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Deal signed for $202m American grants to Bangladesh

CA seeks US aid to revitalise economy

US help also sought to repatriate laundered money


FE REPORT | September 16, 2024 12:00:00


A high-powered US delegation, led by Assistant Secretary of the US Treasury Department Brent Nieman, calls on Chief Adviser Dr Muhammad Yunus at the State Guest House Jamuna in Dhaka on Sunday. — PID

Chief Adviser Prof Muhammad Yunus has sought support from the United States for his post-uprising government in rebuilding the country through vital reforms and repatriating siphoned-off assets.

The head of interim government sought the assistance when a high-powered US delegation met him at the state-guesthouse Jamuna in Dhaka, said a spokesperson for the CA, after their wide-ranging talks that lead to the signing of deals on grants and a cooperation framework.

The Nobel-laureate economist at the helms of the country now described the challenges facing the interim government on multifarious fronts and the moves being made for a remedy. He said that his administration has moved quickly to "reset, reform, and restart" the economy, reform financial sectors, and fix institutions such as the judiciary and the police.

"It is a very important time for us and a significant moment in our history," the Chief Adviser said, as he spoke about the student-led revolution which has ushered in a new era of hope in Bangladesh.

He portrayed an outline of the reform initiatives undertaken by the interim government. He said six commissions had been set up barely weeks after his government took over, as part of efforts to prevent vote rigging, reform the judiciary, police, civil administration, the country's anti-graft agency, and amend the constitution.

He said his government is committed to getting back the stolen assets siphoned off by corrupt individuals linked with the previous autocratic regime.

"We were in an ocean of corruption," the head of post-uprising government told the American dignitaries while listing the challenges the government faces to tackle graft.

The US delegation, led by Brent Nieman, assistant secretary of the US Treasury Department, praised Professor Yunus's leadership and said Washington, DC, would be happy to support his reform agenda.

They are eager to offer technical and financial assistance for reforms being carried out by the interim government.

During the hour-long talks, financial and economic reforms, investment, labour issues, the Rohingya crisis, and the Chief Adviser's upcoming visit to New York for attending the UN General Assembly were also discussed.

Donald Lu, US Assistant Secretary of State, Brendan Lynch, Assistant US Trade Representative, Anjali Kaur, Deputy Assistant Administrator, and Jerrod Mason, a Director of the US Treasury Department, represented the United States at the meeting.

Lutfey Siddiqi, special envoy of the Chief Adviser on international Affairs, Lamiya Morshed, senior secretary and head of SDG affairs, Md. Jashim Uddin, foreign secretary, and Md. Shahriar Kader Siddiky, secretary of the Economic Relations Division, also attended the meeting.

Earlier in the day, Bangladesh and the USA signed the 6th amendment of 'The Development Objective Grant Agreement (DOAG)' under which the United States Agency for International Development (USAID) will provide USD202.25 million in grants in addition to the previous commitments.

This grant assistance will be given for three sectors: (a) Good Governance (b) Social, Human and Economic Opportunity (c) Resilience.

The signing took place during bilateral meeting between the two sides at the state guesthouse Padma.

A. K. M Shahabuddin, Additional Secretary, Economic Relations Division, and Reed J. Aeschliman, Mission Director, USAID, inked the amendment document on behalf of GoB and USAID respectively after the meeting between the visiting US delegation and Bangladesh officials.

In September 27, 2021, the DOAG was signed between the GoB and the USAID for the period of 2021-2026 for which the latter committed to contributing a total of US$954 million.

So far, up to the 5th amendment, the US agency had handed out US$425 million.

The United States of America is a trusted development partner of Bangladesh since 1972. Under an umbrella agreement titled 'Economic Technical & Related Assistance' which was signed in 1974, the USA has contributed more than 08 billion US dollars, to date, in different fields like Democracy and Governance, Food Security, Health and Education, Global Climate Change.

Washington channels most of its development assistance through the USAID, the United States Department of Agriculture (USDA) and some other government and non-government organisations.

The US delegation called on the CA after their meeting with foreign adviser Touhid Hossain and finance adviser Dr Salehuddin Ahmed discussing affairs in respective domains.

Dr Salehuddin said they discussed issues related to bringing back laundered money and financial reform. And the US agreed to extend support in these areas.

The finance adviser said, "The US would also provide assistance in export diversification and trade development."

After the bilateral meeting between the two sides, foreign secretary Jasim Uddin briefed the press. He said the US side wanted to know the details of the financial-reform plans.

They have reaffirmed their commitment to work closely with the present interim government.

Responding to a question he said some primary discussions were held regarding how they can help Bangladesh in bringing back laundered money. This will be discussed in detail during their meeting with the Bangladesh Bank governor, he added.

To another question, the new foreign secretary of Bangladesh said that defence cooperation or the US-pursued Indo-Pacific Strategy (IPS) were not on the agenda.

Asked about labour-sector reform, he said the US side was apprised about the steps taken by the government and they were satisfied.

The US side suggested more reforms and the host side informed them that the process is ongoing.

The Americans also pledged to continue their humanitarian support to the Rohingya and to resolve the crisis through discussion with all the stakeholders.

"We think it is a foundation for a meaningful engagement with the US. We will take forward this discussion at various levels in the future. It is a good foundation to move ahead," he told reporters at the state guesthouse Padma giving an idea about what they discussed in a series of meetings held against the backdrop of a unique changeover in Bangladesh.

The foreign secretary said they broadly discussed the financial sector's reforms and primarily discussed the issue of money laundering as Bangladesh can use the US expertise in this regard.

It is just the beginning. "It might take a bit of time to get a final shape," he said, adding that the US side reiterated its willingness to work closely with the interim government.

The US side has assured their support in the areas as Bangladesh identified some sectors for reforms in the financial sector.

"The conversation will continue," Mr Jashim said, adding that Bangladesh informed the US delegation about steps taken on the labour front which the US sees as significant progress.

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