Moving forward at a faster pace
Time is of the essence. Photo:Adam Gault
The last few days have been significant for anyone interested in strategic economic planning. It has also re-affirmed belief that Bangladesh can move forward at a faster pace despite slowdown in our export earnings (less by 14.42 percent of the export target for the first half of the current fiscal year). Economists and policy planners have also asserted their self-confidence in the manner in which expected future courses of action have been revealed.
The official participants of the recently concluded Bangladesh Development Forum unveiled massive plans pertaining to growth in infrastructure, in reconstruction and in targets related to dredging of rivers (improving navigability in more than 300 rivers by 2018, at an estimated cost of Taka12,000 crore, involving dredging of nearly 2,400 km of waterways in 53 major river routes).
The discussion in the Forum has since been followed by a statement by the prime minister in the Jatiyo Sangshad, which stressed the government's decision with regard to a 20 year road master-plan that will include construction of bridges, roads and railway lines to create an effective and sustainable communications network.
The convening of the Forum was a constructive idea. It enabled the government to share its ideas with its development partners.
In addition, there was also serious discussion about adaptation to climate change, land reclamation, homesteads for the displaced on land raised by silt, crop varieties attuned to climate change, protection of biodiversity, etc. This was done in the context of attaining food security. Reference was also made to the Brussels Programme of Action and hope expressed that the donors would arrange for quick disbursement of funds so that the efforts already undertaken in Bangladesh could be carried forward without difficulty.
It was also stressed that the government was presently following a new energy strategy towards a low carbon path to development, which includes social forestry, green belts to create a large carbon sink, clean coal technology, nuclear power and renewable energy. It was also highlighted how 600,000 solar home systems had already been installed; how vehicles were being converted to the using of compressed natural gas as fuel; how industries producing toxic waste were being relocated equipped with effluent treatment facilities; and how biodegradable material was being used as alternate to synthesis.
The Forum was also helpful in reasserting several other important points: that meaningful development is possible only through democracy, that there is need for effective and free flow of information, that judiciary has to be independent of the executive, that both these branches of government need to be accountable, that the Anti-Corruption Commission should be fully independent, that a strengthened Election Commission is required to hold free and fair elections in future, that there has to be a comprehensive approach in popularising ICT, e-commerce and e-governance and that there has to be equal involvement of the women in the development activities. It was pertinent for the prime minister to draw the attention of our development partners towards these aspects. We will need their help regarding capacity building in all these areas.
The discussion in the Forum should assist the government in moving forward.
One hopes that our government has also taken note of the various points raised by our development partners with regard to certain governance issues. Concern was expressed about the weakness of local government institutions and emphasis was made on the urgent need for carrying out reforms to improve governance at all levels. Participants, while endorsing the government's Poverty Reduction Strategy also suggested enhancement of the capacity of civil servants to implement projects, and the production of flawless statistics to expedite the implementation of development programmes.
We have to take the necessary corrective measures, strengthen institutions, improve urban planning and service delivery. We also have to develop institutions associated with local governance so that public sector development programs can be implemented effectively and transparently at the grassroots level. This will foster creation of an enabling environment for attracting more private investment that is required for higher growth and poverty reduction.
Bangladesh, in this Forum has stressed on our efforts being based on partnership. We have expressed doubts about conditionalities being attached to loans. There was reference to this both in the matter of availability of funds to fight climate change and also abolishing subsidies and complete government withdrawal from commercial markets. By doing so we have reiterated our resolve to move forward based on our own appreciation of our requirements and national priority.
However, one has to understand that management of loans or grants has a strategic component that also needs to be addressed meaningfully. I am referring here to the need for quick project implementation, simplification of the tender process and meaningful public-private partnership towards projects. This has especial relevance for the infrastructure and the energy sectors. The recent revelations of JICA, the Japanese Aid arm, about our government's dismal rate of implementation of Japanese credit, is downright embarassing. Such an approach has to stop.
The government has informed the development partners that it would require $9.5 billion for generating around 7,000 megawatt additional power, and transmission and distribution in the next six years. The government has also presented detailed plans on financing required for the projects, and focused on the plan for cross-border cooperation in the power sector. This has been a strategic initiative.
Grid connectivity with Nepal, Bhutan and India has been welcomed but questions have also justifiably been raised as to the present effective capacity of the Energy Regulatory Commission and the current tariff rates applicable in Bangladesh. Both are sensitive areas of engagement that will need careful analysis. It would also be useful for the government to conduct a detailed audit to ascertain the various points through which there is presently wastage of power, energy and gas and then to take steps to remove them.
Some analysts have correctly noted that follow-up discussions will be required with our development partners for an integrated response to our needs within the PRSP Phase-II plan of action. We have to be careful as to how we intend to translate the government's 2021 vision into specific policies and institutions to secure our objectives.
We have to have consensus as to time lines, as to how we will tackle the question of export-led growth versus import substitution, as to the issue of trade liberalisation and associated challenges and improvements in the service delivery system.
To move forward at a faster pace, we will require transfer of technology, diversification of our export items, simplification of the investment process and the clearances required. In this context, one would also have to agree with the proposal that there is need for the devolution of authority and responsibility to local governments ,including urban municipal governments, to help create greater efficiency and better capacity for those intending to participate in our proposed Economic Zones.
We also need bi-partisanship in the political arena. Without this very little might be achieved.
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