BD becoming priority country to France in financing

Bangladesh gradually becomes a priority country to France under Indo- Pacific development policy but its assistance, as of other countries, may pass through challenges ahead due to US global pullback trends
The next G7 summit where the United States' role is significant for having strong investment would ascertain the global funding scenario though demand for development funds is high, according to France's government and funding agencies' officials of the important EU country.
Officials of the Ministry for Europe and Foreign Affairs say the French government's approach to the region is more cooperative to development, but may have impact on the development policy after the next G7 summit with the United States being an important member of the elite grouping.
The Group of Seven or G7 is an informal intergovernmental political and economic forum comprising Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, with the European Union also participating.
"Our development policy is undergoing quite a lot of changes due to several factors, including US tariff and aid policy," said an official while sharing views Wednesday in Paris with journalists from Bangladesh, Cambodia, India, Indonesia, the Philippines and Sri Lanka.
The journalists from Asia are on a press tour organised by Agence Francaise de Developpement (AFD) Group.
But the official said with the US withdrawal from aid and dismissal of development activities, there is a need to rethink and redesign the approach of the development policy on setting up the partnership amid changes in the global economic, bilateral relationship and solidarity.
French government's contribution in the Indo-Pacific region through funding projects with loan, grants and expertise have been increased considering having 54 per cent of the world population, 50 per cent of carbon emissions and 40 per cent of the global GDP.
According to AFD Group data, one-third of the 50 billion Euros were provided to the region with flagship projects like in Bangladesh--multi-donor-supported 315-million-Euro undertaking to support Dhaka inhabitants with safe drinking water. Total contribution crossed over 1.2 billion Euros two years back from 40 million in 2012.
Of the total investment in the region, India, Vietnam and Cambodia top priority list of the French agency for having historical link and French nationals in the region. Having common border and economy of transition Bangladesh is also on growing priority list of all AFD Group members.
Despite the changed global scenario, foreign ministry officials in the press wing and Asia Department said the French government "is very much attached with development policy and upholds the principle of international solidarity".
Need for development funding in the world is huge and the need increased due to green and digital transition.
Regarding Bangladesh, the officials also highlighted the country's economic and political transition and assured Bangladesh of dynamic cooperation in energy transition, climate change and SGD goals.
Since joining hands of cooperation with Bangladesh in 2012, the agency has increased the contribution to water, health, green financing, increasing the amount several times from 40 million Euros in 2012. Cooperation of the France development agency is much older than having agreement of strategic partnership in bilateral level.
In a meeting at the AFD headquarters, AFD Group Executive Director Phillipe Orliange said majority development-funding arrangement comes from the financial markets but its dependency on public funds from the treasury is nominal in percentage.
He also said funding is managed from multilevel and bilateral agencies, including the World Bank, the Asian Development Bank and Japan International Cooperation Agency, on multinational approach and strategic-policy domination
According to AFD Group information, its financing capacity was increased six-fold last year where the French Government's contribution was 2.0 billion Euros, only 2.9 per cent of total engagement. Like the World Bank, it has a private arm named Proparco and Expertise France to contribute in the development activities with partnership in business model and technical know-how sharing.
As the group has focus on the countries having French nationals and signed strategic partnership on the priority list for funding, the ED, however, said Bangladesh being the populated country, going through economic transition, climate and biodiversity challenges, is also on the list of priority
Regardless of the political changes in both Bangladesh and France, he also said, the financial challenge is not a challenge rather it is to act in proactive manner. "There is scope for joining forces within Europe and better use of financial institutions, including of China, to work on."
"Like India, Bangladesh is in the footprint of the AFD Group," said the ED in response to the FE correspondent on priorities set by the group in terms of strategic partnership and long-time engagement with AFD- funded other Indo-Pacific priority countries.
Proparco Deputy CEO DJalal Khimdjee also said Bangladesh is among the countries Proparco wants to do more. He said Bangladesh population size is important for the private sector to invest more in the development of the country.
"We want to find ways to associate with partner countries," he said, lying importance on confidence building between the partners.
He recalls the success stories in the country's textile sector where heath service has been ensured with increase in attendance of female workers.
Expertise France CEO Jeremie Pellet also said the mother organisation is now working to mobilise areas after discussing with government agencies as French expertise in form of technology and innovation could also be taken care in the future.
With debt over 3.3 trillion Euros, France is also passing a difficult time after change of two prime ministers in a shorter time, Francois Bayrou in the latest. But all officials assure the press-tour members of commitment to climate change following Paris Agreement.
The desk official in Foreign Office of Europe and France, however, said considering all related issues, the foreign ministry has already informed the development agency of the government of the possibility in lowering the number of projects, if negotiation during the G7 works in favour of development policy.
He hopes that being France presidency in the group, will be able to play its role in the aspect of development need and sustainable development goals.
Even the global-stage receipts of financial volume of donors decreasing, France is very much prioritizing being conscious about aid deficiency, he said.

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