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Widespread graft hurts Dhaka's FDI potential

Rocca laments political rivalry, extremism

Staff Correspondent
Widespread corruption is hurting Bangladesh's potentials for foreign direct investment and economic growth, US Assistant Secretary of State Christina Rocca observed Tuesday.
"We arc pleased that the Bangladesh government established an Anti-Corruption Commission, but this organization needs to take action," she told the House International Relations Subcommittee for Asia and the Pacific.
She also observed dial political rivalries, failures of governance and rising extremism tlireatcn democratic stability and drag down eco-
nomic growth, according to the official website of the subcommittee.
"The United States engages the Bangladesh government on a range of important issues, including democracy and human rights, fighting corruption and countering extremism.
"Democratic Bangladesh, with the fourth largest Muslim population in the world, stands as a leading contributor of troops to UN peacekeeping missions worldwide and as a valued partner in die war on terror. Its GDP growth of above five percent is satisfactory, but could be significantly better," Rocca continued. added.
This was her first presentation before the Subcommittee for Asia and the Pacific since the start of the second Bush administration.
The aim of the meeting was to review what has been accomplished in the past four years and discuss USA's goals for the future, according to the US State Department.
In her statement, Rocca appreciated the government for establishment of the Anti-Corruption Commission.
She said this organisation needs to take action. "Only action against corrupt individuals will demonstrate that corruption has no place in the future of Bangladesh."
Rocca said the US engages the Bangladesh government on a range of important issues, including democracy and human rights, fighting corruption and countering extremism.
"Democratic Bangladesh, with the fourth largest Muslim population in the world, stands as a leading contributor of troops to UN peacekeeping missions worldwide and as a valued partner in the war on terror," she said.
However, she said Bangladesh's widespread poverty, educational shortcomings, endemic corruption, porous borders and lack of public faith in elected government risk increasing the attractiveness of radicalism.
"Extremist groups operate in the country more openly. The government acted against two of them in February last but more must be done. We have cautioned the government about the dangers posed to Bangladesh by extremism," said the US official.
With human rights also a regular topic for Washington's dialogue with Dhaka, she said: "We commend the Bangladesh government for measures taken to protect the rights of Ahmadiyyas, although much more can and must be done following renewed attacks on their places of worship."
She reiterated the US concern "about extra-judicial killings, so-called 'crossfire' killings done by the Rapid Action Battalion (Rab)."
On economic matters, the US assistant secretary of state said Bangladesh's GDP growth of above five percent is satisfactory, but could be significantly better.
She also listed the US assistance for exploiting full potential of Bangladesh.
"We have a variety of ongoing activities designed to assist Bangladesh reach that potential. We have development programmes aimed at increasing accountability and the transparency of Bangladesh's democratic institutions. We support civil society advocacy groups such as Transparency International Bangladesh."