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Utilise existing resources to graduate from LDC status: Atiur Rahman

Star Business Report
Bangladesh could get close to graduating from the least developed country status if it can use its available resources efficiently, the governor of the central bank said yesterday.
"Enhancing the resource utilisation capacity alone could largely close Bangladesh's graduation gap out of LDC labelling, without requiring much more in additional resources," said Atiur Rahman.
The banking regulator spoke at a discussion at Sonargaon Hotel in Dhaka on resource utilisation capacity building to bridge the gap between the least developed country status to that of middle income.
Rahman said the economy's growth dynamism at a sustained 6 percent annual average real growth in gross domestic product for well over a decade now with only modest levels of development assistance and foreign investment is evidence of substantial resource utilisation.
The country has upheld competitiveness in global apparel trade and diversified into pharmaceuticals, glass and ceramics, consumer durables, electronics, light engineering; the private sector has also made inroads into tertiary education, tertiary healthcare, hotels and tourism, and transportation, he said.
“This superficially comforting picture is
not the whole story, however, as there are trends signalling worrisome weakness in resource utilisation capacity, particularly in the public sector."
He said allocation for the annual development programme routinely remains under-spent.
Project implementation typically remains plagued with time and cost overruns, he added.
Utilisation of the allocation under the public private partnership framework has progressed slowly, said Rahman.
He said the delays in resource utilisation in development projects persist not due to a lack of procedural guidance. “The problem may be in adherence to these arrangements, with project directors hamstrung by various interfering influences," he added.
The lengthy resolution process of procurement related disputes is another familiar source of implementation delay in Bangladesh, said the governor.
The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) may help strengthen project implementation capacity in member LDCs.
The Economic Relations Division in association with ESCAP, and the United Nations Department of Economic and Social Affairs organised the three-day event that concludes today.