|
 |
|
Message from the Ambassador of the Kingdom of the Netherlands H.E. Alphons
J.A.J.M.G Hennekens |
|
"Bangladesh is changing rapidly and confronts many transformation challenges.
We want to support Bangladesh in reducing poverty, sustaining economic growth
and fostering a fair and equitable society based on the rule of law. This means
change for us too. We envisage our traditional development program with a focus
on the social sectors to transition into a program with more emphasis on
productive sectors, trade and knowledge exchange. To strengthen performance in
service delivery, we will support reforms aiming at improved governance and
human rights. Our bilateral relationship will become more diverse and will
introduce a broader range of partners, particularly in the private sector. We
are already introducing such partnerships through the 'Water Mondiaal' program
in Delta-management. One of the major benefits of this program for Bangladesh is
the exposure to innovative and climate change-proof water management practices
from the Netherlands and around the world.
Over the next 2 years we will lay the foundation of new ways of working
together. I am delighted to steward my team towards new directions together with
new and old friends and with the best support the Netherlands can offer to
manage change in Bangladesh."
Summary of MASP (2010-2011) |
 |
|
From the humble beginnings of Bangladesh as a nation state in 1971 with the meagre dowry it brought from Pakistan times, Bangladesh has come a long way from being internationally perceived as a ‘basket case’ to the phenomenon referred to as the ‘Bangladeshi Conundrum of Development’.
Since the 1990s, economic growth in Bangladesh has been robust at 4% to 7% annually, with relatively low inflation and stable domestic debt, interest, and exchange rates. The GDP growth rate has accelerated by 1 percentage point every decade, despite floods, cyclones and droughts. Bangladesh is thus far weathering the global financial crisis well and is on track to achieving several of the MDG targets by 2015. It aspires to become a Middle Income Country (MIC) by 2016 and halve poverty by 2021. How have growth, development and poverty reduction taken root in a country that is notorious for its perceived weak governance and weak institutions?
Development economists have tried to explain the Bangladesh development mystery. Some answers point to effective state managed macro-economic policies, effective use of new technologies, and programs such as country-wide immunisations and the impact of basic service delivery by non-governmental agencies such as BRAC which can mobilise 60,000 teachers in the poorest parts of the country and reaches out to 37 million people in its water and sanitation programme.
Also, Bangladesh buzzes with creativity and millions of small entrepreneurs who have built up their businesses with the support of micro-credit, often provided by non-state actors. Bangladeshi leaders such as Prof. Yunus (Grameen Bank) and Sir Abed (BRAC) set the stage for new approaches towards people’s empowerment and development which now have a global following. Bangladesh is rich with human capital and the people of Bangladesh have a strong sense of cultural identity and take pride in their nation and its history. Yet, for all this progress, the gains are fragile and the disaster-prone delta is home to a high number of poor and vulnerable people.
Bangladesh can ill afford complacency; the development challenges ahead are daunting:
|
|
-
Under pressure of population growth and growing urbanisation, Dhaka is set to become an unliveable mega city with a population projected to increase to 25 million by 2025. Without considerable investments in infrastructure, particularly transport, energy and public service delivery, Bangladesh, and particularly its urban centres may grind to a halt and become unliveable.
-
The prospects related to climate change are grim. Given current estimated sea level rises approximately 19% of Bangladesh could be inundated by 2050, affecting around 20 million people.
-
Geo-politically, Bangladesh is part of a volatile region and must take care not to be drawn into the growing destabilisation of the region as the Taliban are forced out of war zones in Afghanistan and Pakistan. The stakes in providing rule of law, strengthening governance systems and securing inclusive growth and political stability have grown and are translated in increased support from countries such as the UK and the US.
-
Dysfunctional political dynamics, mirrored in a notoriously ineffective bureaucracy, remain the key impediment
to unleashing Bangladesh’s economic growth potential, equitable delivery of
public services and ultimately more effective poverty reduction. Political
patronage is dominant at all levels of public service with spoils and privileges
parcelled out to different clientele groups as an essential tool of political
management. Conflicts of interest are found everywhere as political and business
interests are closely intertwined with bureaucratic interests. Transforming this
political and governance stalemate requires changing incentives for both the
elected as well as the unelected officials towards the public interest instead
of the private good. The State should be ’pro-citizen’ and be held accountable
for the services it offers, ranging from social to economic services to disaster
management and beyond.
