The World Bank (WB) has approved a 200-million US dollars Development Support Credit (DSC) to implement a program of core and sectoral governance reforms in Bangladesh.

This is the third tranche of the DSC, which is designed to assist the government in addressing key governance constraints, by strengthening public expenditure and budgetary management, improving public procurement, modernizing tax administration and enhancing the efficiency of public services, local daily The Financial Express reported on Saturday.

According to the daily, the WB had earlier expressed concern over lack of transparency in public sector expenditure in Bangladesh. However, it approved the latest funding after the government said it was developing guidelines for more bureaucratic openness.

The DSC also targets sectoral governance reforms in banking and state-owned enterprises, energy sector and the government's trade liberalization agenda.

"The governance reforms supported by the DSC are designed to improve social service delivery to the poor and improve the investment climate to enhance economic growth, exports, and jobs. Creating economic opportunity through sustainable growth and access to services is key to reducing poverty in Bangladesh, and the DSC supports both," WB Country Director Christine Wallich was quoted by the daily as saying.

"Improving governance is a critical challenge for Bangladesh and is very much at the heart of the DSC," Praful Patel, Vice President South Asia Region of the WB was quoted as saying.

"We hope the reforms will reduce the scope for corruption, and, in turn, build more effective government institutions and improve public service delivery, giving long-term benefits for all Bangladeshis," he said.

The DSC builds on Bangladesh's recently Poverty Reduction Strategy (PRS), which emphasizes economic growth, job creation, social service delivery and safety nets for the poor. Combating corruption, restoring law and order and making governance work for the poor are also accorded priority in it.

Accordingly, the DSC credit is designed around the three pillars strengthening governance, improving the investment climate and infrastructure to speed economic growth and empowering the poor.

Source: Xinhua