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CONTENTS
Foreword
Introduction
Chapter one:
The Swiss Debt Reduction Facility (SDRF)BeginningsP Salient FeaturesPCreative Debt Relief
PThe Experience with Counterpart Funds
Chapter two:
The Philippine Swiss Debt Conversion ProgramOverviewPInitial StageP Gearing Up for Negotiations
PForging the Bilateral Agreement
Chapter three:
The Foundation for a Sustainable Society Inc. (FSSI)Brief DescriptionP Organization and Administration
Final Remarks
Abridged version June 2006
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and equity support, these NGOs and POs are now agreed that all-grantassistance, most likely, will not lead them to greater financial self-
reliance.
4. The emphasis on economic activities should not be interpreted as ashift of NGOs and POs away from advocacy activities. The Swiss DebtRelief Facility and the FSSI itself are products of sophisticatedadvocacy. There is no reason for NGOs and POs to abandon thisimportant role. Rather, the design of the counterpart fund represents asignificant expansion of the arena for development action. NGOs andPOs hope to influence the Philippine economy through participation and
competition in economic activities in addition to continuing advocacy.
5. As in previous experiences, close coordination between organized
NGO constituencies in the donor and recipient countries is crucial to the
success of negotiations with governments. There were times when the
revisions and 'delays in the two-year process put the future of the
counterpart fund in doubt. In the end, however, both governments
recognized and respected the Swiss and Philippine NGOconstituencies. The coordinated communication of concern over long
delays by the members of the Swiss Coalition of Development
Organizations and the Caucus of Development NGO Networks (CODE-
NGO) in mid-1995 led to a turning point that finally sealed the bilateral
agreement governing the debt conversion.A few heated debates (e.g. on representation, debt swaps,
relations with government) between some of the Philippine networks
also punctuated the process. These issues, however, were ironed outthrough careful negotiation along formal and informal channels.
6. The long-term vision of the Foundation -- the economicempowerment of socially and economically disadvantaged communities- is a monumental challenge that its financial resources cannot achievealone. Nonetheless, it can invest and leverage these resources in theopen market to increase the amount of support for beneficiary groups. It
can also build on the constituency of the NGOs and POs to influencegovernment and private financial policies so that these can better serve
the poor. In so doing, it can hopefully achieve the original objective ofdebt relief: the improvement of the lives of those who have suffered too
long from the debt burden.
Mr. Eugenio Gonzales
Executive Director, FSSI
