BNP’s blockade enforces Bangladesh Government to cut down targeted growth

Enamul Hafiz Latifee writes,

The Bangladesh government is planning to amend the targeted economic growth for the FY 2014-15 as the highly violent continuous blockades and strikes announced by the Bangladesh Nationalist Party and its allies are hitting the overall economy very hardly.

Finance Minister AMA Muhith expressed to the media at his secretariat office on 1^st February, “We will have to revise it because of the current situation. The revision exercise has already begun”. However, the government had aimed before to attain 7.3 percent economic growth for the FY 2014-15. But the World Bank (WB) and International Monetary Fund (IMF) have forecasted that the economy of Bangladesh would expand by 6.2 percent, hence the Asian Development Bank (ADB) has expressed the growth rate can be 6.4. Meanwhile, the at half yearly publication of the central bank, i.e., Bangladesh Bank’s (BB) Monetary Policy Statement (MPS) Jan-Jun 2015, it has been asserted that GDP growth may fall between 6.5-6.8 percent depending on the fluctuation of political situation.

The minister, Muhith has delivered his colleagues in the parliament that how the continuous blockades and life taking strikes that entered its 28^th day is biting developmental efforts thus the budget implementation now.  He has added, “Everything has been affected; people are not being able to run their normal economic activities. How can the economy advance in this situation?”

And these still-going blockades and strikes have caused vandalism on 1084 vehicles, attack on railways for 11 times and killing of 122 people till it’s 39^th day which have led farm incomes to decrease very sharply due to lack of inter-district road and railway transportation, weakened foreign importer’s confidence on the domestic exporters' capability to hand over the ordered items within the given time and diminished the confidence of investors to invest more by taking loans or any other means.

Dhaka Chamber of Commerce and Industry (DCCI) has already told the media that the country is bearing economic losses worth of BDT (Bangladeshi Taka) 2,277.86 crore per day since 6^th January 2015. And it would amount to BDT 2,500 crore per day if it is computed taking into account the 25 percent loss of the total industrial production.

According to the chief of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Mr. Kazi Akram Uddin Ahmed, “If we want to turn Bangladesh into a middle-income country, all need to avoid confrontation and negative political programs” which is not visible in the country to have any political solution still now and possibly this is the most tragic year for Bangladesh in last two decades after the fall of former President and autocratic leader of the country, Hussain Muhammad Ershad in terms of violence and national economic losses.

Writer: Enamul Hafiz Latifee, Independent Research Scholar, Department of Economics, Shahjalal University of Science and Technology, Bangladesh.

Joint initiatives of Bangladesh Bank and CIRDAP for Development of SMEs

Date: July 14, 2013.

Time: 11:00am. 

Venue: CIRDAP International Conference Centre, Dhaka.

Chair of today’s program Dr. Cecep Effendi, Director General, CIRDAP, Guest of Honor H.E. Mr. Iwan H.S. Wiranataatmadia, Ambassador of Indonesia, Special Guests, Mr. Md. Sabur Khan, President, Dhaka Chamber of Commerce (DCCI) and Deputy Governor, Bangladesh Bank, CEO/MDs and SME Heads of Scheduled Banks andNBFIs, Representatives from different Chambers, Ministries, SME Foundation and other organizations, Good Morning. It's my pleasure today to participate in theprogram on joint initiatives of Bangladesh Bank and CIRDAP for development of SMEs.

We take SME as the priority and we always give importance to communications and joint initiatives with different stakeholders. Within the countries we are taking lot of initiatives with different organizations like Ministries, SME Foundation, EPB, BSCIC, Chambers, Women Chambers including Banks and NBFIs. Our initiatives are now going beyond the country. We performed different programs with international organizations, donor agencies and even with different High Commissions and Embassies. For SME development, joint initiatives both nationally and internationally are very important and we are committed to continue such initiatives. Ours is an exceptional central bank which is taking a lot of field focus initiatives for the sake of  unserved and undeserved people for accelerating inclusive growth process. Financial inclusion is our motto and we are trying to achieve it through financing agriculture, micro, cottage and small enterprise activities. Due to such efforts, Bangladesh economy is now on a very strong footing despite  on-going world recession.

I am indeed pleased to know that Bangladesh Bank is going to work with CIRDAP on SME sector. I think this is a very good idea which aims at talking joint initiatives with CIRDAP for pushing SME initiatives forward regionally and globally. CIRDAP member countries are also involved in SME activities and they also feel that SME initiatives are crucially important for hastening inclusive growth of individual country.

I feel especially enthused about all local, regional and global initiatives for SME promotion and development and believe there is ample scope for deepening mutuallybeneficial cooperation and support between SME policymakers and stakeholders of the CIRDAP member countries. I heartily congratulate CIRDAP for taking  thisinitiative.

I think it is a timely decision for both Bangladesh Bank and CIRDAP and they have signed a Memorandum of Understading (MOU) to cooperate with each other for the development of SMEs in Bangladesh. With this MOU, entrepreneurs, policymakers and other stakeholders related to SME sector of Bangladesh will be able to share and upgrade their knowledge with the counterparts of CIRDAP member countries. I hope this MOU will be effectively implemented.

I wish that both the organizations will work with dedication in different areas and develop overall SME environment for the benefit of cottage, micro, small and medium entrepreneurs. I wish the best success of today’s program with engaging, interactive deliberations.

Let me conclude here, looking forward to further deepening of relation with CIRDAP member countries. I wish success in cooperation of SME development.

Thank you all. 

The above speech is given by present governor of Bangladesh Bank, Dr. Atiur Rahman.