ADP implementation
Monday, 3 March 2008
ANNUAL Development Programmes (ADPs) are significant in the context of the Bangladesh economy as these involve sizeable investment of resources in public sector developmental programmes. In a country where private sector investments are not considered as not up to the desired level, the investments made through the ADPs play a role, no doubt, in creating jobs and earnings, development of facilitating infrastructures in support of economic activities in the private sector and create demand for many goods and services.
The Executive Committee of the National Economic Council (ECNEC) met last Saturday to review the activities under the ADP this fiscal. But it was not satisfied with its rate of implementation. It noted that only about 25 per cent of the ADP has been implemented in the first six months of the current fiscal year whereas the rate of implementation under adverse circumstances in the previous fiscal was higher at 31 per cent. Thus, there are reasons to be particularly annoyed with the ADP implementation rate and the Chief Adviser, Dr Fakhruddin Ahmed, expressed his concern due to the decelerating rate of ADP implementation. The lack of progress of the ADP is particularly undesirable in the present year. This is because natural disasters in a series hit the country that required speedier use of ADP funds to rebuild and restore vital infrastructures with the spending on the works creating also income and employment for disaster afflicted people. This year the government declared an ambitious ADP target not unlike other recent years. However, as the saying goes that the taste of the pudding lies in the eating. The larger outlay of resources in the ADP will be reasonable and would be justified if the rate of its implementation proves to be notably higher than that of the previous years.
Every year the government declares an impressive ADP in size only to revise it at the end of the year for the laggard pace of its implementation. After the independence of the country, no government could come even near to full implementation of the ADP. The country could benefit a great deal from the ADPs if implementation capacity was raised. In that case, a large amount of resources in the form of external assistance pledged by foreign donors would not have been there in the pipeline or have gone back. The government in this country lacked the capacities to receive and utilise them in time. Therefore, the need is, as always, creation of conditions at the soonest for fuller implementation of ADPs.
It is very important to specifically and efficiently address the factors that have been harassing the desired rate of implementation of the ADP. One factor could be unduly ambitious plan targets, as well as inadequate financial controls that lead to failures to carry out projects and achieve plan targets. The other factors that may be identified are inadequate preparatory work on projects, lack of engineering supervision and administrative and procedural delays. With a determined and purposive approach, it is possible to minimise all of these hurdles. The government maintains that it has been working harder on all of these areas and more to reach a much higher level of implementation of plans. But the claim is not matched by tangible signs that significant progress is being made.
The relevant ministries need to work in tandem for smooth implementation of the ADP. This coordination was given effect to, in Bangladesh long ago. Furthermore, steps have been taken also to remove snags in the implementation and related procurement processes. But the desired outcome is yet to be seen. This dictates the need to embark afresh on trying to ascertain the reasons for slow or poor ADP implementation and remove them with a more action-oriented and purposive approach.
The Executive Committee of the National Economic Council (ECNEC) met last Saturday to review the activities under the ADP this fiscal. But it was not satisfied with its rate of implementation. It noted that only about 25 per cent of the ADP has been implemented in the first six months of the current fiscal year whereas the rate of implementation under adverse circumstances in the previous fiscal was higher at 31 per cent. Thus, there are reasons to be particularly annoyed with the ADP implementation rate and the Chief Adviser, Dr Fakhruddin Ahmed, expressed his concern due to the decelerating rate of ADP implementation. The lack of progress of the ADP is particularly undesirable in the present year. This is because natural disasters in a series hit the country that required speedier use of ADP funds to rebuild and restore vital infrastructures with the spending on the works creating also income and employment for disaster afflicted people. This year the government declared an ambitious ADP target not unlike other recent years. However, as the saying goes that the taste of the pudding lies in the eating. The larger outlay of resources in the ADP will be reasonable and would be justified if the rate of its implementation proves to be notably higher than that of the previous years.
Every year the government declares an impressive ADP in size only to revise it at the end of the year for the laggard pace of its implementation. After the independence of the country, no government could come even near to full implementation of the ADP. The country could benefit a great deal from the ADPs if implementation capacity was raised. In that case, a large amount of resources in the form of external assistance pledged by foreign donors would not have been there in the pipeline or have gone back. The government in this country lacked the capacities to receive and utilise them in time. Therefore, the need is, as always, creation of conditions at the soonest for fuller implementation of ADPs.
It is very important to specifically and efficiently address the factors that have been harassing the desired rate of implementation of the ADP. One factor could be unduly ambitious plan targets, as well as inadequate financial controls that lead to failures to carry out projects and achieve plan targets. The other factors that may be identified are inadequate preparatory work on projects, lack of engineering supervision and administrative and procedural delays. With a determined and purposive approach, it is possible to minimise all of these hurdles. The government maintains that it has been working harder on all of these areas and more to reach a much higher level of implementation of plans. But the claim is not matched by tangible signs that significant progress is being made.
The relevant ministries need to work in tandem for smooth implementation of the ADP. This coordination was given effect to, in Bangladesh long ago. Furthermore, steps have been taken also to remove snags in the implementation and related procurement processes. But the desired outcome is yet to be seen. This dictates the need to embark afresh on trying to ascertain the reasons for slow or poor ADP implementation and remove them with a more action-oriented and purposive approach.