BANGLADESH ECONOMIC STRATEGIES AND PRIORITIES

Our aspirations in the last eight months enter into an important and challenging phase to admire the resolve of the people, and its judgment in evolving a community of Bangladeshis who are thinking and feeling for the development of the country. While rising to meet the success, dealing with the immediate future and common requirements, attainable in the realm of practical life, from a business entrepreneur to a farmer, given the mutual good will and understanding, we most certainly can influence vital human issues in economic field and governance by potential control through such participatory forum as today.

   As evident, Bangladeshis’ have survived through hardship and struggles for the country’s cause, but some how or other they fell short of playing as role model on decisive factors like addressing chaos and corruption. The business community being an integral part now has to invent a vehicle of public oriented deliverables through alternatives as fortunes of the country can neither be a dear service nor a preferred injustice, as practiced by the predecessors.    

 During the last one and a half decades Bangladesh made efforts to impressive progress, however, the country was high on growth and as well high on corruption; as part of social transformation we now need to be low on corruption and high on growth with raising prosperity and high quality of life for middle and low income people.

 This Caretaker Government has received an overwhelming mandate of the population, and still the majority is bearing the pressure of high price, relocation, reforms and system improvements. I appreciate the patience on part of the people being able to understand unlike any other previous caretaker this is a ‘Reformist Caretaker Government’. As it is taking some hard decisions – it can not be politically popular but has a silent popular consent from every citizen of the country.   

 Distinguished Guests,

            I call this realization and change as a New Social Contract; reminding us of our objective at hand and indicating need for reconciliation for economic development and nation building. Within us I see a new rebirth, a new chapter of human liberation, a new reverence for human values and a new impetus that all are accountable as greater people’s participation is required to ensure justice which is not a collective decision of few, authoritarian and unnoticed.   

            The resonance of rural Bangladesh is the voice of current Bangladeshi history. It seems clearer that, we as Bangladeshis must learn to frame our policies as expected of a university student, rickshaw puller, garments worker, call operator, nurse, clerk and a corporate leader. They compose an ‘internal order of economics’ and all sources of our political activity must be cycled through economic development to ensure our strategic national thrust is achievable by the sustained growth and development of quality human resource. It is crucial in our policy to create hope and express confidence in our Business community for promoting an equitable society, quality of life and reducing economic disparity.  

             In Bangladesh private sectors are the mainstay of economic force contributing 85% of the entrepreneurship and 18.73% in national GDP. The current process of ‘corruption cleansing’, following stream of events discovered malfunctioning of the system, that is deficient on justice, people’s support and practice. At one angle it puts the community as victim and from other facet as ‘syndicate beneficiaries’, an accusation that is selective and not necessarily to the group itself. We have to accept such practices have taken place even with western or developed countries during the beginning years of their history as the system often functioned with limited transparency, absence of accountability and incapable policy demanded by the public good.   

             While standing on the confrontation of the past and the present, virtues and values by the beneficiary groups have been flouted irrespective of their position and associations, as these groups secured an idea of perennial adventure of existence with no thoughts that once for all they will be summoned to the dock of justice.

 The unfortunate incident of Dhaka University on August the 20^th has left a mole in last half a year governance of the Caretaker administration. Disputes and problems, whatever its variety, whether they are subtler act of few academician or naked form of street hostility of agitated innocent citizens are deplorable, and once more proved students are hostage to the unconscious politics in the government universities and colleges both by their political masters and patrons. However, untying the past will not evolve a prescription for the future. We shall need to develop a compatible and congruous approach to see beyond today, practice these ones tomorrow and set a bench mark for Bangladesh beyond day after tomorrow.

 Distinguished Audience,       

The understanding I have that the business community is suffering from an insecurity that should not have stressed on itself. The strains are from a host of circumspective reasons best known to few but in the process it has introduced an inactive business cycle shaking even small traders with double faced policy of unknown fear and non commitment even at bureaucratic level. The government will not go beyond acceptable norms and thereby harm the foundations of the economy. In other words, political reforms must be aligned with economic good sense for the country to prosper in both these fields. The political goals of the present administration is, therefore, limited to cleaning-up politics and dismantling the support bases of corruption in business and the bureaucracy so that truly free and fair elections may be held by 2008.

As a corollary to this the economy must be allowed to grow through proper policy incentives and economic initiatives and nothing must be allowed to deter us from this essential and vital goal. I must emphatically call upon all partners that no businessmen should be called as culprits, and if there are any, they are known to you all. Henceforth, it is your duty to hand over any culprit for corruption charges. We should now have ‘whistleblowers’ within the business community to foresee that the development matrix is continuous and sustainable. I do not have any knowledge of any medium entrepreneur being caught on corruption charges. No potential businessmen of worth caliber can be corrupt. I urge upon all partners, departments and organizations not to unnecessarily harass them to deny Bangladesh a chance of development.   

