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Dutch minister backs expansion offending instruments

Sajjadur Rahman
Dutch Development Cooperation Minister Bert Koenders has emphasised a wider range of multilateral lending instruments in helping the developing nations to face the ongoing global economic meltdown.
“To what extent international financial institutions are able to spend for fending to developing countries, which might have budget or balance of payment problems, is important,” Koenders told The Daily Star in an exclusive interview on Monday.
The Dutch minister left Dhaka after his June 5-6 visit to Bangladesh on that day.
He feels that fending capacities ofWorld Bank. International Monetary Fund and Asian Development Bank are to increase in the wake of declining economic growth worldwide.
In this context he pointed to the fact that the Netherlands’ economy has shrunk by 5.5 percent this year.
On the declining aid flow concern, he said his country is obliged to provide 0.7 percent of its GDP as assistance to developing countries even in the prevailingcrisis.
The minister, also a member of the ADB governing body, said ADB's capital base has been increased by 200 percent very recently.
Bert Koenders said all countries at a meeting on 'financial and economic architecture' in the United Nations last week pledged to provide 0.7 percent of their GDP
During his stay here, he discussed different issues, including land reclamation and water management with the Prime Minister and a number ofministers.
He also visited a water
management project in Khulna district.
Climate change, water management and trade and investment issues were other issues came up for discussion during the foreign dignitary's meeting with government officials.
On climate change, Koenders said initiative has to come from Bangladesh to tackle the challenge. "Precise information and proper water management are crucial," he pointed out.
The Dutch minister however said developed countries could do more with technology transfers. He also advised Bangladesh to undertake public-private partnership projects to mitigate climate change impacts.
On the possibility of more imports from Bangladesh, he said some areas have such scope.
Lauding Bangladesh's entrepreneurial skill, the Dutch minister said, “You have an advantage of competitive price, which is very crucial on the back of global crisis."
He also suggested a diversification of Bangladesh's export basket. "You should develop domestic market," headded.
On the financial crisis, he said: "There are some signals. such as stocks and rise in oil prices that indicate recovery." But it is early to make any comment on it," Koenders said.
sajjad@thedailystar.net