Does Bangladesh need foreign aid?
None, including Finance and Planning Adviser Mirza Azizul Islam and economists of repute, while attending a CPD (Centre for Policy Dialogue) dialogue, seemingly, was certain that the country could manage without foreign aid.
But most speakers felt that foreign aid with strings should not be accepted since the country's dependence on external assistance had come down following a substantial rise in earnings from exports and remittance in recent years.
The above-mentioned suggestion, however, evoked some true but caustic remarks from the finance adviser.
"On the one hand, we want the donors to reduce the conditions attached to their assistance and, on the other, we like to see them as partners in our democracy. The two desires are contradictory in nature", said the finance adviser.
Dr. Aziz felt that everyone should be respectful to democracy and values that uphold human rights. But such respect should come from within, not at the dictates of the donors, he said.
There is no denying that interference of some major bilateral donors, who also control the multilateral donor agencies such as the World Bank (WB) and the International Monetary Fund (IMF), in the internal political affairs of Bangladesh, at times, crosses the limit of all diplomatic norms and decency. The days before and after the 1/11 bear the testimony to that fact. It was really hard for the common men of Bangladesh to understand their game plan and objectives.
The leaders across the political divide are to blame themselves for making some ambassadors and high commissioners the all important persons in Bangladesh politics. They were and still are in a rat race to lodge complaints against each other with these diplomats, visiting state department officials having the rank and status of deputy assistant or assistant secretaries and South Asia regional heads of multilateral donor agencies.
The people do feel genuinely ashamed by witnessing the mental impoverishment of the political leaders whom they elect after a gap of every five years to rule the country and shape their destiny. A section of the media is also partly responsible for making the diplomats and the representatives of donor agencies in Bangladesh all too important in Bangladesh politics and economy. For reason or no reason, reporters try to squeeze out comments from them on Bangladesh political situation, economy etc.
Even under the caretaker government, one likes it or not, the foreign diplomats and donors are still calling the shots in many cases. So, the desire of the finance adviser to show respect to democracy and values based on the protection of human rights 'in our own way', ignoring the dictates of the donors, might ultimately remain unfulfilled.
The fact remains that Bangladesh does need foreign assistance to meet the budgetary resource gap and also as balance of payments (BoP) support. Allegations have it that the donors, who have cut down their volume of assistance to Bangladesh substantially in recent years, are becoming too pesky by trying to impose unpalatable conditions on the government. The government leaders, in private, do express their dissatisfaction over 'tough' conditions being attached to various loans. But in public they try to be as measured as possible while talking about the role of the donors in the economic development of Bangladesh.
It would, really, be unfair if one criticises the donors for attaching conditions to ensure the best use of aid money. But, in most cases, the donors are subjected to widespread criticism for suggesting political as well as economic reforms, which being essentially painful in nature are not liked by many.
The dependence on foreign aid in areas such as education, health and infrastructures is still high. As far as education and health sectors are concerned, the government being the key player would continue to remain dependent on external assistance.
But in infrastructure building, the private sector, which has emerged as a dominant player in the economy, can play a pivotal role along with the government. The sector has until now kept its role mainly confined to the installation of a few power plants. Given the right kind of incentives, it can build highways, roads, bridges and other physical infrastructures under build- own-transfer (BOT) and build-own-operate (BOO) arrangements.
The lead economist at the WB office in Bangladesh while speaking at the Dialogue, reportedly, suggested a possible way of getting rid of the controversy over foreign aid. He said some countries, including China and Malaysia, prepare development projects on their own and, if necessary, seek assistance from the donors for their implementation. "But the situation is opposite here in Bangladesh. In many cases project proposals do come from the donors", he said.
In a way he suggested that Bangladesh should formulate its own projects taking into consideration its own requirements. But the question is: Is Bangladesh on equal footing with China or Malaysia, the countries having the strength to say 'no' to dictates? Do the donors ever dare meddle in internal politics of any of these countries? The answer could be anybody's guess.
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