No more loans in the name of grants

Bangladesh ranks seventh among the top 10 countries most affected by climate change. The increasing global temperature is leading to more frequent occurrences of sudden floods, landslides, heatwaves, and droughts in Bangladesh. Researchers argue that the primary cause of climate change is the release of carbon dioxide by industrialized nations over the past two centuries. Despite their promises, these developed countries are not fulfilling their commitment to provide financial assistance to affected and vulnerable nations. Instead of providing grants, they are imposing various conditions on them to provide loans.

According to a news published on May 15, Transparency International Bangladesh (TIB) Executive Director Dr. Iftekharuzzaman has accused it of corruption. A report published by the organization at a press conference held at the Midas Center in Dhaka on Tuesday (May 14) states that due to the incompetence and corruption of the United Nations Green Climate Fund (GCF), countries like Bangladesh, which are vulnerable to climate risks, are being deprived of funds from the Green Climate Fund.

During the publication event, TIB revealed that out of the funds allocated from the Green Climate Fund, 45 percent has been provided as grants. Of the remaining 55 percent, 41 percent has been given as loans and 14 percent has been allocated to other accounts. This international organization is disbursing loans under the guise of grants through its approved institutions. The Green Climate Fund (GCF) itself has been accused of corruption. The activities of the GCF are disappointing. There is a lack of transparency in their administration. They are providing loans through approved institutions under the guise of grants. They are pressuring for loan repayment through the Green Climate Fund.

According to available information, Bangladesh needs $12 thousand million by 2025 to combat climate damage. However, it has only received $1189 million from the fund. Moreover, the Asian Development Bank has provided $40 crore in loans. The IMF has promised to provide $800 crore. Bangladesh has received approval for three projects worth nearly $100 million from this fund. However, acquiring these projects involves a very rigorous process.

Currently, Bangladesh is facing various economic crises. Reserves are dwindling, unemployment is increasing, and inflation is at its peak. In this situation, the reliance on loans is also growing. Instead of benefiting Bangladesh, international financial institutions are pushing it into crisis through various means.

Over the past two hundred years, Western countries have increased global temperatures for their own advancement. Instead of reducing global warming as per the Paris Agreement, they have maintained their continuity. On the other hand, they are gradually increasing the burden of debt on developing countries. It's because of them that we are in crisis today, and they are pushing us into new traps again.

Therefore, the Bangladeshi government must engage in further discussions against the GCF in the interest of the people. Instead of favoring financially beneficial international institutions like the World Bank, UNDP, ADB, and IBRD, efforts should be made to pressure the GCF to support Bangladesh, without benefiting these institutions. Bangladesh also needs to think more cautiously about borrowing. If the government of Bangladesh doesn't receive its own dues, why would it take out loans?