south south cooperation in bangladesh for achieving growth & sustainability
TRANSCRIPT
1
South-South & Technical Cooperation in
Bangladesh: Achieving Growth and Sustainability
Prepared by
Jitendra Kumar Sinha South-South Cooperation & Climate Finance Expert Development Finance and Aid Assessment (DFAA)
UNDP-Asia Pacific Regional Centre, Bangkok [email protected]
Prepared for
Economic Relations Division Ministry of Finance, Government of Bangladesh
Dhaka, Bangladesh October, 2015
2
Table of Contents
Acronyms .............................................................................................................................. 3
Preface ................................................................................................................................. 5
1. Context .......................................................................................................................... 6
2. South-South & Triangular Cooperation in Bangladesh ................................................... 6
3. SSC Mechanism in Bangladesh ..................................................................................... 7
3.1. Regional Trading Arrangements ............................................................................. 7
3.2. Bilateral Trade Relations from Global South ........................................................... 9
3.3. Bilateral Financial Assistance from Global South: ................................................... 9
3.4. SSC Technical Assistance ...................................................................................... 9
3.5. Multilateral Financial Institutions from Global South: ............................................. 10
4. Policy Options for Bangladesh ..................................................................................... 11
5. Road Map .................................................................................................................... 12
Bibliography ........................................................................................................................ 14
Annexure 1: Cooperation from Non Traditional Donors ....................................................... 15
Annexure 2: Multilateral Agreements & Institutions ............................................................. 17
3
Acronyms
AAA : Accra Agenda for Action
ADFD : Abu Dhabi Fund for Development
ADP : Annual Development Programme
AIIB : Asian Infrastructure Investment Bank
APR : Annual Performance Review
APTA : Asia pacific Trade Agreement
BB : Bangladesh Bank
BEFTN : Bangladesh Electronic Fund Transfer Network
BEPZA : Bangladesh Export Processing Zone Authority
BIMSTEC : Bay of Bengal Initiative for Multi-Sectoral Technical & Economic Cooperation
BOI : Board of Investment
CPIA : Country Policy & Institutional Assessment
CSR : Corporate Social Responsibility
DFAA : Development Finance & Aid Assessment
EEP : External Economic Policy
ERD : Economic Relations Division
F & F : Fellowships & Foundations
FD : Finance Division
FDI : Foreign Direct Investment
FABA : Foreign Aid & Budget Account
FAMS : Foreign Aid Management System
GDP : Gross Domestic Product
HDI : Human Development Index
IBAS : Integrated Budget & Accounting System
IBBL : Islamic Bank Bangladesh Limited
IDB : Islamic Development Bank
IFC : International Finance Corporation
IIF : Infrastructure Investment Facility
IMF : International Monetary Fund
IORA : Indian Ocean Rim Association
JEC : Joint Economic Commission
JICA : Japan International Cooperation Agency
KFD : Kuwait Fund for Development
LCG : Local Consultative Group
LDC : Least Developed Countries
LMIC : Lower Middle Income Country
MDG : Millennium Development Goal
MIE : Multilateral Implementing Entity
MIGA : Multilateral Investment Guarantee Agency
MLGRD & C : Ministry of Local Government, Rural Development & Cooperatives
MOEF : Ministry of Environment & Forestry
MRA : Microcredit Regulatory Authority
MSME : Micro, Small & Medium Enterprises
MTBF : Medium Term Budget Framework
4
MTDS : Medium Term Debt Resolution Strategy
MTSBP : Medium Term Strategy & Business Plan
NBFI : Non Banking Financial Institutions
NBR : National Board of Revenue
NGOAB : NGO Affairs Bureau
NIE : National Implementing Entity
NSD : National Saving Directorate
ODA : Overseas Development Assistance
OPEC : Organization of the Petroleum Exporting Countries
OPIC : Overseas Private Investment Corporation
PEFA : Public Expenditure and Financial Accountability
PKB : Probasi Kallyan Bank
PKSF : Palli Karma Sahayak Foundation
PPP : Public Private Partnership
RMG : Readymade Garments
SAFTA : South Asian Free Trade Area
SDG : Sustainable Development Goals
SWF : Sovereign Development Fund
TCS : Technical Cooperation Scheme
TEC : Technical & Economic Cooperation
UNDP APRC : United Nations Development Programme Asia Pacific Regional Centre
UNEP : United Nations Environment Programme
UAE : United Arab Emirates
VAT : Value Added tax
WHO : World Health Organization
WIPO : World Intellectual Property Organization
WRI : World Resources Institute
5
Preface
The report is prepared as part of the first Country Assessment and Mapping of Information
on South-South Cooperation (CAMI) in Bangladesh. The Bangladesh CAMI was undertaken
as part of a Development Finance and Aid Assessment (DFAA) exercise for Bangladesh,
pursued by the Government of Bangladesh (GoB) through the Ministry of Finance’s
Economic Relations Division (ERD).
