Six-point solution to injustices in BD, SA

Noted economist Prof Rehman Sobhan propounded a six-point solution to injustice of various forms that causes endemic inequality and poverty in Bangladesh and elsewhere in South Asia.

Describing unjust nature of society as the creator of injustice and poverty, he said unequal distribution of opportunities led to the problem of inequality and poverty in most SA nations.

For improving the situation, Prof Sobhan, also Chairman of the Centre for Policy Dialogue (CPD), suggests that the South Asian economies to take measures on areas like promoting agrarian reform, enhancing market power of the excluded through sharing in the value-addition process, democratizing educational opportunities, establishing accountability and transparency for poverty alleviation through budgetary policy.

At the same time, he also stressed the importance of financial policies for poverty alleviation and broadening ownership of assets through collective action.

The economist shared such ideas that were mentioned in his latest publication titled 'Challenging Injustice in South Asia: A Work Programme for Promoting Inclusive Development' released Sunday. Prime Minister's Economic Affairs Adviser Dr. Mashiur Rahman was present as chief guest at the dialogue on the publication.

He also demanded the formation of platform like Citizens Commission who will revisit the overall situation. For that, he called upon members of the civil society to come forward.

Talking about financial policy, Mr. Sobhan said the micro-entrepreneurs in most cases remain micro-entrepreneurs from one generation to another, which needs to be reassessed. The policy should be something that will convert micro to a macro one.

He also spoke about integrating financial data on microfinance institutions (MFIs) into national financial statistics made by the Bangladesh Bank (BB) and incorporating policies for the MF sector into the design of national monetary policy.

In this area, he also suggested establishing a dedicated mutual fund for low- income investors while providing an equity stake for workers in the RMG (readymade garment) sector.

Commenting on the publication, former Bangladesh Bank governor Dr Salehuddin Ahmed said lack of policy continuity is one of the key barriers for the country. For example, income-tax law keeps changing frequently, which is not a good sign.

He also said formal credit flow is now concentrated on three zones where most of the loan defaulters used to live in. "That means rest part of the country's rural areas are deprived of credits."

Former Adviser of a caretaker government A. B. Mirza Azizul Islam told the function that the government needs to reassess the state facilities provided to various quarters.

Giving the example of tax holiday that Bangladesh introduced several years ago to attract private investment, he said there are many private entities which started incurring losses once the regime of tax holiday was over.

Focusing on agrarian reform, Dr Mashiur Rahman said the availability of Khas land is far below the level of requirement. So, just distribution of the land will be a challenge for the government.

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