When the World Bank declined to fund the Padma Bridge, its main consideration was graft. Corruption isn't the sole licence of our country nor is the fact that graduation to lower middle level countries hits us with higher cost of funding. Today the bank is eager to invest in infrastructure and this consideration has a lot to do with regional connectivity than much else. The success of the transit treaties with India has financially hit us in that fees were determined at ridiculously low prices. And the bank sees nothing wrong with pouring in a cool $ 1.0 billion dollars to West Bengal, once it redefines the mechanism of the channels of these funds,
The bank's country director, Junaid Kamal Ahmad is also confident that another billion can be found in the next two years, for further investment, again due to the possibility of joint use of a deep sea port. In a nutshell it isn't just India but Bangladesh too will have to be on their ties. The investment will come project by project and there is now further clarity on the thinking behind the billion dollar line of credit that India gives to Bangladesh provided all products are generated from India as well as the consultancy.
The first billion dollars are to be invested in logistics (does that ring a bell?), social security net (sounds similar?) and urban administration. Nearly half of that will go to the three fields mentioned. The one cause for concern is the leap-frogging to make Kolkata the regional connectivity hub compared to the vision Bangladesh has of being the hub. Perhaps that was one of the bones of contention that forces Ms. Mamta Banarjee being so reluctant to share the Teesta river waters. And it promotes little confidence about the sharing of all common river waters that the just returned Foreign Minister AK Abdul Momen tells us was part of the agenda, let alone the Teesta.
And all these happening with the Indian Election just around the corner where there's no visible slow-down in the company beyond that what's normal. Compare that with the sluggish movement of the economy not just close to but nearly a quarter fiscal before our hustings.
It again exposes the visible double standards with the bank when it comes to dealing with Bangladesh. By size India is a larger middle income country compared to the lower level one that Bangladesh is. Yet India gets preferential treatment when it comes not just to loans but also interest levels that were earmarked for new induction to lower middle class countries. Japan was quick to inform us that interest loans would be higher because of an economic improvement. No wonder our Prime Minister is holding her ground in not totally opening up our economy to the Indians.