The DFAA is a comprehensive mapping of past, current and future sources of development
finance. It considers domestic and public sources of development finance. The SSC report
analyses the form, types and mechanism of SSC being followed in Bangladesh as well as its
potential opportunities in the future.
6
JICA (Japan International Cooperation Agency) considers that South-South and triangular cooperation are effective in (i) disseminating successful efforts including those achieved through Japan’s cooperation, (ii) contributing to the promotion of regional and global cooperation, and (iii) complementing and supplementing bilateral cooperation with the knowledge and experience of developing countries to achieve development results.
1. Context
South-South Cooperation (SSC) is a broad framework for mutual sharing and exchange of key development solutions - knowledge, experiences and good practices, policies, technology and resources – between and among countries in the global south1. South-South Cooperation has taken the form of increased volume of South-South trade, South-South flows of Foreign Direct Investment (FDI), movements towards regional integration, technology transfers, sharing of solutions and experts, and other forms of exchanges.
Triangular Cooperation (TC) involves two or more countries of the global south in collaboration with a third party, typically a traditional donor, emerging economy or multilateral organization, facilitating SSC exchanges through the provision of resources2.
The Honourable Prime Minister of Bangladesh is current President of the United Nations General Assembly High Level Committee on South-South Cooperation.
2. South-South & Triangular Cooperation in Bangladesh
Bangladesh maintains strong development cooperation with some of the non-traditional donors such as India, China, Kuwait, Saudi Arabia, United Arab Emirates (UAE), Turkey, Malaysia and Iran. It has also developed strong relations from traditional donors or Development Assistance Committee (DAC) member countries from South, namely Japan and South Korea3.
The Economic Relations Division (ERD), through its nine wings maintains external economic relations & resources, including with countries from global South. The nine wings are: (i) America (USA & Canada), Japan & EEP (External Economic Policy); (ii) World Bank; (iii) Administration & Middle east; (iv) UN; (v) ADB; (vi) Coordination & NORDIC (Norway, Sweden, Denmark, Finland & Iceland); (vii) Europe; (viii) Asia, JEC (Joint Economic Commissions) & F & F (Fellowships & Foundations); and (ix) FABA (Foreign Aid & Budget Account) and ICT (Information & Communications Technology). The ERD has been working on SSC & Tc and there is no separate unit for SSC. The ERD conducted two national workshops on SSC during Dec, 2013 and February, 2014. A background paper on SSC for the preparation of the 7th Five Year Plan was also prepared in January, 2015.
The broad areas of cooperation include trade and commerce, infrastructure development, transport and communication, human resource development, disaster management, poverty reduction and humanitarian and emergency support. Since 2001 Bangladesh has mobilized USD 2.16 billion through official assistance from non-traditional donors out of which USD 1.34 billion is loan and USD 819 million is grant. The cumulative foreign direct investment in
1 http://ssc.undp.org/content/ssc/about/what_is_ssc.html
2 http://www.fao.org/fileadmin/user_upload/themes/img/south-
south_cooperation/SCC_TC_Brochure_EN.pdf 3 Please refer Annex on SSC/TC for details on cooperation to Bangladesh from these countries
7
Bangladesh has Joint Economic Commission (JEC)/ Joint Commission (JC) agreements with 18 counterparts: India, Pakistan, Nepal, Sri Lanka, Malaysia, Indonesia, Viet Nam, China, Thailand, South Korea, Philippines, Saudi Arabia, Iran, Kuwait, United Arab Emirates, Romania, Turkey, and EU. The prime objective of JEC/JC meetings is to explore the possibility of enhancing bi-lateral cooperation and put effective measures in order to get a comparative advantage prevailed in each country. Whole gamut of the bi-lateral relations such as political, economic, trade, industrial, investment, civil aviation, cultural, shipping, education, health, labour force etc are usually discussed during the JEC meetings.
Source: http://www.erd.gov.bd
Bangladesh from Southern countries for the 2008 to 2014 is about USD 3.9 billion. The table below indicates types of SSC support.
Table: Types of South-South Cooperation in Bangladesh
Country Type of Support
China Most aid in form of projects in‐kind, Government Concessional Loan,
Preferential Buyer’s Credit, Technical Co‐operation and Scholarship.
India Project oriented Technical Co‐operation, Line of credit, Scholarships
UAE Aid in the form of projects and Technical Cooperation. Direct bilateral support which sometimes may include budget support.
Kuwait Mainly project and Technical Co‐operation, sometimes budget support. Also
provides debt relief.
Saudi Arabia Mainly project‐type assistance (but no Technical Co‐operation), with
programme aid, sometime budget support and debt relief.
