We are in a deceptive reality over foreign debts: Debapriya

Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue (CPD), has voiced concerns if the people are truly benefitting from the mega projects funded by foreign loans.

Disclosing his own observations, he said a vested interest group is exploiting the overseas funded mega projects to gain individual capital and even laundering money abroad.

“We are failing to contribute even a single penny from the revenue budget to the development projects. We are in a deceptive reality regarding the foreign loans. So many mega projects are being implemented with loans, but there are no reflections on education, health, and socio-economic developments. Why didn’t the people benefit even after doing so many things?,” he asked.

The noted economist and public policy analyst was addressing a dialogue – Bangladesh’s External Borrowings and Debt Servicing Scenario: Are There Reasons for Concern? – at a hotel in Dhaka on Thursday.

While explaining the deceptive reality, Debapriya asked why the private investment to GDP ratio is still stuck at 23 per cent despite numerous mega projects. Rather, the government statistics suggest a decline in the ratio.

Citing the recently published Sample Vital Statistics, he said the average life expectancy has decreased, while the death rate has increased. The rate of unemployment has also gone up, while 25 per cent of families are taking loans to bear basic expenses.

“We have done so many things throughout the last one and a half decades, why didn’t the people benefit from them,” he asked.

Rather, he pointed out a contrasting scenario as the bank loans now remain unrepaid and the money of the middle-class group gets robbed through the share market. A vested quarter has been inspired to use the externally funded mega projects as a new source for gaining capital.

He particularly mentioned the power sector and expressed firm belief that there is a link between the vested quarter’s money laundering and the mega projects.

CPD chairman Rehman Sobhan said Bangladesh is doing better than Sri Lanka and the African nations when it comes to repayment of loans.

“We should think more about how we will repay the foreign loans in the coming days, and how we will increase our export capacity. An increased exports would ease up the loan repayments. We need to plan to pull up the export earnings to Tk 100 billion,” he said.

Mustafizur Rahman, distinguished fellow of CPD, presented keynote speech at the programme. He noted the challenges in meeting development expenses through internal revenues.