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Working Paper 10 5 CPDPD Working Paper 10 5 Revisiting the PRSP Experience in Bangladesh Perspectives on Representation, Accountability and Inclusiveness Fahmida Khatun Debapriya Bhattacharya Mustafizur Rahman CENTRE FOR POLICY DIALOGUE (CPD) B A N G L A D E S H a c i v i l s o c i e t y t h i n k t a n k Absorbing Innovative Financial Flows: Looking at Asia REVISITING THE PRSP EXPERIENCE IN BANGLADESH Perspectives on Representation, Accountability and Inclusiveness* CPD Working Paper 105 Fahmida Khatun Debapriya Bhattacharya Mustafizur Rahman *This paper was prepared under the project on Creating Systemic Change: Solutions to Poverty through Accountable and Representative Policy Processes coordinated by the Centro Brasileiro de Análise e Planejamento (CEBRAP), São Paulo, Brazil. The paper has benefitted from useful comments provided by Dr Alnoor Ebrahim of the Harvard Business School. i CPD Working Paper 000 Publisher Centre for Policy Dialogue (CPD) House 40C, Road 32, Dhanmondi R/A Dhaka 1209, Bangladesh Telephone: (+88 02) 9126402, 9141703, 9141734 Fax: (+88 02) 8130951 E‐mail: [email protected] Website: cpd.org.bd First Published October 2013 © Centre for Policy Dialogue Disclaimer: The views expressed in this paper are those of the authors alone and do not necessarily reflect the views of the CPD. Tk. 60 USD 6 ISSN 2225‐8175 (Online) ISSN 2225‐8035 (Print) Cover design Avra Bhattacharjee C42013_5WP105_DGP ii Absorbing Innovative Financial Flows: Looking at Asia The Centre for Policy Dialogue (CPD) was established in 1993 as a civil society initiative to promote an ongoing dialogue between the principal partners in the decision making and implementing process. Over the past 20 years the Centre has emerged as a globally reputed independent think tank with local roots and global outreach. At present, CPD’s two major activities relate to dialogues and research which work in a mutually reinforcing manner. CPD dialogues are designed to address important policy issues and to seek constructive solutions to these problems. In doing so, CPD involves all important cross sections of the society, including public representatives, government officials, business leaders, activists of grassroots organisations, academics, development partners and other relevant interest groups. CPD focuses on frontier issues which are critical to the development process of Bangladesh, South Asia and LDCs in the present context, and those that are expected to shape and influence country’s development prospects from the mid‐term perspectives. CPD seeks to provide voice to the interests and concerns of the low‐income economies in the global development discourse. With a view to influencing policies CPD deploys both research and dialogue which draw synergy from one another. CPD’s research programmes are both serviced by and are intended to serve as inputs for particular dialogues organised by the Centre throughout the year. Some of the major research programmes of CPD include: Macroeconomic Performance Analysis; Fiscal Policy and Domestic Resource Mobilisation; Poverty, Inequality and Social Justice; Agriculture and Rural Development; Trade, Regional Cooperation and Global Integration; Investment Promotion, Infrastructure and Enterprise Development; Climate Change and Environment; Human Development and Social Protection; and Development Governance, Policies and Institutions. CPD also conducts periodic public perception surveys on policy issues and issues of developmental concerns. With a view to promote vision and policy awareness amongst the young people of the country, CPD is also implementing aYouth Leadership Programme. CPD maintains an active network with institutions that have similar interests, and regularly participates in various regional and international fora. At present CPD is spearheading two global initiatives.LDC IV Monitor is an independent global partnership for monitoring the outcome of the Fourth United Nations Conference on the Least Developed Countries (UN LDC IV).Southern Voice on Post-MDG International Development Goals is a network of 48 think tanks from the developing South which seeks to contribute to the ongoing global discourses on post‐MDGs. In recognition of its track record in research, dialogue and policy influencing, CPD was selected as one of the awardees of the Think Tank Initiative (TTI) through a globally competitive selection process. Dissemination of information and knowledge on critical developmental issues continues to remain an important component of CPD’s activities. Pursuant to this CPD maintains an active publication programme, both in Bangla and in English. As part of its dissemination programme, CPD has been bringing out CPD Occasional Paper Series on a regular basis. It may be noted in this connection that since November 2011, the Series has been re‐introduced as CPD Working Paper Series. Dialogue background papers, investigative reports and results of perception surveys which relate to issues of high public interest are published under this series. The present paper titledRevisiting the PRSP Experience in Bangladesh: Perspectives on Representation, Accountability and Inclusiveness has been prepared by Dr Fahmida Khatun, Research Director, CPD; Dr Debapriya Bhattacharya, Distinguished Fellow, CPD and Professor Mustafizur Rahman, Executive Director, CPD. Executive Editor: Ms Anisatul Fatema Yousuf, Director, Dialogue and Communication, CPD Series Editor: Professor Mustafizur Rahman, Executive Director, CPD iii Absorbing Innovative Financial Flows: Looking at Asia Abstract Given its political history and economic performance, Bangladesh emerges as an interesting case to study the nature of representation, extent of inclusiveness and degree of accountability of various actors in the process of designing and implementation of national development plans. While a number of country studies on the Poverty Reduction Strategy Paper (PRSP) process are available, literature and information on the above mentioned subject are rather scarce in Bangladesh, particularly from the perspectives of representation, accountability and inclusiveness. Based on structured interviews with a select group of relevant stakeholders including policymakers, members of the civil society and the development partners to generate the required additional information, the paper presents insights into the nature and extent of participation of the civil society organisations in the Bangladesh PRS exercise, and analyses the degrees of representation, accountability and inclusiveness achieved in the country’s PRS process. v Absorbing Innovative Financial Flows: Looking at Asia Contents Abstract v Acronyms viii 1. Introduction 1 2. The Context of the PRSP Exercise in Bangladesh 3 3. Engagemnt of Key Actors in the PRSP Process 8 4. Strategies and Modalities of CSO Engagement in the PRSP Process 10 5. Outcome and Effectiveness of Policy Engagements by Actors 17 6. Lessons Learnt 22 References 25 List of Tables and Figure Tables Table 1 Changes in Economic and Social Indicators 3 Table 2 Summary of Consultations during PRSP Preparation Process in Bangladesh 7 Table 3 Chronology of CPD’s Major Country‐wide Policy Activism 12 Table 4 Perception of Respondents on Ownership and Participant Selection 18 Table 5 CSOs’ Assessment about Participation in PRSP Consultation Process 19 Table 6 Stakeholders’ Response on PRSP Consultation Process 20 Table 7 Stakeholders’ Perception on PRSP Process 20 Table 8 Achievements of PRS Targets on External Resources 22 Figure Figure 1 Institutional Process of PRS in Bangladesh 6 vii CPD Working Paper 000 Acronyms ADB Asian Development Bank BBS Bangladesh Bureau of Statistics BNP Bangladesh Nationalist Party BWI Bretton Woods Institution CBO Community‐based Organisation CPD Centre for Policy Dialogue CSO Civil Society Organisation CTG Caretaker Government DFID Department for International Development ECNEC Executive Committee of National Economic Council ERD Economic Relations Division ESAF Enhanced Structural Adjustment Facility FBCCI Federation of Bangladesh Chambers of Commerce and Industry FDI Foreign Direct Investment GDP Gross Domestic Product GED General Economics Division GoB Government of Bangladesh HIPC Heavily Indebted Poor Countries IMF International Monetary Fund IT Information Technology I‐PRSP Interim Poverty Reduction Strategy Paper LDC Least Developed Country MDG Millennium Development Goal MP Member of Parliament MTBF Medium Term Budgetary Framework MoF Ministry of Finance NGO Non‐Government Organisation ODA Official Development Assistance PRGF Poverty Reduction and Growth Facility PRS Poverty Reduction Strategy PRSP Poverty Reduction Strategy Paper RMG Readymade Garments SAF Structural Adjustment Facility SAP Structural Adjustment Program SoE State‐Owned Enterprise TIB Transparency International Bangladesh USD United States Dollar WTO World Trade Organization viii Revisiting the PRSP Experience in Bangladesh 1. INTRODUCTION Bangladesh1 came into being in December 1971 following a nine-month long bloody war of independence with Pakistan.2 Bangladesh’s emergence as an independent country was the culmination of a protracted movement for emancipation from economic, political and cultural subjugation by West Pakistan of its eastern wing (Sobhan 1992). The ethos of the liberation war was influenced by a determination on the part of political leadership to establish a country where progress, equity and justice would inform developmental philosophy. Bangladesh Awami League, the party which led the liberation war in 1971, attempted
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