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How Much does EC Aid Help Bangladesh Poor?
MOST European Comm tinity (EC) aid to Ban gladesh doae little to help the poor and Is often Inefficiently run and mont tercd. according to a recent report from Europe* official watchdog, the European Court of Auditors. Issued last month, the damning report shows the findings of a special mission to Bangladesh by Court repre sentatlves to examine all aspects of the 517 million ECU (2585 crore Taka) EC programme to the country be tween 1976 (the start of the programme) and 1988. The report may fuel the critical d< bate over the role of foreign aid In Bangladeshi develop ment tn the run up to the na tional elections. None' of the twelve major projects looked at by the mission (accounting for nearly three-quarters of the total spent in the period) 'achieved their main socio-economic ob Jectives'. the reports states starkly. A Tea Rehabilitation Project, for example, did not Involve rehabilitation but sltn-ply normal replacement of equipment ... mainly on foreign private estates . The project did not create extra jobes, as planned, or do much to Im prove tea workers living con ditions. says the report.
In addition, most projects set very unrealistic' comple tion dates, the Court con eludes. An EC cotton proji-ct supposed to take three years was still less than threc-quar ters Implemented after eight years. One cereals seeds pro ject started three months after ft was supposed to finish. The report goes no to list a long li tany of further projects way behind schedule deep tube wells, irrigation, food storage depots - amounting to virtually all the Community's major pro jects in Bangladesh
The report says that finance for aid deals was rushed through before enough infor mat ion had been collected or the success - or otherwise - of previous projects had been assessed. Aid was given to im prove veterinary services for livestock assuming this was behind the stortage of animal power for ploughing and Other tasks tn Bangladesh. In fact, the shortfall many have had more to do with a Jack of local fodder or credit for farmers to buy animals - which the project did nothing K> tackle.
Replying to these charges, the European Commission says it Is common for aid projects to run behind schedule. It says most problems arise before the start of the project - when it is being negotiated and staff recruited Long delays are mostly due io the 'administrative pro-cedurcs of the Bangladeshi aid administration,' claims the Commission in its official response to the report's criticisms. It promises that things will run more smoothly with a newly introduced project management system.
The European Community and other donors do not work as real partners on jointly funded projects, the Court of Auditors goes on to say. Partly this is due to overall weak monitoring of EC aid projects. The report reveals that in Brussels only one person has had the responsibility, since mid 1986, for monitoring 65 infrastructure projects In different countries. He has not visited Bangladesh.
However, other donors -such as the United Kingdom and Germany - also come under fire for not keeping the European Community informed. Even though the EC supported the World Bank's Deep Tubcwclls project through fertilizer donations, the Bank failed to supply Im-formation or 'treat the Community as a partner', says the report. It also adds that agencies on the Bangladeshi side suffer from similar shortcomings. Irrigation projects have been weakened because the Bangladesh Agricultural Development Corporation, the Bangladesh Water Development Board and the Bangladesh Rural Development Board have not worked closely enough, say the Court.
The report also shows that the Commercial strings attached to aid favour expensive. imported equipment even where cheaper more appro priate ahemaUves are
In the Bhola Irrigation and livestock project motorcycles were need for field staff. Although suitable Dhaka built machines were available. EC rules instated that motorbikes were bought In Europe (under the heavily criticised practice of tying aid). These cost the project and extra seven and a half lakh Taka, while spare parts and malntance of the foreign bike are set to be a continuing problem.
The EC’s large food aid programme also comes in for strong criticism. Bangladesh Is the Community s largest food aid recipient and the programme accounts for 62% off all EX aid Io the country But. maintains the report, most food aid dose hot reach the millions of poor people who go hungry In Bangladesh every day. Instead, under the pro gramme, food did ’goes at subsidised prices to the more prosperous urban and public sector' and Is sold to raise money for the government
Three lakh tonnes of food aid cereals (largely wheat) a year, twenty-eight per cent of the total, went straight to civil servants, the armed forces and government employees between 1975 and 1985. according to the Court of Auditors. A further 34 per cent was sdld at subsidized prices in theory for the poorest rural population, although It frequently failed to reach them'. Only the remainirtbulcd^ntly with the UM. World Food Programme) for emergency rrlwf vulnerable group, and foodfor-work programmes, really did Much to reach the hungry The report also cr1tlei.es the Bangladesh Government for lax accounting for EC food aid go tog through the Government • i-ublic Food Dislrlbuttoa Sys tem (PFDS). It call. on the European Commission to find better ways of targeting ***
* The report. however. found a brighter picture where EC aid had been used to fund projects run by non governmental organisations (NGOs) both European and Bangladeshi ba-a-d. Although financial iu pervision of such projects should be Improved, said the Court of Auditors. most- pro jccts investigated were worthy of support It noted that, a particularly cost conscious and well organized Bang U.dcshl NGO had built schools and teachers accomodation and planned Ycl the compa native effectiveness of this kind of funding is in stark contrast to the fact that It only account, for one per cent of the total EC programme
Ben Jackson is Campaigns Officer of the World Dev elopment Movement. the UK based pressure group on development Issues, lie is presently on a research visit to Hangladesh tn collaboration with the Hangladesh Centre of Advanced Studies.