Philippines to Receive Foreign Aid From The United States

In a recent report, it is known that Philippines is receiving foreign aid from the United States. Philippines President Rodrigo Duterte is going to visit Beijing later this month. It is speculated that this visit may potentially reshape Philippines alliances in East Asia. As Duterte continues to court some of Washington’s major opponents, relations between the Philippines and the United States are alarmingly weakening.

Philippines receive foreign aid from the United States
Philippines receive foreign aid from the United States

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Reason Why Philippines Receives Foreign Aid from the US

Philippines was one of the essential parts of the Obama administration’s pivot to Asia in 2011. This is the reason why Military Assistance and Foreign Aid were sent to Manila from Washington in the recent times. In 2015, the Philippines received about $175 million in US development assistance and $50 million in foreign military assistance.

Announcement of largest US Foreign Aid Package

In early 2016, it was announced that the Philippines would receive the largest US aid package in 15 years to help strengthen its insufficiently equipped military. Jose Cuisia, the Philippine Ambassador to the United States, stated that the Philippines will get more than US$120 million in military aid in 2016, nearly doubling the amount Washington typically grants each year.

A report from the South China Morning Post states that – The overall amount will include US$79 million in standard military aid, as well as an additional US$42 million from the new US Southeast Asia Maritime Initiative, a maritime capacity-building program introduced by the US Defense Secretary Ash Carter.

Philippines Military Trade with the US

In addition, the Philippines has purchased over $1 billion in military equipment from the United States since 2012, including two US Coast Guard cutters and 12 FA-50 light fighter jets.

Philippines Grant Military Bases to United States

In April, Secretary Carter announced another military agreement, granting the United States access to five Philippine military bases to house American soldiers rotating in and out of the Philippines for training and other purposes. The bases that were agreed to be given to US were Antonio Bautista Air Base, Basa Air Base, Fort Magsaysay, Lumbia Air Base, and Mactan-Benito Ebuen Air Base. However, this could all be about to change – a news article from The Washington Post stated.

Duterte announced last week that the joint military exercises of Filipino and American troops scheduled for the first week of October in the Philippines would be the final such maneuvers. While in Hawaii to meet with Southeast Asian military ministers last Friday, September 30th, Secretary Carter hinted at rising US impatience with Duterte’s recent proclamations, “Just speaking personally for myself, I find these comments deeply troubling.”

Aftermath of the Foreign Aid

Gregory Poling, a fellow at the Center for Strategic Studies’ Southeast Asia program, expressed similar concerns, saying, “If he followed through on this pledge, it would be devastating to alliance management.”

Looking ahead to later this month, Duterte’s talks with President Xi Jinping and Premier Li Keqiang on October 19-21 are expected to result in significant financial inflows from regional economic superpower China. Over two dozen Filipino businessmen are expected to accompany the delegation in an effort to negotiate fresh investments, indicating that sovereignty disputes are being put aside in favor of potentially lucrative commercial partnerships. It remains to be seen how such a turn will affect the relationship between the Philippines and the United States.


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[Image Credits: Council on Foreign Relations]