ERD launches database for aid transparency

The Economic Relations Division (ERD) yesterday launched a web-based software application for better management of foreign aid. Finance Minister AMA Muhith unveiled the online software -- Aid Information Management System (AIMS) -- at a ceremony organised by ERD at its office in the capital.  

The new system will give everyone access to information pertaining to the inflow and disbursement of foreign aid.

Aid data is important towards understanding national resources coming from both domestic and external sources, Muhith said. 

Over the last 10 years, the country received foreign assistance worth $1.85 billion each year and was among the top 20 aid recipients globally. Foreign aid constitutes over 35 percent of the development budget of Bangladesh. 

“I am very encouraged that ERD has launched the aid management system, which will enhance transparency and ensure better management of foreign assistance,” said Prime Minister's Economic Affairs Adviser Mashiur Rahman.

It would be helpful to predict aid flow for national budgets, improve the overall alignment of assistance with the country's priorities and help better target the use of growing domestic resources, he said.

Installation of a system is the easiest part, but ensuring its practical use would be the real challenge, he said.

ERD now needs to train all stakeholders including the ministry officials to familiarise them with the system, he said.

Foreign assistance in gross domestic product stands even less than 2 percent, said M Abdul Mannan, state minister for finance and planning.

Bangladesh dependence on foreign assistance is falling gradually, he said. 

The overall objective of such an online database is to provide a common aid data sharing platform for all stakeholders to increase aid transparency, strengthen mutual accountability and improve efficient aid management, said Mohammad Mejbahuddin, ERD secretary.

Aid transparency is a cardinal element to developing effectiveness as it helps cut costs of managing foreign assistance, he said.

The online reporting to AIMS will soon replace the offline reporting to ERD wings currently done by development partners on a regular basis, he added. The system developed by Bangladesh is compliant with the data standard set by the International Aid Transparency Initiative, ERD said.

The development partners need to log into the system to provide data. Seventeen development partners have registered so far.