The New Nation - Internet Edition

Staff Reporter

Urging the Government to recover the stolen assets, the visiting World Bank Managing Director Ngozi Okonjo-Iweala yesterday suggested the Bangladesh administration to use those assets for improving the lot of the poor and cut subsidy, used for the rich, for unhindered economic growth of the country.

Citing the experiences of successes of her own country in this regard, Ngozi Iweala, who was the Finance Minister of Nigeria, said she was able to recover stolen assets to the tune of US$ 1.2 billion and used the money for the poor in Nigeria.

She said this while talking to journalists after a meeting with Finance Adviser Dr AB Mirza Azizul Islam at the Finance Ministry. World Bank (WB) Vice-President for South Asia region Praful C Patel and its Country Director Xian Zhu accompanied her during the meeting.

The WB Managing Director (MD) assured Bangladesh of her bank's assistance to recover the stolen assets and effective use of those wealth.

She also offered the WB's support for investment in power and infrastructure sectors, taking a long-term plan to cope with climate change and facing the problem of increased food prices.

About her meeting with the Finance Adviser, Ngozi Iweala said they have discussed Bangladesh's good progress at around 6 per cent (GDP) in the last few years and said the country has the growth potentials at about 8 per cent per annum, depending on some reforms that would create more jobs.

She said they had discussions on high food and fuel oil prices in the domestic market as well as stressed the need for some substantial cut in subsidy in a "smarter way".

"We spoke about the subsidy cut from those who can afford the high prices. That's not easy but some way has to find out," she said.

The WB MD said the Government could look at those people, who have been suffering from the increased prices of food staffs and fuel oil. "For instance the farmers could be exempted from the subsidy cut," the recommended.

"Those who are at the bottom of the ladder, they should get the subsidy. We don't need to have to have general subsidy," she asserted, adding that they had talks about the need for more investment in power and infrastructure sectors, where the WB could provide necessary support.

Ngozi Iweala said, "Bangladesh also has a serious problem due to climate change where the country should have a long-term plan and the World Bank could provide necessary support."

Asked about the recovery of stolen assets, Finance Adviser Dr Mirza Aziz said the money recovered so far would not be too much and was deposited under the head of unexpected income while the money would be absorbed in the overall budget. It has not been decided yet how the money could be used later, he added.

He further said the WB suggested forming a small team, which would be dedicated to investigate the stolen assets cases. "We will consider the suggestion,." he promised.

On the WB support for climate change, the Finance Adviser said, "They (WB) expressed their interest to support Bangladesh, but the details would be sorted out later."

He could not provide the figure off-hand when asked as to how much amount of subsidy the Government has so far spent for post-floods and cyclone's damage recovery, including that of the agricultural subsidy.

He. However, hastened to add saying, "The spending for this purpose has already doubled than that of the budgetary estimate.

Dr Mirza Aziz said the poor are getting the subsidy, while there is a built-in mechanism so that the subsidy goes to the poorer sections of the society.