Foreign policy
failures
"Defense and diplomacy"page
Daily Sun
4th July, 2012
M. Serajul
Islam
Two recent developments provide a
negative assessment of this government's performance in foreign relations These
are, first, the cancellation of the Padma Bridge loan by the World Bank; and second, the statement of the fifteen women
Senators urging the government to be fair to the Grameen Bank.
The curtain has finally fallen
over the drama involving the Government and the World Bank. The Bank announced
this week that it was canceling the contract it had signed to provide US$ 1.2
billion loan of the US$ 2.7 billion that would be required to build the Padma
Bridge with the ADB and JICA as co-financiers for the remaining portion of the
loan. The World Bank stopped processing the loan last year after allegations of
corruption came up against officials of the lead Ministry for executing the
loan, the Ministry of Communications. The Bangladesh Government rejected the
allegations outright although names were not mentioned or at least not in
public,
Thereafter, the handling of the
protracted affair by the Bangladesh Government was poor. Initially, by media
reports, it was evident that the World Bank wanted the Minister for
Communications to go that the Government resented and resisted. In the end,
although the Minister was removed, the Government refused to admit that this
was done under WB pressure. Nevertheless, the WB/ADB/JICA’s stand not to
fund the project till its concerns on corruption were resolved placed the
Government in a difficult situation because of the project’s political
importance. In the end, the government failed to resolve the matter with the WB
because the Prime Minister took a personal stand in the matter. Perhaps there
were other individuals involved that the Government needed to protect.
Further complications that
revealed confusion at high levels emerged as a consequence of the intransparent
way the government handled the issue. The Finance Minister and the new Communications
Minister publicly contradicted each other many times. The Minister of Communications
did not leave anyone in doubt that his main intention was to please the Prime
Minister. He made statements in media stating that Malaysians were eager to
step into the WB's shoes to rescue Bangladesh without checking on facts. When
he was informed that Bangladesh would have to rescind the contract with the WB
to sign the contract with Malaysia, he retracted.
It is time for the Government to
come out clean and inform the costs for the Malaysian funding now that the WB
has cancelled the contract. From media reports, the costs seem to have gone up
by US$ 300 million already from US 2.7 under the contract with WB, ADB and JICA
to over US $ 3 billion under the contract offered by Malaysia. Then of course, the Malaysians would not
provide the loan at the WB's rate that would enhance costs even further. The
Malaysians are coming to the project as a business venture. Their business interests
are certain to add enormously to the costs that the people have a right to
know.
The AL led Government would need
to consider whether it has the ethical right to sign the contract with Malaysia
if the costs go up enormously as it will. The controversy that has been created
because of mishandling the negotiations with the WB is a further reason that
strengthens the ethical argument. Under
the best case scenario, the AL led government would be able to start the
contract only. The major part of the work would be completed under the next
government. Therefore, the government should not start the project simply for
political gains. In any case, by some very poor handling, the government has
not just put at jeopardy serious national interests but has also allowed the WB
to abort the contract with serious charges of corruption against it not just
unresolved but strengthened.
The statement of the 15 women
Senators is also a strong reflection on poor handling of a
domestic issue with critical foreign affairs repercussions by the government.
The Senators have sent a very strong message to the Prime Minister to leave Grameen
Bank alone. This government opened itself to critical international attention and
censure after deciding to remove Dr. Yunus from the GB on the plea that he had
passed the mandatory age of remaining as the Managing Director of the Bank. In
removing him, the Government also tried to humiliate him by accusing him of
corruption and fleecing the poor. In the end, the government removed him from
the GB but at the cost of annoying powerful international leaders such as the
US President and Secretary of State who sent at first her emissaries and then
came to Dhaka to convey her personal annoyance.
The Government also failed to
prove the charges against Dr. Yunus that destroyed its claim it that it had
acted against the Noble Laureate on issues of the law and principle. This
notwithstanding, the Government refused to let Dr. Yunus alone leading New York
Times and the Economist to bring charge of vindictiveness against it. Recently
it formed a committee to investigate 54 GB subsidiaries to find out whether
there has been any corruption or wrong doing in these institutions that could
be linked to Dr. Yunus. Recently, 9 independent Directors of GB, women that the
GB initiative has brought out of poverty to place them in such responsible
positions, voiced their disapproval at the latest Government action. They made
a passionate plea to the government to leave the GB alone. The letter of the
Senators voiced the sentiments and emotions of these 9 GB Directors.
The Senators belong to both side
of the political divide of the US that makes their letter very important. By
disregarding the requests of the US President and its Secretary of State the
Government has placed Bangladesh at odds with the Obama Administration that is proving
serious impediments to achieving its foreign policy goals. If it displays the
same impulsive attitude towards the Senators, the Government would be
destroying its chances of benefitting at all from its bilateral relations with
the USA that has the power to make or break a country such as Bangladesh. The
letter is another chance to the Government to get its diplomacy in order and
its diplomatic rudder attuned to the needs and the interests of the county.
Unfortunately, these two
developments show how personal ego and interests have stood in the way of
Bangladesh achieving its foreign policy interests with major bilateral partners
and international financial agencies. Those responsible for advising the Prime
Minister on the country's foreign policy have failed her badly. They failed to
tell her about the futility of fighting the USA and the World Bank on an
individual and an institution that the world respects or on charges of
corruption against individuals at key positions of the government that it
cannot disapprove. If this government could have placed national interests over
individual ones, it could have been the best placed of all Bangladesh
governments to reach out to the most influential world leaders to further its
national interests.
Before deciding to make world
leaders unhappy over issues that common sense should have dictated otherwise,
Sheikh Hasina had shown the promise to make a position for herself as an international
leader, glimpse of which she had shown during her participation at the Climate
Summit at Copenhagen in 2010. She has wasted that promise on the issues of Dr.
Yunus and the World Bank. The decision of the WB and the letter of the Senators
highlighted how she and Bangladesh have been let down because of some abjectly poor
and unwise diplomacy.
The writer is a former Ambassador to Japan
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