Muhith wants ADB to prepare high-growth plan for Bangladesh

Finance Minister AMA Muhith yesterday expressed his hope that the Asian Development Bank will emphasise high growth and inclusiveness in its country partnership strategy for Bangladesh.

Muhith also called upon the lender to carry out structural changes in its project financing, saying it takes too much time. He spoke at the first business session at the annual meeting of ADB’s board of governors in Frankfurt.

"I hope the country strategy paper for Bangladesh will focus on high and inclusive growth and poverty reduction," Muhith said.

Although Bangladesh has done quite well in poverty reduction, more than 24 percent of the population still lives in poverty; 70 percent people were poor 40 years ago, he said.

The finance minister also talked about Bangladesh's economic growth and women empowerment.

"I am happy to announce that our economy will probably grow at 7 percent this fiscal year, against a 6.8 percent forecast by international development partners."

Of Bangladesh's total workforce, 30 percent are women, which he said would reach 50 percent in the next five years.

The finance minister hailed the ADB for its continued support in the development projects of Bangladesh; the ADB accounts for 38 percent of the finance that Bangladesh gets from international donors. On the issue of climate change, he said Bangladesh is an unfortunate victim. The government has so far undertaken projects worth $400 million from its own sources to tackle the threats of climate change, he said.

The minister stressed the need for cooperation in the development of sub regional economic cooperation, involving Bangladesh, Bhutan, Nepal and northeast India. “The corridor needs to be developed.”

In the global context, Muhith said the next two years are expected to be quite good, but there are downside risks. These include a slowdown in the Chinese economy and falling energy and commodity prices.

Takehiko Nakao, the ADB president, in his inaugural speech, urged the member countries to take action on job creation, development of the private sector and combatting climate change.

The long-term outlook of the Asia-Pacific is strong despite a slowdown in some economies, Nakao said.