2003年-世界发展银行全球_Bangladesh___Public_Expenditure_Review_191页_12mb

Bangladesh Public Expenditure Review Summary

Core Content

This report, Report No. 24370-BD, is a Bangladesh Public Expenditure Review (PER) conducted by the World Bank and the Asian Development Bank (ADB) in collaboration with the Government of Bangladesh. It was prepared in Fall 2000 and finalized in May 2003, with the goal of analyzing the state of public expenditures and their alignment with the government's economic and social development goals. The review builds on previous studies, including the Country Financial Accountability Assessment (CFAA) and Country Procurement Assessment (CPA), and provides recommendations for improving the efficiency and sustainability of public spending.

Main Features of the Report

Part I: Unsustainable Public Sector Spending and Weak Governance

• Fiscal Sustainability:

  • Bangladesh's economy has performed reasonably well despite its vulnerability to natural disasters and weak governance.
  • The fiscal deficit reached 6% of GDP in 1999–2001, indicating an unsustainable financial situation.
  • There is a need for fiscal adjustment to be sustained, with the FY03 budget anticipated to include such measures.
  • Social sector spending (education, health, and social safety nets) has shown progress, but it is not sufficient to meet the Millennium Development Goals (MDGs) by 2015.
  • External debt sustainability is also a concern, with total external debt at 34.3% of GDP in FY02.

• Public Spending Trends:

  • Public spending has increased, but its appropriateness and effectiveness are questioned.
  • The deficit financing of state-owned enterprises (SOEs) has become a major burden.
  • Governance and institutional weaknesses are widespread and hinder the effectiveness of public services.

• State-Owned Enterprises (SOEs):

  • SOEs have weakened financial performance, leading to increased budgetary support.
  • The report highlights the need for parastatal reforms, including privatization and better governance.
  • A comparison with China shows that Bangladesh is lagging in SOE restructuring efforts.

• Public Sector Reforms:

  • There are issues in budget preparation, implementation, and oversight.
  • The report recommends improving results orientation, statistical reform, and sector-wide approaches for better aid effectiveness.
  • The Bangladesh Government's Reform Agenda is discussed, emphasizing the need for institutional strengthening and governance improvements.

Part II: Functional Analysis of Expenditures

• Education:

  • Gross enrollment rates are high (over 90%), but literacy rates remain low (45% among those over age seven).
  • Equity in education spending is a concern, with stunted or underweight children still prevalent.
  • Policy priorities include increasing public education expenditures and improving non-public delivery systems.

• Health:

  • Government health expenditures have improved, but health outcomes remain poor.
  • Maternal mortality is among the highest outside Sub-Saharan Africa.
  • Child mortality has decreased, but disparities across income groups persist.
  • Policy priorities include behavioral change, midwife training, and comprehensive health strategies.

• Public Social Safety Net:

  • Programs like Food For Education (FFE) and Vulnerable Group Development (VGD) exist, but targeting inefficiencies and leakage are issues.
  • Policy priorities include better targeting of Female Secondary Stipend (FSS) and Vulnerable Group Feeding (VGF).

• Agriculture and Rural Development:

  • Agricultural development has been a key area, with rice production increasing significantly.
  • Rural infrastructure remains a challenge, with arsenic contamination threatening progress.
  • Policy priorities include sectoral reallocation and improving rural development.

• Transport:

  • Transport infrastructure is inadequate, with low road density and high costs for maritime transport.
  • Policy priorities include reforms in transport systems and improving efficiency.

• Energy:

  • The energy sector faces significant challenges, including inefficient power distribution and high utility system losses.
  • Power sector restructuring is necessary, with lessons from other countries.
  • Policy priorities include tariff reforms, privatization, and improving energy access.

Key Information and Findings

• Poverty remains high, with 50% of the population living below the higher poverty line and 35% below the lower poverty line.
• Economic growth has averaged 4-5% from 1980 to 2000, but growth needs to increase to 6% to halve poverty by 2015.
• Inflation is currently at 3%, and foreign exchange reserves are 1.7 months of imports.
• Debt service accounts for 75% of current receipts, and public debt is 50.7% of GDP.
• Key challenges include weak governance, inefficient public spending, arsenic contamination, and digital lag.
• The elimination of the MFA in 2004 could negatively impact Bangladesh's exports.
• The report emphasizes the importance of institutional reform, improved governance, and efficient use of public resources to achieve the MDGs and sustainable development.

Priority Reforms

• Fiscal sustainability: Reduce deficit, increase revenue, and ensure fiscally sustainable improvements in public services.
• Budget management: Strengthen budget preparation, implementation, oversight, and effectiveness.
• Public sector governance: Improve institutional performance, transparency, and corruption control.
• Sector-specific reforms: Enhance education, health, and energy systems, with a focus on equity, efficiency, and quality.
• Social safety nets: Improve targeting mechanisms and reduce leakage in programs like FFE and VGF.
• Infrastructure development: Focus on transport and energy infrastructure, including road development, power distribution, and reforms in the energy sector.

Conclusion

The PER underscores the need for comprehensive reforms in public spending, governance, and institutional capacity. While Bangladesh has made notable progress in human development, health, and agriculture, it still faces significant challenges in fiscal sustainability, equity, and governance. The report provides a roadmap for future reforms, emphasizing the importance of coordinating with donors, improving data collection, and enhancing public service delivery to meet the Millennium Development Goals.