A senior World Bank official has said the donor community appreciates Bangladesh's tran slUon to democracy but cau boned that additional external support will depend on the policy the new government la going to pursue.

It is not simply because it is a new government and a democratic government that donors would change their position of support . It all dr pends on what it is going to do." said Shinji Asanuma. the visiting World Bank Director for Asia region. In an exclusive interview with UNB here

Tn fact the support is very much predicative on what the new government says or does", observed the Japanese-born World Bank official, who Is here for groundwork on the coming Aid Bangladesh Consortium meeting in Paris scheduled for late May

He said the basic economic philosophy of the BNP gov emment as reflected in its 19 point election manifesto was more In line with what the donor community expected from a responsible government.

Asanuma, however, expressed reservation about some election pledges of the ruling party, including exemption of farm loans and on the construction of Jamuna multipurpose bridge project.

He wondered If the poorest segment of the rural population would be the real beneficiary of farm loan exemption. There are other proper alter native ways like income gencr atlon to give relief to the poor." About the multimillion Dollar Jamuna bridge project, Asanuma who is well conver sant with politico-economic situation of Bangladesh said. "We do not oppose the project we were never against the bridge The only question is af fordiblbty."

"It is potentially an worthy project but the problem Is to determine what other invest ments can be displaced by the project ... and neither the World Bank nor the govern ment ( of Bangladesh) la In a position to Judge this."

In this context, he was critical of the economic mis management during the Ershad regime. "The planning process broke down and Ershad sponsored many more projects which the country simply can't afford '

Evaluating the overall macro-economic management of the administration. Asanuma »ald the performance had been pretty weir after recovering from a major lapse in IM».

The World Bank Director indicated that In view of the government's recent good performance in following the common policy agenda of the donors, the Bank would recommend to the Aid Chib for a generous aid offer in the com ing Parts meeting.

Asked how the new^popdar donors' prescribed public sector rationalisation programme which would call for retrenching a large workforce, he observed the unemployment problem could only be solved through growth tn agriculture and manufacturing sectors

"Of course excess labour will have to cut and the people will accuse the administration but the government must choose the option of long-term sustainable employment growth than short-term localised employment"

Asanuma emphasised on large scale reforms in the tax administration and making tax base more elastic. Tax collection must grow at a pace of economic growth, he said, and the new government should be able to achieve It as fast as possible.

On defence expenditure, he said the World Bank should not comment on such a "delicate" issue. But donors, he added, would obviously be concerned and oppose if external aid is spent on this head at the cost of people's poverty.

Justifying the Bank's opposition to wage hike, the World Bank official said although poor wage is "deplorable" in a poor country like Bangladesh, wage must be linked to productivity which, according to him. was gradually going down here.

Defending the World Bank suggestion on withdrawal of concessional lending, he said such concessions had only protected some people but not resulted in industrial growth tn Bangladesh. "Not concessional lending but what the private sector here would probably like more is better functioning of the banking system."

Asnuma. in a philosophical tone, observed that generational changes were now taking place among major policy makers as well as the major players of the economy In Bangladesh. This is the sign of "maturation of a nation" which, he said, would Immensely help in managing its economy better