The
working sessions of the three-day
National Policy Review Forum 2003
kicked-off yesterday with experts,
politicians, academicians and civil
society members discussing the progresses
and challenges in 11 key issues.
The overwhelming consensus of the
forum was that the government has
to work more to bring changes to
crucial areas of governance, macroeconomy,
energy, environment, administration,
financial sector, information technology,
gender equality, trade, privatisation
and politics. The roles of the civil
society and politicians are nonetheless
important for a meaningful synergy
for improvement.
The Forum, co-organised by the Centre
for Policy Dialogue, the Prothom
Alo and The Daily Star, was attended
by more than 400 participants at
three different venues -- CIRDAP
auditorium, National Press Club
and Planning Academy premises.
The policy initiative was taken
prior to the national elections
2001 to provide inputs to the pre-election
debate. As the present government
is approaching the end of the second
year of its tenure, the review initiative
was taken to assess the state of
implementation of the recommendations
made earlier.
Democratic
process (election and parliamentary)
The Forum suggested framing a more
rigid and meaningful code of conduct
for political parties to strengthen
the electoral process. Election
expenses of candidates should have
a ceiling but at the same time be
enhanced to make those more realistic,
speakers stressed. On democratic
process, they said fund raising
by political parties must be regulated
and a scheme of state funding of
political parties should be introduced.
All political parties participating
in elections must be brought under
a legal framework through registration
so as to make them internally democratic
and externally accountable, they
felt. Moreover, concerted efforts
by political parties have seen a
must to make the parliament effective
and ensure proper functioning of
democracy.
Environmental
policy
The Forum suggested steps in the
sub-sectors like air pollution,
transportation system, fuels, surface
water pollution and management,
waste management, wetland management,
sanitation, forest and protected
area management, natural disasters,
land degradation and water bodies.
The speakers suggested that the
government should develop a comprehensive
action plan to provide arsenic-free
water in all townships. They observed
the red marking of tube wells in
rural areas is not enough to deal
with the situation. They said arsenic
mitigation should be given top priority
and suggested both short- and long-term
measures to provide safe water.
The participants said two specific
steps -- ban on two-stroke three-wheelers
and polythene shopping bag -- have
brought a great relief to the people,
particularly in Dhaka, but more
steps are required to free the country
from environmental hazards. The Forum
lauded the significant achievements
made in the field of environment
but felt there are many other ways
to improve it. They also emphasised
updating the National Environmental
Policy, which was prepared in 1992,
to meet the present demand and future
challenges.
Trade policy
The speakers recommended introduction
of financing and other incentives
to attract local investment to the
sector, development of export-oriented
agro-based industries and incentives
to encourage investment in new export-oriented
industrial activities. They said
steps shpuld be taken to improve
port management and develop inland
container freight stations, strengthen
the ready-made garment (RMG) sector
to meet post-Multi-Fibre-Arrangement
(MFA) challenges and explore the
feasibility of central bonded warehouses
to cut lead time.
The participants urged both ruling
and opposition parties to resolve
sensitive trade issues like the
Free Trade Area (FTA) and the SAARC
cumulation, trade-related infrastructure
and development of agro-based industries
soon to perk up exports.
Financial
sector reforms
To make the new money loan court
law effective, it was suggested
that all parties concerned including
bank management and officials in
particular should play the key role. The
speakers, however, suggested bank
management take step for an out-of-court
settlement and not to reschedule
default loans more than twice.
They said although there is scope
for making further corrections,
many of the prescriptions pursued
by the donors are 'tough' and difficult
to accommodate.
Criticising the performance of nationalised
commercial banks (NCBs), the participants
said even the central bank does
not have the disclosures and audit
reports of these state-owned banks. A
memorandum of understanding for
the NCBs prepared by International
Monetary Fund (IMF) should be made
public and discussed in the parliament,
they observed.
