Bangladesh climate Multi Donor Trust Fund
Encyclopedia
The Bangladesh climate Multi Donor Trust Fund (MDTF) is a proposed institution to collect and disburse climate adaptation funding for Bangladesh
, to be administered by the World Bank
.
On February 15, 2009, the Bangladeshi government refused to accept a £60m climate funding offer from the United Kingdom
if it was channeled through the World Bank.
According to a 2009 New Age editorial, "10-15 per cent of the $5 billion that the MDTF will amount to will possibly become a management fee for the bank (between $500–$750 million)."
(DFID) has been insisting that climate finance should be channeled through a Multi Donor Trust Fund managed by the World Bank; this position has been supported by the Danish government.
At the 2009 Copenhagen climate conference, a Bangladeshi delegate told reporters that Bangladesh might let the World Bank manage the funds, if that was set as a condition by funders. After the conference, Bangladeshi Prime Minister Sheikh Hasina
stated that establishing a Multi Donor Trust Fund is part of her government's response to climate change.
, the Multi Donor Trust Fund has "more or less unanimous opposition among climate change researchers, environment ministry officials and NGOs and civil society members in Bangladesh alike." Bangladeshi civil society organizations are strongly critical of the Multi Donor Trust Fund idea, generally preferring that funds be managed by a state-run board. Campaigners have expressed concern about the 10-15% management fees to be charged by World Bank consultants, and lack of democratic access to adaptation funding. Other campaigners are strongly critical of World Bank-funded projects, which they say "have often created ecological hazards and destroyed ecological goods and services."
Bangladeshi opponents of a World Bank-managed MDTF include the Equity and Justice Working Group Bangladesh (EquityBD).
British opponents include the Jubilee Debt Coalition and the World Development Movement
.
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
, to be administered by the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
.
On February 15, 2009, the Bangladeshi government refused to accept a £60m climate funding offer from the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
if it was channeled through the World Bank.
Scope
According to Mohammed Shamsuddoha and Rezaul Karim Chowdhury, "The 'draft concept note' prepared by the government of Bangladesh on the MDTF suggested that the secretariat be based in the World Bank office in Dhaka. The Bank would co-chair the management committee, and administer, manage, supervise and monitor implementation of the MDTF's projects and programmes. For this job, the Bank will charge a fee of $8 million. All implementing agencies will have to follow the Bank's guidelines and policies on project implementation and procurement."According to a 2009 New Age editorial, "10-15 per cent of the $5 billion that the MDTF will amount to will possibly become a management fee for the bank (between $500–$750 million)."
Support
The British Department for International DevelopmentDepartment for International Development
The Department For International Development is a United Kingdom government department with a Cabinet Minister in charge. It was separated from the Foreign and Commonwealth Office in 1997. The goal of the department is "to promote sustainable development and eliminate world poverty". The current...
(DFID) has been insisting that climate finance should be channeled through a Multi Donor Trust Fund managed by the World Bank; this position has been supported by the Danish government.
At the 2009 Copenhagen climate conference, a Bangladeshi delegate told reporters that Bangladesh might let the World Bank manage the funds, if that was set as a condition by funders. After the conference, Bangladeshi Prime Minister Sheikh Hasina
Sheikh Hasina
Sheikh Hasina is a Bangladeshi politician and current Prime Minister of Bangladesh. She has been the President of the Awami League, a major political party, since 1981. She is the eldest of five children of Sheikh Mujibur Rahman, the founding father of Bangladesh and widow of a reputed nuclear...
stated that establishing a Multi Donor Trust Fund is part of her government's response to climate change.
Criticism
According to the New AgeNew Age (Bangladesh)
New Age is a Bangladeshi English daily newspaper. It is one of the major English-language newspapers in the country....
, the Multi Donor Trust Fund has "more or less unanimous opposition among climate change researchers, environment ministry officials and NGOs and civil society members in Bangladesh alike." Bangladeshi civil society organizations are strongly critical of the Multi Donor Trust Fund idea, generally preferring that funds be managed by a state-run board. Campaigners have expressed concern about the 10-15% management fees to be charged by World Bank consultants, and lack of democratic access to adaptation funding. Other campaigners are strongly critical of World Bank-funded projects, which they say "have often created ecological hazards and destroyed ecological goods and services."
Bangladeshi opponents of a World Bank-managed MDTF include the Equity and Justice Working Group Bangladesh (EquityBD).
British opponents include the Jubilee Debt Coalition and the World Development Movement
World Development Movement
The World Development Movement is a membership organisation in the United Kingdom which campaigns on issues of global justice and development in the Global South....
.