BD needs to use non-traditional fundings to attain SDGs: Experts

Bangladesh needs to use non-traditional options alongside traditional sources of funding to meet capital requirements to attain SDGs (sustainable development goals), experts said.
Recommending comprehensive reforms, they said the country must raise revenue and tax-GDP (gross domestic product) ratio to this end.
It should also revive the trade regime to ease the way of export diversification and enhance efficiency in both public and private sectors.
On the other hand, non-traditional financing options like climate remediation finance, pension and insurance funds need to be seriously considered to finance activities to achieve SGDs.
The experts also called for a concerted effort to shut the ways of capital flight and leakage of resources in various forms for attaining inclusive economic growth.
The suggestions were made at a dialogue on 'Financing for SDGs Implementation in the Asia-Pacific Region' on Tuesday.
The Centre for Policy Dialogue (CPD) and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), Bangkok, jointly organised the event.
The discussion was held on the ESCAP's recently published annual flagship report titled 'Economic and Social Survey of Asia and the Pacific 2018'.
Metropolitan Chamber of Commerce and Industry (MCCI) President Barrister Nihad Kabir said the country needs to be better prepared for using non-traditional sources of funding like climate remediation finance.
"The problem is accounting… for the money being spent on achieving SDGs. The private sector doesn't know the availability of funding sources," she said.
Ms Kabir termed Bangladesh's credit rating not investment-friendly.
Other non-traditional sources like large pension fund and insurance fund do not even consider Bangladesh as a safe investment destination, she added.
"They want to come but they need requirements to be met. So, my request would be to improve the credit rating," she said.
CPD distinguished fellow Dr Debapriya Bhattacharya termed fund shortages to finance SDGs 'a myth'.
"There is enough liquidity and surpluses, but the issue is whether we've the right incentives to put them into right use," he mentioned.
He laid emphasis on systematic reforms, saying that seven trillions of money is required to meet the SDGs.
But capital flight worth $1.0 trillion takes place each year in developing countries, the economist said.
There was a capital flight of Tk 75 billion over the past 10 years -- the amount which is enough to build three mega projects like Padma Bridge, he said.
Former finance adviser to a caretaker government Dr ABM Azizul Islam highlighted the importance of increasing volume of direct tax.
"One-third revenue of the government comes from direct tax, which is unfortunate," he stated.
About the financing system, he said low deposit growth, coupled with high loan growth and ever-rising non-performing loans, signals intermediation inefficiency.
"That's something the government needs to look at," Mr Islam said.
Prof Mustafizur Rahman, another CPD fellow, said inequality keeps increasing despite the robust economic growth, which was mentioned in the report.
Citing the report, he said 28 per cent of the population has access to minimum one social safety net programme.
The average rate is 39 per cent in the Asia Pacific region.
In many countries, universal health scheme, insurance and universal pension schemes are being discussed, he added.
Mr Rahman said, "We'll have to think about moving from social safety net to social security programmes."
Md Abul Kalam Azad, Principal Coordinator for SDG at the Prime Minister's Office, attended the event as the chief guest.
He said they would start discussing SDGs' implementation with various quarters from the first week of July.
Kazi Shofiqul Azam, secretary of Economic Relations Division under the finance ministry, and Vatcharin Sirimaneetham, Economic Affairs Officer of Macroeconomic Policy and Financing for Development Division, ESCAP, among others, also spoke.

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