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Rezaul Karim Chowhdury EquityBD

EquityBD primary observation on 2nd PRS 2009-11. Is PRS II politically pro poor? Is poverty alleviation not a political question PRS II: a document of business as usual. Rezaul Karim Chowhdury EquityBD. www.equitybd.org. EquityBD primary observation on 2nd PRS 2009-11.

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Rezaul Karim Chowhdury EquityBD

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  1. EquityBD primary observation on 2nd PRS 2009-11 Is PRS II politically pro poor? Is poverty alleviation not a political question PRS II: a document of business as usual Rezaul Karim Chowhdury EquityBD www.equitybd.org

  2. EquityBD primary observation on 2nd PRS 2009-11 We appreciate government attempt Placing in parliament, in past it has not done Commitment to retreat back to five year planBut No open review of PRSP impact, No wider and transparent process in preparation methodology www.equitybd.org

  3. EquityBD primary observation on 2nd PRS 2009-11 • 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

  4. EquityBD primary observation on 2nd PRS 2009-11 Consider this a live document: improvement and addition should be continuous Is PRS II Politically Standby to Poor 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

  5. EquityBD primary observation on 2nd PRS 2009-11 Is this document free from donor conditionality, we are worried 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 www.equitybd.org

  6. 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

  7. EquityBD primary observation on 2nd PRS 2009-11 All loans have to be Sovereign Democratic and Responsible (SDR) Finance to avoid unnecessary loan burden on future generation. 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. www.equitybd.org

  8. EquityBD primary observation on 2nd PRS 2009-11 All loans have to be Sovereign Democratic and Responsible (SDR) Finance to avoid unnecessary loan burden on future generation. 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. www.equitybd.org

  9. EquityBD primary observation on 2nd PRS 2009-11 What is the Election Manifesto of Bangladesh AL? 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. www.equitybd.org

  10. EquityBD primary observation on 2nd PRS 2009-11 Policy matrices 1 and 2: Macro Economic Enlivenment and Pro-Poor Growth 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

  11. 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

  12. EquityBD primary observation on 2nd PRS 2009-11 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 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 $ www.equitybd.org

  13. EquityBD primary observation on 2nd PRS 2009-11 The Agriculture: Section 3.2.4 and Matrix 3 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 www.equitybd.org

  14. EquityBD primary observation on 2nd PRS 2009-11 Neo liberal market lead agenda, we have concern in the section as follows; 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. www.equitybd.org

  15. EquityBD primary observation on 2nd PRS 2009-11 Water Resources: Section 3.2.5 and Matrix 4 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. www.equitybd.org

  16. EquityBD primary observation on 2nd PRS 2009-11 Section 3.2.6: Land use policy and management 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. www.equitybd.org

  17. EquityBD primary observation on 2nd PRS 2009-11 Environment and Tackling Climate Change 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. www.equitybd.org

  18. EquityBD primary observation on 2nd PRS 2009-11 For LG, government promises in PRS (pp. 72) are: 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 Government’s actions so far: Eliminated Local Government Commission New ordinance for having advice from concern member of parliament (MP) about decision and allocation Our observation: A clear contradiction between the promises and actions of government. www.equitybd.org

  19. EquityBD primary observation on 2nd PRS 2009-11 To promote e-governance government has declared (pp. 74): To undertake a strategy to get information online; introduce e-governance in local government bodies; publicize policy issues online along with other infrastructural development. Our observation: 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). www.equitybd.org

  20. EquityBD primary observation on 2nd PRS 2009-11 Recommendation on LG & ICT ‘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 www.equitybd.org

  21. EquityBD primary observation on 2nd PRS 2009-11 Education 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. www.equitybd.org

  22. EquityBD primary observation on 2nd PRS 2009-11 Health 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. www.equitybd.org

  23. EquityBD primary observation on 2nd PRS 2009-11 www.equitybd.org Thank you

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