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ODA transfer declining over time: Finance Minister |
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September 28, 2000
Dhaka (UNB) - Bangladesh raised voice before the donors against decline in ODA transfer, constrained market access for the developing countries and unmatched production factors. "Overseas Development Assistance (ODA) transfer to developing countries is declining over the time, it has been about one-third of the agreed target," Finance Minister Shah AMS Kibria said while addressing yesterday the annual general meeting of World Bank and IMF in Prague that faced violent demonstrations from the outset. He resented that access of developing countries to industrial markets still remained constrained by tariff and non-tariff barriers, according to a message received here. "Competition in the service sector on the domestic market compounds the problems further because of the wide gap in human and technological resources." The Finance Minister said liberalization of the flow of goods and services had not been matched by the flow of factors of production. Labour migration policies of the industrialized countries continue to be restrictive, he pointed out. Movement of capital has also been highly volatile, often exacerbated by unstable portfolio investment. Against this backdrop, Kibria welcomed the initiation to establish a new international financial architecture. "But a new structure will not be sustainable unless it is based on equity where both developing and developed countries have equal opportunity for participation." He said efforts should be made to accelerate flow of resources to the developing countries, particularly official development assistance, enhanced market access for their products, progressively liberalized labour migration, and establishment of institutions and mechanism for ensuring more orderly flow of capital and stability of currency. Kibria said delivery of aid also had been experiencing constraints--in many cases slowed down or declined. Increasingly, aid is being linked with policy and institutional reforms. "We recognize the importance of reforms but external pressure for reform disregarding the structural and political complexities attending policy and institutional changes can be self-defeating and may induce slowdown of the reform process." He said slow delivery or cutting down aid does not necessarily make the environment more conducive to change. The Bangladesh Finance Minister told the meet of the two Bretton-Woods institutions that the recent increase in oil prices would create additional burden on the oil-importing developing nations. "Indeed we are already under this heavy burden. I am happy to note that the Bank and the Fund have already recognized the seriousness of the problem," he said. Kibria said it's gratifying to note that participatory and democratic system and protection of human rights are among the values that aid now aims at promoting. He said it's important for countries like Bangladesh, which is trying to establish democracy on strong institutional foundations, despite odds-even subtle resistance-from groups which benefited from military rule and are yet to absorb democracy as a fundamental value fully in their political culture. "We believe that broad-based sustainable development can take place only in a democratic political system." The finance minister said the government remained firmly committed to a development strategy for rapid growth with social justice, poverty eradication, macroeconomic stability and structural reforms for higher efficiency. |