Announcement of Meeting of the Consultative Group for the Philippines on December 11, 1974

/\L :,I\, • ,r' \ 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 BANK News Release December 11, 1974 MEETING OF THE CONSULTATIVE GROUP FOR THE PHILIPPINES The following announcement was issued on December 10, 1974 at the World Bank's European Office in Paris. The fourth meeting of the Consultative Group for the Philippines was held in Paris on December 9 and 10, 1974 under the Chairmanship of the World Bank. Representatives of the following countries were present: Australia, Belgium, France, Federal Republic of Germany, Japan, New Zealand, Spain, United Kingdom and the United States. Also represented were the International Monetary Fund, the Uni~ed Nations Development Program, the Asian Development Bank and the Organization for Economic Coopr~ration and Development. The Philippine delegation was led by the • Honorable Cesar Virata, Secretary of Finance . The Group discussed an economic report prepared by the World Rank and presentations by members of the Philippine delegation. It noted with satisfaction the emphasis the Government has given to agrarian reform and increased p't'oduction through the Masagana 99 and similar programs. The meeting welcomed the Go\.'. ·rnrnent 's continued commitment to agrarian reform which was reaffirmed by the announcement last month of measures to streamline redistribution procedures and to implement the program down to seven-hectare farmt The meeting was encouraged by the impressive overall performance of the Philippine economy in 1973, which grew by about lOi, in real tenns. 0£ pnrticular interest were the substantia] tncreases in both Government re.venues ancl pub] ic investment as well as the itr:proved i.nternatior.al reserve position. It was al s0 noted that 1()74 had been more difficult than 1973, due to the rising cost of :!.rrpcrts as well as a weakening in some export markets since: the middle of the year. The. Government's policy, as summarized in President Marcos' message to the. meet in~:., has been to maintain the growth momentut!l of the economy while restraining infJ D t:ionary pressures; this policy received support from delegations. The meeting concluded that the longer-term prospects of the Philippine • economy were very good. However, maintaining the growth momentum of the economy will require continuing support from the international conununity. In this regard the meeting noted the increase of official development assistance to over $400 rrillion  -2- in 1974. In order that disbursements attain a level commensurate with the level of public development expenditures required in the latter part of the decade, the meeting agreed that efforts should be made to maintain in real terms the current level • of project assistance from official sources. In this context the Group also agreed that it was appropriate for the Government of the Philippines to aim at obtaining new commitments at an annual level of at least $500 million equiv&lent. In addition, the meeting noted that new commitments of quick-disbursing commodity assistance will make an important contribution to maintaining growth along with a manageable balance of payments position in 1975. Considering the uncertainties in the world economy, the Government will have to watch developments closely and, as in the past, adjust quickly to changes in international markets and other economic conditions. It was provisionally agreed that the next meeting of the Group would be held in early October 1975, probably in Paris. • Note: Money figures are expressed in US dollar equivalents. •