If WB and IMF are sitting on Pile of Corruption, what that has to do with Bangladesh?
Are they giving their Charity of Loans to Bangladesh that Bangladesh has never paid back or not?
Is this a nice to accuse Charity Givers for corruption, when we are corruption from top to bottom ourselves. If BD thinks, they are corrupt, why BD begs for Loans from them?
Why BD does not go bankrupt by not begging for IMF Loans and let dollar rise to Exchange Rate of 2 Lac Takka like it was the case with Talibani Afghanistan?
What's wrong with letting tens of million Bangladeshis starve to death because IMF and WB are not letting us steal money of our poor Bangladeshis?
Stop your corruption instead of telling us, how corrupt the rest of the world is Thieves ...!
Are they giving their Charity of Loans to Bangladesh that Bangladesh has never paid back or not?
Is this a nice to accuse Charity Givers for corruption, when we are corruption from top to bottom ourselves. If BD thinks, they are corrupt, why BD begs for Loans from them?
Why BD does not go bankrupt by not begging for IMF Loans and let dollar rise to Exchange Rate of 2 Lac Takka like it was the case with Talibani Afghanistan?
What's wrong with letting tens of million Bangladeshis starve to death because IMF and WB are not letting us steal money of our poor Bangladeshis?
Stop your corruption instead of telling us, how corrupt the rest of the world is Thieves ...!
From: Murad Qureshi <Murad.Qureshi@london.gov.uk>
The washington consensus from the IMF & World Bank has been so discredited since the Asian financial crisis of late 1990s, almost any other option is desirable. And its been the East & South-East Asian countries which have lead the way on better economic development models then those proscribed by washington consensus particularly for major infrastructural investment. For example in the project finance the WB offers it takes 20 per cent for project management for its overpaid civil servants pretending to help reduce world poverty. Whilst l agree that corruption in the Ministry of Communication particularly Transport Department in Dhaka needs to be dealt with by the B'desh government, let's not forget that the WB & IMF are themselves sitting on a whole pile of corruption that only international civil servants can imagine is good for the poor of the world. Furthermore, much of their assistance is loans albeit soft ones at that but certainly not grants which it often how it presents official aid. In particular the WB is less of a player in international development assistance anyway as more official aid is bilateral then multilateral and is dewarfed by remittance flows globally. So why not rely on those much more considerable flows of remittances and thus hard currency flows for the Padma Bridge then WB finance terms through much more credible development agents like China and Malaysia govts and companies who have lifted more people out of poverty then WB readily acknowledge. The WB maybe a great research institution but not much else as its role deminishes as more credible development entities offer their services on continents like Africa. So why not in B'desh as well with the Padma Bridge. Such infrastructural projects are very common in other parts of Asia
From: Tanvir Nowaz [mailto:tanvirnowaz@yahoo.com]
Dear Mr. Dewan,
There are absolutely no good alternatives to the WB-ADB-JAICA sweet deal Bangladesh once had. Most recognized economists agree on the low/no cost of this huge loan/grant the WB-ADB-JAICA had offered. Even you seemed to have agreed... "Although, WB's $1.2 billion funding commitment was the best bargain for the country in terms of interest cost".
That's why it is extremely confounding and contradictory to see you finish you above statement with " we should not go back to retake the spit that we spitted once."
Why not? I assume by 'we' you meant the people of Bangladesh. First of all, people of Bangladesh did not loose/'spit' this loan. The Govt of Bangladesh, specifically the PM, FM, and the 6 corrupt officials/individuals have failed/'spitted' it. Why should the people of Bangladesh now pay this high burden (via debt/obligation/delay/low standard etc)? Why should not the people want the govt to 'go back to retake the spit' the govt spitted, for the sake of people instead of saddling them on interest debts. Today JAICA has mentioned the govt needs to clear up the corruption allegation before it decides on any loan.
With respect to Chinese and BOT/BOOT, there will be substantial costs that comes with either supplier's credit or private financing, no matter what.
With suppliers credits, as you had mentioned, we will be forced to have a single source, the Chinese company for the construction. BD govt will not have much say in maintaining/bargaining the quality or cost as beggar cannot be chooser. In multi-bidding process, BD will be the winner in both cost and quality of the Bridge. The private financing will be worse, as the interest rate of the 3B will be at least 5+%, if not more. Compare that to almost of $400m JAICA loan that convert to grant after 20 years (I think) and 0.7% interest 1.5B of WB loan for 40 years (20 year no pay grace period).
The BOT/BOOT are employed when there are no donor fundings available and as a last resort because of the high costs/low quality that comes with it.
Building bridge for the sake of building bridge is an excercise in futility and waste of people's money/future if the usage cost (tolls etc) of the bridge is not benefitial/affordable to the people. The BOT/BOOT/supplier's credit all have a good potential to be just that.
-Tanvir
To: Politiconomy <politiconomy@list.emich.edu>
Sent: Sunday, July 15, 2012 4:33 PM
Subject: [Politiconomy] Alternative financing of the Padma Bridge Project
A downloaded copy is attached and the link to the article is as follows:
Thank you for your attention and interest,
--
Abdullah A. Dewan
Ph.D.(monetary/macroeconomics)
M.Sc.(Phys), M.S.(nuclr. engr)
Professor of Economics
Eastern Michigan University, USA
Phone#(734)487-0003
Thank you for your attention and interest,
--
Abdullah A. Dewan
Ph.D.(monetary/macroeconomics)
M.Sc.(Phys), M.S.(nuclr. engr)
Professor of Economics
Eastern Michigan University, USA
Phone#(734)487-0003
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