WB iterates support for Bangladesh’s reform efforts

World Bank Vice President Martin Reiser iterated the institution's commitment to supporting the interim government's reform initiatives in Bangladesh during a meeting with Chief Adviser Professor Muhammad Yunus.

The discussion held at the state guesthouse Jamuna on Tuesday covered a range of topics, including transparency, good governance, digitalization, and key reforms in tax administration.

Focus on critical reforms

Reiser emphasised the World Bank's backing for urgent reform activities aimed at enhancing transparency and governance in Bangladesh. These include – improving tax policy and administration systems to ensure fairness and efficiency, strengthening public procurement system to reduce corruption and improve accountability, and elevating the capabilities of the Bangladesh Bureau of Statistics to produce reliable data for informed policymaking.

"These reforms are crucial for Bangladesh's democratic transformation, future governance, and inclusive growth," Reiser said adding that such changes would foster public trust in national institutions, laying the groundwork for sustainable economic progress.

Separation of tax functions

A significant portion of the conversation centred around separating tax administration from tax policy to promote transparency and good governance. Reiser underscored that decisions regarding tax exemptions should rest solely with Parliament, ensuring accountability and reducing opportunities for misuse.

Dialogue through Consensus Commission

Professor Yunus briefed Reiser about the recently established "Consensus Commission," tasked with engaging political parties in dialogue over the recommendations proposed by six major reform commissions. Once consensus is reached, these reforms will be formalised into a "July Charter," which the interim government will implement initially, followed by the elected government post-elections.

"The July Charter aims to institutionalise reforms agreed upon by all stakeholders, ensuring continuity beyond the current administration," Professor Yunus explained.

Importance of digitalisation

Both parties acknowledged the significance of advancing Bangladesh's digital agenda. Reiser highlighted the potential for collaboration with nations possessing advanced digital identification infrastructures to enhance the country's national identity card program. This move could bolster security, streamline services, and improve overall administrative efficiency.

Building trust and independence

Reiser also stressed the necessity of improving the government procurement system and granting greater independence to the Bangladesh Bureau of Statistics. Reliable and unbiased data, he argued, are vital for crafting effective policies and driving development.

The meeting concluded with a shared vision of fostering a transparent, accountable, and digitally empowered Bangladesh. The World Bank's continued support underscores its confidence in the interim government's reform initiatives and their potential to catalyse positive change in the nation’s governance and economy.