Consultants, economists, NGOs main beneficiaries of foreign aid: Anu Muhammad; Foreign aid still has role in eradicating poverty: Dr Mirza Aziz

By AKM Moinuddin

Dhaka, Sept 20 (UNB) – Foreign aid is still playing significant role in eradicating poverty though joint initiative with special emphasize on NGOs’ transparency and accountability is essential to boost aid effectiveness, renowned economist Dr Mirza Azizul Islam said Monday.
“Our macro-economic indicators – investment, GDP and foreign exchange earning - show reduced importance of foreign aid but it is still essential for some areas… development funding is one of them. Foreign aid contributes over 40 percent of our ADP funding,” he said.
The former finance adviser of caretaker government made the remarks while talking to journalists on the sidelines of a multi-stakeholders’ consultation program titled `Joint Cooperation Strategy: Context of Aid Development Effectiveness’ held at CIRDAP auditorium.
Aid Accountability Group and Reality of Aid jointly arranged the discussion with Palli-Karma Sahayak Foundation (PKSF) chairman Qazi Kholiquzzaman Ahmad in the chair.
Referring to the tough conditions of the development partners, Mirza Aziz said: “If I know what I want exactly, and if I can argue effectively in favor of my need, conditionality (for aid) can be reduced, relaxed.”
Replying to a question, he supported foreign aid but emphasized on its proper utilization. “If we can stay transparent in our own position, aid effectiveness might increase… if you don’t want aid, none will force you to take aid.”
Mirza Aziz informed that the country had received US$48 billion in foreign aid since 1972.
Replying to another question, he said remittance from the expatriates is not a substitute for aid. “The government doesn’t have access to such remittance.”
Economist Prof Anu Muhammad was, however, against foreign aid and said that foreign aid is directly involved with the anarchy that is prevailing now.
“A particular group comprising consultants, economists and some NGOs are mostly the beneficiaries of foreign aid… we’ve to come out from this,” he said.
Anu Muhammad said foreign aid agencies give “milk for developing the entire country but a group of middlemen and thieves alone drink that milk” instead of country’s development.
He said: “They (development partners) dominate over us… on government widely by providing only US$1 billion in aid and the government cares much about them. But the workers who remit US$10 billion remain neglected; it doesn’t look good.”
Earlier, Qazi Kholiquzzaman Ahmad in his speech said country needs home-grown process and policy for real development.
“If we receive foreign aid, it will have to be taken in the interest of the country. Misuse of aid needs to be checked,” he said.
Former Finance Secretary Siddiqur Rahman Chowdhury, ERD joint secretary Bijan Kumar Baishya, Khushi Kabir, and representatives of DFID, EU and Reality of Aid also took part in the discussion.
The participants discussed the challenges of aid effectiveness that include preparing, implementing and monitoring aid programs and improving government capacity to manage them, improving coordination between government and development partners, follow up and improve alignment with government system and procedures, and improve mutual accountability and predictability of aid flow from development partners.
They emphasized on sharing responsibility through joint cooperation strategy for making aid more effective and how to work more effectively together to deliver real development outcomes.
END/UNB/