Secretary Cayetano Focuses on Economic Diplomacy During WB/IMF Annual Meetings

From left:  Socioeconomic Planning Secretary Ernesto M. Pernia; Finance Secretary Carlos G. Dominguez III; World Bank CEO Kristalina Georgieva; and Foreign Affairs Secretary Alan Peter S. Cayetano met on 12 October 2017 as part of the 2017 World Bank – IMF Annual Meetings in Washington, D.C.

18 October 2017 WASHINGTON, D.C.— Foreign Affairs Secretary Alan Peter S. Cayetano concluded a four-day visit to the US capital that was primarily focused on the important PH-US economic and development partnership, which is a defining characteristic of the long-standing friendship between the Philippines and the United States. Secretary Cayetano joined Finance Secretary Carlos G. Dominguez III and other economic managers last week for the Annual Meetings of the World Bank and the International Monetary Fund.

“The visit of Secretary Dominguez and the economic team was an important follow-up to our mutual efforts to advance the core economic interests of our two countries, and I very much appreciated the opportunity to join the economic team in their meetings,” Secretary Cayetano said in a statement.

The DFA and DOF Secretaries met with US Treasury Undersecretary David Malpass, and discussed the tax reform package. Secretary Dominguez said that the economic managers are working closely with the Philippine Congress in order to pass the reform package into law. He noted that the reforms enjoy the support of the business community, professional economists and a large number of private groups wishing to see a simpler and more efficient tax system.

Among the other issues discussed with Undersecretary Malpass were technical assistance and development cooperation in financial issues including tax laws enforcement; the Philippine capital market development efforts; and the rebuilding program for Marawi.

At the meeting with Jonathan Nash, Acting Chief Executive Officer of the Millennium Challenge Corporation (MCC), the Philippine and MCC officials had a chance to review the success of the first MCC compact with the Philippines, and exchange views on the second compact that is currently being developed.

“The MCC’s first compact with the Philippines greatly contributed to strengthening the political, economic and people-to-people relationship between our two countries. We hope that our partnership with MCC will continue to contribute to our efforts to empower ordinary citizens to actively and directly participate in local governance and the economy,” Secretary Cayetano said after the MCC meeting.

Secretaries Cayetano and Dominguez, and NEDA Secretary Ernesto M. Pernia, likewise met with Ms. Kristalina Georgieva, Chief Executive Officer of the World Bank, in a wide-ranging discussion of the World Bank’s engagement with the Philippines. They discussed potential areas for cooperation particularly in climate change, flood control, infrastructure projects in transportation and energy, and the reconstruction of Marawi City.

“We want to be able to tap the expertise of the World Bank in post-conflict rebuilding, such as in drawing up rehabilitation plans for a city that suffered from so much damage,” Secretary Dominguez said in describing the Marawi discussion with Ms. Georgieva.

During this visit, Secretary Cayetano also had substantive and comprehensive conversations with various economic stakeholders in the US Government, business sector, legal community, and Filipino American groups. He also joined the economic team in their meetings with senior officials of the World Bank Group.

“In all our meetings, I detected a deep sense of confidence in and excitement for the potentials of the Philippine economy. We have clearly communicated to American policy-makers and business leaders, and the World Bank, that the Philippine economy is in good shape, and in very good hands,” Secretary Cayetano said. END

Secretary Alan Peter S. Cayetano (seated left) and Secretary Carlos G. Dominguez III (seated center) discusses the tax reform package with US Treasury Undersecretary David Malpass (seated right) at a meeting held on 13 October 2017 in Washington, D.C.