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PRS II and Sovereign Development

PRS II and Sovereign Development. Equity and Justice Working Group Bangladesh www.equitybd.org. 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

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  1. PRS II and Sovereign Development Equity and Justice Working Group Bangladesh www.equitybd.org

  2. 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. www.equitybd.org Slide - 1

  3. 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. www.equitybd.org Slide - 2

  4. 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. www.equitybd.org Slide - 3

  5. 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. www.equitybd.org Slide - 4

  6. 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. www.equitybd.org Slide - 5

  7. 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 www.equitybd.org Slide - 6

  8. 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. www.equitybd.org Slide - 7

  9. Thank You All Equity and Justice Working Group Bangladesh House: 9/4, Road – 2, Shamoly, Dhaka- 1207 Phone: 880-02-8125181, Fax: 9129395 info@equitybd.org, www.equitybd.org

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