Monday, January 27, 2025

PH sees no exhausting impression of US international assist freeze

PH sees no hard impact of US global aid freezePH sees no hard impact of US global aid freeze

Secretary of State Marco Rubio  —AP Picture/Evan Vucci

MANILA, Philippines — A senior overseas affairs official on Saturday mentioned the suspension of US overseas assist globally was unlikely to severely have an effect on the Philippines at the same time as Malacañang tried to understand the implications of the transfer ordered by US President Donald Trump.

At a press discussion board on Saturday, International Undersecretary Eduardo Jose de Vega famous that the Philippines had many financial companions like america.

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“And whereas the US involvement in our financial system as a buying and selling accomplice remains to be very excessive, I feel even with the freeze, it’s not prefer it’s going to severely have an effect on us as a result of the help packages from the US are small proper now,” he mentioned.

READ: US-PH Edca: A decade of protection

De Vega burdened, nonetheless, the significance of “people-to-people ties and definitely the Mutual Protection Treaty” between the 2 nations.

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The Philippines is a longtime ally of america within the Indo-Pacific, the place China’s aggressive actions within the South China Sea are seen as a risk to peace and safety within the area.

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DFA monitoring

Presidential Communications Workplace Secretary Cesar Chavez instructed the Inquirer that the Division of International Affairs (DFA) was carefully monitoring reviews on the freeze order because it continued to work with “companions within the US Division of State and the US authorities to find out how it will have an effect on the Philippines.”

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De Vega instructed the information discussion board that Manila “will use diplomatic channels and back-channeling” with Washington and that the Philippine Ambassador to america, Jose Manuel Romualdez, was “very energetic” on this.

Rubio memo

The US assist freeze order was despatched out in an inside memo on Friday by Secretary of State Marco Rubio days after Trump took workplace vowing an “America First” coverage of tightly proscribing help abroad.

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It paused just about all overseas assist, apart from emergency meals packages and army assist to Israel and Egypt.

“No new funds shall be obligated for brand new awards or extensions of present awards till every proposed new award or extension has been reviewed and accredited,” mentioned the memo seen by information organizations in Washington.

The sweeping order seems to have an effect on the whole lot from growth help to army assist—together with to Ukraine, which acquired billions of {dollars} in weapons beneath Trump’s predecessor Joe Biden because it tries to repel a Russian invasion.

Different states recognized for army financing in 2025 embody Ukraine, Georgia, Estonia, Latvia, Lithuania, Taiwan, Indonesia, the Philippines, Thailand, Vietnam, Djibouti, Colombia, Panama, Ecuador and Jordan, based on a request to Congress from the Biden administration.

2023 figures

The directive was delivered in a cable despatched to US embassies world wide and can have an effect on US-funded packages in assist of well being, training, growth, job coaching, anticorruption, safety help and different assist efforts.

In 2023, america Company for Worldwide Growth (USAID) offered $198.2 million in disbursed assist to the Philippines, based on ForeignAssistance.gov, a US authorities web site.

The funds supported varied growth initiatives, with the most important share going to normal environmental safety ($32.59 million), adopted by fundamental well being ($25.52 million), governance and civil society ($24.98 million); and working bills ($22.1 million).

The opposite sectors that acquired help had been maternal and baby well being, household planning ($19.27 million), emergency response ($12.59), fundamental training ($18.23 million), and power ($7.44 million).

Flip to different companions

USAID’s help to the Philippines was at the very least $144 million in 2024, based on an preliminary report.

Whereas Japan stays the most important ODA supplier, the report talked about that USAID was additionally a major contributor with grants totaling $623.75 million.

Manila Rep. Joel Chua, chair of the committee on good authorities and accountability, mentioned that “in our personal nationwide pursuits, we must always look extra to the European Union, the Center East, Japan, South Korea and Australia for overseas assist.”

“The America First coverage the US now has extra possible means the US will retreat from the remainder of the world,” Chua mentioned, whereas additionally cautioning in opposition to leaning towards Russian assist “until Russia ends its warfare with Ukraine.”

Albay Rep. Joey Salceda, an economist, warned that if america uncared for its relationship with the Philippines, the nation may need no different alternative however to “steadiness that out with China.”

“Now we have sentimental ties with the US. We would like them to succeed as they appear after America first,” he mentioned. “Now we have territorial points with China, however between the US and China, solely the US truly invaded our primary islands.”

“So, we’re not blind to the truth that they’ll take care of their curiosity first. We simply need them to be truthful, and I feel they are going to be. As a result of the farther the US goes from us, the nearer they power us to their adversaries,” Salceda mentioned.

‘Low single digits’

However, from an financial perspective, he mentioned Trump’s order shouldn’t be a problem as america has not been a significant supply of assist for the Philippines for some time now, citing knowledge from the Nationwide Financial and Growth Authority (Neda) displaying US assist within the “low single digits” by way of % share.

“Their assist is their resolution to make. Nothing must be finished on our finish,” Salceda mentioned. “Our most essential overseas relationships are, on this order, our relationship with Japan, our Asean neighborhood, and our strategic multilateralism.” Asean is the 10-member Affiliation of Southeast Asian Nations.

In accordance with the most recent obtainable knowledge from Neda, the official growth help (ODA) acquired by the Philippines from overseas governments and establishments stood at $37.29 billion as of 2023, up by 15 % from the earlier 12 months.

That quantity consisted of concessional loans price $35.07 billion and $2.22 billion in grants.

Greatest share

In 2023, Japan held the most important share of ODA within the nation at 32 %, adopted by Asian Growth Financial institution and World Financial institution.

By sector, 54.59 % of the ODA went to infrastructure. Governance and establishment growth acquired the second largest share (18.4 %), adopted by social reform and neighborhood growth (15 %) and agriculture, agrarian reform and pure sources (11.6 %). The remaining 0.79 % went to business, commerce and tourism.

The US offers extra overseas assist globally than every other nation, budgeting about $60 billion in 2023, or about 1 % of the US price range.

Rubio’s memo known as for an inside overview of all overseas help inside 85 days.

In justifying the freeze, Rubio—who as a senator was a supporter of growth help—wrote that it was inconceivable for the brand new administration to evaluate whether or not present overseas assist commitments “usually are not duplicated, are efficient and are per President Trump’s overseas coverage.”

Abandonment, ‘lunacy’

Antipoverty group Oxfam mentioned that Trump was abandoning a long-standing consensus in america for overseas help.

“Humanitarian and growth help accounts for less than round 1 % of the federal price range; it saves lives, fights illnesses, educates thousands and thousands of kids and reduces poverty,” Oxfam America president Abby Maxman mentioned in an announcement.

“Suspending and finally reducing many of those packages may have life or loss of life penalties for numerous youngsters and households who’re dwelling via disaster,” she mentioned.



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“That is lunacy,” mentioned Jeremy Konyndyk, a former USAID official who’s now president of Refugees Worldwide. “This can kill folks. I imply, if carried out as written in that cable … lots of people will die.” —with reviews from Ian Nicolas Cigaral, Agence France-Presse, AP, and Inquirer Analysis 


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