White paper committee to analyse economic status, not trend: Debapriya

The newly formed committee tasked with preparing a "white paper" on Bangladesh's economy will focus on analysing the country's current economic status rather than its trends, said committee head Debapriya Bhattacharya.

It will examine certain trends over the years only if necessary to fully understand the current economic landscape, he told reporters following the committee's first meeting at the General Economics Division (GED) office in Sher-e-Bangla Nagar on Thursday (29 August).

The interim government has formed the 12-member committee for the preparation of a comprehensive "white paper" on the state of economy. 

Debapriya, distinguished fellow at the Centre for Policy Dialogue (CPD) and convenor of the Citizen's Platform for SDGs, has been appointed chairman of the committee.

He clarified that they are not tasked with identifying or prosecuting corruption but with understanding why it occurred and its extent. 

"It is not our responsibility to identify who is involved in corruption. That task falls under the jurisdiction of the government and its relevant agencies," he added.

However, Debapriya said they will not name specific corrupt individuals but will discuss policies, regulations, and institutional roles as relevant. "The white paper will include preventive recommendations to avoid similar issues in the future."

He said the committee will work to ensure transparency, through which the interim government will understand the economy they have inherited, identify the challenges and take necessary steps.

"It's crucial to know the foundation on which the economy stands. The primary task of the committee is to assess and evaluate this foundation and present it with supporting data" said the economist.

After identifying the problems, the committee will offer some solutions, he added.  "The government has already initiated reform programmes, and the white paper will shed light on these reforms and help determine key focus areas." 

He noted that discussions on reform programmes are ongoing within the government and will continue. The committee will provide guidance, recommendations, and comparative assessments on these reforms.

How the committee will work

Debapriya Bhattacharya said they will operate through three approaches: analysing government data critically, utilising analyses from think tanks, international organisations, and private institutions, and engaging in discussions with various stakeholders, including students, youth, foreign experts, and business leaders.

The committee may need more than 90 days as initially decided to complete its task due to limitations, he said. However, if any part is completed before the three-month period, the committee will release a draft report for public feedback.

The first meeting covered the scope, structure, and components of the "white paper". At the next meeting, responsibilities for drafting the paper will be assigned to committee members.

Banking sector

Regarding the banking sector, Debapriya clarified that the committee will not conduct a comprehensive evaluation but will address issues related to liquidity, funding gaps, and loans as they pertain to private sector investments. 

A detailed analysis of the banking sector will be outside their scope, he said. Although necessary discussions on the money market and capital markets will be included.

He added that the committee will advise against granting bank licences to unsuitable candidates and recommend measures for protecting depositors and maintaining investment activity. 

It will also suggest ways to ensure qualified appointments but will not provide a detailed analysis of the banking sector, the economist clarified.

Capital flight

Debapriya said the "white paper" will address capital flight, but returning embezzled funds is a complex process. 

He noted that there are no legal agreements or experts to facilitate this process, and hired personnel may not be sufficient. 

However, measures must be taken to prevent further capital flight and hold perpetrators accountable, with ongoing efforts to discuss asset recovery with other countries. 

Mega projects 

Debapriya noted that while the committee cannot review all projects under the Annual Development Program, it will provide recommendations on a few key areas and mega projects. 

The committee will assess the significance and impact of mega projects, including their debt repayment capacity and financial management.

The "white paper" will outline the framework and basis for the upcoming 9th Five-Year Plan, and suggest measures to expedite and enhance development programmes, said the economist.

It will also address sustainable strategies for Bangladesh's graduation from the LDC status, he added.