Debt won’t solve Rohingya refugee crisis, will exacerbate Bangladesh’s problems: Experts
Taking debt will not resolve the Rohingya refugee crisis and will likely exacerbate Bangladesh’s challenges, experts asserted during a human chain event titled Equity and Justice Working Group, today(8 June) at the Jatiya press club.
They urged against accepting the World Bank’s $700 million loan offer intended for local compensation and improving displaced Rohingya lives.
Moderated by Mustafa Kamal Akanda of the COAST Foundation, the discussion highlighted that Bangladesh is the first nation offered a loan to manage a refugee crisis.
Experts voiced concerns over the adverse effects of such loans on the country’s economy and local host communities.
Rezaul K Chowdhury, chief moderator of Equity Bd, stressed the pressing issue for Bangladesh, “Bangladesh has sought assistance for the damage caused to the host community by the Rohingyas. But the World Bank is providing assistance for the Rohingyas. But Bangladesh has to take loans to cover the damage to the host community. This is a very pressing issue for Bangladesh.”
Omour Faruk Bhuiya of BDCSO Process added that Bangladesh’s high interest expenditures would make additional loans burdensome. “There is no precedent for taking a loan to deal with the refugee crisis anywhere in the world. Taking a loan from ADB and World bank for the refugee crisis will be burdensome,” he said.
Mamun Kabir of Water Keepers Bangladesh noted, “During the arrival of the Rohingya in 2017, the price of goods and rent of houses in Teknaf, Ukhia and Cox’s Bazar increased dramatically. The people of those areas had to bear this pressure. If those local people do not get help now that is inhumane,” he added.
The discussion also covered the global humanitarian aid shortfall, with the gap between funding needs and receipts reaching $33.6 billion in 2023. The humanitarian agencies’ funding request for Rohingya refugees in Bangladesh that year was $918 million, but only $230 million—25% of the demand—was received.
A Cox’s Bazar CSO-AGO Forum (CCNF) study revealed that only a quarter of aid directly benefits the Rohingya community. In light of these challenges, speakers urged humanitarian agencies to reduce management costs to maximise aid efficiency.
The experts’ consensus was clear: loans are not the answer to the refugee crisis. Instead, they called for sustainable, planned economic strategies and more efficient aid distribution to support both the Rohingya refugees and the affected local communities.
