USAID Administrator Andrew S Natsios yesterday warned Bangladesh that economic development would remain elusive unless it addresses the sliding law and order and crippling corruption.

"We are very worried about the issues as they significantly obstructs development," Natsios told reporters after his meeting with Finance and Planning Minister M Saifur at the finance ministry yesterday.

They discussed the deteriorating law and order and corruption in the meeting.

Natsios said not only the finance minister but all ministers and members of parliament should work together to face the problems and

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unless these problems are eliminated economic development is not possible.

"Lack of good governance and corruption has meant that our (USAID and other development partners) assistance is not being properly utitlised," the official of United States Agency for International Development noted.

Emerging from the meeting, Saifur told reporters, "Problems with law and order and corruption cannot be eradicated overnight. The government is working relentlessly to check corruption and terrorism and improve law and order. Besides, it has undertaken effective measures to ensure good governance in the country."

"Problems with law and order and corruption have always existed and as long as society exists these problems will be there," Saifur added. "Bomb blasts and corruption are happening not only in Bangladesh but in many other countries in the world."

Natsios, accompanied by US Ambassador Harry K Thomas, led a four-member USAID team to the meeting with Saifur where they also discussed good governance and terrorism.

Sources said the investigation into the August 21 grenade attack on an Awami League (AL) rally and the recent spates of bomb and grenade

attacks were also discussed in the meeting.

"No democratically elected government would ever want to embarrass itself by doing such a thing," said Saifur on the recent spate of bomb and grenade attacks. "This is perhaps an act done out of envy of our economic success," he added.

"Good governance, corruption and terrorism are related to economic development of a country and we discussed these issues at the meeting," Saifur told reporters.

Natsios, who arrived Friday on a four-day visit, will review the development programmes being supported by the USAID. He will also see the country's efforts on key development issues like food security, poverty alleviation, population growth, market economy and governance.