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Coordination with private sector key to reaching SDGs

“Focusing on challenges globally and that Bangladesh faces”

Overview:

The development finance agenda is broad. Contents it covers may be different according to the development

priorities worldwide, but some basics are common as- how should progress be paid for? What is the role of the

public and/or private sector? Who should monitor sources of finance? Isn’t it now finally time for structural reform

in global financial institutions, such as the World Bank. And what proportion of development should be paid for out

of domestic as opposed to international resources?

What is important to keep in mind for action is that the world does not need another list of financial problems and

solutions, another meta-analysis of the situation. It needs priorities.

First, identify the most important issues. One of the main problems of the MDGs, adopted for 2000-2015 as noted in

countless analyses, was their failure to bring the major structural issues to the table. Today it is even clearer than 15

years ago that such major structural issues need to be managed if the world is to adopt a sustainable path. Such

issues could be explicitly prioritized in the UN finance for development declaration.

Second is achievability. Reflecting on the way cotton subsidies abroad had all but destroyed Mali's cotton industry,

its one big chance to emerge from aid dependency; they weren't campaigning harder on the issue assuming that it

was pointless – incentives in subsidizing countries were too strong to overcome; better to work on things with a

chance of progress!

The same analysis needs to be applied to the prioritization of goals and commitments in development finance. Some

issues remain fairly intractable (like subsidies in richer countries) but the international context for progress on other

systemic issues is better than ever, as people in rich countries clamor for fairer burden-sharing in times of austerity.

The achievability test is also a key to the public versus private debate. The role of the private sector, both domestic

and multinational, is critical to development outcomes. Rather than focusing on getting commitments from the

private sector, which follows a particular set of incentives, it may be more sensible to set out how public actions can

encourage – and sometimes force – companies and banks to be as pro-development as possible.

Prioritizing some issues doesn't mean forgetting others – it means allocating time and resources most appropriately

after an assessment of importance and achievability, just as has happened for the SDGs. Reaching the SDGs will

require a step-change in both public and private investment. Public sector funding capabilities alone may be

insufficient to meet demands across all SDG-related sectors. However, today, the participation of the private sector

in investment in these sectors is relatively low. Only a fraction of the worldwide invested assets of banks, pension

funds, insurers, foundations and endowments, as well as transnational corporations, is in SDG sectors, and even less

in developing countries.

Investment through Private Sector:

Coordinated efforts with the private sector and an action plan with accountability hold the key to achieving the

United Nations' 17-point sustainable development goals. According to Ahsan H Mansur, executive director of the

Policy Research Institute, the SDGs are focused on the private sector, while the millennium development goals were

primarily focused on the social sector. So, the government has to focus on the private sector, which, in turn, must

actively participate to help achieve the goals.

Seven of the 17 SDGs are directly linked with trade, business and investment. So, without real and effective

collaboration between the government and the private sector, the SDGs cannot be achieved. For example, ensuring

access to affordable, reliable, sustainable and modern energy for all will be challenging for Bangladesh as the

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country is running out of gas. Another major challenge will be building resilient infrastructure, promoting inclusive

and sustainable industrialization and fostering innovation.

Without infrastructure no country can have a better economy. So, Bangladesh has to have better and sustainable

infrastructure to attain the goal. Infrastructure will lead us to growth and the growth needs to be sustainable and

inclusive. The SDGs forecast 7 percent gross domestic product growth for least-developed countries, which, the

economist said, is an opportunity for Bangladesh as the country is very close to attaining the target.

Combating climate change, sustainable consumption and production, development and uses of ports, and preventing

air and water pollution are the other challenges for Bangladesh. If we work collectively, in a link created between

the rural and urban communities to achieve the goals, the SDGs can be achieved.

Investment Opportunities in Bangladesh:

The government is fully committed to facilitating the private sector as govt. wants to believe that Bangladeshi

entrepreneurs are resilient and are moving the country forward. Private investment is welcome in all areas of the

economy with the exception of the four reserved sectors:

Arms and ammunition and other defense equipment and machinery

Forest Plantation and mechanized extraction within the bounds of reserved forests

Production of Nuclear Energy

Security Printing and Mining

Investment of $5-7 trillion will be needed per year to achieve the SDGs globally. So the funding will be a key

challenge for Bangladesh as well, the country will need to increase its revenue collection, attract more foreign

assistance and investment and utilize them properly.

Investment in infrastructure development under public-private partnership initiative can be a key-point. Bangladesh

govt. as doing recently should have soften rules to promote the PPP.

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Palash Kanti Das, assistant country director of the United Nations Development Programme, said the seventh five-

year plan 2016-2020 for Bangladesh coincides with the SDGs in many ways. But prioritization and sequencing

should be the first task, followed by drafting of a plan of action with accountability, to achieving the SDGs.

Infrastructure & Transportation Improvement:

Dhaka Chamber of Commerce and Industries (DCCI) President Hossain Khaled recommended infrastructure

development, power and energy security, skills development, technology adaptation, policy-framework and long-

term strategy for attaining the SDGs. He urged the government to ensure easy financing for small and medium

enterprises, as it is the main driving force of the economy.

Bangladesh's government wants to invest $8 billion over the next few years in infrastructure to improve the

economy and sought help from private sector to share the cost which the government could not bear alone. Here is

scope to invest for accommodation, public transport-bus, train, launch, high-way, railroad, bridge and what not!

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Khaled said the government should form a national implementation forum, a single and small platform consisting of

public and private sector representatives along with all stakeholders, for monitoring the implementation process of

the SDG initiatives.

Ready Made Garments (RMG):

RMG is another and a big scope for more investment. Country has already 6 EPZ and govt. is trying to work more in

this sector.

Energy Sector:

Energy sector has prioritized by current govt., as we are forwarding to 50 years of Independent in 2021, in Vision

2021. Govt declared to have 20000MW installed capacity by 2021. At present we have 10600MW installed capacity

with generating 7500 MW. A big deal for investment lies for private sector to share the next need of country and

own profit.

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Remittances:

We have remittances every year and its increasing day by day. If this can be used in long run projects with security

and good profit we can have huge investment which is greater than ODA received by Bangladesh!

Conclusion:

Bangladesh continues to make progress on human development and reducing extreme poverty. The main problems

are political uncertainty and weak competitiveness, which are dragging acceleration of private investment and

growth. The economy is gradually recovering from prolonged disruptions, aided by political and macroeconomic

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stability. The challenge now is to consolidate this by accelerating economic growth in an inclusive and sustainable

manner. To sustain growth in the near- and medium-term, private investment need to increase significantly along

with improving the quality of public investment.

To say, we need doing good and do good things well at the same time to achieve the SDGs.

Sources:

1. Ministry of Finance Bangladesh (http://www.mof.gov.bd/en/)

2. http://www.bkmea.com/business-opportunity-in-bangladesh.html

3. http://www.worldbank.org/en/news/feature/2014/10/21/the-bangladesh-development-update-economy-

progressing-below-potential

4. http://bdnews24.com/economy/2015/09/19/bangladesh-wants-to-invest-8-bln-in-infrastructure

5. www.tradingeconomics.com/bangladesh

6. http://www.pewsocialtrends.org/2014/02/20/remittance-map/

Abdullah Al Mamun

Electrical Engineer(Transformer)

Energypac Engineering Ltd

Savar, Dhaka, Bangladesh.

December 08, 2015.