Pakistan Line of Credit, Technical Assistance
Malaysia Concessional Loan, Technical Collaboration, Scholarships
3. SSC Mechanism in Bangladesh
Bangladesh is pursuing South-South Cooperation mainly through following mechanisms:
3.1. Regional Trading Arrangements
The South Asian Association for Regional Cooperation (SAARC) is one of the first few major regional integration initiatives in South Asia. The Preferential Trading Arrangement (SAPTA) was signed in 1995. Subsequently, South Asian Free Trade Area (SAFTA) was signed in 2004 which offers capacity building in trade related issues through training, projects related to export promotions, trade policy formulation and others.
The Asia Pacific Trade Agreement (APTA) offers tariff concessions on specified products by member countries (Bangladesh, India, Sri Lanka, China, the Republic of Korea and Lao People’s Democratic Republic, Nepal, Philippines, Mongolia). Under this agreement Bangladesh has received 100 percent tariff concessions to 83 items from China and to 139 items from Republic of Korea.
The BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) Framework Agreement was signed in June 1997. Under the Agreement, in case of First Track products, non-LDCs will open up their markets for the products of LDCs in 1 year and LDCs will do the same for non-LDCs in 5 years. On the other hand, for Normal Track products, non-LDCs will open up their market for the products
8
of LDCs in 3 years and the LDCs will follow 10 year schedule in order to open up their markets for the products of non-LDCs. Bangladesh, being a LDC enjoys special and differential treatment.
The Preferential Trade Agreement (PTA) among D-8 Countries is an arrangement for development cooperation among the member countries: Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey. D-8 was officially established by the Summit of Heads of State/Government in Istanbul on June 15, 1997. The objectives of D-8 are to improve positions of the developing countries' in the world economy, diversify and create new opportunities in trade. Bangladesh signed PTA among D-8 Countries in 2006.
Impacts of regional trading arrangements are well reflected in the FDI flow from countries from global South which has doubled from USD518 million in 2008-09 to USD963 million in 2012-134. The diagram below depicts the trend of FDI from Southern countries.
Source: Bangladesh Bank FDI Survey Reports from 2008 to 2014
Table: Top 10 Countries with FDI Flow to Bangladesh from 2008-2014 (in million US$)
S. No.
Country 2008-
09 2009-
10 2010-11
2011-12
2012-13
2013-14
Total
1 Egypt 309.70 20.00 37.30 146.86 138.14 0.41 652.41
2 Singapore 14.75 311.86 22.77 15.59 103.60 140.63 609.20
3 Malaysia 79.15 40.17 2.00 7.72 337.97 59.23 526.24
4 Hong Kong 47.55 72.95 93.58 68.07 86.34 119.76 488.25
5 Pakistan 22.96 13.14 24.59 63.19 27.37 131.96 283.21
6 Sudan 21.84 38.06 21.21 80.19 0.67 0.00 161.97
7 Sri Lanka 8.54 7.13 16.08 27.15 24.96 63.24 147.10
8 South Korea N.A N.A N.A N.A N.A 140.35 140.35
9 British Virgin
Island 0.00 2.35 13.38 12.51 68.24 43.24 139.72
10 China 2.54 5.17 18.57 14.35 26.01 46.70 113.34
Source: Bangladesh Bank FDI Survey Reports from 2008 to 2014
4 Flow of External Resources in Bangladesh, ERD, PR of Bangladesh, table no.3.11, 2015
9
The above table indicates that the maximum FDI flow has been from Egypt followed by from Singapore, Malaysia, Hong Kong and Pakistan.
3.2. Bilateral Trade Relations from Global South
Bangladesh has established bilateral trade relations with about 40 Southern countries. The share of Bangladesh’s export to all Southern countries increased from 10 percent in 2000 to 16.23 percent in 2010 though the share of export to top 10 South countries in the total export fluctuated. It was 77.2 percent in 2000, declined to 73.68 percent in 2005 and increased to 74.51 percent in 2010.
There have been important changes in the orders of the top 10 South countries as far as Bangladesh’s export destinations are concerned. In 2000, India was the top most Southern country for export with a share of 16.13 percent of Bangladesh’s total export to the South. However, by 2010, India’s share declined to 11.47 percent, and in that year Turkey was the top most export destination among the South countries with a share of 27 percent.
3.3. Bilateral Financial Assistance from Global South:
Top partners from global South for bilateral financial assistance include China, India, Kuwait, Russia, South Arabia, Turkey and UAE. The diagram below indicates the fund flow from these countries.
S. No Country
Total Fund Flow from 2007 to 2014
(in million USD)
Types of flow→ Loan Grant
1 China 140.70 217.70
2 India 638.40 50.00
3 Kuwait 71.22 0.00
4 Russia 0.00 500.00
5 Saudi Arabia 98.33 0.00
6 Turkey 0.00 0.43
7 UAE 225.30 0.00 Source: Source: Flow of External Resources in Bangladesh, ERD, PR of Bangladesh, table no.3.11, 2015
China also supports Bangladesh through project in kind support. India has been providing support mainly through Line of Credit (LoC). Japan has disbursed US$ 4860 million as its ODA support to Bangladesh till date5.
