Manila: The National Economic Development Authority (NEDA) has downplayed concerns regarding the potential effects of United States President Donald Trump's temporary suspension of foreign assistance, asserting that the move is unlikely to significantly disrupt the country's ongoing development initiatives. In a media interview on Monday, NEDA Secretary Arsenio Balisacan acknowledged that while the US is a major source of grants, the suspension would have only a minimal direct impact on the Philippine economy.
According to Philippines News Agency, Balisacan emphasized that foreign assistance from the US represents a small fraction of the Philippines' overall economic activities. He noted that any indirect effects could stem from the US's role as a significant shareholder in multilateral lending institutions like the World Bank and the Asian Development Bank (ADB). However, he assured that these potential impacts would likely be more medium-term in nature.
Balisacan also assured that the Philippines' current flagship infrastructure projects, which are largely funded by countries like Japan, Korea, and multilateral institutions like the ADB and World Bank, would not be significantly impacted. The suspension, announced by the US State Department, involves a "stop-work" order for all existing foreign assistance, in addition to halting new aid, as Trump ordered a 90-day pause in foreign development assistance.
This period will allow the new administration to review the efficiency and consistency of aid distribution with the country's broader foreign policy goals. The US remains the world's largest donor of international aid, obligating approximately USD68 billion in 2023 for 204 countries, according to official US government data. In the case of the Philippines, the US is one of the country's top sources of Official Development Assistance, contributing around USD147.7 million in 2023.
Meanwhile, Senate Minority Leader Aquilino Pimentel III said the Philippines should strive for self-reliance. He underscored the importance of fostering self-reliance and building a robust domestic economy that is not vulnerable to the withdrawal of foreign assistance. 'The Philippines should not be dependent on foreign aid, although we should be welcoming of all aid without strings and conditions which are extended to us,' Pimentel said in a message to reporters.
