Philippine "Disaster Relief": Blessing or Burden?

A growing number of voices are denouncing the Philippines' acceptance of hundreds of millions of dollars in foreign aid following Typhoon Haiyan in November, Al Jazeera reports. Critics point to floundering Haiti, strapped with almost $2 billion in foreign debt following a massive 2010 earthquake, as a warning to be heeded. Al Jazeera notes that important differences in geographical and financial makeups of Haiti and the Philippines make the comparison imperfect, however. Despite Typhoon Haiyan and a significant earthquake of its own in October 2013, the Philippine economy is expected to grow at approximately seven percent annually, much faster than a stagnant-at-best Haitian economy.

Despite a ten-year grace period and favorable interest rates offer to the Philippines by World Bank and other sources, critics highlight data indicating that only a quarter of the more than one million families displaced by the typhoon have received any form of shelter assistance. Further, aid workers estimate that funds will only afford durable roofs for nine percent of survivors.

The Philippine economic outlook is far from positive, according to the January 14 article. Former dictator Ferdinand Marcos, overthrown in 1986, strapped the now-democratic Pacific nation with debt that was once twice its GDP; Filipinos still bear this burden, as the current national debt remains at 91 percent of GDP. Against steep odds, the world will watch closely as the Philippines attempt to rebuild.

Posted by Colin Wescott