Information
and Communication Technology
The forum urged the government to
allocate one per cent of the GDP
to harness the information communication
technology (ICT) sector as an anti-poverty
tool. They also called for deregulating
state-owned Bangladesh Telegraph
and Telephone Board (BTTB), liberalising
its international gateway for private
sector participation, establishing
a level playing field for both public
and private telecom operators and
giving greater latitude to the telecom
regulatory body.
The forum said keeping the huge
population in view, the government
should concentrate more on providing
tele-access rather than increasing
tele-density.
Corruption
and Judiciary
Change in political leaders' attitude
and will and combined efforts by
political parties, civil society
and administration are required
to fight corruption and improve
the judiciary, the discussants said. They
felt transparency in administration
and public service system was a
prerequisite to ensure good governance
and a corruption-free society.
"Corruption is a social cancer.
If we are to address corruption,
we have to start from the very top
of the administration," a discussant
said. "How many ministers in
the past were punished for corruption?
Trial starts but the accused gets
away with the change of government.
This has been our normal practice."
The anti-corruption bureau is being
used to harass and humiliate political
leaders, a discussant said. "Interestingly,
very few bureaucrats have faced
corruption charges. The present
laws and rules of the anti-corruption
bureau are defective."
Development
and Governance of the Energy Sector
The forum discussion on the energy
sector blasted the government and
a section of experts for spreading
'misleading' information on gas
reserves in favour of its export. It
alleged that there was a move apparently
to serve the purpose of foreign
oil companies that advocate for
gas export.
The government is spending a huge
amount of money in non-productive
areas, but it turns miser when it
comes to the energy sector investment. The
forum said Bangladesh was now on
the verge of a energy crisis because
of the unwillingness of the government
to utilise gas resources, although
there was no reason to create the
crisis."
Budgetary
Discipline and Fiscal Programme
The forum said fiscal balance, as
well as the BOP, improved perceptively
during FY02 and FY03. While some
of these came about through conscious
policy choices, a large part of
the adjustment took place by default,
since the Annual Development Programme
(ADP) could not be fully implemented.
"This influenced positively
the fiscal balance and the government's
need to borrow. Similarly, the BOP
improved due to import drop, in
a period of export slowdown, and
the role of different factors in
enhancing the remittance flow,"
a discussant said.
"Whatsoever, the fundamental
weaknesses of public finance largely
remain in place. These include low
revenue effort with marginal share
of direct tax, rigid revenue expenditure
structure along with low quality
of many ADP projects."
The forum said weak export performance,
declining foreign aid and diminishing
foreign direct investment (FDI)
keep the balance of payment (BOP)
vulnerable to external shocks. The
challenge of macro-economic management
will become clear if investment
picks up, it observed.
The forum identified poverty and
poor educational standard at primary
level as two major challenges to
the government. All important public
debates, including budgetary and
fiscal ones, should take place in
parliament to ensure transparency
and accountability.
Industrial
Policy, Privatisation and SME
The forum said industrial policy,
privatisation and SME were the main
barriers blocking the industrialisation
process in Bangladesh. Commercial
banks are doing good business by
charging high interest. They are
declaring healthy dividends within
a few years of inception, the discussants
said.
They said in addition to high interest,
extortion, high cost of electricity,
water and transportation was making
business difficult and non viable
in competition. Terming privatisation
as a better process for investment,
a discussant said without strong
political will, privatisation would
not be successful.
Administrative
reform and Local Government
The forum said administrative reforms
remained stagnant as successive
governments reneged on their election
pledges, exposing the lack of commitment
of political parties. It urged the
government to revive the upazila
system to get rid of the bureaucratic
grip on the local bodies.
The forum observed although major
political parties had common policy
and strategy on some burning issues
like independent anti-corruption
commission, separation of the judiciary
from the executive and human rights
commission, they were continuously
slipping on their election pledges.
The speakers urged civil society
members to press the government
into delivering its election pledges. Reforms
in administration are going on at
a snail's pace as political leaders
and bureaucrats want to continue
enjoying power, they observed.
He recommended introduction of district-based
local government tiers for devolution
of power and people's participation
in the decision-making process.
