Dhaka intensifies diplomacy to be on US spl aid package list

---

A Z M Anas
The caretaker administration has started to coax key figures in Washington in an effort to secure funds from a special aid package, operated by the Millennium Challenge Corporation (MCC).
Bangladesh Embassy in the United Sates has been assigned to intensify aid diplomacy to ensure at least Dhaka's inclusion in the Threshold programme, prelude to MCC's compact funds.
"We're vigorously pursuing senior American aid officials to channel a slice of the specially-tailored assistance package," Economic Relations Division (ERD) secretary Aminul Islam Bhuiyan said Sunday.
Bhuiyan, who heads the country's aid negotiating agency, added: "Officials concerned are also engaged in discussions with their counterparts at USAID (United States Agency for International Development) in Dhaka. We're explaining multiple government initiatives that call for Washington's attention."
Since taking power in January last, the interim administration has launched the nationwide anti-corruption campaign. Moves are also underway to improve political and economic governance, overhauling key institutions.
Reform measures, the ERD secretary chief insisted, should improve Bangladesh's scores, allowing to be included in the Threshold programme next year.
ERD officials pointed out Bangladesh is ready to compete with scores of other low-income countries for the next year's MCC programme, now in its third year of operation.
The MCC sent the report containing the list of candidate countries to the US Congress in early last month for its consideration, according to the information available on the MCC web site.
ERD officials noted they have already requested other ministries and public agencies to report to the ERD, detailing the progress on certain areas such as governance, fiscal policies and pro-poor investment.
"We'll compile those progress reports and prepare a detailed report for submission to the US institutions," Bhuiyan told the FE.
Once eligible for the programme, Bangladesh will be able to receive increased development assistance from the US, the world's top donor, the officials said.
In 1990, the United States government extended assistance worth US$175 million to Bangladesh, but that level has started to go down since 2000.
Bangladesh's near self-sufficiency in food production over a decade or so explains why Washington has scaled back that type of support.
Although the US government launched the MCA funds in 2001 to reward the countries that "rule justly, invest in people and ensure economic openness," Bangladesh has failed to be eligible for the US aid package, due mainly to its extremely poor scores on the areas.
Even the country missed the opportunity to be incorporated into the threshold programme that provides monetary assistance to countries in an effort to help them become eligible for MCC Compact funds.
Civil liberty, political rights, government effectiveness, control of corruption, fiscal and trade policies, inflation rate and cost of starting a business are among 16 criteria for the threshold programme, according to the MCC the website.
The Threshold programme provides an added incentive to governments committed to reform and assists them in moving toward future eligibility for the MCA Compact assistance.
The level of US assistance to Bangladesh has continued to wane over the last seven years, with Washington handing out a miniscule $77 million to Dhaka last year.
However, the amount is set to reach $80-$85 million in 2007, according to a projection of the USAID.
Including food assistance, the US government's development aid for the country could total $110 million in 2008, up by $30 million in 2007.
The potential increase in aid flow is seen as an outcome of Washington's new foreign policy thrust-transformational diplomacy-promoted by Secretary of State Condolezza Rice.