|
-
A sustainable state revenue base is needed. Citizens need to be prepared to pay taxes so that institutions of the state
can be properly resourced to deliver services. At 9%, Bangladesh’s tax base is
amongst the lowest in the world. Increasing income for the state will require
higher taxation levels. Politicians will only be able to sell that unpopular
message when citizens will be convinced they will get value for their tax money
in the form of quality service delivery by state institutions.
|
 |
|
These crucial reforms will not happen overnight. They need to be built on broad
constituencies of change. Power is controlled from
the very top with little room for opposition and
countervailing voices. Authoritarian rule is not new
to the sub-continent, and this also applies to the
public sector. Many public service “rules of
business” stem from the Raj-era when the public
sector was the main instrument used to control the
colonised peoples. The Government of Bangladesh (GoB)
has committed itself to improving governance,
addressing corruption and improving the lagging
performance of the public sector. |
|
 |
|
|
|
|
The challenge
for the Embassy of the Kingdom of the Netherlands (EKN) is to assess to what extent opportunities for real reform exist and support incremental reforms that are politically feasible.This implies that we have to be realistic and strive for reforms that aim at ‘good enough governance’ where, at a minimum, government responds to articulated needs of citizens from across the political spectrum. We will have to invest more in dialogue and investigate the opportunities for change, while, in the meantime, supporting real services which have a direct and positive impact on people. This means carefully selecting interlocutors with influence to change and support leadership and coalitions that can affect change.
On 29 December 2008 Bangladesh returned to having a democratically elected government. The Awami League government’s one-year reform track-record is modest, but there is progress in democratisation, private sector development, and improved relations with India and China. The lagging performance of the public sector is under scrutiny and long lingering reform initiatives such as Civil Service Reform (CSR) and Public Finance Management (PFM) are gaining some traction. Also the media is vigilant and reforms are actively advocated by civil society and private business coalitions. Perhaps the biggest promise for change lies in the growing assertiveness and effectiveness of parliamentary committees to hold government to account and demand implementation of reforms. Moreover, a functioning Parliament - i.e. one that abides by transparent rules and clear accountability mechanisms within political parties - is essential to end the political culture of confrontation and even political violence.
The human rights situation has improved since 2005 and GoB has announced a zero tolerance policy on extra-judicial killings, death in custody and torture. However, impunity from justice is still part and parcel of daily life.
|
|
 |
The position of women has changed substantially since Bangladesh’s independence. Fertility rates
have halved, the gender gap in infant mortality has been
closed, and in much of the country today, girls’ secondary
school attendance exceeds that of boys. The micro-credit
revolution has boosted women’s solidarity groups and earning
potential. Vast numbers of young women are leaving their
villages to work in garment factories where,in earlier
generations, young women were rarely seen outside their
homes. |
|
However, much remains to be done. Gender-based and sexual violence is
exceptionally high and one of the most underreported
crimes.There is a strong commitment from GoB to increase
women’s participation in politics and further improve
women’s rights in the country.
|
|
EKN proposes to address weak governance and corruption in Bangladesh upfront
with following mission statement:
“TO SUPPORT BANGLADESH TO IMPROVE TRANSPARENCY AND STRENGTHEN ACCOUNTABILITY TO
ACHIEVE MILLENNIUM DEVELOPMENT GOALS (MDGS) AND GRADUATE TO A MIDDLE INCOME
COUNTRY (MIC)”.
We aim to do so under 4 strategic objectives:
-
Increasing transparency and accountability in public sector management.
-
Stimulating private sector development through policy dialogue and increased
use of Dutch private sector development and economic
instruments.
-
Increasing sector performance for greater service delivery impact in water
management, education, health and water & sanitation.
-
Investing in human rights and civic engagement with an emphasis on women’s
rights.
These objectives overlap with GoB’s stated development strategies and the
recent prioritisation of development programmes of various development partners,
most notably DFID, UNDP, ADB and World Bank. Operationalisation of these
objectives therefore entails harmonisation and alignment of our inputs.
Currently, EKN is the convening donor in water management and education. Further
discussions on division of labour amongst donors are taking place, particularly
within EU context.
The Dutch bilateral development programme with Bangladesh remains one of the
largest bilateral programmes of the Dutch government with a delegated embassy
budget of around EURO 60 million a year. We will use support funds in order to
make the current ‘traditional’ development programmes more growth and
governance-proof by 2012 in response to Bangladesh’s perceived needs as an
aspiring MIC.
(Download Summery Here)
|
|
|
