Makati: A United Nations-supported strategic action plan to help drive development in middle-income states was formally adopted in the Philippines on Tuesday. The Makati Declaration emerged following the two-day High-Level Conference of Middle-Income Countries (HLC-MICs) hosted by the Philippine government at the Makati Shangri-La Hotel from April 28 to 29.
According to Philippines News Agency, the outcome document endorses recommendations to help MICs achieve sustainable growth and avoid falling into the so-called 'middle-income trap,' among others. It outlines key priorities, including financing for development, establishing metrics that effectively measure development beyond the traditional GDP, and debt sustainability. The declaration also encompasses climate action and finance, digital transformation, gender equality, and social protection. It seeks to advance the role of MICs in the development dialogue within the UN system.
Despite experiencing rapid economic growth, Foreign Affairs Secretary Enrique Manalo highlighted that MICs continue to face challenges such as inequality, unemployment, and the devastating effects of climate change. "The road ahead will include ensuring that the needs of MICs are recognized and addressed in various UN processes," he stated in a press conference. "The overall objective of a Strategic Program of Action would be to help catalyze more targeted and tailored support for MICs from the international community, including UN agencies."
Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan emphasized the call for broader cooperation at the high-level declaration, indicating a realization among states that "acting as a group can achieve better outcomes," especially in the global context. "It gives a fresh breath in a way to multilateralism- so we are acting as one, we are pushing for a return to a regime where countries can expand their markets and access trade, finance, technology in better situations," he remarked.
UN Under-Secretary General and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP) Armida Salsiah Alisjahbana underscored that the UN system would continue supporting MICs, specifically in financing for development. With the Philippines, the UNDP (United Nations Development Programme) stated that cooperation would continue even after the country graduates to an upper-middle-income state in the future, although it has to evolve.
"Whatever we're doing today we will continue, except that we needed to look deeper at our value-added," said Haoliang Xu, UN Under-Secretary-General and UNDP Associate Administrator, in a separate interview. "We needed to look at how we can add value in this new stage of development, at the same time, the traditional support may still be needed because the country's development is uneven," he added, citing inequality in some parts of the country, including the Bangsamoro.
While the Philippines faces challenges including exposure to climate change, geographical differences, and "geopolitical instabilities" that affect development opportunities, Xu noted government efforts to achieve an upper middle-income status by 2026. "I think there are a lot of things that are going well for the Philippines- you have a national vision, it is very clear," he said. "Your public debt is relatively low compared to many other developing countries. That means you have fiscal space and the government is very focused on public-private partnerships - So, I think these are all very positive indicators, that give me confidence that the development of the Philippines will continue in the right direction," he added.
The HLC-MIC gathered over 200 delegates, including ministers and high-level representatives from over 24 countries and key UN officials. The conference is an initiative of the Like-Minded Group in support of Middle-Income Countries (LMG-MICs), chaired by the Kingdom of Morocco. The LMG-MICs include the countries of Armenia, Belarus, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Lebanon, Mexico, Morocco, Namibia, Panama, Peru, the Philippines, and Uruguay. Other countries that sent representatives were Bangladesh, Fiji, Indonesia, Malaysia, Mongolia, and Thailand.
