Floods in July and August caused 2,2 billion US dollar (13,4 milliarder DKR) in damage in Bangladesh and could prevent the economy from achieving the governments growth target this fiscal year, the World Bank and the Asian Development Bank (ADB), the countrys two key donors, has announced.
The assessment by the two bodies in a joint statement was considerably lower than the governments estimate that the floods had caused 7 billion US dollar (over 40 mia. DKR) in damage.
The World Banks country director Christine Wallich said on Sunday that “funding for post-flood rehabilitation would not be a problem but the donors would want efficient implementation of projects.” She also said a final assessment of the flood impact would be completed by the middle of October.
The ADB and World Bank said the flooding might prevent Bangladeshs gross domestic product (GDP) from achieving the governments six-percent growth target for the fiscal year through July 2005.
– Preliminary analysis shows that, because of the flood, the 2005 GDP growth could be about 0,5 percentage points lower than the 5,5 percent growth achieved in 2004,” the statement said. Finance Minister Saifur Rahman forecast in June when announcing the national budget that Bangladeshs economy would grow six percent or more in the current fiscal year.
The joint assessment mission has proposed a three-pronged response to the flood damage and about how to face it in short, medium and long-term perspectives.
The first phase refers up to 15 months time when urgent rehabilitation activities in critical sectors will be carried out. It includes repair of roads, water supply and sanitation, health and water resource management, municipal infrastructure, social protection, as well as housing and upgrading flood and cyclone shelters.
The second phase will be extending up to five years focusing on needs of critical sectors, including social and physical infrastructure. It will include recovery program for roads, water resource management and such other things under long-term disaster preparedness and response.
The third phase will focus on mainstreaming hazard resistant criteria in regular development process, such as ensuring reliability of early warning and weather forecast, and opening dialogue with India on joint flood response and management.
WB country director Wallich said the World Bank will be working to implement activities in all these phases while the ADB will mainly focus on the second and the third phases.
She said industries, including small and medium industries, textiles and garments units have suffered and exports may see some slow-down, and the balance of payment may aggravate pulling down reserves.
The joint mission also lauded the Bangladeshi governments role in dealing with the flooding, saying it has done a commendable job with the help from non-governmental organizations in responding to the need of flood emergency and assisting flood-hit people.
Meanwhile, new floods have left hundreds homeless in Bangladesh. Floodwaters from upstream India have swamped at least 80 villages in southwestern Bangladesh, inundating roads, households and fields. At least 65.000 people have been marooned in three districts and many others were looking for shelter.
The impoverished delta nation is still struggling to recover from massive floods in July and August. Those floods covered half the country, killing at least 766 people and affecting more than 30 million, many of them left without homes and jobs.
In other news, Bangladeshs appeal as a destination of FDI has largely eroded due to the governments failure to fulfill its promises on infrastructure, law and order, property rights, and reforms.
Wallich said that with the next parliamentary elections looming fast, the government appears to become progressively constrained to go ahead with its “bitter” reform programs that would facilitate FDI.
She said that Bangladesh is a fragile case because the quality and transparency in public administration is low, infrastructure is lacking, state-owned enterprises are a burden to economy, and higher and technical education are sorely deficient.
Kilde: www.worldbank.org
