Bangladesh put on notice by donors

[Ulhas Joglekar]

13 January 2000
Bangladesh put on notice by donors
DHAKA: Aid-dependent Bangladesh is under pressure from donors to end
ceaseless political feuding, rein in corruption and speed up economic
reforms if it is to keep receiving handouts.
Dhaka has been put on notice to expect a rough ride at the next meeting of
the Paris Club of donors if it does not act on the demands. Representatives
of donor nations and agencies have met leaders of both the ruling Awami
League and the opposition Bangladesh Nationalist Party (BNP), including
Prime Minister Sheikh Hasina Wajed and BNP chief Khaleda Zia, to urge an end
to political friction.
The appeal fell on deaf ears. US Ambassador John Holzman rushed to President
Shahabuddin Ahmed, seeking his intervention to stop endless feuding between
the ruling and opposition parties.
Outgoing British High Commissioner David Walker hinted the issue will be
raised at the donors' meeting in Paris in April. He warned in published
remarks that if Bangladesh's political situation deteriorates, foreign
investment would cease to flow and donors won't be in a position to helpout.
"It seems to outsiders that there is intolerance on the part of both the
government and the opposition which is damaging the country severely....and
both sides should step back and consider the national interest far more than
they appear to be doing," he said.
Walker said urgent action should be taken to tackle corruption and speed up
economic reforms, which he contended had fallen short of the comprehensive
changes promised by the government.
Finance Minister Shah A.M.S. Kibria had promised speedy reforms at a Paris
meeting. "That was three years ago. But reforms have been carried out on a
very limited scale. The donors are disappointed. This is not a secret. The
unhappiness has been expressed at the donors' meeting in Dhaka last
September and will also come up in the Paris meeting," Walker said.
The envoy said in an interview with a newspaper here that corruption "is so
widespread that bribes are often required to do business or to obtain even
basic services such as healthcare in Bangladesh."
Walker said corruption was unacceptable and the issue would be high on the
agenda of the April meeting.
A British document cited the dominance of a small elite in politics,
business and government with a fractious political process driven more by
personal and inter-party rivalry than by issues.
US Ambassador Holzman said a consensus among parties will help bring
political stability which is necessary for economic development. He warned
that Bangladesh risked blocking American investment and losing preferential
US tariffs if it did not get its act together.
Bangladesh used to win around $2 billion in commitments from its Paris Club
donors, but last year's meeting stopped short of pledging a specific amount.
Donors said aid flows would depend on the rate of utilisation. (India Abroad
News Service)
For reprint rights: Times Syndication Service
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