rezaul karim chowhdury equitybd is prs ii politically pro poor? is poverty alleviation not a...
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Rezaul Karim Chowhdury EquityBD
Is PRS II politically pro poor?
Is poverty alleviation not a political question
PRS II: a document of business as usual
www.equitybd.org
EquityBD primary observation on 2nd PRS 2009-11
Placing in parliament, in past it has not done Commitment to retreat back to five year plan But
No open review of PRSP impact, No wider and transparent process in preparation methodology
www.equitybd.org
EquityBD primary observation on 2nd PRS 2009-11
We appreciate government attempt
Suggestion on additional minimum five step preparation methodology
• Make it Bangla
• Policy matrix has to be measurable and specific
• Discuss in parliamentary group and cabinet
• Discuss in party forum: why not political and party mobilization
• Discuss in district level, especially with bureaucrats and elected leaders
www.equitybd.org
EquityBD primary observation on 2nd PRS 2009-11
Is there any analysis on what are the causes of poverty?
Is poverty just a fate, or systematic denial of people’s right and exploitation
Such an analysis will lead address to root causes of poverty.
www.equitybd.org
Consider this a live document: improvement and addition should be continuous
Is PRS II Politically Standby to Poor
EquityBD primary observation on 2nd PRS 2009-11
Further import liberalization
Promotion of privatization
Little emphasize to state institution of service delivery e.g., Health, BADC and TCB.
Big project (Nuclear power plant, Padma Bridge, Dhaka metro lane and express way, Dhaka Chittagong Four Lane High Way, Deep sea
port ), approx $ 6 billion, big loan : is country heading toward debt trap. Business for IMF, WB and ADB
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Is this document free from donor conditionality, we are worried
EquityBD primary observation on 2nd PRS 2009-11
Problem of having foreign loan especially from IFIs
Conditionality of macro economy control, import liberalization, privatization, easy access of MNC especially in natural resources.
www.equitybd.org
EquityBD primary observation on 2nd PRS 2009-11
Negotiation has to be done in transparent way in all stages.
Loan agreement have to be placed, discussed and approved in parliament.
Loan agreement has to be accessible to general public.
Contract has to be given to local public companies.
Project management has to be with democratic ownership (not only mere government ownership).
Law on limit of loan borrowing both from foreign and domestic source.
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All loans have to be Sovereign Democratic and Responsible (SDR) Finance to avoid unnecessary loan burden on future generation.
EquityBD primary observation on 2nd PRS 2009-11
Local resource mobilization has to be given priority.
Appropriate and low cost technology has to be given priority.
No loan for climate adaptation, compensation has to be claimed.
Separate audit commission has to do constitute for auditing loan funded projects.
All these pre condition to take foreign and domestic loan should be made as
constitutional obligation.
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All loans have to be Sovereign Democratic and Responsible (SDR) Finance to avoid unnecessary loan burden on future generation.
EquityBD primary observation on 2nd PRS 2009-11
It has envision a Bangladesh which by 2020/2021, will be a middle income country where poverty will be drastically reduced; where our citizens will be able to meet every basic need and where development will be on fast track, with ever-increasing rates of growth.
By 2013 poverty level and proportion of ultra-poor will be brought down to 25% and 15% respectively. At present there are 65 million poor people in the country. This number will be reduced to 45 million by 2013 and will further come down to 22 million in 2021.
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What is the Election Manifesto of Bangladesh AL?
EquityBD primary observation on 2nd PRS 2009-11
Government has set up the target of GDP growth rate 5.9% in FY 2009, 5.5% in FY 2010 and 6% in FY 2011. This target is contradictory and doesn’t address the real poverty reduction strategy. Because the targeted poverty reduction by 2013, the GDP growth would have to be reached at least 8% per annum?
The financial projection for PRS period is incongruence with government high ambitious poverty reduction target. This target is prepared without having any real need assessment in case of country poverty scenario. Rather in the next three years, the financial allocation in pro-poor sectors (like agriculture, health and education etc) reflected decreasing trend in considering the need of people, inflation and market price.
Government didn’t project any public investment that will directly address the employment and poverty reduction strategy. Rather has been showing over dependency to private sector that would facilitate the resource repatriation instead of pro-poor development. www.equitybd.org
Policy matrices 1 and 2: Macro Economic Enlivenment and Pro-Poor Growth
EquityBD primary observation on 2nd PRS 2009-11
Government has planned and emphasis the privatization of SoEs likes previous (e.g., page no 234, input indicators and policy change, it has written privatization more public enterprises, downsizing of BADC and BCIC) which resulted to increase the poverty.
Import liberalization (proposed to bring down the average protection rate by 15% from existing position ) also fall the domestic investors in an unequal competition with foreign companies.
Despite saying to reduce the income inequality among the poor, government expanding the VAT net at the retail level which will impede the livelihood poor.
Financial projection is made for PRS deficit with 16.58 billion $, but doesn’t clear the strategy on how to be manage.
