MDG Report 2012 - United Nations in Bangladesh

9.3 Challenges to Achieving the TargetsResource constraint is one of the major impediments to achieving the MDGs inBangladesh. The GED‟s publication titled MDG Financing Strategy for Bangladesh2011 estimated a total requirement of US$ 78.2 billion during 2011-15 for attainingall the MDGs in Bangladesh. Two scenarios, baseline and high growth, wereconsidered in the study. According to the study, MDG resource gaps as percent ofbaseline GDP was on average 1.5 percent while the same was 0.7 percent of GDPunder the high growth scenario. It was estimated that Bangladesh needed foreignassistance to the tune of US$ 5 billion and US$ 3 billion per year under the baselineand the high growth scenarios respectively.While trends show greater donor support in the form of higher ODA disbursementsfor the MDGs sectors, investment in scientific research, infrastructure improvementincluding rural roads, irrigation, fertilizers, seeds and credit for agriculturaldevelopment should be further prioritized.The government‟s aim is to promote better aid management through the establishmentof joint monitoring indicators, addressing weaknesses of the public financialmanagement system and effective and transparent planning and results-basedmonitoring systems.The improvement of general governance structures to reduce costs of doing businessso as to stimulate foreign investment and encourage regional investment in emergingand potentially high return sectors, establishment of Special Economic Zones alonginternational borders, encouragement of joint ventures with Non-ResidentBangladeshis and similar other efforts are major challenges that need more concertedefforts.Operationalizing the public private partnership (PPP) initiative as an importantmodality for achieving the MDGs is a major priority for which finalizing the policyand legal frameworks are concerns. The potential of FDI has also remained underexploited so far. For this, it is important that a national competitiveness study becarried out for identifying profitable areas of investment and developing a positiveimage of Bangladesh.Trade policy should encompass factors that affect not just trade but also investmentpractices. It is now time that Bangladesh adopt a policy regime that provides effectivesupport to the growth of small and informal sector activities with significant povertyalleviation effects. In particular, developing the capacity of medium, small and microenterprises (MSMEs) to take full advantage of global trade can prove critical inensuring an inclusive trade regime in Bangladesh.Market diversification to reach out to new markets including that of Japan has beenidentified as a critical need. Enhanced market access for LDCs in developed countriesin terms of duty free quota free (DFQF) provisions will generate large welfare gains.Bangladesh, being a member of the LDC group at the WTO, has been lobbying forDFQF access for long especially to the US market.103