IDB's assistance to Bangladesh
Monday, 3 September 2007
The Islamic Development Bank (IDB) is well known in Bangladesh. But regrettably over the years, resources from it was not so well utilized by Bangladesh. But hopefully there would be a change now after the recent visit of its President, Ahmad Mohammad Ali, to Bangladesh. The IDB President made commitments during his visit which have much significance for this country when loans and grants for the traditional donor countries and organizations such as the World Bank (WB), the International Monetary Fund (IMF) and the Asian Development Bank (ADB) are seen to be declining for Bangladesh and the terms and conditions for getting the same are proving to be increasingly difficult and risky.
Thus, it was very inspirational to learn from the IDB President that Bangladesh would be the beneficiary of $ 2.0 billion out of a special solidarity fund that his organization has mobilized to be disbursed over a period of ten years among Muslim countries. This assistance would be invaluable for Bangladesh when foreign funding supporting to it for various purposes is noted to be dropping substantially both in terms of commitments and actual disbursement. The IDB assistance can be a strong plus factor for its economy from receiving the required assistance spread over the short, medium and long terms under favourable terms and conditions.
The IDB President, while in Dhaka, signed three agreements totaling $ 9.19 million. The IDB has already provided $ 0.28 million as urgent flood assistance and $ 1.50 million for the rehabilitation programme after the flood. These amounts have been given as grants. Under the three specific agreements, $ 8.68 million will come from the IDB as loan for an agricultural project. The other two accords are grants of $0.295 million and $ 0.218 million for undertaking two feasibility studies. Thus, the IDB supports reflect a good mix of grants and loans when grants have been almost disappearing from the assistance given nowadays by the traditional western donor countries and organizations. Besides, the rates of interest charged by IDB on their loans as well the period of time allowed towards repayment, all these things are also found to be tilted more in favour of the recipient countries.
Bangladesh should indeed be thankful for the timely support that has been extended to it by the IDB and its President. But the potential of assistance from this body involves making most of the new opportunities which are opening up. The IDB would be in a position to step up its assistance to Bangladesh significantly under the solidarity fund which it has mobilized. Already, a substantial amount of this fund has been pledged for Bangladesh. But making good use of the resources to be made available by the IDB, will depend to a great extent on the mentality and leanings of officialdom in Bangladesh. It was noted in the past that generous assistances for the taking from IDB were spurned and loans from WB, ADB, IMF and others were very enthusiastically invited although the same involved tougher conditions. It is believed that the scope for foreign travel and other forms of corruption in taking assistance from the traditional donors were the real reasons of the preference for them when such scope is non existent or very little in case of the IDB. But the country gains from taking greater assistance from an organization like the IDB because of the nominal interest charged by it on loans and hardly strings attached to taking them. Thus, the government in Bangladesh is expected to duly put its own house in order to make greater use of IDB's assistance which would be more useful for this country in every sense.
Thus, it was very inspirational to learn from the IDB President that Bangladesh would be the beneficiary of $ 2.0 billion out of a special solidarity fund that his organization has mobilized to be disbursed over a period of ten years among Muslim countries. This assistance would be invaluable for Bangladesh when foreign funding supporting to it for various purposes is noted to be dropping substantially both in terms of commitments and actual disbursement. The IDB assistance can be a strong plus factor for its economy from receiving the required assistance spread over the short, medium and long terms under favourable terms and conditions.
The IDB President, while in Dhaka, signed three agreements totaling $ 9.19 million. The IDB has already provided $ 0.28 million as urgent flood assistance and $ 1.50 million for the rehabilitation programme after the flood. These amounts have been given as grants. Under the three specific agreements, $ 8.68 million will come from the IDB as loan for an agricultural project. The other two accords are grants of $0.295 million and $ 0.218 million for undertaking two feasibility studies. Thus, the IDB supports reflect a good mix of grants and loans when grants have been almost disappearing from the assistance given nowadays by the traditional western donor countries and organizations. Besides, the rates of interest charged by IDB on their loans as well the period of time allowed towards repayment, all these things are also found to be tilted more in favour of the recipient countries.
Bangladesh should indeed be thankful for the timely support that has been extended to it by the IDB and its President. But the potential of assistance from this body involves making most of the new opportunities which are opening up. The IDB would be in a position to step up its assistance to Bangladesh significantly under the solidarity fund which it has mobilized. Already, a substantial amount of this fund has been pledged for Bangladesh. But making good use of the resources to be made available by the IDB, will depend to a great extent on the mentality and leanings of officialdom in Bangladesh. It was noted in the past that generous assistances for the taking from IDB were spurned and loans from WB, ADB, IMF and others were very enthusiastically invited although the same involved tougher conditions. It is believed that the scope for foreign travel and other forms of corruption in taking assistance from the traditional donors were the real reasons of the preference for them when such scope is non existent or very little in case of the IDB. But the country gains from taking greater assistance from an organization like the IDB because of the nominal interest charged by it on loans and hardly strings attached to taking them. Thus, the government in Bangladesh is expected to duly put its own house in order to make greater use of IDB's assistance which would be more useful for this country in every sense.