World Bank president sees bright future for Bangladesh, identifies 3 areas of improvement

World Bank President Jim Yong Kim has identified three areas that the government can address in order to be “successful” as he sees a “bright future” for Bangladesh.

“I’ve seen history unfold before my eyes,” he said on Tuesday at a press briefing, concluding his two-day maiden Bangladesh visit.

He celebrated Bangladesh’s “accomplishments” in dramatically reducing poverty on the ‘End Poverty Day’ on Monday and also took a close look at how the country is adapting to challenges posed by climate change through visiting southern Barisal district.

“I’ve been very impressed with what I’ve seen in Bangladesh – the many examples of innovation in fighting poverty, empowering women, and battling climate change; the warmth from so many people who have welcomed me; and the strength of your leadership inside and outside government, including many who fought for the independence of this nation,” he said.

He, however, noted that Bangladesh was still facing “many obstacles” to reaching its goals in order to move from a low-middle-income status to middle income status, and to end extreme poverty by 2030.

He identified three areas that the government could address in order to be successful.

The first is to enact policy reforms that improve the business climate, he said.

“Now, foreign direct investment in Bangladesh lags behind that of its neighbors; if the country attracts more investment from the private sector, it will mobilize funds necessary for infrastructure projects”.

Second, he said, as the government correctly points out in its 7th Five-Year Plan, the country needs to strengthen its institutional capacity.

And third is to strengthen governance, which includes building a strong civil service, judiciary, public banks, tax collection and the Anti-Corruption Commission.

“We share Bangladesh’s zero tolerance for corruption, believing strongly that any funds diverted from beneficiaries amounts to stealing from the poor,” he said.

A South Korean-American physician and anthropologist, Kim is the 12th president of the World Bank, and the first without a formal background in finance or banking.

His visit was also seen by many, including officials of the Bank, as smoothening out its strained relations with Bangladesh over the Padma Bridge financing.

“Bangladesh and the World Bank Group share a close bond. Bangladesh is the largest recipient of our IDA fund – the fund for the poorest countries – with more than $24 billion dollars in financing over the past 45 years.

“And the World Bank Group is Bangladesh’s largest development partner. Our relationship is intertwined. We learn from you, and you from us,” he said, at the press briefing.

During his visit, the WB chief met Prime Minister Sheikh Hasina and Finance Minister AMA Muhith and spoke at the joint commemoration of the ‘end poverty day’ with the Bangladesh government.

He announced a new investment plan totalling $3 billion – with $1 billion going into combating malnutrition and the rest in adapting to climate change.

In addition, he said, the World Bank planned to establish a “multi-donor trust fund” to pass on the knowledge of successful poverty reduction experiences here to countries around the world.

“I have greatly enjoyed my two days in Bangladesh, and I have learned many things about your history and your dreams for the future,” he said.

And added: “My team at the World Bank Group and I look forward to doing all we can to support Bangladesh’s development priorities, reducing poverty further, creating more and better jobs, and working to build a more vibrant private sector that invests in this country”.