Analysts in Bangladesh recently raised their concern that a sizable chunk of Bangladesh's slice of aid pie from the European Union (EU) might be eaten up as new less-developed member countries will join the EU in May.

According to the Independent on Saturday, Dr. Mustafizur Rahman, research director of the Center for Policy Dialogue (CPD) said it was "inevitable" for the EU to divert its resources to the new members, given their weak economies.

The EU is going to draw 10 countries from Eastern Europe on May1 including Poland, Czech, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Slovenia and Slovakia.

Dr. Rahman pointed out the new members will expand the EU's population by about one fifth from 380 million to 455 million, but they are only expected to add five percent to EU's economy.

Diversion of resources to the impoverished entrants would put a substantial pressure on the aid for developing countries including Bangladesh over the coming years, said Rahman.

In response to these concerns, officials of the European Commission (EC) stationed in Dhaka dismissed the apprehension, saying the enlargement of EU was not "at the cost of poor nations."

EC official Ann Marchal, however, made it clear that governance, structural change and absorption capacity would be the cornerstones in getting the funds from the EC in the future.

She said if Bangladesh fails to improve governance, aid might go to Afghanistan or Sri Lanka, expressing her dissatisfaction over tardy pace of project implementation in the country.

Joint Secretary of Economic Relations Division (ERD) under the finance ministry Shafiqul Islam thus explained the government is giving priority on trade rather than aid.

He said the country is focusing on building sustainable institutions with the fund from EC.

The EC is providing support to restructure the country's Export Promotion Bureau and Tariff Commission, set up the World Trade Organization Cell, and establish the Bangladesh Foreign Trade Institute, added Islam.

Source: Xinhua