The New Nation - Internet Edition

FUNDS have not been available easily from donor agencies in recent years for Bangladesh to carry out urgent developmental and expansionary activities in various fields such as power, infrastructure, energy and telecommunications. This development has been putting on hold the country's economic growth. Continued availability of these funds is dependent on the government progressively satisfying some conditionalities that involve carrying out essential reform activities to stop misuse of resources to achieve better utilisation.

The government is required to carry out reforms in the financial sector to make it more efficient and streamlined. It is expected to give a spur to privatisation to stop draining of resources on bloated state-owned organisations (SOEs). The carrying out of such reform programmes, as suggested by the donor bodies, is in the interest of the economy. Successful conclusion of reform activities should make the economy stronger.

The government is eager to take donors' help because the funds being extended by them carry nominal rates of interest and are to be paid back on a long-term basis. These are the best possible sources of credits available to the country on the merits of the soft terms of their repayment. But government's response has been something like aspiring for these funds while also maintaining a posture that they are facing up to undue donors' pressure and rejecting donors' unjustified prescriptions.

The WB and IMF funding has been linked to Bangladesh remaining steady in its course of reform activities. Further disbursement of the committed amounts could be stopped or slowed down if the donors sense a weakening of the resolve to push ahead with reform activities. But the long term economic interests of the country dictate that timely and full utilisation of these funds are made by remaining well committed to reform activities.