Common use of Background and Consultative Process Clause in Contracts

Background and Consultative Process. The Philippines was declared eligible for MCC assistance in March 2008. With a population of approximately 90 million inhabitants, the 7,107 islands of the Philippines cover a combined area of 115,830 square miles. Despite unprecedented growth gains over the past decade, accompanied by moderate inflation, the Philippines continues to face severe constraints to reducing poverty. In an effort to prioritize its development spending, the Government elaborated a national medium-term development plan and several sector strategies, and undertook an analysis of constraints to economic growth. Priorities were identified for increased social sector spending, improvements to basic infrastructure, and improvements to governance, and were confirmed through a number of national, regional, and local consultations from early 2007 through early 2009. The Program has been designed by the Government, building upon initiatives from numerous donors, non-governmental organizations, and the domestic private sector to spur growth in economically depressed or vulnerable regions and to provide a platform for continued poverty reduction efforts. The Program will enable the Government to increase resources available for high-priority expenditures and target Government initiatives toward some of the poorest regions and municipalities in the archipelago.