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    Donors urged to stop giving
    Arroyo government financial aid
     
    By Cai U. Ordinario
    Reporter
     

    DEBT activists have urged donor countries and agencies to stop providing the Arroyo administration with loans and aid to prevent government corruption through a rally at the ongoing Philippine Development Forum (PDF) in Clark, Pampanga.

    In a joint statement, activists led by the Freedom from Debt Coalition said the recent spate of anomalous projects funded through official development assistance (ODA) has already tainted foreign aid.

    “The scale of new exposés on ODA misuse brings to mind the dark days of Marcos’ authoritarian rule when foreign assistance had acquired the vile reputation for corruption, bribery, human-rights violations and environmental degradation, among other social evils,” the groups said. “Plug the funneling of funds from loans and aid which is the source of kickbacks that are being used by this corrupt and illegitimate administration for political survival.”

    Organizations such as Social Watch Philippines, Philippine Rural Reconstruction Movement and Management, Organizational Development for Empowerment and others also recommended that donor governments and multilateral institutions should increase and improve the quality of aid allotments. Donors were also advised to realign the loan-grant mix, increase the share of projects on human and social development and realign regional and provincial distribution of aid to poorer areas.

    The groups also urged donor agencies and governments to address social and environmental concerns, end all tied aid, delink aid from the war on terror particularly in Mindanao and reform technical assistance to respond to national priorities and capacity building.

    “While we recognize that ODA has a role to play in Philippine development, we also affirm that inadequacies in the country’s foreign-aid system has persisted for far too long, and a judicious end is nowhere in sight. After over five decades, accumulated evidence reveal countless instances of political influence-peddling, huge kickbacks for government officials, questionable altruism among aid donors, useless yet expensive projects that cost Filipinos billions in loan repayments and a host of other issues associated with the sourcing and utilization of foreign-aid money,” the groups’ statement said.

    The groups also presented a laundry list to the government through its own ODA report that seeks to prevent ODA-related anomalies similar to alleged kickbacks collected from the national broadband network deal and allegations of overpricing in the Southrail and Northrail projects.

    The activists urged the government to fix project-implementation problems, plug the “hemorrhage” of government funds in repaying loans, address the foreign consultants’ issue, end human-rights violations in aid projects, focus on long-term and alternative sources of development financing and strictly follow the legal requirements in negotiating loan agreements.

    For its part, the Philippine government should also adopt a policy of transparency and popular participation, draw up comprehensive and consistent ODA performance standards, reevaluate government policies and thrusts on ODA and adopt a policy of preferential option for untied aid.

    “We believe that, clearly, change is imperative and it must begin by reaching a consensus on the systemic problems plaguing foreign assistance in the Philippines, as well as by the immediate initiation of concrete and accountable processes to govern the quality, quantity and effectiveness of aid by stakeholders from civil society, donors and government organizations,” the groups said.

    Signatories to the Citizens’ ODA Report include the Initiatives for Dialogue and Empowerment through Alternatives Legal Services, Inc., ODA Watch, Pambansang Kilusan ng Kababaihan sa Kanayunan, Sustainability Watch, the Philppine Network of Rural Development Institutes Inc., Partido Kalikasan and Justice, Peace and Integrity of Creation Committee.

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