Reading Tasks for Campainger: BRICs urged reform of Financial Architecture
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Prodip Kumar Roy Foreign economic aid and government programs have spent billions of dollars during the past five decades to alleviate the high number of people living in poverty. No country has been lifted out of poverty as a result of these efforts, but the mindset remains the same: aid programs are the key to poverty alleviation.
Rather our human development for last 30 years is really impressive where enterprenuers get very poor support … See Morefrom any source. It is due to their own enthusiasm though inequality is tremendously high.
My conclusion is very orthodox: Another push from IFIs which will enslave me from all counts.
This is the well documented pattern and story of development projects. Remember ANimal Farm by George Orwell? Beware double talk. Development means exploitation. Peacekeeper missiles and so on. Don;t let yourself be so easily manipulated.
As IFIs are heavily bounced back from the Asian and Latin American countries due to their extreme failure of SAP, PRSP and other approaches so Africa is the target. They find some donor darling countries by this time like previous. CHAD is not the only example, there has more.
Corruption is the classical weapon of swallowing aid to so called “third world countries” especially African countries. For IFIs its more easy to put thousands conditionality against a loan. Promoting “good governance”, “micro-enterprise”, “empowerment” are then innate conditionality of loan…Now war-affected countries become more aid darling. Aid is the fuel of all the wars/clashes going over the world…. See More
I am not at all against good governance bla bla …. but as long as those are used as weapon of swallowing loan, I vow for avoid it (country have to have to strong backbone to say NO !!!)
2 hours ago ·
Governments of third world countries are interested for poverty reduction of their respective country. But due to resources constrain, lack of proper human resources personnel and technology, they are not in a position to implement all the programs. Then, in the name of poverty reduction, donor comes with some attractive proposals. In consultation with governments, donors prepare some donor dominance programs/projects and arrange funds as loan or grant. In all most all the cases donors are not interested in infrastructural development of a country. In many donor dominating projects/ programs infrastructures are build from respective countries own fund and loan/grant money is used for seminars, workshops, awareness building, consultants remunerations, foreign visit/study, purchase of vehicles (as per specification of donor) and some necessary and unnecessary equipments. In many cases, the valuable foreign fund/grants are used for non productive purposes.
In this way we spent billions of dollars during the past five decades to alleviate the high number of people living in poverty, but we are not lifted out of poverty as a result of these efforts. In many cases, in name of poverty reduction these donor dominance national programs create corruption! … See More
There are so many barriers for smooth implementation of a project. Due to lack of proper human resources, untimely resources allocations, political interference, bureaucratic process, complex procurement procedure and some other unknown reasons, we are not able to implement all ADP allocations.
Polly Parveen Madam rightly focusing on SME development – which is one of the key to economic development. I like her word “business development means income generation = increase in purchasing power = more business!”
There are so many theoretical approaches of poverty reductions. I believe, proper human resources developments, local level planning/ initiatives are essential for preparing a good program/project. Timely fund allocation, mindset of project personnel’s plays the vital role for smooth project/program implementation. After that, SME development may be effective in many cases of poverty reduction.
Many countries get their independence after our independence. Many … See Moreof the countries are able to develop their countries due their strong commitment, patriotism and political stability. I don’t know, when we will realize it.
The maximum institute can do is enabling the environment like ensuring land rights, legal support etc… Rest they can do and they have proved it….
Do you have any statistics regarding poor, hardcore poor, …. Do you have any specific idea, how we can solve the problems.
আন্তর্জাতিক আর্থিক প্রতিষ্ঠানগুলোর পরিচালন পদ্ধতি আমূল সংস্কারের জন্য নির্দিষ্ট সময়সীমা বেঁধে দিল ‘ব্রিক’ গোষ্ঠীভুক্ত চার দেশ, ব্রাজিল, রাশিয়া, ভারত ও চীন। বিশ্ব অর্থনীতিতে নিজেদের বাড়তে থাকা গুরুত্বের কথা মনে করিয়ে এই চার দেশের দাবি, আন্তর্জাতিক অর্থভা ার (আইএমএফ) কিংবা বিশ্বব্যাংকের মতো আর্থিক প্রতিষ্ঠানগুলোতে উন্নয়নশীল ও সম্ভাবনাময় অর্থনীতির দেশগুলোর প্রতিনিধিত্ব বৃদ্ধি। এবং তাদের শীর্ষ পদে বসার সুযোগ শুধু উন্নত দুনিয়ার জন্য কুক্ষিগত করে না-রেখে, উন্নয়নশীল দেশগুলোর সামনেও খুলে দেয়া। দীর্ঘদিনের এই দাবিগুলো পূরণের জন্য, উন্নত দুনিয়ার সামনে আগামী নভেম্বর পর্যন্ত সময়সীমাও বেঁধে দিয়েছে তারা। এপ্রিলে ওয়াশিংটনে বৈঠক জি-২০ গোষ্ঠীর দেশগুলোর অর্থমন্ত্রীদের। রয়েছে আন্তর্জাতিক অর্থভা ারের বৈঠকও। তাই তার ঠিক আগে এই দাবি যথেষ্ট তাৎপর্যপূর্ণ, মনে করছে সংশ্লিষ্ট মহল। ব্রাজিলে অনুষ্ঠিত ব্রিক দেশগুলোর এই সম্মেলনে ছিলেন ওই দেশের প্রেসিডেন্ট লুই ইনাশিও লুলা দা সিলভা, ভারতের প্রধানমন্ত্রী মনমোহন সিংহ, চীনের প্রেসিডেন্ট হু জিনতাও এবং রাশিয়ার প্রেসিডেন্ট দিমিত্রি মেদভেদেভ। আলোচনার পর প্রকাশিত সম্মিলিত বিবৃতিতে দাবি, আন্তর্জাতিক আর্থিক প্রতিষ্ঠানগুলোর খোলনলচে বদলের জন্য নভেম্বরের জি-২০ গোষ্ঠীভুক্ত দেশগুলোর বৈঠক পর্যন্ত সময় বেঁধে দিচ্ছে তারা। অঙ্গীকার করা হয়েছে নিজেদের মধ্যে স্থানীয় মুদ্রায় (ডলারের পরিবর্তে) বাণিজ্য বৃদ্ধির। এক দেশের রাষ্ট্রায়ত্ত ব্যাংকের অন্য দেশের প্রকল্পে লগ্নি করা নিয়ে চুক্তিও সই হয়েছে।
