WB support becomes uncertain in absence of firm dev guideline
Wednesday, 16 September 2009
FHM Humayan Kabir
The World Bank has said its financial support, particularly for the budgetary aid to Bangladesh, would be difficult if the government does not finalise its development strategy and share it with the Bank, officials said Tuesday.
The Washington-based global lender has recently sent a letter to the finance minister AMA Muhith voicing its reservation of further financial support to the country.
Officials have termed the move unusual, saying Bangladesh's development programme may face a setback if the country's largest donor halts further financial assistance --- bulk of which is soft loan.
"In the letter the WB has said it was unable to prepare its lending programme, country assistance strategy (CAS), due to absence of any firm development guideline. It will create obstacle to the future aid," a finance ministry official said.
The WB's ongoing four-year CAS, a lending programme for Bangladesh, will conclude in December this year. So, the Bank a few months back has started to prepare the next three-year CAS, where it would earmark the possible programmes and financial support to Bangladesh.
In the letter, the Washington-based donor also expressed its unease over the present government's policy, as absence of a "firm and well-accepted" development strategy and plan would create impediment to the future support, the official told the FE requesting anonymity.
The government has been revising the ongoing three-year PRSP, lone guideline of the country's development, incorporating ruling party's election manifesto for implementing it by 2010-11 fiscal.
Besides, it has also started working on reintroduction of the "five-year development plan" from FY2010-11, the final implementation year of the PRSP.
Economic relations division (ERD) secretary M Musharraf Hossain Bhuiyan admitted receiving the letter from the WB.
He said: "The government will finalise the revision of the PRSP soon. Then it will sit with donors to share the amended PRSP and government's future development policy and strategy."
A WB official said: "How and on what basis we will frame our three-year CAS in absence of any firm and well accepted development strategy of the country. Lack of development guidelines is making the next programme and assistance uncertain."
The World Bank has said its financial support, particularly for the budgetary aid to Bangladesh, would be difficult if the government does not finalise its development strategy and share it with the Bank, officials said Tuesday.
The Washington-based global lender has recently sent a letter to the finance minister AMA Muhith voicing its reservation of further financial support to the country.
Officials have termed the move unusual, saying Bangladesh's development programme may face a setback if the country's largest donor halts further financial assistance --- bulk of which is soft loan.
"In the letter the WB has said it was unable to prepare its lending programme, country assistance strategy (CAS), due to absence of any firm development guideline. It will create obstacle to the future aid," a finance ministry official said.
The WB's ongoing four-year CAS, a lending programme for Bangladesh, will conclude in December this year. So, the Bank a few months back has started to prepare the next three-year CAS, where it would earmark the possible programmes and financial support to Bangladesh.
In the letter, the Washington-based donor also expressed its unease over the present government's policy, as absence of a "firm and well-accepted" development strategy and plan would create impediment to the future support, the official told the FE requesting anonymity.
The government has been revising the ongoing three-year PRSP, lone guideline of the country's development, incorporating ruling party's election manifesto for implementing it by 2010-11 fiscal.
Besides, it has also started working on reintroduction of the "five-year development plan" from FY2010-11, the final implementation year of the PRSP.
Economic relations division (ERD) secretary M Musharraf Hossain Bhuiyan admitted receiving the letter from the WB.
He said: "The government will finalise the revision of the PRSP soon. Then it will sit with donors to share the amended PRSP and government's future development policy and strategy."
A WB official said: "How and on what basis we will frame our three-year CAS in absence of any firm and well accepted development strategy of the country. Lack of development guidelines is making the next programme and assistance uncertain."