World Bank Pledges $100m in Food Aid to Bangladesh

Dhaka, Bangladesh | October 01, 2008 by D-8 Secretariat

World Bank (WB) has pledged a first phase donation of $100 million to assist Bangladesh in implementing the current fiscal budget, a WB official said yesterday.

This first phase assistance will be provided for the government’s food security programmes for the 2008-09 fiscal year, the new World Bank vice president for South Asia, Isabel Guerrero, told reporters after a meeting with finance adviser AB Mirza Azizul Islam at the Planning Ministry.

The WB official said that her organisation would continue its assistance in ensuring food security, as well as extending assistance in tackling the effects of climate change.

The donor agency might end up doubling its assistance in the current fiscal year, she added. Guerrero said that the country was currently facing three major challenges: climate change, impact of worldwide inflation and food security. The WB would provide assistance to Bangladesh in all three areas, she said.

Finance adviser Mirza Aziz said: “The WB has ensured assistance in the food security sector to reduce budget deficit.”

“The development organisation also assured its assistance in tackling the losses due to climate change,” he added.

The WB vice-president also mentioned an international conference titled Focus Bangladesh, to be held in London on Sept 10. The conference will discuss ways to extend assistance to Bangladesh in facing climate change, including an emphasis on food security.

Guerrero arrived in Bangladesh on Saturday night after replacing Praful C Patel in the post of WB vice president for the South Asia region. This was her first visit to Bangladesh. Donors recently pledged a total $340 million for food security programmes, with the Asian Development Bank (ADB) committing half the amount.

“The World Bank, ADB and other donors will provide Bangladesh with food security assistance worth 340 million dollars, of which the ADB slice will amount to 170 million,” outgoing ADB resident representative Hua Du announced on July 14 ahead of her departure from Dhaka.

D-8 cherished this news by bringing into mind that the pledge was in line with one of the result from D-8 6th Summit in KL earlier this month, where the head of states of D-8 pledged their readiness to deal with the global challenges regarding with the skyrocketing food prices. “We are glad to see the big attention World Bank gave to Bangladesh, that has been facing fiercely against the rising food prices, inflation, and food availability,” said Secretary General Dipo Alam yesterday in his office.

As known, D-8 has identified some potential cooperation to combat the rising food prices threat, as discussed among D-8 head of states in 6th Summit, which includes :

• To develop some fertilizer and pesticide plants in D-8 countries, and apply Preferential Trade Agreement for exporting and importing the products to ease D-8 farmers to produce more food products and the supply;
• To develop cooperation on animal feed factory within D-8 countries; and apply Preferential Trade Agreement for exporting and importing the products;
• To establish a Seeds Bank in D-8 Countries for enough seeds stock whenever are needed for increasing more food products within the countries, as well as a ready stock whenever needed by farmers because of natural disasters, and other unfortunate situation;
• To establish D-8 Food Fund for helping the needy on the food within D-8 countries caused by current unfortunate situation in food crisis time;
• To set up an R&D and technological cooperation in the areas of agricultural development, especially to increase the productivity both in inland-farming and agro-based industry;
• To cooperate for diversifying agricultural products supply, including fishery; animal husbandry; and organic products;
• To establish capacity building, including education and training program; and
• To establish a public-private partnership, by involving more private sectors participation in the programs.

Read Also

• World Bank pledges $100m in food aid to Bangladesh
• World Bank Praises Bangladesh Poverty Reduction
• World Bank VP praises Bangladesh’s Major Achievements
• Fertiliser prices cut drastically in Bangladesh
• SG Expects that MayAgro of Turkey Take Part as One of D-8 Seed Bank in Food Security Programs
• Bangladesh Bank to Control on Non-Productive Credit
• Bangladesh signs deal with World Bank on development support credit
• Bangladesh Summer Rice Crop Set to Exceed Target
• Malaysian Economy is Strong, 2009 Budget will Focus on Food Security
• The World’s Third-Largest Seed Bank Established in Turkey