March 28, 2008	Friday	Rabi-ul-Awwal 19, 1429

MANILA, March 27: Foreign aid donors on Thursday praised the Philippines for its strong economic growth but warned more investment is needed if growth is to be sustained.

At the same time they warned that despite the growth, poverty was increasing in this country, requiring action on “on several broad, linked fronts.”

Donor agencies and government officials wound up a two day conference on Thursday at the Clark free trade area, north of Manila, which examined ways to improve the investment climate in the Philippines regarded as one of the most corrupt in Asia.

Bert Hofman, country director for the World Bank and chairman of the meeting, praised the government’s 7.3 per cent economic growth last year which he credited to the government’s fiscal reforms but added more needed to be done.

“Poorer Filipinos must participate in growth and benefit from improved public and private investment and service delivery,” he said.

Hofman said sustained growth requires “continued vigilance in macroeconomic and fiscal management.

“It also calls for improvements in the investment climate and ... for putting into place critically needed infrastructure.”

The donors all cited the need to improve the country’s tax administration to increase revenues and to develop capital markets to mobilise domestic funds.

They also noted that domestic and foreign investment in the Philippines still lagged behind neighbouring countries and cited the need for more consistent and transparent policies and laws to encourage investment.—AFP