3.4. SSC Technical Assistance
Bangladesh is getting technical assistance mainly from China, India and Malaysia. The scholarships and training programmes under Technical & Economic Cooperation (TEC),
5 http://www.bd.emb-japan.go.jp/en/bilateral/overview.html
10
Technical Cooperation Scheme (TCS) of Colombo Plan, SAARC and Indian Ocean Rim Association (IORA)6 are being offered to Bangladesh.
China provides 70 scholarships of various kinds to Bangladesh nationals every year. China’s Runhe scholarship granted 10 fellowships and Color Root (Hubei) Scholarship offers 15 fellowships for Master's degree in Dyeing and Finishing Engineering in 2014.
India7 offers 185 fellowship under ITEC and 35 fellowships under TCS of Colombo Plan every year to Bangladesh. India also extended 200 scholarships for Higher Secondary-level students and 500 scholarships to Graduate-level students every year. In addition, 410 scholarships are being granted by ICCR every year to students from Bangladesh for pursuing general courses in India.
In line with the spirit of South-South Cooperation, Malaysia through the Malaysian Technical Cooperation Programme (MTCP) shares its development experiences and expertise with Bangladesh. It also provides fellowships to Bangladeshi students under Malaysia International Scholarship (MIS) for Postgraduate & Postdoctoral Studies.
3.5. Multilateral Financial Institutions from Global South:
Bangladesh is getting concessional loan and grants from Southern multilateral institutions, mainly from Abu Dhabi Fund for Development (ADFD), Kuwait Fund for Arab Economic Development (KFAED), Islamic Development Bank, SAARC Development Fund & Others.
Abu Dhabi Fund for Development (ADFD)8 involvement in Republic of Bangladesh goes back to 1976. The Fund has since then offered and managed loans and grants totalling to around USD104 million for small and medium sized industrial enterprises across all economic sectors. Kuwait Fund for Arab Economic Development (KFD)9 provided 23 loans to Bangladesh till date, totalling about about US$ 556.7 million. The Fund also extended three technical assistances of about US$ 1.44 million for the financing of feasibility studies in transport sector. The Fund administered State of Kuwait's Grant of US$ 10 million to achieve food security and assure the basic right to food to Bangladeshi people. Similarly, SAARC Development Fund has provided USD2.6 million grant to Bangladesh.
Bangladesh has sought USD1.8 billion assistance from Islamic Development Bank (IDB) under its second Members Country Planning Strategy (MCPS). The ERD has already sent a list of 24 projects on rural development, agriculture, power, health and small enterprises which will be implemented from 2017-2019. The IDB assistance will come in form of mixed credit as some of the loans will be soft in nature. During previous fund cycle, IDB provided USD874 million to Bangladesh with less than 2 per cent interest and seven years grace period. Besides, Islamic Trade Financing Corporation provides USD1-2 billion hard loan for oil import10.
6 Please refer the Annex on SSC for details on these institutions
7 www.mea.gov.in/Portal/ForeignRelation/Bangladesh_Brief.pdf
8 http://www.adfd.ae
9 https://www.kuwait-fund.org/en
10 The Independent Daily, 15
th October, 2015, pp2.
11
4. Policy Options for Bangladesh
There is no dedicated unit for SSC & TC in Bangladesh, and ERD is managing economic relations with traditional and non-traditional donors though it nine wings.
Many of the SSC are supply driven where the non-traditional donor countries set their priorities and offer the financial and technical support accordingly. For example, China through its project in-kind support does a turn-key job where it brings materials, labour, equipments from China. The quality and transparency are also other issues.
The key challenges of the SSC modality in Bangladesh identified are: lack of coordination with/among different countries; lack of relevant policy and institutional framework, problems posed by cost sharing and low institutional capacity to articulate needs and negotiate with non-traditional donor countries. However, recently it was observed that Bangladesh has been able to negotiate with China and India on favourable terms of trade.
Though Bangladesh is utilizing some funding from multi-lateral financial institutions from Middle-east (KFD, AFFD, etc.) it has not been able to mobilize financial support from UN and World Bank, BRICS, IBSA and other funds on SSC. Similarly, there are different institutions like Istanbul International Centre for Private Sector in Development; International Poverty Reduction Centre in China (IPRCC); International Centre for Human Development (IC4HD) which are dedicated for providing technical support in promoting SSC; however Bangladesh has not been able to derive meaningful benefits from these institutions so far.
While Bangladesh is making good progress in economic and social development, a set of new challenges like climate change, regional conflict and insecurity, income inequality, terror funding, natural disaster, human & drug trafficking are emerging which can be brought in purview of SSC/TC.
With ODA on a decreasing trend, a combination of ODA and SSC finance could be best fit for Bangladesh where ODA supports in soft development issues (health, education, gender, and livelihoods) and SSC supports development in hardware like infrastructure, manufacturing and other sectors.
