ADB in Bangladesh: Who losses who gains. www.equitybd.org. Introduction. A multilateral financial institution to support member developing countries for poverty reduction; In 1973, ADB started its activities in Bangladesh.
ADB in Bangladesh: Who losses who gains
- Processes of formation in March, 1963
in the Philippines
Since 1990, ADB included the following neo-liberal economic conditions in its financing agreement
1. Market infrastructure development, increase competition and price setting.
2. Privatization of state owned industries and institutions.
3. Formation of separate law and policy for different sectors
4. Liberalization of investment and industrial law for foreign investors.
5. Withdrawal of subsidy from public service sector.
6. Creating space for the MNCs for exploration and marketing of natural recourses
7. Reduce state role from the service sector.
The USA manages and controls all functions
- ADB itself a undemocratic institution
- Rich countries domination
As per UN –
1 country 1 vote, But ADB practice 1 dollar 1 vote.
- The rich countries possess 55% of votes
Researchers, CSOs, NGOs, even ADBs audit statement has proved that-
- In the name of inspection facilities ADB started its internal accountability system but failed
- In 2003 ADB formed a new accountable working strategy
1. OSPF(Office of the Special Facilities)
2. The complacence Review panel.
- Poor countries are not entitle to file any case against ADB
- But rich countries can get facilities for filing case.
Influencing in state politics:
As per constitution, ADB will not intervene in state politics But,
In Bangladesh, ADB is making comments and advising state authority about political leaders and politics.
Eco Park is an example.
- In Indonesia, 2002: 11 billion out of 16 billion was failed project loan. - In Pakistan: 2.6 billion (40%) out of 6.5 billion
- In Srilanka: 1.2 billion (80%) out of 1.5 billion.
- ADB itself a corrupted institution.
- Lobbing in favor of MNC for
Evident of corruption
which spent for election campaign
For this project approved loan was 13.612 TB but expenditure was 22.995 TB.
- Up to 31st Dec 2006, ADB loan was 829.97 U$
through 176 project.
- technical assistance of 17.95 U$ under 318 project
- 8 big project – 24, 22,80000 U$ ( Meghena Power plant and Grameen Phone Company)
-Since 1980, working as financing institution to increase GDP
- Playing role as a policy maker.
- focusing to privatization
- Opening market for MNC
Dev. Project of ADB caused
- Permanently water logging
- Salination of drinking water sources
- Destruction on natural aquatic systems
To create investment space for MNC,
- DestroyedJute, Still and other basic industries.
-Disempowered govt. institutes.
- Commercialized Education and Health sector
- Helped MNC to establish control over country’s Oil, Gas and natural resources
- Interfered in the preparation of PRSP
- Influencing in the formation of state laws and regulatory like revised energy law and regulatory law etc.
- Decreased ADF in last decades
- Introduced OCR loan.
Out of 310. 45 million committed loan during1999-2000 to 2006-2007; 39% was converted to OCR loan
- 2006-2007 fy loan 50 million out of 59.85 million was OCR (84%)
- In power sector 40 million dollars, out of 46.50 million, was OCR.
Till date ¼ of ADB’s investment went to fuel sector
1. Private investment
2. Including international investors and gas export through setting
inter-country distribution pipeline
If it implement open-pit coal mining in Fulbari, Dinajpur; will cause
- Pollution of 6 districts,
- Massive Deforestation,
- Water pollution
- Homeless of some 50,00 people
- Damaging agricultural land
- Affecting Sundarban
In a result, Bangladesh will get 6% as royalty and 75% coal will be exported.
- Since 1994, 3 contracts signed for technical assistance: U$ 34 million.
Main objective: Separation of Management and distribution system.
- 1991 – DESA,
- 1996 – PGCB, PDB
- 2002 gave 8.5 million loans for sector reform and privatization
ADB will give loan U$ 1200 million for railway privatization.
- 110 million for staff termination.
As per MOU between ADB and railway: 2 private companies will be formed for;
1. Passengers support
1. Primary Education
From 2002 to 2008, now extended for 2009.
2. Secondary Education:
- SECIP (ADB – No: 37307-01)
3. Higher Education:
Commercialization of education: 20 years strategic plan is;
- Increase number of private universities
- Increase tuition fee
“Dhaka – Chittagong Economic Corridor”
By 2020, redesign all infrastructures and communication facilities.
- increase production of power and gas
- Privatization of taxation system.
Prepared policy, legal environment and its enforcement activities.
As a result:
- Privatizing roads and highway authority
- Introducing user fees for roads and highways.