The New Nation - Internet Edition

ACCORDING to a recent media report, the study on aid effectiveness of multilateral organisations examined at a seminar in the capital city found that while stakeholders' perceptions stressed government ownership, the lending agencies failed to support the national agenda. It found the World Bank, that provided 30 per cent of the loans, to be the largest lender, but said its aid effectiveness was lower in comparison with other donors. The seminar on 'Stakeholders' Perceptions on the Aid Effectiveness of Multilateral Organisations' was participated largely by economists, academics, business leaders and retired bureaucrats. The speakers called for phasing out foreign aid to get rid of the 'unwanted conditions and prescriptions' by lenders and to achieve independent national development. One academic had his angry outburst when he said 'We do not want to burden our economy with such loans.' The lenders never suggested accumulation of capital required for national development works through the share market and their consultants had not been able to help improve the condition of ailing organisations.

The donors in any way should not be allowed to interfere in the internal affairs of the country and should 'stop making sweeping remarks about the country's institutions and politicians' as one business leader remarked. The official development assistance contributed 2.3 per cent of Bangladesh's gross national income in last three years, and declining trends in assistance were witnessed, the study showed. The Overseas Development Institute of the United Kingdom presented the study's overall report on aid effectiveness covering five other countries in Asia and Africa - Ghana, South Africa, Tanzania, Zambia and India. The study was aimed at examining perceptions of performance against the indicators of the Paris Declaration, especially government ownership, alignment and harmonisation.

The potential benefits of external assistance, in fact, had not been realised, and the study blamed both lenders conditionalities and poor governance for the failure. It was pointed out that the inordinate delay in disbursing aid pledged by the donors for whatever the projects very often causes burden unbearable for the country instead of serving the purpose for which the aid was sought. One adviser of the former caretaker government narrated his experience of working with the World Bank and stated that the lending agency had 'intervened too much' in his work to the extent of 'creating hatred and violating ethics' as reported by the print media. The former adviser also expressed his utter surprise how an institution like the World Bank could keep 'consultants' ignorant of the functioning of a government. The aid agencies should allow the recipient countries to utilise the aid by designing the projects based on social institutions and local conditions. It requires a strong urge to shift the whole aid paradigm besides setting policy space and national priorities in providing aid as suggested at the seminar underlining the need for ensuring public accountability in receiving and using assistance. The government has to strike a balance while setting development priorities and formulating policies as a whole.