Crackdown on corruption has far-reaching significance for economy, says ADB VP
Wednesday, 17 October 2007
Asian Development Bank (ADB) Vice President (VP) Liqun Jin Friday said despite some repercussions on growth, the crackdown on corruption has a far-reaching significance for Bangladesh economy, reports UNB.
"I think the caretaker government trying to build up the governance framework and to crackdown on corruption has a far reaching significance for the Bangladesh economy," he told a pre-departure media conference at the ADB office, ending his 3-day visit to Bangladesh.
Jin said he believes that governance is the key to ensuring sustained economic growth and to ensuring a level playing field. So, in the long-term this is absolutely necessary.
Asked if the crackdown on corruption resulted in slowed-down economy, inflation and price-hike, the ADB official said that because of the complicated situation in short-term, particularly in this transitional period, there might be some repercussions on the growth.
He, however, thought that the government is fully aware of the implications for the growth and is taking measures to deal with these issues.
Jin said it is very important for the business and the private sectors to understand the importance of creating jobs and maintaining productivity to make sure economy will continue to grow.
"It is important to support the government's efforts to crackdown on corruption. Because, the anti-corruption drive will directly benefit the business sector," he told a questioner. "This is the crucial time for everybody to understand the long-term benefit," he added.
The ADB vice president suggested institutionalization of anti-corruption drive. Otherwise, corruption might come back with the installation of a new government, he feared.
On the reported advice of ADB to increase the prices of energy, water and other utility services, Jin said ADB does not ask any government to raise the price of energy or any prices for that matter.
"ADB likes to advice how best the government can cope with energy price increase," he said, adding that ADB works with the government to improve macro-economic policies and to strengthen the government's ability to deal with the external shocks.
He said the international community fully understands the serious implications of continued energy or oil price increase.
"Moreover, the oil producing countries also understand that if they continue to increase oil price, it will lead to economic recession in developed countries and this will boomerang on oil producing countries as well."
Jin said ADB likes the government to take up macro-economic policies to make sure the prices of vital resources like energy or water would make possible for economy to go ahead.
"We believe, adjusting water tariff, electricity tariff, and energy prices in general, will ensure long term sustainable development," the ADB executive said, adding that if the prices are kept artificially low, it is not sustainable and eventually people will not get necessary supplies.
He said it is the government's responsibility to have good policies at macro-economic level and good management at micro-economic level to make sure these vital resources could be provided to the people at affordable prices. People would be willing to pay for water and electricity as long as supply is of high quality, he added.
Jin said the ADB was fully aware of the impact on the poorest of the people and advises the government to talk about the subsidy as to who need it, rather than across the board subsidy, which is not efficient.
About US$ 150 million ADB loan for the post-flood rehabilitation in Bangladesh, he said they are very concerned over the adverse impact on the livelihood of the people in the wake of flood, particularly this year's flood was very furious.
ADB has been trying its best to mobilize resources for rehabilitation, the ADB vice president said.
"We are also working with bilateral donors to put together a package.
We are trying to mobilize US$ 100 million as concessional funding and another US$ 450 million from bilateral donors to support the post-flood rehabilitation."
He said the fund might be mobilized by the end of this year or in first quarter of the next year.
Asked how ADB's lending is linked with restoration of democracy and elected government in Bangladesh, Jin hoped the next government would be elected in due process and the caretaker government would push forward this process.
"We believe the caretaker government is on the right track."
ADB Country Director Hua Du was present at the briefing.
"I think the caretaker government trying to build up the governance framework and to crackdown on corruption has a far reaching significance for the Bangladesh economy," he told a pre-departure media conference at the ADB office, ending his 3-day visit to Bangladesh.
Jin said he believes that governance is the key to ensuring sustained economic growth and to ensuring a level playing field. So, in the long-term this is absolutely necessary.
Asked if the crackdown on corruption resulted in slowed-down economy, inflation and price-hike, the ADB official said that because of the complicated situation in short-term, particularly in this transitional period, there might be some repercussions on the growth.
He, however, thought that the government is fully aware of the implications for the growth and is taking measures to deal with these issues.
Jin said it is very important for the business and the private sectors to understand the importance of creating jobs and maintaining productivity to make sure economy will continue to grow.
"It is important to support the government's efforts to crackdown on corruption. Because, the anti-corruption drive will directly benefit the business sector," he told a questioner. "This is the crucial time for everybody to understand the long-term benefit," he added.
The ADB vice president suggested institutionalization of anti-corruption drive. Otherwise, corruption might come back with the installation of a new government, he feared.
On the reported advice of ADB to increase the prices of energy, water and other utility services, Jin said ADB does not ask any government to raise the price of energy or any prices for that matter.
"ADB likes to advice how best the government can cope with energy price increase," he said, adding that ADB works with the government to improve macro-economic policies and to strengthen the government's ability to deal with the external shocks.
He said the international community fully understands the serious implications of continued energy or oil price increase.
"Moreover, the oil producing countries also understand that if they continue to increase oil price, it will lead to economic recession in developed countries and this will boomerang on oil producing countries as well."
Jin said ADB likes the government to take up macro-economic policies to make sure the prices of vital resources like energy or water would make possible for economy to go ahead.
"We believe, adjusting water tariff, electricity tariff, and energy prices in general, will ensure long term sustainable development," the ADB executive said, adding that if the prices are kept artificially low, it is not sustainable and eventually people will not get necessary supplies.
He said it is the government's responsibility to have good policies at macro-economic level and good management at micro-economic level to make sure these vital resources could be provided to the people at affordable prices. People would be willing to pay for water and electricity as long as supply is of high quality, he added.
Jin said the ADB was fully aware of the impact on the poorest of the people and advises the government to talk about the subsidy as to who need it, rather than across the board subsidy, which is not efficient.
About US$ 150 million ADB loan for the post-flood rehabilitation in Bangladesh, he said they are very concerned over the adverse impact on the livelihood of the people in the wake of flood, particularly this year's flood was very furious.
ADB has been trying its best to mobilize resources for rehabilitation, the ADB vice president said.
"We are also working with bilateral donors to put together a package.
We are trying to mobilize US$ 100 million as concessional funding and another US$ 450 million from bilateral donors to support the post-flood rehabilitation."
He said the fund might be mobilized by the end of this year or in first quarter of the next year.
Asked how ADB's lending is linked with restoration of democracy and elected government in Bangladesh, Jin hoped the next government would be elected in due process and the caretaker government would push forward this process.
"We believe the caretaker government is on the right track."
ADB Country Director Hua Du was present at the briefing.