In light of the above context, Bangladesh is recommended to follow three pronged strategy: for SSC/TC:
1. Linking SSC & TC with national goals and priorities; 2. Harmonization of economic development efforts 3. Following of Demand Driven Approach
12
The draft 7th FYP of Bangladesh reflects a continuation of the major policy goals articulated in the 6th FYP. The core targets set under the 7th FYP may be divided into ten broad categories as below:
1. Income & Poverty – reduction in head count poverty ratio by 6.2 & extreme poverty by 4 per cent
2. Sector Development - significant growth of the agriculture, industry and service sectors, increase contribution of manufacturing sector
3. Macroeconomic development – FDI, revenue to be increased substantially 4. Sustainable urban development that supports increased productivity,
investment and employment 5. Human Resource Development (Education, Health and Population) 6. Water & Sanitation - Safe drinking water for all urban & rural population and
sanitary latrines for 90 per cent rural and 100 per cent urban population 7. Energy and Infrastructure - Electricity coverage to be increased to 96 percent 8. Gender Equality, Income Equality and Social Protection 9. Environmental Sustainability - Increase productive forest coverage to 20
percent; Improve air quality and enact Clean Air Act; Promote Zero discharge of industrial effluents
10. ICT Development - Increase earnings from ICT, travel and tourism from $1.5 billion to $ 6 billion
Source: Final Draft of the 7th Five Year Plan, Bangladesh, pp.25-26
5. Road Map
As identified in the earlier section, Bangladesh should follow three pronged strategy as below:
1. Linking SSC & TC with national goals and priorities; 2. Harmonization of development efforts 3. Following Demand Driven Approach
The above can be achieved through following mechanism:
1. Identify Priorities a. National b. Sectoral c. Local
2. Assess existing capacities & resources to achieve national, sectoral and local priorities
3. Establish capacities and resources gap 4. Identify SSC/TC partners for providing finances and technical assistance in identified
capacities & resources gap 5. Identify traditional donors for complimenting the development cooperation (social,
soft issue) 6. Work with concerned Ministries to develop DPP (including for finance and technical
assistance) 7. Inform/communicate with concerned ministries/PMO if any bilateral/multilateral
agreements/clause need to negotiated, support in designing cooperation mechanism
13
8. Negotiate proposal & terms/condition with identified SSC/TC and partners & traditional donors, get the draft MOU vetted through Ministry of Law & Justice
9. Sign partnership/cooperation agreement or a Memorandum of Understanding (MoU) with clear roles and responsibilities.
10. Implement - Once the agreement is signed and operational modalities worked out, forward it to the concerned ministries for implementation.
11. Review & Follow-ups together with SSC/TC partners and traditional donors 12. Monitoring and Evaluation through IMOD, concerned Ministry and ERD 13. Knowledge Management –should capture, organise and disseminate the knowledge
derived from SSC and TC for building knowledge base and disseminating the learning
Below diagram depicts the mechanism for SSC & TC.
This mechanism is likely to ensure alignment with national goals & priorities; increased ownership & synchronization of development efforts through demand driven approach; holistic development through combining hard & soft development issues; equality in partnership with improved effectiveness & accountability, and sustenance & enhancement of finance for development.
Bangladesh may also consider either modifying a wing to deal with ‘Financing for Development’ including SSC/TC and Climate Finance for better coordination of its efforts.
****
14
Bibliography
1. Bangladesh Bank, (2014), ‘Foreign Direct Investment (FDI) in Bangladesh’ Survey Report July-December, 2014, Bangladesh Bank. Available at https://www.bb.org.bd/pub/halfyearly/fdisurvey/fdisurveyjuldec2014.pdf
2. Devex (2015), ‘Emerging Donors’, Devex Report, Washington D.C., USA 3. DFAT, Austrian Government (2015) ‘Aid Investment Plan Bangladesh: 2015-16 -
2018-19’ downloaded from http://dfat.gov.au/about-us/publications/Pages/aid-investment-plan-aip-bangladesh-2015-2019.aspx
4. ERD (2014), ‘Use of Country Results Framework -Pilot Study Bangladesh’, Aid Effectiveness Unit, ERD, Ministry of Finance, Government of Bangladesh
5. ERD (2015), ‘Flow of External Resources into Bangladesh 2013-2014’ downloaded from http://www.erd.gov.bd/site/page/12b7f07f-7f59-44b3-82ac-0ac72f8831f5#sthash.D6jQYzQk.dpuf
6. Frank Vollmer et.a l (2014), ‘The Busan Commitments on Managing Diversity and Reducing Fragmentation: Stocktake and Emerging Issues’, report presented at the 2nd workshop of the Building Block “Managing Diversity and Reducing Fragmentation” in Kampala , Uganda, on December 3-4, 2013
7. General Economics Division (GED) (2015) Final Draft – Seventh Five Year Plan 2016-2020; Bangladesh Planning Commission; Government of the People's Republic of Bangladesh
8. GoB (2011), Statement of Intent on Developing a Joint Cooperation Strategy for Bangladesh, Economic Relations Division, Ministry of Finance, Government of Bangladesh, available at http://www.aideffectiveness.org/media/k2/attachments/SoI_JCS.pdf
9. GoB (2015), ‘Seventh Plan Strategy for Mobilizing Foreign Resources’, GED Background paper series, Government of Bangladesh, available at http://www.plancomm.gov.bd/wp-content/uploads/2015/02/6_Strategy-for-Mobilizing-Foreign-Resources.pdf
10. GoB (2015), Concept Note on High-level Meeting on South-South and Triangular Cooperation in the Post-2015 Development Agenda: Financing for Development in the South and Technology Transfer, Govt of Bangladesh, Dhaka
11. Hoque, Arful (2015), Foreign Direct Investment in Bangladesh: Regulations and Opportunities, Board of Investment Presentation to Prospective Investors, Dhaka, Bangladesh
12. IBON (2014) ‘Primer on South-south Cooperation’, IBON International, ISBN 978-971-95573-7-1
13. JICA (2014), ‘An Overview of South-South Cooperation and Triangular Cooperation’, JICA, Japan
14. Natural Resources Planners Ltd.(2010), Evaluation of the Implementation of the Paris Declaration, Phase – II, Country Evaluation Bangladesh FINAL REPORT’ submitted to Aid Effectiveness Unit, ERD, Ministry of Finance, Government of Bangladesh
15. Raihan, Selim & Jahan Israt (2015), ‘South-South Cooperation in the Regional context’, Background paper for the preparation of the 7th Five Year Plan’, South Asian Network on Economic Modeling (SANEM), Dhaka, Bangladesh
15
Annexure 1: Cooperation from Non Traditional Donors
Bangladesh maintains strong development cooperation with some of the non-traditional donors such as India, China, Kuwait, Saudi Arabia, Singapore, UAE, Turkey, Malaysia and Iran. The broad areas of cooperation are trade and commerce, infrastructure development, transport and communication, balance of payment support, human resource development, disaster management, poverty reduction and humanitarian and emergency support. Since 2001 Bangladesh has mobilized USD2.16 billion through official assistance from non-traditional donors out of which USD1.34 billion is loan and USD819 million is grant. The cumulative foreign direct investment in Bangladesh from Southern countries from 2008 to 2014 was about USD3.9 billion.
The southern partners of Bangladesh are often themselves both providers and recipients of aid, except Japan and South Korea.
China and Bangladesh established diplomatic relations in 1975. Over the years, the two sides have signed a plethora of bilateral agreements that range from economic engagements, soft loans, social contacts, cultural exchanges, academic interactions, infrastructure development and military sales. China-Bangladesh trade volume reached a record high of 10.3 billion USD. Chinese accumulated aid to Bangladesh reached 1 billion US dollars at the end of 201311.
India’s development assistance initiatives in Bangladesh include the US$ 800 million Line of Credit (LoC). Out of total amount, US$ 200 million has been converted to grant for utilizing it in priority projects. During recent visit of Indian Prime Minister, another Loc of 2.0 billion US$ was offered to Bangladesh. India has invested in infrastructure, education and agriculture project mainly.
UAE: The diplomatic relations between Bangladesh and the United Arab Emirates was given the formal status in 1974. The UAE is 2nd largest remittance country for Bangladesh after Saudi Arabia. The bilateral trade between the UAE and Bangladesh reached nearly $1 billion in 2012-13. Bangladesh imports crude oil and other petroleum products from the UAE and exports mainly clothing, textiles, vegetables, fish and steel products. India also finance small development projects in social sectors.
Malaysia, along with its neighbour Indonesia, recognised the independence of Bangladesh in 1972, being among the first Muslim countries to do so. Two-way trade between the two countries stood at US$1.19 billion in 201212. Malaysia is also one of the largest foreign investors in Bangladesh. The bilateral cooperation are in the sectors of telecommunications, power generation, textile and financial sectors
Pakistan extends state credit to Bangladesh and Bangladesh established a sugar plant and a cement factory with the state credit of Pakistan. Different activities are being operating to maintain the Economic Cooperation between Bangladesh and Pakistan.
Saudi Arabia: Bangladesh–Saudi Arabia relations had a strained beginning but have grown into a strong relationship subsequently. Both nations are members of the Organisation of Islamic Cooperation (OIC) and Saudi Arabia hosts a large proportion of the global Bangladeshi diaspora.
The DAC countries in Bangladesh from the South are:
11
http://opinion.bdnews24.com/2014/03/12/a-new-opportunity-for-china-bangladesh-cooperation/ 12
Dhaka Chambers of Commerce “Bangladesh-Malaysia Trade Relations”, 2014
16
Japan officially recognized Bangladesh in 1972. Japan has extended support in economic and social development, power generation and human resources development. Japan has provided Bangladesh with US$ 11 billion by way of assistance, of which $ 3.35 billion is grants and $ 4.10 billion loan13.
