Budget allocation to reduce corruption
But knowledgeable quarters and the public in general also expressed their anxiety regarding such a step. They have observed that the Bank should attach greater priority to the reduction of corruption within its own organization.
Persons conversant with the Bank's operations felt it necessary to reduce the scope of corruption created by it in the name of distribution of wisdom and expertise. Corruption, in fact, has it roots in donor-assisted financing.
For all latest news, follow The Daily Star's Google News channel. Witnesses testified before US Sen Richard G. Lugar (R-Ind), Chairman of the Senate Foreign Relation Committee, in 2004 that as much as $100 billion might have been lost to corruption in World Bank lending projects.
The Bank itself, Lugar said, has identified corruption as the single greatest obstacle to improving the lives of the world's poor, one billion of whom live on less than one dollar a day.
The reality is that corruption thwarts development initiatives in different ways. Bribes can influence important decisions of the government on the selection of projects and contractors. Misuse of funds can inflate project costs and cause projects to fail. Stolen money may prop up dictatorship, encourage terrorists, and finance human rights abuses.
Besides, when developing countries lose bank funds through corruption, the tax-payers remain obligated to repay the bank loan. So, not only are the impoverished cheated out of development benefits, they are left to repay the resulting debts to the banks.
Political will appears as the most important means to fight corruption. But political will is not simply the will of the politicians. There are leaders throughout the society: professional groups, private sector, trade unions, religious institutions, and other civil society groups who can be energized in the cause of containing corruption and furthering integrity.
The task of building political will can begin at the grass-roots and does not end with the government embarking on reforms. Reforms in Tanzania and Nigeria have experienced acute difficulties as leaders were virtually alone in their endeavors. But the leaders succeeded in Hong Kong and Singapore with their statesmanship, firm commitment, and support from their constituencies.
It should be remembered that electing an honest head of state or government does not necessarily guarantee the implementation of an effective reform program; support from the broad section of society is vital to the reform's success or failure. Reform must also muster commitment from a wide cross-section of the people and build a cross-party political consensus in support of the reform program and to make it really sustainable.
The most appropriate reform and best preventive measure is to develop policy and provide necessary budget allocation to implement the reforms programs to combat corruption. Budget speech must indicate the commitment to reduce corruption and there must be specific allocation to implement those initiatives.
The expansion of the size of the budget should not be considered sufficient to combat the corruption. The total size of the budget in 1972-73 was Tk 735 crores which was raised to Tk 64,000 crores in 2005-2006. The allocation in the budget may have been increased by 87 times, but corruption has increased by more than a hundred times.
Obviously, the ensuing budget for the year 2006-2007 will provide allocation for the achievement of the targets of poverty reduction, achievement of MDGs, and ensuring good governance, but there must be some specific and area-based allocation to reduce corruption.
It is not enough to constitute an independent anti-corruption commission. There must be expressed policy guidelines so that no corruption takes place. The political will and strong commitment to eradicate corruption should be made known to the people through budgetary provisions with specific allocations supported by a declared strategy to combat corruption.
During the current fiscal year, there was provision to provide 25% subsidy on the import of MOP, DAP, and TSP fertilizer for the first time. Unfortunately, the nation has observed a crisis in fertilizer shortage, farmer unrest, and quality deterioration of fertilizer.
Similarly, there was also subsidy of 20% on rural electricity by REB for irrigation purposes. But the whole nation was surprised to see the Kansat revolution and the compromise by the authority against the prescribed rules.
Is it that rules were framed without the understanding of the people's needs? Bangladesh Bank has introduced Equity and Entrepreneurship Fund and allocated about Tk 900 crore without bearing interest, but no impact on the economy is visible as yet.
Almost every year, an allocation of around Tk 500 crore is earmarked as the block allocation to meet emergency requirements. Every year, questions are raised on the disbursement of such block allocation. Senior officials of the Ministry of Health and Family Welfare and Finance Division, along with thirty two civil surgeons were proceeded against in 2000 for the misuse of procurement of MSR from such block allocation.
Very recently crisis developed due to the scarcity and price hike of sugar and fuel although there was sufficient allocation and stock, as stated. The allocation and the system of expenditure and the lapses need to be examined.
It is unfortunate and humiliating when we learn that the World Bank is planning to set up offices to control corruption in the country. It does not in any way conform to the dignity of a nation like ours that bears a long heritage and history of civilization.
We must get rid of corruption and terrorism with courage and vision. There must be necessary budget allocations to implement these national priorities. The public in general expects national leadership should take initiatives to build up a corruption-free society. It may take some time, but we have to start somewhere.