Business's confidence in the economy
Syed Fattahul Alim | Friday, 6 March 2009
It will take some time before the nation may recover fully from the trauma that it has been through since the rebellion broke out at the Bangladesh Rifles (BDR) headquarters in the capital city. But in spite of the shock, the nation has again demonstrated its resilience in every sphere of its activities. This capability to absorb shock and stress is also an extraordinary characteristic of the people of Bangladesh. It has been proved again and again in the past during calamities, both natural and manmade.
The recent-most tragedy born of human folly, whether it took place accidentally or by design that only time will tell, has again put us through our paces. Without being vain, it can be said that the general masses played their part commendably as they have been doing throughout the ages. However, the performance of their leadership is another question.
What consequences the latest national tragedy might have left on the economy on the shorter and the longer term? Such questions have already been asked by many quarters, especially in connection with our economic relationship with the rest of the world. Some has also raised again that disquieting subject of the possible 'damage to the national image' that might have been done through the tragedy. The 'image' question though a very sensitive one, it is time to consider the issue in a more realistic light. For image is about what an outsider may think about us. But to be so overly thin-skinned about others' perception is also not a very prudent way of assessing ourselves. For other peoples, to whose perceptions we are so susceptible, do not live in a world of make-believe. In fact, they also live in a real world and as such are able to understand the reality of others.
In the real world, nation states are guided by self-interest. So, their perception of good or bad about other nations depends largely on how the interests, if any, of the observing nations are being affected by the developments occurring in the particular nations under scrutiny. In fact, aesthetic considerations hardly ever take centre stage in matters of economic, diplomatic or political relations among nations.
In our case, our sensitivities about image have been the product of economic vulnerability and some negative publicity in the international media in the recent past. So, naturally the fear was that the latest tragedy involving BDR officials' massacre in the capital city might have left a bad impression on the foreign business community about the law and order and the security aspects of the country.
But that such fear is not wholly true. A three-day international construction fair at a hotel began in the city on Wednesday just about a week after the tragedy was enacted at the BDR HQs in the Pilkhana area of the city. It is worthwhile to note that the fair is organised by the Bangladesh Association of the Construction Industry (BACI) and being attended by 270 local and foreign construction experts and entrepreneurs including 220 foreign delegates.
BACI, which is a member of the 16-nation forum on the construction business titled International Federation of Asian and Western Pacific Contractors Association (IFAWPCA), is holding this fair on the sidelines of the 37th convention of this regional trade body. This event in itself shows the confidence this particular type of business leaders has in the country's law and order condition in the post-BDR mutiny situation. For had they not felt secure about Bangladesh, they might have given a second thought to the subject of convening their convention in the first place. However, thanks are also due to the BACI for its role in ensuring that the convention as well as the construction fair could be held as usual without much fuss about the law and order or security situation in the country. That also speaks of BACI's own confidence in its own home country, which is undoubtedly a demonstration of unswerving patriotism on the part of our business community in all eventualities.
Through facilitating the convention and organising the fair at this particular moment of time, the construction industry has also been able to declare its presence in the economy in rather courageous and confident terms more than ever before.
There is really no reason to take lightly an industry that is engaged in building the infrastructural backbone of the economy. Millions of people are employed directly and indirectly in this vast sector which alone accounts for 27 per cent of the nation's Gross Domestic Product (GDP). As it contributes so hugely to the economy employing millions and equally benefiting others linked to the economic activities that it encompasses, the construction industry, especially in the private sector deserves due attention from the government. Even considering the large number of people that depend for their livelihood on this industry, it is also a very potential sector for public investment. It may also be noted here that the Obama government of the USA has pledged fund in the public works so that the recession-hit people might find jobs in the infrastructure building activities across America. This shows that public spending in the infrastructure building sector is a way to help the economy as well as the people involved even during the worst of the times.
In a similar fashion, the private sector engaged in infrastructure building creates jobs and facilitate the economy in more than a number of ways.
The government by promoting the construction industry in the private sector can also increase its revenue income from import duties on the construction materials and from the incomes the business involved would make.
One may recall on this score that in the past few years, the construction industry was hard-hit as a result of the spiralling prices of the construction materials. So, this time Bangladesh can make the most of the ongoing downturn in the industrialised economies, where the prices of the construction-related materials have gone down appreciably.