Republic of Korea has established Facility for Poverty Reduction through South-South and Triangular Cooperation in Education, Science and Technology. It provides economic and technical cooperation to Bangladesh through two organizations: (i) Economic Development Co-operation Fund (EDCF) (ii) Korea International Cooperation Agency (KOICA). The EDCF provides bilateral loans to Bangladesh while KOICA is providing Technical Assistance in the form of capacity building projects and deputing of experts and volunteers to work in various fields. Main areas of Korean interventions in Bangladesh are Power, Communication (roads and railway) and Telecommunication sectors.
13
http://www.albd.org/index.php/updates/news/1707-bangladesh-japan-economic-relationship
17
Annexure 2: Multilateral Agreements & Institutions
Colombo Process14
In response to calls from several Asian labour sending countries, the Ministerial Consultation for Asian Labour Sending Countries was held in 2003 in Colombo, Sri Lanka. The ten initial participating states - Bangladesh, China, India, Indonesia, Nepal, Pakistan, the Philippines, Sri Lanka, Thailand and Vietnam - made recommendations for the effective management of overseas employment programmes and agreed to regular follow-up meetings. It is popularly known as Colombo Process.
Since the meeting, the member states of the "Colombo Process" have met in Manila, Bali and Dhaka in 2004, 2005 and 2011 respectively to review and monitor the implementation of previous recommendations and identify areas of future action. As the Colombo Process evolved with each Ministerial Consultation, new members and partners have joined and the Consultations have expanded in scope. The process aims to continue to provide a forum for dialogue among member states. The aim of the Colombo Process is to provide a forum for Asian labour sending countries to:
1. Share experiences, lessons learned and best practices on overseas employment. 2. Consult on issues faced by overseas workers, labour sending and receiving states,
and propose practical solutions for the well being of overseas workers. 3. Optimize development benefits from organized overseas employment and enhance
dialogue with countries of destination. 4. Review and monitor the implementation of the recommendations and identify further
steps for action.
Istanbul International Centre for Private Sector in Development (IICPSD)
The Istanbul International Centre for Private Sector in Development15 (IICPSD) is established by the Government of Turkey and the United Nations Development Programme (UNDP).
It works as one stop shop service delivery centre through research, policy advisory and advocacy, knowledge development and management, MDGs-based partnerships, programme support and capacity development.
The centre conducts demand-driven research on topics related to private sector in development and collects case studies and data on best practices of these. The IICPSD uses these knowledge products to facilitate partnerships between public and private players in order to establish a space for all stakeholders to meet and create joint agendas. It can help Bangladesh through policy support, knowledge sharing and establishing linkages and partnerships in private sector development.
International Poverty Reduction Centre in China (IPRCC)16
The IPRCC was set up in 2005 by the Government of China to serve as a platform for South-South learning and capacity development. The IPRCC was established with the firm
14
http://www.colomboprocess.org/About_the_Colombo_Process_Background-5a-2.html 15
http://www.iicpsd.undp.org/content/istanbul/en/home.html 16
http://www.iprcc.org.cn/English/Index/index.html
18
belief that learning from countries that are in similar stages of development can be more relevant than learning from highly advanced countries, especially in the early stages.
It benefits from the significant attention and resources that the Chinese government devotes to South-South cooperation, serving as an important window for South-South learning and experience sharing. It is supported by a number of international organizations including UNDP, the World Bank, the UK Department for International Development, and the Asian Development Bank.
It is an attractive knowledge resource for development practitioners around the world, especially those from Africa. In recent years, IPRCC has provided training to nearly 600 officials and development practitioners. It has developed a unique approach to training and experience- sharing, which it implements with local and international partners, including the World Bank.
Its training programmes address not only general knowledge about China’s development experience, but also specific institutional approaches (for example, farmer water-user associations, microfinance, disaster management, and community- driven development).
The IPRCC is becoming a centre of excellence for South-South learning, attracting talent from the government and academic sectors, including top universities and research institutes.
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)17
BIMSTEC was established in a view of faster economic and social development of the associated countries (Bangladesh, India, Nepal, Sri Lanka, Thailand, Myanmar and Sri Lanka). BIMSTEC is concerned about 14 sectors. Of them ‘Trade & Investment’ is led by Bangladesh. BIMSTEC agreements can help Bangladesh in poverty alleviation; environment and disaster management; transport and communications issues that can also accelerate SSC. BIMSTEC Free Trade Area Framework Agreement was established to motivate the member countries as well as the others to trade with and to invest in BIMSTEC countries. Under this agreement the Trade Negotiating Committee (TNC) can negotiate on issues like trade facilitations (goods and services), investment, economic cooperation and technical assistance for LDCs in BIMSTEC.
