PRS II and Sovereign Development Equity and Justice Working Group Bangladesh

Very little participation of CSOs, avoidance to critical CSOs. Development ownership should be “democratic”, not mere “government”. Question on parliamentary participation: No opposition Not presented as a bill and members are not interested As because of patron client instead of democratic relation in party culture. PRS II : Step of as usual business Preparation methodology : Beaurucratically managed Slide - 1

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. PRS II : Step of as usual business Old wine in new bottles : how it will be a charter of change Slide - 2

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. PRS II : Step of as usual business Rhetoric vs. implementation policies Slide - 3

PRS II : Step of as usual business 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. Is PRS II heading toward debt burden By the end of this government tenure DSL may go up to % 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 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 Business as usual in development key sectors (please see our sector wise policy matrix analysis) Slide - 6

PRS II : Step of as usual business 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 for preparation of next five year plan. We appreciate government re embarking on five year plan: four priority recommendations. Slide - 7

Thank You All Equity and Justice Working Group Bangladesh House: 9/4, Road – 2, Shamoly, Dhaka Phone: , Fax: