Prospects and Opportunities of International Cooperation in Attaining SDG Targets in Bangladesh (Global Partnership in Attainment of the SDGs) General Economics Division (GED) Bangladesh Planning Commission Ministry of Planning Government of the People’s Republic of Bangladesh September 2019 Prospects and Opportunities of International Cooperation in Attaining SDG Targets in Bangladesh Published by: General Economics Division (GED) Bangladesh Planning Commission Government of the People’s Republic of Bangladesh Sher-e-Bangla Nagar, Dhaka-1207, Bangladesh Website: www.plancomm.gov.bd First Published: September 2019 Editor: Dr. Shamsul Alam, Member (Senior Secretary), GED Printed By: Inteshar Printers 217/A, Fokirapool, Motijheel, Dhaka. Cell: +88 01921-440444 Copies Printed: 1000 ii Bangladesh Planning Commission Message I would like to congratulate General Economics Division (GED) of the Bangladesh Planning Commission for conducting an insightful study on “Prospect and Opportunities of International Cooperation in Attaining SDG Targets in Bangladesh” – an analytical study in the field international cooperation for attaining SDGs in Bangladesh. The Sustainable Development Goals (SDGs) agenda is an ambitious development agenda, which can’t be achieved in isolation. It aims to end poverty, hunger and inequality; act on climate change and the environment; care for people and the planet; and build strong institutions and partnerships. The underlying core slogan is ‘No One Is Left Behind!’ So, attaining the SDGs would be a challenging task, particularly mobilizing adequate resources for their implementation in a timely manner. Apart from the common challenges such as inadequate data, inadequate tax collection, inadequate FDI, insufficient private investment, there are other unique and emerging challenges that stem from the challenges of graduation from LDC by 2024 which would limit preferential benefits that Bangladesh have been enjoying so far. Bangladesh may face higher duties, may need to fully comply with the TRIPS agreement on pharmaceuticals, may also lose LDC specific technical assistances such as Enhanced Integrated Framework (EIF), Least Developed Countries Fund (LDCF), access to LDC Technology Bank, etc. Second unique challenge is the Rohingya influx and its impact. Although there has been a significant rise in the flow of foreign fund since 2017 for supporting the Rohingya people, the Rohingya influx has threatened not only the national peace and stability of Bangladesh but also regional harmony. This poses an additional challenge in attaining many of the goals of SDGs, including Zero Hunger; Peace, Justice and Strong Institution; Life on Land; Sustainable Cities and Communities; Responsible Consumption; and, Climate Action. The third challenge is vulnerability from global warming. Bangladesh is one of the most vulnerable countries that may impact Bangladesh’s development aspiration. Bangladesh already is one of the most densely populated country of the world with limited resources base. Losing preferential benefits due to graduating to middle income country and sheltering huge number of Rohingya refugees would impose more stress on the economy. Hence, there is much need for international cooperation for attaining the SDG objectives, in addition to unfolding challenges emerging from regional and global trade war. The Government of Bangladesh led by the dynamic leadership of Hon’ble Sheikh Hasina is leading the country to a self-respecting and resilient nation. This process needs to be supported by our developing partners in the short to medium term as envisaged under goal 17 of the SDG. We need more strategic support in term of technology transfer, support to data generation for evidenced based policy decisions and facing the challenges of “Fourth Industrial Revolution”. I take this opportunity to thank GED officials for their efforts in preparing the report. It is my firm believe that the study will be immensely beneficial for the policy makers, development practitioners and development partners dealing and concerned with the SDGs. (M.A. Mannan, MP) Prospects and Opportunities of International Cooperation in Attaining SDG Targets in Bangladesh iii Message I am pleased to learn that General Economics Division (GED) of the Planning Commission is going to publish the document titled “Prospect and Opportunities of International Cooperation in Attaining SDG Targets in Ban- gladesh”. Several innovative areas could be explored for resource mobilization with regard to the implementation of SDGs in Bangladesh. To increase domestic revenue, international cooperation and transfer of knowledge for tax reforms and decentralization of revenue collection is urgently called for. For ODA, international cooperation is needed to develop the government’s implementing agencies’ capacities to utilize funds. Development Partners should strengthen their country offices to ease procurement and disbursement activities as well. International standard auditing and accounting of business firms and corporate houses are important prerequisite to attract FDI. Ban- gladesh already has a successful track-record of attracting private sector investments in telecommunications and power generation. These business models may be expanded to other sectors too. To improve inward remittance, best practices in diaspora engagement is necessary. International cooperation is needed to develop common ref- erence indicators and a central database for scaling up South-South cooperation. For boosting the industries, developed world can help transfer environmentally sound technologies, and for enhanced trade, international communities can help Bangladesh to diversify its export basket to non-RMG products. I believe that this study will be helpful for both developing and developed world to pinpoint the areas where part- nership can be bolstered in facilitating SDG implementation in Bangladesh. Lastly, I would like to extend my sincere thanks to the GED and commend the leadership of Dr. Shamsul Alam in completing this important study. Let me take this opportunity to thank UNDP for their support in conducting this publication. (Md. Abul Kalam Azad) iv Bangladesh Planning Commission Forewords Despite the enthusiasm about the role of SDGs in significantly transforming the development landscape of the nations through global cooperation in the coming decades, the mobilization of resources for implementing the 2030 Agenda for Sustainable Development remains a big challenge. It requires focused attention and huge investment. ODA has been one of the main pillars of international cooperation for development for the last five decades. However, the current levels of ODA is not enough to fill-in the huge investment gap – the difference between financing needed to achieve SDG goals and resources available from domestic sources. Support from additional groups of actors is required to meet the huge financing gaps, including exploring some innovative options at local, national, regional, multilateral, and global level, through the utilization of variety of means. Under SDGs, in addition to financial support extended to the developing countries from various sources, emphasis is also put on cooperation which are not strictly financial but advance SDGs through sharing of technology and knowledge, capacity building, and technical assistance. To synergize these efforts in tackling common problems, further cooperation between the least developed countries, including South-South cooperation, have been emphasized in this study. The roles of the private sector and philanthropic organizations have also been recognized. NGOs have been identified as a crucial source of financing for their target and issue-oriented efforts. Finally, think-tanks and civil society organizations can provide support with policies and agenda promotion. Progress of international cooperation in financing has remained largely short of the commitments. For Bangladesh, the trend of grants, commodity aid, and bilateral aid have declined while project aid and multilateral development assistance have seen a rise and the lending terms have become more market-based. The progress report of the UN Secretary General provides a disheartening view on SDGs and the current obstacles, which include declining ODA, misalignment of private sector efforts with SDGs, and the rising trade wars. It reiterated the call for more international cooperation and capacity building activities. For the SDGs to be attained, committed external resource flow, capacity development, strengthening of political and administrative institutions, accountability and transparency, public participation, engagement with youth and communities, and private sector participation are imperative. Without multi-stakeholders’ participation, the SDGs will perhaps find little success in meeting global ambitions. Bangladesh has been a recipient of development assistance since its independence. Assistance from the international partners helped the country reduce the degree of endemic poverty. The trend of grants, commodity aid, and bilateral aid has however declined while project aid and multilateral development assistance have seen a rise. In order to receive further international cooperation, Bangladesh must overcome some complex challenges. First, there is a lack of data on indicators for monitoring the progress on SDG targets, especially those related to international cooperation. This study discussed the progress of 60 indicators for Bangladesh, out of which 33 falls