To achieve 192 strategic goals, 'increase expenditure' is mentioned 82 times as input indicators in PRS . But the source of financing is described neither in the policy matrix nor in the text.
www.equitybd.org
EquityBD primary observation on 2nd PRS 2009-11
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The scenario of External debt stock Bangladesh
Total External Debt stock in 2008-09 FY 22.31 billion $
% of GDP 25.40%
Per capital Debt Stock 149
In PRS period (2009-11) deficit finance 10.39 billion $ (according PPP plan)
Payment for the period 02.0
In 2012 the External debt stock 30.70
In 2012 per capita debt stack 205 $
The existing DSL is eating up the 20% of domestic resource and it will be increased up to 30-35% in next three years due to receiving loan
EquityBD primary observation on 2nd PRS 2009-11
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Emphasis has been given to production of high value cash crop; this will encourage commercialization and export oriented agriculture growth.
Again this document noted to attain house hold based food security; which is contradiction to the market based growth
Given the context of the nature of country’s food insecurity ( often caused by natural disaster) and volatile international market , country should give emphasis on attaining ‘food self-sufficiency’
Again it is important to ensure agricultural input services at HH level if we want to materialize the concept of ‘One HH one Farm’
Target of downsizing of BADC as said at page 234 is contradictory to the mission of change of the present government
The Agriculture: Section 3.2.4 and Matrix 3
EquityBD primary observation on 2nd PRS 2009-11
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4. Accelerating production of high value crops for domestic and export market
8. Policies toward deregulation and market liberalization already encouraged private sector in minor irrigation
9. Expedite private sector participation in seed production and business development. But here nothing has mentioned about BADC involvement.
There no analysis on (i) whether there is need for land reform or is existing pattern of agriculture ownership is hindering the optimum production, (ii) how to safeguard small land holder farmers from loosing of land or pauperization, (iii) how to safe land fertility degradation, (iv) what are the subsidy policy, based on past experiences and (v) how to provide market support to farmers.
Neo liberal market lead agenda, we have concern in the section as follows;
EquityBD primary observation on 2nd PRS 2009-11
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Utilization of surface water is a good imitative; but there is specific guideline and strategy of holding and utilization of surface water.
This document noted to handover existing water supply systems and projects to its beneficiaries to reduce operation and management cost. This will create more burden to the users
Capital dredging require huge investment, we need to explore for local and appropriate technology. Government should consider pond excavation in each of the ward of the country for surface water preservation or rain harvesting. Government can also consider public participatory canal digging program in whole over the country.
Water Resources: Section 3.2.5 and Matrix 4
EquityBD primary observation on 2nd PRS 2009-11
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Strict land use and management policy fundamental for protecting lands for productive use and to stop wasteful use of land etc.
How to control developers in urban / growth centere, no strict policy implementation as yet.
Section 3.2.6: Land use policy and management
EquityBD primary observation on 2nd PRS 2009-11
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All most all the measures outlined here are related to DRR, while DRR is a very minor adaptation measures and this are interventions
No particular policy guideline for addressing water security, energy security and food security
Government prepared Country’s Climate Change Action and Strategy Plan, and allocated Tk.700 core for adaptation. This is very piece meal type measure. Government should not do this rather should generate finance from external sources
Govt should ask for compensation and reparation of ecological debt to support climate change adaptation in national level.
Environment and Tackling Climate Change
EquityBD primary observation on 2nd PRS 2009-11
www.equitybd.org
To build up capacity of local government
Effective systems of public participation as well as accountability
Government servants are responsible to elected officials
Strengthen upazila parishads by assigning more functions and responsibilities
For LG, government promises in PRS (pp. 72) are:
Eliminated Local Government Commission
New ordinance for having advice from concern member of parliament (MP) about decision and allocation
Government’s actions so far:
Our observation: A clear contradiction between the promises and actions of government.
EquityBD primary observation on 2nd PRS 2009-11
www.equitybd.org
To undertake a strategy to get information online; introduce e-governance in local government bodies; publicize policy issues online along with other infrastructural development.
To promote e-governance government has declared (pp. 74):
Present government promised strongly in their election manifesto to make a digital Bangladesh. But in PRS they explain very little for doing so.
Government did not point out any strategy or plan to educate mass people on ICT or e-governance. There is no policy to minimize digital divide, too.
Allowing LG to deal directly with investors and donors is risky (pp. 206).
Our observation:
EquityBD primary observation on 2nd PRS 2009-11
www.equitybd.org
‘Not control but coordination’- this approach should be applied to clarify the role of MPs in local government.
Bringing back the Local Government Commission
Massive training program on computer and Internet
Implementation of ICT policy
Educate mass people on e-governance
Policy to minimize digital divide
Establish community radio center in every upazila to ensure information to rights
Empower and enrich BTCL and Teletalk
Recommendation on LG & ICT
EquityBD primary observation on 2nd PRS 2009-11
www.equitybd.org
Where is focus, it should be in SSC and HSC to reduce colossal loss of 50 % loss.
Rapid implementation of newly formulated education policy.
Integration of technical and vocational education in class VIII to X II.
No analysis of student politics and other unrest in public educational institutions.
Education
EquityBD primary observation on 2nd PRS 2009-11
www.equitybd.org
Nothing has mentioned about local level accountability of the health administration.
Decentralization of purchasing and supply medicine, is a fundamental requirement.
While there are weakness in running of Upazila and Union Health Centers then what is the value of initiating Community Clinics.
Nothing has mentioned about the regulatory framework on private clinics and its quality and accountability.
What about drug policy objective after 2016 IPR regime while medicine cost will high up, what its objective to local medicine industry development.
Health
EquityBD primary observation on 2nd PRS 2009-11
www.equitybd.org
Thank you
EquityBD primary observation on 2nd PRS 2009-11