** Alarmingly high corruption and unsustainable lending practices are driving Bangladesh deeper into debt, with key development partners implicated in the problem.
📍 ** Sydney, Australia
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Bangladesh’s struggle against corruption is starkly evident, highlighted by its consistently low ranking on the Corruption Perception Index. The country’s score of 24, significantly below global and regional averages, points to systemic issues within its governance and project management. A primary driver of this crisis is the prevalence of over-priced aid-funded projects, largely due to the lack of competitive bidding and the dominance of Government-to-Government deals. These arrangements have inflated project costs by over 400% compared to more transparent alternatives, with an estimated 35% of project funds lost to corruption and inefficiency.
The complicity of major international development partners – the World Bank, Asian Development Bank, and Japan International Cooperation Agency – is a central concern. These institutions, holding a combined 70% of Bangladesh’s external debt, have repeatedly provided loans despite acknowledged corruption concerns and human rights violations. While the World Bank initially took action by cancelling a $1.2 billion credit for the Padma Bridge project, citing corruption allegations, lending resumed with increased volume, suggesting an attempt to conceal its role.
Recent examples illustrate the continued problems. The Padma Bridge, initially estimated at $1.2 billion, ultimately cost nearly $3.9 billion, fueled by corruption and further inflated by loans from China Exim Bank ($2.67 billion) alongside World Bank funding. This cost overrun created significant economic instability, impacting both the foreign and local currency markets and depleting the country’s foreign exchange reserves. Even the International Monetary Fund’s intervention with a $4.7 billion loan in 2023, while providing a temporary lifeline, comes with vague conditions and doesn’t address the underlying systemic problems.
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Original Source: Link
** #Bangladesh #Corruption #DebtCrisis #Aid #WorldBank #ADB #JICA #SovereignDebt