Mirza Azizul urges donors to raise ODA to help achieve MDGs

FE Team | Published: October 24, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Finance Adviser Mirza Azizul Islam has urged the donor countries to raise the official development assistance (ODA) to 0.7 per cent of their gross national income (GNI) by 2015 and disburse in a predictable manner to help poor countries achieve the Millennium Development Goals (MDGs), reports UNB
"MDGs will remain mostly unrealised in many countries unless the ODA reaches the target of 0.7 per cent of GNI of donor countries by 2015 and is disbursed on a predictable basis," he said, addressing the 2007 Annual Meetings of the World Bank and IMF in Washington Monday.
The Finance Adviser made the call in the backdrop of a decline in the ODA from the donor countries by about 5 per cent in real terms in 2006 and a low level of aid flow predictability.
Moreover, he told the meeting that the evolving aid architecture characterised by proliferation of aid channels, fragmentation of aid flows and increasing earmarking of aid were posing new challenges to aid effectiveness.
He apprised the meeting of the political developments in the country and said the overall economic situation would continue to remain stable in Bangladesh, despite several external and internal shocks.
"We're on track to achieve most of the MDGs including reduction of income poverty," he said.
He informed the meeting that the government successfully restored the law and order situation and was determined to hold a free and fair election by the end of 2008 to establish a democratic government free from political corruption.
Aziz further said the present government has stepped up implementation of much needed structural reforms in almost all sectors to firmly establish an enabling environment for a private sector-led eco nomic growth.
He reminded all the nations of their mutual responsibility to fulfill the hope they gave to the world's poor and the underprivileged through the Millennium Declaration. "We must sincerely put our acts together to transform that hope into reality," he said.
The Finance Adviser observed that the private capital flows became the most dominant source of external finance for some prosperous developing countries.
But, he added, the IDA recipient low-income countries remain and will continue to remain heavily dependent on ODA for quite sometime to come.
On the other hand, he said, the progress in raising the quantity and quality of aid by development partners even for countries with requisite capacity to absorb increased aid has been slow and uneven.
The Finance Adviser called for reinforcing an increased volume of aid by greater effectiveness of aid through strengthened country ownership of development strategies, use of country system and effective implementation of harmonised agenda.
"Market access of developing countries to the developed world must also be ensured through successful completion of the Doha Round. Aid cannot be a substitute for fair trade," he said.
He further called for additional concessional financing to help low-income countries adapt to climate change through their own development strategies as the emerging issue has given rise to many concerns for developing countries.
Aziz, however, appreciated the efforts for development of a long-term strategy by the World Bank Group to address the challenges.
About enhancing the voice and participation of developing countries in the decision making process of the World Bank Group, he expressed dissatisfaction over the progress that remained far from adequate.