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As aid volume is declining and lists of conditions extending, economists, former high-ranking civil servants and leading civil society members at a dialogue yesterday called for mobilising more domestic resources to reduce dependency on foreign assistance.
Noting that donors often force government to comply with some conditions on reform which, at times, might bring good to the country but such reforms should have been done by government's own initiative. The government through partnership with private sector should draw up reform programme and implement it rather than allowing donors to force it, they said.
If government does it on their own, it would show more sincerity and bring more credibility among the people about them. They, however, admitted that the country cannot deny the need of aid from its development partners. But in this regard, the government should take the driving seat and guide donors on setting priority sector for aid, they said.
They were speaking at a dialogue on "Aid and Policy Reforms in Bangladesh" organised by the Centre for Policy Dialogue (CPD), a civil society think tank.
Speaking as chief guest, Agriculture Minister MK Anwar said the country cannot depend on foreign aid forever. "We need to use local resources effectively for transforming Bangladesh economy from an aid-dependent to a self-reliant one. We should take the stand of relying more on domestic resources and productive use of limited foreign aid."
"But we have not reached to an economic position free from need of foreign aid. We need to carefully evaluate costs and benefits of foreign aid to understand implications of aid dependence," he said.
"Our current outstanding foreign debt is more than $16 billion, about a third of our GDP, and if we are to leave this debt burden on the shoulders of our future generations, we should have adequate reasons to justify that and one good way to do so is to look at the quality of projects," the minister added.
Former finance minister AMA Muhith said introduction of Asycuda in revenue collection, pre-shipment inspection in ports, privatisation, liberalisation of imports are some of the donor-forced reforms that have benefited the country.
"But the government should have done all these on its own. There are other badly needed reforms that the government can do spontaneously. It is seen that the government is accountable to donors in such cases. Local pressure groups are too feeble to force government to go ahead with reforms and be accountable to people," he said.
Former state minister for foreign affairs Abul Hasan Chowdhury said the parliament and its standing bodies should be empowered to execute reforms. House should be the central place for reforms, he said.
Only the elected government is held responsible for reforms but private sectors are also the beneficiary of these reforms. So, there should be a public-private partnership in this, the Awami League leader said.
Presenting a paper Chairman of Securities and Exchange Commission Mirza Azizul Islam said the aid flow came down to $1.3 billion in FY 2000 from $2.1 billion in 1991 and the per capita aid volume came down to $9 in 1999 from $19 in 1990.
"The developed countries are facing budget deficits. So, aid volume is unlikely to rise in coming days. We should, therefore, mobilise domestic resources and make best use of it to gradually do away with aid dependence," he said.
World Bank Country Director Christine I Wallich said the donors need to have concerted and harmonised efforts to implement poverty alleviation. The government should be in the driving seat to do reforms and should focus on institutional rather than policy reforms, she said.
CPD Chairman Prof Rehman Sobhan, Finance Secretary Zakir Ahmed Khan, former finance minister Syeduzzaman, former ERD secretary Mashiur Rahman, Abu Ahmed of Dhaka University, Square Group Chairman Samson H Chowdhury, Islami Bank Chairman Shah Abdul Hannan, also spoke at the function. |