Indian Ocean Rim Association (IORA)18
The Indian Ocean Rim Association (IORA), formerly known as the Indian Ocean Rim Initiative and Indian Ocean Rim Association for Regional Cooperation (IOR-ARC), is an international organisation consisting of coastal states bordering the Indian Ocean. The IORA is a regional forum, tripartite in nature, bringing together representatives of Government, Business and Academia, for promoting co-operation and closer interaction among them. It is based on the principles of Open Regionalism for strengthening Economic Cooperation particularly on Trade Facilitation and Investment, Promotion as well as Social Development of the region. The Coordinating Secretariat of IORA is located in Mauritius.
17
http://www.bimstec.org/ 18
http://www.iora.net/
19
International Centre for Human Development (IC4HD)19
The International Centre for Human Development (IC4HD) in India, a partnership between the Government of India and UNDP, was established in August 2012. It supports countries of the Global South through policy advisory services and developing capacities on human development to help them incorporate human development concerns as an integral part of planning processes and policy making. The IC4HD offers high quality training and research opportunities to government officials, policy makers, and academicians and other development practitioners and aims to encourage south-south dialogue and understanding on key human development issues
The IC4HD provide a range of services to national governments in translating human development approach into policy through policy advisory service; developing capacities of national government, civil society organisations; and undertaking research and analysis on the policy dimensions of a human development approach.
South-South Steering Committee for Sustainable Development (SS-SCSD)20
The SS-SCSD promotes, facilitates, and provides guidance to the development oriented initiatives to advance the implementation of Sustainable Development Agenda and South-South & Triangular Cooperation. These Initiatives include, among others, South-South News; the International Organization for South-South Cooperation (IOSSC), and Global Business Incubator (GBI).
South-South News is a 24-hour access digital media platform for the countries of the South, which facilitates, connects and publishes news on various efforts in sustainable economic and social development. IOSSC is a direct development focused initiative which works closely with governments, private sector, civil society, and academia including public-private partnerships, in developing and delivering programmes specifically in the areas of capacity building, infrastructure, investment, tourism, culture, education, health, environment, and enhancement of technology transfer, among others.
The Global Business Incubator (GBI) is a worldwide resource for the successful development of entrepreneurial projects, with an incubation assistance program offering concrete resources to foster business ideas and early-stage projects.
The SS-SCSD launched two more regional organizations in 2014 to mobilize adequate resources for enhancing South-South and triangular cooperation. The SS-SCSD Asia-Pacific Committee and the South-South Asia- Pacific Finance Centre are implementing growth-driven development plans and projects, stipulated under the SS-SCSD's framework.
International Centre for Inclusive Growth in Brazil
IPC-IG21 is a policy-oriented research based centre for south-south cooperation aimed at poverty and inequality reduction. The researches reach a wide number of people through the training programs, advisory services, fellowships and other knowledge-based networks. It promotes south-south dialogue by sharing innovative policy experiences, supporting capacity building, hosting government representatives and scholars from developing countries, organizing study tours and networking with governments in the South.
19
http://www.iias.org/content/ic4hd 20
http://ss-scsd.org/ 21
http://www.ipc-undp.org/
20
The main areas of research of IPC-IG are social protection, food security, population and social policies, poverty and South-South Learning – Knowledge Management and Sharing. It has already given over 1000 research publications on different issues of inclusive growth and related strategies. It has reached out to a global network with 189 countries and the targeted to reach out to the stakeholders in government level, the UN and many civil society organizations.
International Public Service Excellence Centre in Singapore
The UNDP International public service excellence centre in Singapore22 consolidates the best thinking on public service policies, strategies and institutional innovation from around the globe and share it with senior policy makers worldwide. Strong public services are often societies’ most powerful development resource. A strong public service can build institutions that play a huge role in enabling people to fulfill their potential within an environment where their ideas, actions and society as a whole can flourish. Through its evidence building activities the centre identifies trends, innovations and public solutions. It brings officials, leaders, policy-makers and experts together to debate and collaborate on addressing the public challenges of the day.
World Centre for Sustainable Development (RIO+ Centre)23 in Brazil
The World Centre for Sustainable Development (RIO+ Centre) was established to keep the commitment to inclusive and sustainable development alive. The RIO+ Centre works with governments, civil society and the private sector to inspire and inform policies and practices that lead to greater social, environmental and economic justice. As a global centre based in the south, RIO+ aims to bolster south-south cooperation and facilitate the participation of the global south in international efforts on sustainable development.
The RIO+ Centre provides a hub for dialogue and action on alternative development pathways. It produces and disseminates evidence on policies and practices that are successfully addressing the social, economic and environmental dimensions of equitable development. It does all these by coalition building and networking for the increased participation of underrepresented institutions, countries and communities in the adoption of equitable development at the national and global level.
22
http://www.undp.org/publicservice 23
http://riopluscentre.org/