The Bangladesh economy has been keeping its head above the waters as indicated by periodic statistics from different sources. But the economy also has had its share of troubles in the last eighteen months from dwindled down economic activities caused by the pandemic. Government’s policies unintentionally were also factors in squeezing the economy. For example, many craftsmen, hawkers and their families were pushed into dire straits from policies of hawkers’ eviction from roadsides and demolition of bazars and informal shopping centres throughout the country. This proved to be a nig blow for the myriad of small producers of common goods and their retailers.
Industry and trade as a whole also felt the adverse impact of an intense anticorruption drive that left many industrial conglomerates in a limbo. The net of economic activities, thus, were squeezed in the country during the last one and half years or so. Then, the shattering effects of Covid-19 pandemic dealt further hard blows on the economy.
Government, since then, realized the unappreciated parts of its policies and revised the same considerably. Thus, business confidence has been reviving as well as the enthusiasm from different sections to engage wholeheartedly in economic activities.
But nonetheless, investment operations, both by local private investors and foreign ones, are seen to be lower in scale compared to the past. But without investment operations running on full gears, the economy will not be enlivened to the degree that is needed. The country has a huge backlog of unemployed people and every year a large number are becoming eligible for jobs. The big challenge for the government would be how best to set the economy on a higher growth track.
Specially, investment operations must increase optimally to create employment and earning opportunities for people. Latest statistics showed that the otherwise encouraging progress achieved in poverty alleviation steadily over the last one and half decades, has met a setback with the relapsing of nearly 4.0 million people below the poverty line . The purchasing power of people specially the non affluent ones, has eroded alarmingly from Covid-19. inflation and other factors. Therefore, this trend needs to be addressed with the fastest implementation of appropriate policies.
The poor are under greater pressure from reduced opportunities for earnings. Planned creation of ways of earnings for them is very important to arrest the worsening of the poverty situation.
Government in this year’s budget was noted for much expanding the social safety net programmes . But these are mainly consumptive in nature. Greater value for the economy involves executing specially those plans that would create employment leading to asset formation.
Particularly important is starting off the assured employment giving plan that was declared in the present year’s budget. The execution of this plan should be started with full vigour.
All other ways of stepping up the rate of public sector investments should be explored. Boosting the public sector investments is very necessary in view of the lingering nervousness of the private sector. The private sector, of course, cannot be dictated to invest. But under the prevailing scenario of under investments which is worsening poverty conditions, government of course would be fully justified in undertaking measures to increasingly invest its own resources to create earning opportunities for addressing the poverty situation.