To cut a long story short, the nation can always fall back on its inexhaustible fountain of inherent potency, despite the distressful experiences it has been going through from time to time. Far from being able to make a dent in the nation's inherent strength and potential, the latest tragedy has only enhanced its resolve to overcome the odds and rebuild itself in a more confident manner. At least, the common people and the business community have again demonstrated that. Now it is political leadership's turn to fulfil their part.
The recent-most tragedy born of human folly, whether it took place accidentally or by design that only time will tell, has again put us through our paces. Without being vain, it can be said that the general masses played their part commendably as they have been doing throughout the ages. However, the performance of their leadership is another question.
What consequences the latest national tragedy might have left on the economy on the shorter and the longer term? Such questions have already been asked by many quarters, especially in connection with our economic relationship with the rest of the world. Some has also raised again that disquieting subject of the possible 'damage to the national image' that might have been done through the tragedy. The 'image' question though a very sensitive one, it is time to consider the issue in a more realistic light. For image is about what an outsider may think about us. But to be so overly thin-skinned about others' perception is also not a very prudent way of assessing ourselves. For other peoples, to whose perceptions we are so susceptible, do not live in a world of make-believe. In fact, they also live in a real world and as such are able to understand the reality of others.
In the real world, nation states are guided by self-interest. So, their perception of good or bad about other nations depends largely on how the interests, if any, of the observing nations are being affected by the developments occurring in the particular nations under scrutiny. In fact, aesthetic considerations hardly ever take centre stage in matters of economic, diplomatic or political relations among nations.
In our case, our sensitivities about image have been the product of economic vulnerability and some negative publicity in the international media in the recent past. So, naturally the fear was that the latest tragedy involving BDR officials' massacre in the capital city might have left a bad impression on the foreign business community about the law and order and the security aspects of the country.
But that such fear is not wholly true. A three-day international construction fair at a hotel began in the city on Wednesday just about a week after the tragedy was enacted at the BDR HQs in the Pilkhana area of the city. It is worthwhile to note that the fair is organised by the Bangladesh Association of the Construction Industry (BACI) and being attended by 270 local and foreign construction experts and entrepreneurs including 220 foreign delegates.
BACI, which is a member of the 16-nation forum on the construction business titled International Federation of Asian and Western Pacific Contractors Association (IFAWPCA), is holding this fair on the sidelines of the 37th convention of this regional trade body. This event in itself shows the confidence this particular type of business leaders has in the country's law and order condition in the post-BDR mutiny situation. For had they not felt secure about Bangladesh, they might have given a second thought to the subject of convening their convention in the first place. However, thanks are also due to the BACI for its role in ensuring that the convention as well as the construction fair could be held as usual without much fuss about the law and order or security situation in the country. That also speaks of BACI's own confidence in its own home country, which is undoubtedly a demonstration of unswerving patriotism on the part of our business community in all eventualities.
Through facilitating the convention and organising the fair at this particular moment of time, the construction industry has also been able to declare its presence in the economy in rather courageous and confident terms more than ever before.
There is really no reason to take lightly an industry that is engaged in building the infrastructural backbone of the economy. Millions of people are employed directly and indirectly in this vast sector which alone accounts for 27 per cent of the nation's Gross Domestic Product (GDP). As it contributes so hugely to the economy employing millions and equally benefiting others linked to the economic activities that it encompasses, the construction industry, especially in the private sector deserves due attention from the government. Even considering the large number of people that depend for their livelihood on this industry, it is also a very potential sector for public investment. It may also be noted here that the Obama government of the USA has pledged fund in the public works so that the recession-hit people might find jobs in the infrastructure building activities across America. This shows that public spending in the infrastructure building sector is a way to help the economy as well as the people involved even during the worst of the times.
In a similar fashion, the private sector engaged in infrastructure building creates jobs and facilitate the economy in more than a number of ways.
The government by promoting the construction industry in the private sector can also increase its revenue income from import duties on the construction materials and from the incomes the business involved would make.
One may recall on this score that in the past few years, the construction industry was hard-hit as a result of the spiralling prices of the construction materials. So, this time Bangladesh can make the most of the ongoing downturn in the industrialised economies, where the prices of the construction-related materials have gone down appreciably.
To cut a long story short, the nation can always fall back on its inexhaustible fountain of inherent potency, despite the distressful experiences it has been going through from time to time. Far from being able to make a dent in the nation's inherent strength and potential, the latest tragedy has only enhanced its resolve to overcome the odds and rebuild itself in a more confident manner. At least, the common people and the business community have again demonstrated that. Now it is political leadership's turn to fulfil their part.