I.

DEFINITION OF TERMS

a. DEVELOPMENT- is the process of developing, growth and directed changes. It is also

regarded as the progression in which someone or something grows or changes and
becomes more advanced.
b. FINANCE- is the science and art of managing money.

II. INTRODUCTION

DEVELOPMENT FINANCE is a type of funding (short-term/long-term) that helps pay for

building and development costs typically used for projects of an establishment/institutions,
particularly of the government, such as infrastructure, education, health and livelihood
programs in order for the people to have a source of income and means of support mostly
those who belong to the poorest of the poor sector of the society.

As long as the Development Finance scene in the Philippines is concern, the role of the
public plays a vital role in Development Finance, especially in the creation of revenue for the
government in the form of taxation that shall be used for the implementation of these said
priority projects of the government has planned.

The concept of development has changed from righteously economic to multidimensional

perspectives. The objectives of development is to increase the availability and widen the
distribution of the basic life-sustaining goods such as food, shelter, health and protection, to
make levels of living including higher and sustainable income, provision of more jobs and
better quality of education that shall serve as the gateway to an individual’s future.

Cultural and humanistic values also are integral because of all in which serve not only to
enhance and improve the material well-being but at the same time to generate greater
individual and national self-esteem.

In the efforts devoted to improving economic and social conditions in developing countries
like the Philippines, economic developers are considered as the bridge between the
government and businesses. These exertions through Public and Private Partnerships (PPP)
will provide solutions to the challenges that the local and the global environment creates.

1
 III. SUSTAINABLE DEVELOPMENT

As stated by the WORLD COMMISSION ON ENVIRONMENT AND DEVELOPMENT (WCED),

Sustainable Development is s process of change in which the manipulation of resources, the
direction of investments, the orientation of technological development and institutional
change are made consistent with the present and future needs.

In relation to this, this process of change implies that in all aspects of growth, there must
also be a substantial responsibility on the part of the public to endure the usage of natural
resources. We have the social responsibility to preserve and protect the environment so
that it will produce goods and generate income for our present needs and needs of the
future generation.

Accordingly, Sustainable Development is development that meets the needs of the present
without compromising the ability of future generations to meet their own needs. It contain
within it two key concepts; The concept of “needs’’, in particular the essential needs of the
world’s poor; to which overriding priority should be given and the idea of limitations
imposed by the state of technology and social organizations on the environment’s ability to
produce for generations to come.

Hence, the concept of Sustainable Development has been, and still is, was subjected to
scrutiny and debate. It has been argued that there is no such thing as sustainable use of
non-renewable resources, since any positive rate of exploitation will eventually lead to the
exhaustion of the Earth’s limited stocks.

This perspective renders the industrial revolution as a whole unsustainable, thus the
concept of Conservation Management has been created more so to cope up with the
increase in demand and maltreatment of our environment that leads to the scarcity of our
natural resources that also affects our economic and socio-economic development as a
country per se.

2
IV. DEVELOPMENT FINANCE

Development Finance is commonly understood as a form of provision of funds mostly in the

form of credit, which is given to both developing and less developed countries so that they
could undertake progress projects that they could not afford. For example development
projects that promotes the country’s tourism like cultural occasions, sports events,
museums and others.

Development Finance is important in nature because it helps business entities to gain

capitals so they could eventually invest on their own, generate income for the construction
of structures and amenities that shall be of great use for the people and be a focal point in
order to attract foreign investors in the country.

That is why a well-oiled taxation system of a country is very key for sustaining its growth and
not impeding its rise a global competitor. Building capacity to raise revenue through taxes is
relatively crucial especially for less developed countries, because it lessens their
dependence on aid such as credit and other forms of financial assistance coming from other
more developed countries.

At the same time, it strengthens the relationship between the state and its constituents,
and can reinforce intra-society relations. Such financial institutions, like for example the
World Bank, whom which provides loans to countries of the world for capital projects
wherein its main goal is to give a helping hand to less developed countries in aid of their
major infrastructure and socio-economic projects, and help in the eradication of poverty.

In countries like the Philippines, tax revenues is not sufficient to sustain the country’s needs.
Consequently, with such disparity, countries like ours tend to turn to these financial
institutions for credit just to withstand the growing necessities of its residents. This is why a
number of our countrymen decide to go overseas and by these remittances also helps the
country generate extra revenue.

On October 1, 2017 which was publish by the Philippine Daily Inquirer, a strong growth in
Overseas Filipino Workers (OFW)

3
V. RECOMMENDATIONS/CONCLUSION

Development Finance will help countries, especially the Philippines accelerate its economic,
political, social and environmental growth.

However, is it a question of whether or not the country can afford it. There are many available
sources of finances but third world countries including the Philippines are mostly highly
indebted and are dependent on external sources. At present, it is difficult for these countries
to attract foreign investors.

Thus, these countries especially our own should double their efforts in tapping new sources
for financing rather than relying on foreign financial assistance or donors. Like for example
our OFW Remittances and tourism attractions, the Philippines is abundant of these sources.
We Filipinos are scattered all over the globe bringing in influx of revenue that has helped this
country stay above water.

To achieve Sustainable Development Finance, we must all make sacrifices, move to a solitary
goal which is growth whatever may that mean. It may mean economically, socially and
nationally.

Positive attitude and the right mind-set is what we need in order to make this dream a reality,
trust our government that they will make the right decisions, promote the much needed
projects that the public will fully benefit on.

“Give to Caesar what is due to Caesar” it means if the funds are allocated to the people’s
health give it to them, if the budget is for the education of our children then rightfully so it
should be given to them.

4
VI. REFERENCES:

Briones, Leonor M. 1996, Public Fiscal Administration, Vol. 1

World Bank, Global Monitoring Report
Cambridge Dictionary
Zach de Gregorio, CPA author; Wolves and Finance
Philippine Daily Inquirer, October 2016
Revenue and Tax Effort, Department of Finance (2011)