Bangladesh is no longer an aid dependent country
-WB Country Director
Thaw in ties with development partners

"The apparent nerve war between the donors and the government seems to have eased after a series of initiatives taken by both the sides and the relationship is rebounding to the traditional path of co-operation, but with a new dimension", a lead news item published in the Daily Independent today, 05 April 2005 said.

Mutual respect is taking the place of age-old dependent--donor relationship, the sentiment of which was explicit in some remarks of Christine I Wallich, Country Director of World Bank in Bangladesh.

Responding to queries of the correspondent of the daily, Ms Wallich was very frank in admitting that "Bangladesh is no longer an aid dependent country and this lessened dependence changes the relationship between the donors and the Government."

"Donor strategies must recognise this new relationship," she pointed out and added that "it is no longer the case that the donors have the leverage they had in the past, based on a relationship of aid dependency."

"This means that donors and the government need to find new ways of working together, in a constructive partnership that promotes more rapid economic and social development for the country."

However, in this new partnership, each party - Govt. and donors - "will bring its strengths to the table," Christine said.

For its part, the donor community is very focused on finding ways of assisting Bangladesh to address its governance challenges.

She said, "the issue of free and fair elections is of paramount importance to all Bangladeshis, and is a recurring theme in public debate and the media. Both the Local Consultative Group (LCG) and the diplomatic community place great store on this."

"If the government of Bangladesh were to seek assistance or advice on the issue of election commission, donors would respond positively to such a request."
She, however, said that reform of the Election Commission and review of the caretaker govt system were internal matters for the Bangladeshi public, voters and law-makers to decide.

Previously donors suggested the government to separate the judiciary from the executive, and formation of an independent anti-corruption commission and the government had to nod to their pressure as its fiscal expenditure was very much aid dependent.

Now, donors are keen to "help the government focus on those governance areas that are the biggest constraint to poverty reduction, growth and reaching the Millennium Development Goals (MDGs)."

"And, we would do so in a concerted, joined-up manner, putting the resources behind this that are needed to actually make a difference, and bring about results," said Christine I Wallich.