Bangladesh economy is stronger than its alleged weaknesses. If thestatements of the opposition parties are to be believed, then the Bangladesh economy isnearing a state of collapse. But when one looks at the credible records and figures, the opposite picture is seen of an economy doing wellagainst an exceptionally difficult internal and external environment. Costs of imported energy for the economy have increased and so have many other imported products. But notwithstanding this drain over which the government of Bangladesh can exercise no control, it goes to the credit of the top mangers of the economy that they have done exceptionally well in a difficult year. After absorbing the high costs of imported energy and other products, the foreign exchange reserve has risen to its highest ever level ofthe equivalent ofover 16 billion US dollars. The predecessor government had left a foreign exchange reserve thatwas less than 6 billion Dollars. Export growth achieved by the Bangladesh economyin the last five years was regularly in the double digits every year; a similar growth was witnessed in the sending of remittances by overseas workers. . The growth in both areas is impressive and substantial to say the least and would not be possible without adequate policy supports from the government. There is a record amount of locally produced foodgrain in the country’s silos. The country has become self sufficient in producing foods or staples. It has practically stopped importing foodgrains which is a pointer to the big progress in agriculture in recent years. The very bad situation noted in the power sector when this government took over has been replaced by power production more than doubling in the last couple of years. This has come as a great boost to the economy, specially for industrialization. The much greater availability of power is also largely mitigating the woes of household users of power who were practically starved for power under the previous government. Foreign direct investment (FDI) receipts by Bangladeshin the last two years were the highest ever recorded by the country. The current account is in a comfortable surplus. Thus, this government which is about to end its tenure in some weeks from now, is currently presiding over an economy which is hardly enfeebled and can be said to be doing quite well under the many difficulties it has to confront including a turbulent political situation accompanied by economy hazarding activities. Povertyhas been an endemic problem for Bangladesh. But it is heartening to note that poverty has been declining appreciably in recent years. The Bangladesh Bureau of Statistics conducted the Household Income and Expenditure Survey (HIES) recently. It established that the rate of poverty recorded abigfall annually over the last five years.Over five crore people have graduated to middle income status and the poverty rate has been reduced to below 20 per cent in the population. The Bangladesh economy grew by well over 6 per centon average every year during the last five yearswhich is the highest recordedannual economic growth of the country. The political opponents of the present government have been trying their best to play up the effects of rising prices on the common man. But they do not say how the government has been trying its best to spare ordinary consumers from the ravages of worse price rises and inflation by bearing the high burden of subsidies to this end and yet managing the macro economy relatively successfully. As it is, theinflationary spirals are noted to be much higher on account of substantially higher priced imported goods in our neighbouring countries. But in Bangladesh, government could hold down prices considerably by providing subsidies and reducing duties on imported products.The opposition quarters also fail to appreciate the fact that purchasing power, on the whole, have risen for the consumers which enable them to absorb higher prices without so much pangs. The per capita income –presently over a 1,000 US Dollars — is the highest ever record of per capita income for Bangladesh. Thus, the finance minister cannot be really blamed for his recent admonition of the media to the effect that the latter are not doing their job efficiently because they seem to have a one tract mind and find nothing positive to write about the economy. It should bealso abundantly clear from the above that the country’s macro economy is in a strong position notwithstanding the baseless criticisms against it.
Posted on: Mon, 30 Sep 2013 18:02:44 +0000
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