Differing opinions

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Mahmudur Rahman
The beauty of democracy is that differences of opinions are encouraged and heard and at times lead to policy changes. And so it is healthy when government talks to different sectors before undertaking policy. It is also healthy to have quick, firm decisions taken avoiding procrastination of any kind. The dilemma lies in the time required to be given to thought before policy decisions and the inevitable Plan B, should such decisions prove to be somewhat hasty.
Difference of opinions by the government itself is, however a little strange and leaves the common layman in some consternation. The Commerce Minister initially was against bringing the TCB into the picture in importation of food grains -- a view he later backtracked on. The State Minister for Energy was clear in his view that an improvement in the power situation would take at least a year. Just a few days later the Finance Minister, as the media reports suggested, seemed to brush this view aside by saying it would be three years, not one before the situation improved, that too if at all. Thankfully, the Prime Minister provided the clarity that has redressed the consternation by stating that she wants a prompt solution by, if necessary importing power from the region's surplus countries.
The latest of such decisions is to provide rice at Tk 18 per kg to the 3.0 million odd garments workers. Side by side, the Food Minister announced that open market sales of rice would begin in the six divisional headquarters. The middle class housewives, who queued for hours during the caretaker government rule, hiding the ignominy by covering their faces, do not appear to have been impressed this time around. The murmurs are growing that a specific segment of the population has been 'favoured' at the cost of the general mass.
The government's pledge of providing essentials at reasonable prices is one of its greatest challenges and a huge issue at that. Whether there are further steps in the pipeline is to be seen. A rationing system has been talked of to provide succour to the 38% of the population living below the poverty line. That itself is a decision. The implementation issue-that of reaching the rice to the -- beneficiaries -- is another one altogether.
What the impact of such prices on the farmer will be is to be seen. Agriculture still continues to be the mainstay of our economy and there are other essential agri products that are still being sold at hefty margins. Even street hawkers are getting in on the act by hiking premiums on such produce by Tk 5.0-6.0 per kg. Given that this is an aspect of the marketing chain that has evolved over time, it is hard to see how the profit rates can be controlled so as not to overtax the already harried consumer. The usual government strategy -- that of ensuring supply matches or outreaches slightly, demand -- may be possible when it comes to rice. For everything else control could well mean death to free-market economy. (The writer is a former head of corporate and regulatory affairs, British-American Tobacco, Bangladesh and former chief executive officer of Bangladesh Cricket Board. He can be reached at e-mail: mahmudurrahman@gmail.com)