The construction of the country’s biggest ever infrastructural project, the Padma Bridge, has begun in full swing.
The project remained a bone of contention between the World Bank, the biggest development partner of Bangladesh, and the government, until the latter decided to finance the project on its own.
WB pulled out over allegations of corruption, which were dismissed by the ruling party as being “conspiracies of its opponents.”
But the bridge is actually being built by the Chinese, and one cannot claim that the project will not be marred further by corruption.
Like other developing countries, the government of our country is no saint -- and we are talking about an administration whose recent corruption record has been quite concerning so far. Just look at all the public banks, mercilessly plundered by party loyalists.
In donor-financed projects, donors always stress for third-party audits and/or set rigid guidelines to make sure of the best use of their money.
At a TV talk show, an economist from a government-funded think tank argued that self-financing this mega project would actually ensure improved transparency. The tax-payer money belongs to the people, after all.
In making the Padma Bridge project a reality, the government is playing the role of an “agent.” So the agent is financing the project with money from the “principal” (ie the people). This principal-agent relationship is vital in order to better understand the emptiness of the aforementioned economist’s expectations.
The agent will maximise his interest by siphoning off public money instead of maximising the principal’s interest, which is the corruption-free completion of Padma Bridge, as it is the best “rational” response to a situation where opposition forces and institutions for accountability are weak.
The principal can only get rid of unfaithful and corrupt agents by replacing it through a free and fair election. But over the last few years, institutions that ensure proper functioning of democracy have been severely weakened.
The agent saw that it might not lose its job in the future, and indulged further in appropriating public resources. Moreover, due to the lack of a check and balance mechanism, the agent started to set rules rather than being guided and governed by rules themselves.
Contrary to the expectation of the economist, self-financing the Padma Bridge would, in fact, act as an booster for further corruption, given our “amra amrai toh” (let’s just keep this between us) culture.
There are plenty of reports and analyses in the media highlighting the pros of this project.
The bridge is expected to increase our GDP by 1%, and to open up new investment and trade opportunities for the south-western part of Bangladesh. However, the negative externalities have not been discussed at great length.
Mostly Dhaka-based and Chittagong-based business houses will spearhead the investment initiatives in these parts. And the FDI will tread on their heels. These business groups are already lobbying uncontested MPs for land in their constituencies.
This quest for land will further marginalise the petty peasants and land-owners who hold small pieces of land. So, land dispute and regional tensions will rise even further.
With the lack of a proper urbanisation program on both sides of the Padma, and the absence of an efficient social security system, climate refugees will inundate Dhaka and its peripheral suburbs, making Dhaka that much more of a slum.
To protect the bridge, the army has expressed desires to erect a new cantonment on the southern bank of Padma.
Moreover, the Fauji foundations will bag a significant amount of business opportunities that will spring from the bridge, which will help them up their ante in any kind of future bargaining with political parties.
New pockets of economic growth centres and growing income gaps and grievances over the existing political system will prove to be boons for Islamic radicalisation in the south-western part.
Riding on the Islamists’ “charitable” tendencies and capitalising on the anger of the hopeless youth, Islamic militancy will flourish in that leftist stronghold.
A hidden Maoist movement will gradually take on the form of a permanent insurgency to fight the apparent Islamisation process and the industrialisation led by the nouveau riche and crony capitalists.
The Padma Bridge project has already dealt massive damages -- internal political differences were internationalised, and a wedge was driven between the government and the WB.
After its completion, the Padma Bridge may bring regional tensions to the surface, as Dhaka and Chittagong-based business groups will be at the forefront in reaping the benefits of the bridge.
The greed and vices of mega cities will rush towards the west, while poor fortune-seekers will march towards the capital city to fulfill their dreams.
The landless and climate refugees will create new social tensions in capital cities and aggravate anarchic politics. Amid this chaos and tensions, political Islam may have the last laugh.
The Padma Bridge will be built, but it will evidently create sore points -- in fact, it had already created some in our society and politics. My question is: Are we prepared to address them?