            The realities of the present situation, however, make it imperative for us to hope for a stable Bangladesh now and beyond December 2008 on a solid foundation of law to which all the stake holders in the county must subscribe. We do have an impressive growth record, export of US $ 12.1 billion against import of US $ 15.9 billion. To bridge this deficit and keep the inflation to single digit, which is 7.2% now, more diversification will be required. The new journey of a deprived society by its nature will be long and arduous. To us let’s accept this challenge thrown to us by history and forge an irresistible solidarity to face problems and perils, share honour and respect and divide rewards and benefits for the betterment of our citizens. I urge the Government to pursue a holistic approach to economic development, accept the business community as responsible friend, contributor, and goal setter that should regenerate our economic cycle aimed at poverty eradication and remodeling societal need around developing people below poverty level. My understandings on strategic imperatives on our economics are:

►         We have to face challenges of Global economy and domestic market including market liberalization.

►         Our advantage should rest on potentials to produce products to meet domestic market, to reduce dependency on foreign imports, utilize resources and acquire expertise.

►         Speed up investment to introduce new technology and new products through trade and attract spill over capitals being safe area of investment.

 ►         National unity and availing political maturity should be the greatest source of our strength, dynamism and creativity.

►         Targeting poverty reduction by tackling pockets of poverty in designated areas through income generating projects, self reliance, micro credit, lower bank interest rate and access to basic amenities. 

►         Make effort to climb on technology ladder on value chain and prioritize agriculture, manufacturing, export of trained man power, services and non traditional sectors as lead economic areas. 

►         Domestic private investment along with the participation of Bangladeshi expatriate community can help wealth creation and strengthen economic resilience.  

Distinguished Participants, 

If we have to seek a cure, we have to create an environment of participation by all stake holders through National Development, a body that can help the government function on long term policy through participation of people and think tank groups. The idea is to enlighten the mind, restrain passion and elevate the reasoning. Today it has become an indispensable condition for the survival of our people, for the defence of our basic conviction in search of peace and honour, to erase our questionable label of corruption to a degree of conscience of purity. To meet requirements of knowledge based economy, we will need a paradigm shift in the immediate policies and strategies on medium term economic goals. I request the government to look into the following 11 points cardinal formula to study and apply judgment to intensify our economic activity: 

►         An Interim Development Fund to speed up development projects. Individuals, who deposited unaccounted money out of court settlement or ‘Plea Bargain’, should now invest on people oriented projects to support and further help infrastructural and development oriented projects that the government intends to undertake in immediate future. 

►         A body – Bangladesh Economic Development Committee responsible to the Finance Adviser and the business community to implement projects and fortnightly meet to oversee all activities of the economy. 

►         Disinvesting all government shares and foreign company shares, both existing and unlisted in the capital market, recover and reinvest irregular shares of various organizations. This will generate more than US $ 10 billion in the capital market and help government to lay the base of the economy. 

►         Generate economic activity at grass root level on various development projects within one month, failing, any governmental and departmental officer responsible will be answerable. This should cover micro credit, industrial development, youth employment opportunity, domestic private investment, imports; people oriented projects, agro based industry, small and medium enterprises, wholesale and retail trade, education, professional services, infrastructure development, capital market through the increased use of economic instruments. 

►         Reduction of bank interest rate and tax cut for people below poverty level for credit financing, where appropriate, and increment of tax network. There is also a need to appropriately manage tax policy and its administration cycle. The social service benefit should be rendered to targeted groups to ensure better standard of living of people below poverty level. 

►         Utilize NGOs to further substantiate sustained growth in rural economy. 

►         Avoid harassing business community by increasing better emolument to tax, anti corruption and police departments.  

►         The human resource export counts 77% to Middle Eastern countries and greater add on will be needed to export manpower; skilled, semi skilled and unskilled abroad to balance human development index and remittance over current figure of US $ 5.9 billion. 

►         Investment of Expatriate Community to be arranged by holding an International Business Conference of Expatriates in November 2007 to ensure further injection of capital in the economy. 

►         All pending projects to be implemented on Government to Government basis with further project perusals, specially, on infrastructure, energy, port facilities, tourism, real state, road and rail networks. This will help incoming government to continue with the economic development on the same pace.    

►         A financial dividend scheme for all private sector or self employed persons to cover after retirement benefit.   

We owe much to our country as we owe to our people and the society. The new awareness of good will today can help us to re-inject our values, adopt an ethical approach with such relevance to understand the crisis with compassionateness and deal with the offenders with vigorous impunity. This conference is an initiative of the Business Community and once more they are one of the forerunners to contribute to the national development and help create an environment of people’s confidence that is genuine, not coercive and pave ways to handle economy prudently. I assure once more the business community to stay above fear and support the emergence of New Social Contract in Bangladesh, which is for all of us to live by and look for on terms of existential reality. 

Thank you Hon’ble Chief Adviser. 

Thank you Ladies and Gentlemen. 

Allah Hafez.