive an amount of up to $450 million from the US Millennium Challenge Corporation (MCC), whose Board of Directors led by Secretary of State Hillary Clinton, recently unanimously re-selected the Philippines as compact eligible for FY2010.

Fighting poverty

The MCC is an independent US foreign aid agency which is focussed on fighting global poverty.

The Philippines is considered by the MCC as one of the countries that has the high capacity to exercise sound political, economic and social policies that will maximise sustainable poverty reduction.

In terms of Development Assistance, the Philippines is second only to Indonesia globally.

The Philippines receives the highest level of International Military Education and Training funds in East Asia and the Pacific and the 12th biggest share of US Foreign Military Financing in the world.