The New Nation - Internet Edition

BSS, Dhaka

Campaign for Good Governance (CGG), an NGO, on Wednesday called upon the international community, particularly the G-8 countries, to cancel overseas debts of Bangladesh and consider those as grants.

The CGG leaders made the call at a press conference at Dhaka Reporters Unity on the eve of the forthcoming G-8 summit.

CGG President Abdul Awal, Chief Executive Officer Pradip Kumar Roy, researchers Monwar Mostafa and Mohammad Shahid Ullah addressed the press conference.

In a written speech, Shahid Ullah said the lending countries must have to shoulder the responsibility of the problems arising from the loans and waive the debts unconditionally.

He recommended determining duration of the credits of poor countries in line with Millennium Development Goals (MDG) compatible structure in the place of the World Bank-IMF directed structure.

According to CGG research papers, Bangladesh had to spend more money to pay overseas loans compared to its expenditures in education and health sectors in the last few years.

In 2007, Bangladesh spent US$ 1551.3 million to repay foreign loans, which was 18 percent of government's total expenditure and 2.8 percent of GDP in that year. Expenditure in education and heath sectors in that year were 16.5 percent and 7.4 percent respectively.

The press conference was told that increasing expenditure in the service sector in Bangladesh is crucial to attain the MDGs.

The burden of overseas debts is hampering the country's efforts to attain the MDGs.

Referring to the challenges of climatic changes, the CGG leaders said Bangladesh does not have adequate resources and ability to face the challenges. Bangladesh is one of the most risky counties to be affected by sea level rise due to the climatic changes.

They urged the rich countries to fulfil their commitment by giving 0.7 percent of their national income as development assistance to the poor countries.