Interim govt must integrate aspirations, reality and competent leadership

Bangladesh's economy is not in a good shape. The interim government can draw up a white paper on the state of the economy. What the government can do, how much can it do, depends on the tenure of the interim government. If a white paper is prepared, this will serve as a road map to overcome this situation. This white paper will serve two purposes - one is to work as a base for the situation, and the other, history. In drawing up the white paper, alongside examining the facts and figures, discussions can be held with the main stakeholders.

Through this process of dialogue, scope will be created for democratic participation in the matter of policy review and guidelines. It will lend a sort of democratic basis to formulating policy. If the government for any reason does not do this, then the professional citizens must come forward. I feel such a white paper will serve as an advisory document. It is not to bind the government. It is needed for the government to take on the authority or responsibility. If the government doesn't do it, then CPD should do it along with financial, commercial and other institutions. But it should not take more than a month to do this, one and a half months at the most. Even if it does nothing else, the white paper will remain as a record.

The government's financial and commercial institutions can be included in this framework. Each institution will come up with a policy brief. For example, the energy and mineral resources paper will have a policy brief on the state of liabilities. Other important ministries will also require policy briefs. The views of stakeholders must be taken into cognizance. Also to be involved are the private sector, foreign investors and development partners. The views of large, medium and small entrepreneurs must also be taken into consideration.

There is another task necessary for the interim government and that is a data commission. Data is the fifth pillar of the state. The distortions and deficiencies in data must be cleared up. Three parties must be included in this -- the data producer, user and evaluator. There must be arrangement to protect official data. The data institutions must be allowed to work independently in a professional manner.

Alongside the banking sector, the power and energy sector is also very important. These function as the lungs of the economy. At least one task force is required for the power and energy sector. And a bank commission is needed for the banking sector. The task force will give a preliminary paper on why, despite having a capacity to generate 23 to 24 thousand megawatts of electricity, why is only 12 to 13 thousand megawatts being generated and also power being imported. The task force's report will also deal with the rental, quick rental and impunity issues.

First there needs to be a bank commission. I do not know if it will get the time to diagnose the ailments of the banking sector or to prescribe the necessary drugs and treatment. I don't know if it will be able to reach up to getting results. But scrutinising the facts and figures in the banking sector will be the commission's first task.

A major task will be to determine the actual amount of default loans. Matters like provision deficit and capital adequacy must also be assessed in a transparent manner. The Bank Company Act allows three persons from one family to be on a bank board for 9 years at a stretch. These must be changed. The interests of the depositors must not be harmed in recovering default loans. A pragmatic exit policy must be prepared. The rules regarding writing off loans must be examined. The process of appointing independent bank directors is not correct at present. Transparency and professionalism is required here.

This is a very complicated matter of political economy. Their proprietorship requires to be sorted out in a transparent manner. There is a gaping lack of corporate good governance in the banking sector, with which the ownership and senior management is complicit. There needs to be an evaluation of how much loans a businessman will be able to avail, how many board directors can there be from a single family, and so on. There also needs to be a policy on how loan defaulters can get of the default list and also a policy regarding writing off the loans. Asset management companies do not function well.

The supervision of government banks should be taken away from the finance ministry's financial institutions division and handed over to the central bank. There is another bit of advice I'd like to give and that is to form a blue ribbon committee. This would comprise experienced, intelligent and professional persons who will approve for the appointments of bank directors and chief executives. Alongside banks, such committees can also be formed for the Anti-Corruption Commission, the human rights commission and such institutions. This may halt political appointments.

Controlling inflation and food security must be the top priority of the government. The fair price sales of essentials in the open market must continue. Food security per head must be ensured. For so long the figures concerning food security had been inflated. These must be fixed. And the supply of essentials must be kept up. The present state of food reserves must be assessed and an effective plan put in place for aman crop collection. The various problems of the farmers must be addressed. Accurate figures of food production must be published and if there is shortfall, imports must be arranged. The supply chain must continue, most importantly the ports must function without any hitch.

An evaluation in this regard is essential. The government must certainly make an effort to ensure that the development partners meet the commitments for foreign assistance they have made. After all, a good chunk of the assistance is spent in the social safety net sector. In the case of IMF, the World Bank and others, attention must be paid to reforms. Care must be taken so that the funding through the agreements made by the former government is not hampered. Grants must not be halted or decreased under any circumstances.

I feel three matters are of importance. These are -- aspirations, ground reality and competence of leadership. The integration of these three will bring success for the interim government. There were such governments in the past too. Lessons can be learnt from past experience. I hope the new government can ensure a fair and inclusive election. I also have another very strong wish and that is for the new government to reform the constitution.