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PRS II and Sovereign Development. Equity and Justice Working Group Bangladesh PRS II : Step of as usual business. Preparation methodology : Beaurucratically managed. Very little participation of CSOs, avoidance to critical CSOs.

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PRS II and Sovereign Development

Equity and Justice Working Group Bangladesh

PRS II : Step of as usual business

Preparation methodology : Beaurucratically managed

Very little participation of CSOs, avoidance to critical CSOs.

Development ownership should be “democratic”, not mere “government”.

Question on parliamentary participation:

No oppositionNot presented as a bill and members are not interested

As because of patron client instead of democratic relation in party culture.

Slide - 1

PRS II : Step of as usual business

Old wine in new bottles : how it will be a charter of change

Same framework of PRS 2005, 2008 and 2009, even some text.

Major neo liberal conditionality implanted; import liberalization (by reducing import tax and reducing sensitive list), privatization and commercialization in important sectors, public private partnership (PPP) in transport, health, education and power.

Slide - 2

PRS II : Step of as usual business

Rhetoric vs. implementation policies

In rhetoric, government policy leaders declare more state control in economy, welfare role of the state too.

But in fact in PRS II policies does not reflect so, e.g.,

Import liberalization, public private partnership, privatization in agriculture and other important especially in essential service sectors.

Slide - 3

PRS II : Step of as usual business

Is PRS II heading toward debt burden

Present annual debt servicing liabilities (DSL) 20 % ($ 2250 million per year)

Government budget for health ($ 1000 million) and education ($ 2050 million).

Per person foreign debt $ 149

Government plan to take loan for mega projects:

Padma Bridge (2500 million)

Deep sea port (3000 million as 30% of total budget)

Four lane Dhaka Chittagong express way (2200 million)

Dhaka metro rail etc.

By the end of this government tenure DSL

may go up to 30-35 % of revenue budget.

Slide - 4

PRS II : Step of as usual business

Is all these foreign debt has people mandate : how to development finance could be made sovereign, democratic and responsible

All foreign debt agreement should be made public and approved in parliament

Conditionality must respect people sovereignty.

All foreign debt must ensure people participation and local level accountability in grass root during implementation.

Slide - 5

PRS II : Step of as usual business

Business as usual in development key sectors (please see our sector wise policy matrix analysis)

Governance: made local government and commissions dormant and performance of democratic institutions questionable

Health: centralized administration and a chaotic management

Agriculture: no tangible planning to ensure food self sufficiency

Slide - 6

PRS II : Step of as usual business

We appreciate government re embarking on five year plan: four priority recommendations.

Major thrust on local resource mobilization as donors is hardly reliable

Immediate decentralize administration and autonomous local governments in all level

Orient the PRS document in both government, party rank and file.

Declare public participatory road map 2010-2011 for preparation of next five year plan.

Slide - 7

Thank You All

Equity and Justice Working Group Bangladesh

House: 9/4, Road – 2, Shamoly, Dhaka- 1207

Phone: 880-02-8125181, Fax: 9129395

[email protected],