Bangladesh Resident Mission

Strategies for Growth and Development

by Putu Kamayana

The Asian Development Bank (ADB) current country strategy and program (CSP) for Bangladesh, reflected in the latest annual CSP update (CSPU) for 2005-2006, fully reflects the priorities of the interim Poverty Reduction Strategy (i-PRS). The CSPU was endorsed by ADB's Board of Directors in August 2004.

The Government of Bangladesh prepared an i-PRS entitled "A National Strategy for Economic Growth, Poverty Reduction and Social Development" in 2003. The i-PRS forms the core of the Government's 3-year rolling plan, serving as the basis for the annual budget and for external assistance support to the Government's development priorities. Its strategic elements include

• economic growth to increase income and employment of the poor
• human development to raise the capabilities of the poor to participate in the development process
• women's advancement and closing the gender gaps
• targeted social protection for the poor
• participatory governance to involve the poor in decision making

The CSPU highlights selectivity of ADB interventions based on sector performance and demonstrated commitment to reform and institutional strengthening; continued support in key infrastructure and social sectors, where ADB has had a long-term involvement and positive track record; and promotion of private sector development and collaboration with NGOs.

The latest CSPU (2005-2006) provides $990 million in total lending operations (comprising $440 million concessional funding from the Asian Development Fund and $550 million from ordinary capital resources), subject to the approval of ADB's Board of Directors. It also includes about $10 million in technical assistance grants. For details, visit http://www.adb.org/Bangladesh.

The i-PRS was discussed by the International Monetary Fund (IMF) and World Bank boards in June 2003. Implementation of the i-PRS is being supported by the IMF's Poverty Reduction and Growth Facility (PRGF) and the World Bank's Development Support Credits (I and II). Based on the overall favorable reactions to the i-PRS, including feedback from national stakeholders and bilateral and multilateral development partners-and given the satisfactory progress in its implementation-the Government has committed to prepare a full-fledged PRS by the end of 2004.

A high-level national commission coordinates the preparation of the PRS. The Government has established 13 thematic groups to refine the PRS sector strategies. Comprehensive consultations with various stakeholders at both central and local levels have been undertaken. The first draft of the PRS is expected to be available by end-September and the final draft by end-December 2004.

ADB participates in the local consultative group (LCG) subgroups on key sector and thematic issues, which have provided inputs to the Government's thematic groups for refining the PRS sector strategies. ADB heads the LCG subgroup on infrastructure and coordinates inputs on critical infrastructure development. Through technical assistance, ADB is also supporting capacity building for poverty monitoring and evaluation under the PRS.

ADB's forthcoming new CSP, covering 2006-2010, will build upon the Government's strategies and programs as set out in the full-fledged PRS. Completion of the new CSP is expected in early 2005, for consideration by ADB's Board of Directors.

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BRM Quarterly Newsletter, 2nd Quarter 2004