First day of working sessions of National Policy Review Forum

A lot needs to be done in 11 crucial sectors

Staff Correspondent
05 June, 2003

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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 should 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.