The Covid 19 pandemic reduced an emerging Philippines economy to a standstill and reversed most of the economic gains achieved over the last few years. In 2020 GDP declined by 9.5%, foreign direct investments reduced by nearly 25%, revenue collection fell by 9% and the national debt increased by 26.7% leading to increased inflation and unemployment. The Asian Development Bank implemented a Rapid Emergency Supplies Provision program to address the immediate adverse impact of the pandemic – loss of income and food security. Global Best Practice Group’s expert was retained to design a longer term innovative and sustainable financing solution for the Government of Philippines to consider as a funding mechanism for pandemics and related disaster related emergencies. A review of the socio-economic impacts of the Covid-19 pandemic, assessment of the government response and a comparison of its recovery strategy with international recovery actions provided a clear understanding of the areas for intervention. Clear objectives for a Covid-19 Fund with a focus on financing SMEs by providing climate smart solutions and green transformation investments were developed to seek financial support from climate and other international funding agencies. Innovative financing options including bond and fund mechanisms were evaluated for kickstarting the economy and building resilience. A Trust Fund architecture was recommended as the next step to strengthen financial preparedness against socio-economic crises and build resilience to impacts of climate change.
Consultants
to the Development World ™
