Announcement of Consultative Group Meeting for the Philippines on January 31, 1985

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433 , U.S.A. BANK NEWS RELEASE Contact: P.B. Sison January 31, 1985 (202) 477-3573 The following press release was received today from the World Bank's European Office in Paris: "I • • • CONSULTATIVE GROUP MEETING FOR THE PHILIPPINES 1. The thirteenth meeting of the Consultative Group for the Philippines was held in Paris on January 29 and 30, 1985, under the chairmanship of the World Bank. The meeting was attended by the representatives of Australia, Belgium, Canada, France, Germany, India, Japan, New Zealand, Spain, Switzerland, the United Kingdom, and the United States. Also present were representatives of the Asian Development Bank, Commission of European Communities, International Finance Corporation, International Fund for Agricultural Development, International Monetary Fund, Organization for Economic Cooperation and Development, and the United Nations Development Programme. The Philippine Delegation was led by the Honorable Cesar Virata, the Prime Minister and the Minister of Finance. 2. The documentation before the meeting consisted of the Philippine Government's updated Development Plan for 1984-87, its Policy Agenda for 1985-87, its Public Investment Program for 1985-89 and a brief description of Selected Major Development Projects. A World Bank economic report entitled "An Agenda for Adjustment and Growth" and a paper entitled "Philippines Public Investment Program, a Preliminary Assessment" were also considered by the Group. 3. Prime Minister Virata read a message from His Excellency Ferdinand E. Marcos, the President of the Philippines, reconfirming the Government's determination to implement its Policy Agenda and to mobilize all resources for this purpose despite prevailing difficulties in order to resume a reasonable growth. 4. The meeting acknowledged the difficulties experienced by the Philippines during the last few years including a series of natural calamities, political and social reexamination, and a severe economic and financial crisis. It also took note of the Government's courageous actions so far taken to implement the stabilization program which entailed considerable sacrifices from the population whose standards of living were already reduced by the unfavorable developments. The Government has taken  -2- a number of actions to reduce the public sector deficit and to normalize the external payments situation. Capital and operating expenditures have been drastically cut back for this purpose. It is the resumption of growth and increase of incomes and exports that will provide the real and lasting solution to the current recession, poverty, unemployment and balance of payments problems. According to the Government's Policy Agenda, in addition to continued focus on the stabilization objectives, increasing attention will be given to improving the prospects for long-term development by continuation of structural and policy reforms and adjustments includ; n g a general liberalization of the economy. The planned policy reforms in c lude more efficient resource mobilization in the public sector, export promotion, improved agricultural incentives, reform of financial institutions and of public corporations, and infrastructure development. The Philippine Government will concentrate on completion of ongoing projects especially those with high returns and high foreign exchange impact. Also most of the new projects will concentrate on maintenance and rehabilitation of existing infrastructure and on improved utilization of existing productive capacity. 5. The Group agreed that the recovery program would require substantial capital inflows to finance the future development programs. In addition, as the full Consultative Group will meet only in 12 to 15 months, and the Government is now at a critical juncture in that it must take implementable actions with respect to its policy agenda, the Government agreed to meet with an ad hoc subcommittee of the Consultative Group at an earlier date. In this meeting, to be chaired by the World Bank, the Government would exchange views on progress made in designing and implementing an action program of structural and policy reforms and on the nature of support the international community could best provide to aid the Government in its endeavors. The World Bank will inform all members of the Consultative Group about the progress of these deliberations. 6. The Philippine Delegation expressed their Government's appreciation of the Consultative Group's efforts in supporting the Philippines' economic recovery and growth. The Group agreed that the next meeting of the Consultative Group for the Phiippines be held in Paris in early 1986.