Speakers at a discussion on Tuesday urged the government to identify the reasons behind the mismatch between the growth of the country's economy and that of investment and employment.
They suggested doing a postmortem of all the previous five-year plans and their implementation weaknesses as the gross domestic product (GDP) growth under those plans belied investment and employment growth.
The speakers also advised the authorities to prepare the 8th five-year plan (FYP) in a way that at least two-year economic and public health spaces are given to the people amid the Covid-19 pandemic.
Economists, businessmen, policymakers and politicians took part in the virtual dialogue on "The Eighth Five-Year Plan: Addressing Covid-19 Challenges and Sustainable LDC Graduation."
The Centre for Policy Dialogue (CPD)'s Executive Director Dr Fahmida Khatun presented the keynote paper while its distinguished fellow Professor Mustafizur Rahman moderated the event.
The meeting was organised by the CPD with senior economist Professor Rehman Sobhan in the chair.
Planning Minister Mr MA Mannan was present as the Chief Guest.
Mr Saber Hossain Chowdhury, MP, President, Inter-Parliamentary Union (IPU), and Mr Amir Khosru Mahmud Chowdhury, a BNP leader and former minister for commerce, were present as the special guests.
Dr Shamsul Alam, Member (Senior Secretary), General Economics Division (GED), was present as the guest of honour while Dr Ahsan H Mansur, Executive Director, Policy Research Institute of Bangladesh (PRI), Dr Zahid Hussain, former Lead Economist of the World Bank in Dhaka, Ms Shaheen Anam, Executive Director, Manusher Jonno Foundation (MJF), Barrister Nihad Kabir, President, Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI); and Mr Razequzzaman Ratan, President, Socialist Labour Front, spoke at the dialogue as discussants.
Professor Rehman Sobhan said: "We all know the problems of the economy. But we are not being able to overcome those over the years despite good FYP documents. So, it is time to look into the matter."
For how long the Bangladesh's GDP growth would be sustainable without any significant employment generation and investments, he questioned.
Citing an example of Bangladesh's one-product-export-basket, Dr Sobhan said they had talked a lot on the issue and suggested the government diversify export over the years.
"But nothing happened yet at the policy level for the diversification. Still the country's nearly 80 per cent export is dependent on only one product-RMG," the senior economist said.
Dr Ahsan H Mansur said it's a big gray area of the economy that the GDP growth is higher but the investment and employment are still on a weak trajectory.
"If the government fails to clarify the reasons properly, the development work and policy reforms will not be trusted by the people. And the 8th FYP will not bring a good result as happened in the case of the previous plans."
He also questioned why the country's four key financial and monetary areas -- the commercial banks, bond market, capital market and insurance-- have been struggling over the years.
"All the economic challenges have already been identified. Now it's time for the 8th five-year plan (FYP) for addressing those properly," Dr Mnasur said.
Former lead economist of the WB Dr Zahid Hussain said economic and health spaces for a couple of years are very important for the people rather than going for a higher GDP growth target policy.
He said the government's stimulus package failed to address the problem of the micro, small and medium enterprises (MSMEs) and ensure the social security of the vulnerable people, affected by the Covid-19 pandemic.
Dr Hossain suggested rethink on Bangladesh's LDC graduation, possible losing of preferential trade benefits in the EU and USA markets, and future of the external assistances.
MCCI President Dr Nihad Kabir in her speech said although the government was speaking of good business environment in Bangladesh, the private investment-GDP ratio is still within the bound of 28 per cent.
"In black and white, our investment climate is better. But what is the reality? Why Vietnam is getting adequate foreign direct investment and Bangladesh is not attaining that?" she questioned.
GED Member Dr Shamsul Alam said they emphasised export-led growth in the upcoming 8th FYP like the previous ones.
He admitted that there was a delink of the country's investment, employment and poverty with the higher GDP growth.
Efforts were made in 8th FYP to address those issues so that Bangladesh could sustain its higher economic base, Dr Alam said.
BNP leader Amir Khasru Mahmud Chowdhury said everything is related to democracy, good governance, transparency and accountability.
"When politicians grab politics, banks, share market, media etc., it is impossible for a government to bring reforms for the betterment of the country," he observed.
Saber Hossain Chowdhury MP said the government should think about a 2-year recovery plan rather than the 8th FYP at this moment due to the severe impact of the coronavirus.
The target in the development plan and its implementation need coordination, Mr Chowdhury said.
Planning Minister MA Mannan said the government might have not been able to ensure fairness, equity and justice for all, but it is trying to make sure the marginal people lead a happy life.
Dr Fahmida Khatun in her keynote presentation also viewed the lower investment and employment generation amid higher growth as the challenges for economic sustainability.
She also listed the banking sector vulnerability, lack of export diversification, LDC graduation as the upcoming challenges for the country.
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