[stop-imf] Bangladesh Finance Minister criticises World Bank, IMF for undue pressure

[Robert Weissman]

http://www.bangladeshjournal.com/index.php?ID=3D4010&tim=3D15-2-2006

Bangladesh Finance Minister criticises World Bank, IMF for undue pressure

*Published On:* February 15, 2006

Dhaka, Feb 15: Bangladesh Finance Minister M Saifur Rahman Tuesday
strongly criticised the World Bank and IMF saying that the two donor
agencies =91treat the Finance Minister as a clerk=92 in adopting policy
prescriptions, particularly raising the fuel prices.

"They think the Finance Minister as a =91clerk=92 when it comes to fuel
price hike,=94 he told a workshop on =93Action Plan for Public Financial
Management=94 held at the PKSF auditorium in the city.

The inaugural session of the workshop, jointly organised by World Bank
and the government, was addressed, among others, by WB Country Director
Cristine I Wallich, Head of DFID David Wood and Finance Secretary
Siddiqur Rahman.

Speaking on the occasion, the Finance Minister said Bangladesh has no
contribution in raising the oil prices on the international market but
the country has become the worst victim of the shock.

He criticised the multilateral donor agencies for piling up pressure on
the government to raise the fuel prices. =93People tell us one thing and
you tell us another thing,=94 he said pointing to the people=92s concern
against raising the fuel prices again.

=93I also understand your (donors) worry but everything depends on the
country=92s environment,=94 the Minister said adding, =93Try to see what th=
e
controllable factors are and what goes beyond control.=94

Talking to journalists, WB country director Cristine I Wallich further
advocated for increasing the fuel prices to strike a balance with the
international prices.

=93Government borrowing is increasing fast for providing subsidy to
petroleum products,=94 she said adding, =93Continuos subsidy to fuel sector
will cast a negative impact on the economy.=94

She claimed that fuel is being smuggled out to India thanks to its
lowest price in Bangladesh. =93Bangladeshi and Indian smugglers are being
benefited from the lowest price,=94 she said.

Wallich, however, pointed out that the decision to raise the fuel prices
should be taken very carefully. =93The decision will be very difficult in
terms of political and economical conditions.=94

Earlier, the Finance Minister, in his speech, said without efficiency of
the government machinery in resource allocation, management and control,
sound Public Financial Management (PFM) cannot be attained.

=93PFM will be good only where the administrative accountability and
political stability is good,=94 he said.

Wallich, in her speech, said given the budget=92s central role, improving
public financial management and accountability is crucial for meeting
the PRSP goals.

She also suggested giving full autonomy to the Comptroller and Auditor
General of Accounts (CAG) for ensuring financial accountability.

Speaking on the occasion, DFID head David Wood underscored the need for
capacity building in the government machinery for PFM and reducing
dependency on constancy.

=93PFM is important for Bangladesh to get an increased donor support and
aid,=94 he said adding that the donors and government need to work
together under an effective leadership to attain sound PFM.

He also emphasised coordinated efforts in facing different challenges,
including corruption. =93We always talk about corruption but we don=92t
practice it much,=94 he pointed out.



=A9 The Bangladesh Journal