'Corporate cabals influencing certain public policies'
Saturday, 31 December 2011
FE Report
Professor Rehman Sobhan Friday said powerful domestic corporate players and special interest groups are now active in exerting influence on particular public policies leading to malfeasance in the stock market and condoning of debt default.
"They have now begun to exercise their influence over particular areas of policy," eminent economist Rehman Sobhan said.
He said: "As a democratic state, Bangladesh needs to insulate itself from such anti-democratic forces."
Rehman Sobhan made the observation at a commemorative event titled 'The 40th Anniversary of Bangladesh's Independence: The Vision and the Journey' --- organised jointly by Centre for Policy Dialogue (CPD), Ain O Salish Kendra (ASK),the Prothom Alo and the Daily Star.
Planning minister AK Khandker joined the function as chief guest, while Nobel Laureate Amartya Sen participated as special guest.
Executive director of Ain-0-Salish Kendra Sultana Kamal presided over the
event held at the National Museum auditorium in the city.
Mr Rehman, founding chairman of CPD, said maximum influence over Bangladesh's decision-making process was exerted by principal aid donors in the last two decades.
"We were then dependant on aid to finance our entire development budget and part of our revenue budget," he added.
He said Bangladesh now is much less aid-dependant with accounting for around 2.0 per cent of its GDP (gross domestic product).
Mr Rehman said in recent years the US government and the European Union have begun to use political consideration in determining the degree of market access offered to any country.
"Governments in Bangladesh have thus remained sensitive to these extraneous political influences," Mr Rehman added.
Mr Rehman said Bangladesh had now emerged as a trade-dependent country saying "Its export volume was around US$ 500 million at the time of liberation, now it is apparently $25 billion, a fifty-fold increase."
He, however, said donors still remained a force in influencing our policy directions, particularly in areas like infrastructure development.
Mr Rehman, also a former caretaker government adviser, said Bangladesh's global trade deficit is largely financed by migrant remittances.
He said: "If any class of people needs to be propitiated, it is our migrants whose enormous contributions to keeping our balance of payment healthy remains inadequately recognised."
He said it was unwise to rely exclusively on ready-made-garment exports.
"We need to aggressively follow up on the diversification of our export base ranging from leather exports to shipbuilding and other products to provide enormous opportunities to export growth."
He said Bangladesh was located between two emerging economic powers --- India and China.
"This provides extraordinary opportunities for the country, which now commands a position of proximity to two of the world's largest and most dynamic economies," he added.
He said Bangladesh has enough self-confidence in competitiveness, professional capacities and negotiating skills to build relationship of mutual benefit with them.
Addressing the function, Amartya Sen said Bangladesh should take leadership position in the world over global warming.
"Bangladesh has had many successes over the last 40 years. It now should take a leadership position over the global warming in south Asia including Bangladesh, which is being endangered by the climate change," Mr Sen added.
He said Bangladesh was now being treated by many as an 'ideal case' instead of basket case.
Planning minister AK Khandker said income disparity was on the rise despite the fact that Bangladesh's per capita income has risen to $ 750.
He said Bangladesh's challenge was to make it a middle-income country shortly.
Mr Khandker said the country has achieved a tremendous success in reducing its poverty level.
"Our poverty level stands now at 31 per cent from 80 per cent earlier," he added.
Professor Rehman Sobhan Friday said powerful domestic corporate players and special interest groups are now active in exerting influence on particular public policies leading to malfeasance in the stock market and condoning of debt default.
"They have now begun to exercise their influence over particular areas of policy," eminent economist Rehman Sobhan said.
He said: "As a democratic state, Bangladesh needs to insulate itself from such anti-democratic forces."
Rehman Sobhan made the observation at a commemorative event titled 'The 40th Anniversary of Bangladesh's Independence: The Vision and the Journey' --- organised jointly by Centre for Policy Dialogue (CPD), Ain O Salish Kendra (ASK),the Prothom Alo and the Daily Star.
Planning minister AK Khandker joined the function as chief guest, while Nobel Laureate Amartya Sen participated as special guest.
Executive director of Ain-0-Salish Kendra Sultana Kamal presided over the
event held at the National Museum auditorium in the city.
Mr Rehman, founding chairman of CPD, said maximum influence over Bangladesh's decision-making process was exerted by principal aid donors in the last two decades.
"We were then dependant on aid to finance our entire development budget and part of our revenue budget," he added.
He said Bangladesh now is much less aid-dependant with accounting for around 2.0 per cent of its GDP (gross domestic product).
Mr Rehman said in recent years the US government and the European Union have begun to use political consideration in determining the degree of market access offered to any country.
"Governments in Bangladesh have thus remained sensitive to these extraneous political influences," Mr Rehman added.
Mr Rehman said Bangladesh had now emerged as a trade-dependent country saying "Its export volume was around US$ 500 million at the time of liberation, now it is apparently $25 billion, a fifty-fold increase."
He, however, said donors still remained a force in influencing our policy directions, particularly in areas like infrastructure development.
Mr Rehman, also a former caretaker government adviser, said Bangladesh's global trade deficit is largely financed by migrant remittances.
He said: "If any class of people needs to be propitiated, it is our migrants whose enormous contributions to keeping our balance of payment healthy remains inadequately recognised."
He said it was unwise to rely exclusively on ready-made-garment exports.
"We need to aggressively follow up on the diversification of our export base ranging from leather exports to shipbuilding and other products to provide enormous opportunities to export growth."
He said Bangladesh was located between two emerging economic powers --- India and China.
"This provides extraordinary opportunities for the country, which now commands a position of proximity to two of the world's largest and most dynamic economies," he added.
He said Bangladesh has enough self-confidence in competitiveness, professional capacities and negotiating skills to build relationship of mutual benefit with them.
Addressing the function, Amartya Sen said Bangladesh should take leadership position in the world over global warming.
"Bangladesh has had many successes over the last 40 years. It now should take a leadership position over the global warming in south Asia including Bangladesh, which is being endangered by the climate change," Mr Sen added.
He said Bangladesh was now being treated by many as an 'ideal case' instead of basket case.
Planning minister AK Khandker said income disparity was on the rise despite the fact that Bangladesh's per capita income has risen to $ 750.
He said Bangladesh's challenge was to make it a middle-income country shortly.
Mr Khandker said the country has achieved a tremendous success in reducing its poverty level.
"Our poverty level stands now at 31 per cent from 80 per cent earlier," he added.