The New Nation - Internet Edition

Staff Reporter

Visiting United Nations Development Agency (UNDP) senior official called on oil-rich countries to help impoverished Bangladesh to cope with surging global prices as it recovers from two floods and a devastating cyclone.

Kemal Dervis, UNDP Administrator also expressed support for elections, which is expected by the end of this year to replace Bangladesh's military-backed caretaker government.

"The real issue is protecting the vulnerable from these shocks," said the

UNDP Administrator who just completed a three-day visit to Bangladesh. "The international community cannot leave these huge world events unattended."

He called on the international community to do more for Bangladesh. "Support from oil-rich countries, as well as other donors, could have positive benefits for Bangladesh and other lower income countries," he said.

Skyrocketing oil prices have driven up the cost of food worldwide, but their impact has been particularly dire in Bangladesh, where almost half of the 145 million people live on less than one dollar a day, Dervis said in a statement yesterday.

He said petroleum-producing countries that are benefiting from the high price of oil should use the gains to help people unable to afford adequate food.

He said annual food inflation in Bangladesh reached 16 percent in December. Many poor households spend nearly 70 percent of their income on food, according to government statistics.

He also explained that the situation has been exacerbated by food shortages resulting from floods and a cyclone in November that caused huge crop losses, the statement said. Tropical Cyclone Sidr killed more than 3,300 people.

Dervis met with Government officials and leading economists to discuss the issue of global price surges and their consequences for poorer and food-importing countries such as Bangladesh, the statement said.

Another factor that makes assistance to Bangladesh crucial is the political climate, Dervis maintained. "It is determined to build stronger democratic institutions and deeper practices of democracy," he said.

"A successful democratic Bangladesh that can overcome political and economic difficulties is an example to other lower income countries, to the Muslim world, and many other countries facing similar problems," he added.