Aman Rahman Wrote in his status at Facebook
Aaman Rahman Wondering how long the world bank-IMF duo will keep sucking commoners blood to remain alive? Isnt 60 years enough?…..
Comments of Readers:
You and Subhagya M. Chakma like this.
Subhagya M. Chakma
I think their milestone is still far away…as the global reality hints.
Taibur Rahman Sumon
How WB works? It has no interest rate for poor country. only 0.75% service charge with 10 + 30 years of repayment period. How it sucks commoners blood? rather money taken from WB is wasted by the government and blame goes to WB. We have very poor negotiation skill and weak backbone. 25% of our development budget comes from WB. However we seldom lend money from IMF. We should blame ourselves not others.
….sumon vai nice to hear from u…the thing is…when Bd got independence which was the single most thrust sector of our economy?Obviously agriculture..contributing almost half of the gdp. and which agriculture commodity earned 75% of export earning? it was jute and jute products…bd also hv to fight for independence with pak bcoz of its due … Read Moreshare from jute economy. in 72 there were 77 jute industries accommodating almost 1 million low and semi skilled workforce and around twenty backward and forward linked industries were dependent on it, which also accommodated another half a mln of labor force. this is only one instance….bd steel and eng corp, state owned textile mills, hardboard mills, newsprint mills…what happened to these manufacturing industries hving strong backward linkage in the country. now how many of these state owned enterprises are in operation and how much labor force do they accommodate. bro only 14 jute mills are left alive….(basically those are half dead already)…steel, fertilizer, textiles…in the name of structural adjustment/ privatization and deregulation most of them are just disappeared from the public books of account. upon whose conditionality the govt have did this? just ask any of the rickshaw-pullers in narayanganj or in khulna..they wont be hesitated to grab the answer for you. yes certainly the corrupted civil and army bureaucrats and the back-boneless politicians hv had implemented the SAP to de-industrialize the country, often by force..often to capitalize personal gains from it. it doesnt mean “we” did it. to me and many of us “we” means who are for the commoners. all of these massacres are done by “them”, who are only for profit…..it cud be the imperialists, multinational corps, the world bank, or their local agents. its not like deshi vs bideshi. and by the way, the food crisis/ price hike now a days people experience in bd, its also the outcome of world banks strategy…sap. prsp..money in bd is expensive bcoz of imf and their contractionery fiscal policy in the name of prgf. evidences are in the central banks reports. world bank’s prescribed work on impact of structural adjustment program called SAPRI is another report to get through. however evidences are in front of our eyes….we do not need to proof gravity law again.
Taibur Rahman Sumon
Aaman, I appreciate your deep analysis though You have provided some journalistic view. Most of the conditionalities given by WB are project based not policy based. I am not talking abt IMF as I have little knowledge abt their system of operation. I worked for about 5 years as counter part desk-officer of WB in ERD. Now a days, the conditionalities… Read More are too soft covering long term aspects like good governance, reform in the procurement system, proper financial reporting, tariff adjustment and so on and those are like proposals asking only for commitment from the government not the actual achievment as those cant be achieved in short term. There are some corruption possibilities in WB local office jointly with implementing GoB officials. Unfortunately still those officials in WB local office are Bangladeshi. You shouldnt just follow what rickshaw puller says or follow popular blame game. Those are mostly political speech. WB is still contributing 30% of our dev budget and all the govt are trying to increase the amount. Why, even with those political blame game? There could be some mis leading policy advise from WB like in the Jute sector. But those are not conditionalities and Govt were not forced to implement that. They are just a Bank and its is up to us whether we take money from them or not. I find WB, ADB (though interest rate is little bit high 3-4%), Japan (the best single contributor), EU as our best development partner. But we have to be smart and patriotic enough to utilise those money.
