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Press Briefing on Interim IRBD 07

25 January 2007
 

Focusing on the upcoming National Election of 2007 the CPD on 25 January 2007 placed 12 point recommendation to the Caretaker Government (CTG) through a press briefing titled as State of the Bangladesh Economy in FY07: An “Election Plus” Agenda for the Second Caretaker Government to make the free and fair. The press briefing was organized as a part of CPD’s ongoing Independent Review of Bangladesh’s Development initiative to review the performance of Bangladesh’s economy. Briefing the print and electronic media at the CPD Dialogue room the organisation’s Executive Director Debapriya Bhattacharya said the CTG should give priority on improving the environment, strengthening the efficiency of anti-corruption initiatives and supporting reform of political institutions. Terming the election related corruption as most the most dangerous the CPD ED suggested a number of structural and institutional measures to create an environment conducive to promoting participation of clean and competent candidates.

The structural and institutional measures included strengthening Anti-Money Laundering Act, redefining loan defaulters, Credit Information Bureau (CIB) report for election candidates, disclosure of provisions under Representation of the People Order (RPO), 1972, enactment of Right to Information Act, making Public Procurement Act operational, enactment of Promotion of Political Participation Act, Fiscal Responsibility Act, restructuring of nationalised commercial banks (NCBs), revitalising the power sector and the making of a committee to evaluate large foreign direct investment (FDI) proposals. Debapriya proposed to mandate the Election Commission to register the political parties by enacting a law which would also improve transparency of financing of political and electoral activities and Fiscal Responsibility Act to ensure sustainable macroeconomic and fiscal balance and to raise the level of public savings for development. He demanded to make the names in public who whitened around Tk 4,000 of black money by paying only 7.50% tax instead of 25% and will be participating in the election.

Demanding the redefining of loan defaulters, the CPD ED observed that the current measures are not adequate to prevent loan defaulters from participating in the election, as a number of known large loan defaulters received the green signal from returning officers at the time of the now annulled elections. Her also proposed to review the Right to Information Act and finalise it with the soonest possible so that the CTG can fight against corruption and install accountability in public life.

The CPD ED suggested that the CTG should pay immediate attention to the revenue sector as it was passing through a delicate time while the other economic indicators were enjoying stability and balance. This was possible due to an increase in the export earnings by 26 % and flow of remittance amounting to $4 billion and export was under control having 18% growth, he added. Pointing to the decline of foreign aid he said that only U$ 50 million was disbursed against U$ 1.8 billion in the pipeline, aid flow depends on good governance and curbing of corruption. He also noted that During July-October 2006 Bangladesh experienced a 15.6 percent decline in foreign investment, adding, the country also suffered due to the outflow of $67 million against the foreign investment.

Debapriya pointed out that Bangladesh Economy can experience another 2-3 % growth which has already an internal power to grow at a rate of 5-6 % annually. At the same time he demanded to review the development projects undertaken by the last government and cancellation of those without any delay which have no possibility of implementation. Debapriya noted that as the previous government had spent around 50% of the money from development programme in the first quarter of the current fiscal, the government might have to go for massive borrow due to shortage of money which would lead to negative effect on the economy in future. He suggested that the CTG should take immediate and effective measures to keep the price essentials steady and break the syndicates that control the supply and price of the daily essentials.

Commenting on apprehended shortfall of Aman rice this year the CPD ED suggested the government to ensure availability of fertiliser, diesel and power for irrigation of Boro crop which was more than half of the total rice production in the country. As regards the recent hefty foreign investment proposal by the TATA and Phulbari Issue he proposed to form two different high power competent committees. One to recommend the best possible price of gas for TATA, settle other issues and the other to assess the economic viability and social, environmental impact of the Phulbari project area. The final decision should come from an elected government in both cases, he added.

Appreciating the recent upward trend in price index of stock exchanges Debapriya said although the trade volume was witnessing a massive surge breaking all previous records, the people must know the weak side of the listed companies. In this regard he disclosed that 5 out of 10 top traded companies did not give any dividend in the last five years.

CPD Research Director Mustafizur Rahman, Additional Director Fatema Yousuf, Senior Research Fellows Uttam Kumar Deb and Fahmida Khatun, Research Fellow Khondaker Golam Moazzem were present at the conference.