Current Economic Situation of Bangladesh
Filed Under: Business | Posted: 12/23/2007 at 6:01AM
Comments | Region: Bangladesh
The economic situation of Bangladesh is motionless at this moment under the power of caretaker government. Recently, Chief Adviser (CA) Fakhruddin Ahmed said at a press conference that the country’s current economic slowdown will be over as the interim government has already taken some measures, including formation of a private-public business forum, to address the situation. We are very much optimistic like our Chief Adviser to overcome our economic problem.
According to my analysis I am describing the problems of our economy, causes of these problems and the solutions of the problems consequently.
Problems of economy and causes of these problems
Mainly three vital problems are working behind the bad situation of the economy of Bangladesh which are directly related to each other. These problems and the causes of these problems are:
1) Non-confidence to caretaker government:
Following reasons are responsible for non-confidence
to caretaker government:
i) Some initiatives of caretaker government. Such as, breaking and ejecting the businesses of footpath and slums without any planning.
ii) Closing jute mils, fixing principles and action plans without any planning.
iii) Torturing businessmen by showing excuse of anticorruption.
iv) Creating fear in businessmen by National Board of Revenue and Anticorruption Commission.
v) Hindering the independence of newspapers.
2) Decreasing the investment of businessmen and investors:
Following reasons are responsible for decreasing the investment of businessmen and investors:
i) Businessmen and investors are not interested to invest in this country for the non confidence to caretaker government.
ii) Investing a huge amount of money earned by corruption is closed now for anticorruption initiative taken by caretaker government.
iii) Decreasing the purchasing power of micro businessmen by creating their unemployment. For this reason, investors are not investing in the country considering the lower purchasing power of consumers.
iv) Businessmen and investors are confused on the question that who is actually dominating our country among caretaker government, military government and international donor agencies? They do not know who is actually giving the direction of power.
3) Decreasing the purchasing power of general people:
Higher price of products in international market exists from previous two or three years. We can blame following reasons for higher price of products as well as decreasing the purchasing power of general people:
i) Destructive activities of immoral syndicates of the period of union (BNP-Jamat) government.
ii) Investors are not investing in country and showing signal that production will decrease in near future. For this reason, businessmen are not selling their products, storing products and creating shortage of products to earn more money.
iii) Production of rice is not as much as our expectation. Businessmen are not interested to import rice from abroad by investing a huge amount of money for the luck of confidence on caretaker government.
iv) Institutions are following the primitive institutional structure because care taker government has not taken any positive initiative to restructure institutional structures.
v) Price of products has increased for the hindrance of supply. So, people are facing the problem of inflation.
Solution of the problems
Following initiatives can be the solutions of the problems:
1) Caretaker government has to increase purchasing power of general people.
2) Giving sufficient privileges to farmers to motivate them.
3) Regaining the confidence of businessmen by taking rehabilitation project and other initiatives for micro businessmen.
4) Shutting off the torture of police in market.
5) Ensuring the supply of food.
6) Rejecting the restriction on news media.
7) Ejecting the forbiddance on politics.
8) Shutting off the tendency of taking financial assistance of donor agencies.
These initiatives will help caretaker government to regain the confidence of businessmen, investors and general people. For this reason, purchasing power of consumers will increase and the market will be moving.
Our caretaker government and amiable society are concerned about the present economic condition. Caretaker government has already taken some initiative to solve the economic problems which are good but not enough. Hopefully, we will overcome our economic problem very soon.
Mohammad Saiful Islam