Even if u dont like their terms, dont take the money and if you desparately need the money then you have to compromise a little bit.
good to hear that u work in erd. then we cud get insights from the inside. thnx.
Prodip Kumar Roy
The discussion inspires me to write here about my understanding. I think, it is very important for us, particularly who are thinking about the interest of common people. Through these discussion, we will get a clear picture of aid politics which are conducted globally through diplomatic ways.
First, we know, a major part of our development budget is formulated based on supports occurs from development partners like WB and WB provides soft loan to LDCs like Bangladesh. Bangladesh has a legitamate right to get loan from development partners and the development partners have a responsibility to assist the LDCs . It is not emotional talks; rather it is rational and binding responsibility of rich countries and development partners to assist the LDCs. These binding responsibilties has been set out at diffirent global declaration including goal 8 of millennium declaration commits for global partnership.
So, it is not so simple to summerise that if you don’t like, you don’t take! It is a very poor approach and from such kind of thinking, we could never realise the policy implementation procedures (development politics or aid politics) of WB and other development partners…. Read More
Mr. Sumon said that conditionalities given by WB project based, not policy based! It is very narrow thinking! Projects are negotiated and indentified under the policy guidelines of WB. So, we could not think, conditionalities imposed project based. Here is an example: Recently you know, the government is negotiating an implementation strategy with WB ON 15 years mega project for agricultural sector, `National Agriculture Technology Project (NATP)’ and the WB pressures to government to inlcudes NGOs as CIGs and reform of Bangladesh Agricultural Reseach Council (BARC). Why? Because, WB is finding opportunity to utilise their foreign experts (scientists) to the project. Why? Because from these foreign experts, they will identify such technology and recommendations which will suit for multi-national companies. Particularly these external expert will recommend mono-culture hybrid, GMO which makes absolute dependency on multi-national companies which will destroy our agriculture in the near future. As a lender, WB has not right to impose these conditionalities. But they do it, because our poor political understanding about global politics.
We all know that, WB pressured Bangladesh to reduce subsidy at agriculture and reform of Bangladesh Agricultural Development Corporation. To implement the policy advises of WB, we have already destroy our agricultural supply chain which impacts in our daily lifes.
Most of the time, here also, we blames our politicians and bureaucrats for poor skills and knowledge. But think about the Structural Adjustment Programme (SAP) and so-called PRSP. Through these reform programme, there have created a lot of opportunities to become a corrupted people. Any consequences, the nation becomes corrupted no 1. Then WB puts their finger to reduce corruption. Through implementing these reform projects, the politicians has been washed out from political field and business persons becomes politicians. So, we need to think, every aspects of any reform programme which advised by our lenders as policy guidelines.
Taibur Rahman Sumon
“Thank you mr. Prodip for ur insights. Again I suggest to review in detail the negotiation process of project loans. pushing foreign consultants in bangladeshi projects is not WB’s agenda, however some officialas of WB are definitely trying to do this because of their personal interest and linkages. Here comes the negotiation skills required by the GoB officials and their political leaders. With proper skill it is definitely possible to protect country interest first. If we are firm and logical, no WB officials would be able to force us to keep options for foreign consultants who are most of the time inefficient and unaware about the context. Well I agree that PRSP is somewhat a superficial document but not a bad one. We have weakness in plan making process. All the output either PRSP or five year plan would be superficial.
WB again cant force us to take their identified projects. We can identify our projects and we do this regularly though there are lot of arguments about their quality and relevance.
I dont agree that aid is our right. I rather dont like taking aid if we could manage without that. However, within near future we must have to beg for aid. If u say its our right u wouldn’t get any.
If WB does not provide any funding for agriculture, then we should invest our own money there. We need not to wait for them with our priority. 30% of our dev. budget goes to capacity building project amongst which 80% is totally wasted in useless foreign study tour and training.
We have to fight with knowledge with WB counterpart officials for appropriate conditionalities but not saying that aid is our right.
How long we would take aid? domestic resource mobilization is must. And if WB suggests that, they are bad as taxes and tariffs go high. Thaks a lot for this interesting practical development debate. I wouldn’t be available to comment on this further for next month.
I agree with you in most of the points. We know, we need capacity, skills of negotiation. We also know, we formulate our projects and WB… Read More just provides feedback as advises. But insights is not limited in this process. Hope, I will explain it here later.
I will take another opportunity later to explain my points of view on Rights of Aid and we also need capacity and skills to establish this approach. Thanks again for giving us time in this discussion and hope we will continue it later.
I think, we can form a group to assess every project of WB and ADB. If you are interested, please response. I think, it will work in policy influence.
also,think about the policies that these IFI’s r enforcing,which is affecting the common citizens dail life.for ex:price hiking in sectors like: energy,water,health etc.or pressuring the govt.ments to become captives of IOC’s through leasing energy &mineral resources.wholesale prescription 4 privarization etc.
I know, we should mobilise the people. Blog is not the appropriate platform. So, we need to create a working group for study and advocacy who will present continuously project impacts to the country people.
Do you have any statistics regarding poor, hardcore poor, …. Do you have any specific idea, how we can solve the problems.