Creating employment, earnings
Saturday, 30 August 2008
The Bangladesh economy has been keeping its head above the waters as indicated by periodic statistics from different sources. But the economy also has had its share of troubles in the last two years from slowed-down economic activities. Government's policies unintentionally were factors in squeezing the economy. For example, millions of small craftsmen, hawkers and their families were pushed into dire straits from policies of hawkers' eviction from roadsides and demolition of bazars and informal shopping centres throughout the country in the wake of the present government's takeover. This proved to be a strong blow for the myriad of small producers of common goods and their retailers.
Industry and trade as a whole felt the adverse impact of not a well-focussed anti-corruption drive. Many industrial conglomerates have been lift in a limbo. The net of economic activities, thus, was squeezed in the country during the last two years or so. Then, the shattering effects of the Sidr storm dealt further blows to the economy. Government, since then, realized the unappreciated parts of its policies and revised the same considerably. Thus, business confidence has been reviving, alongwith the enthusiasm from different sections to engage wholeheartedly in economic activities. But nonetheless, investment operations, both by local private investors and foreign ones, are seen to be far lower in scale compared to the past. But without investment operations running on full gears, the economy will not be enlivened to the degree that is needed. The country has a huge backlog of unemployed people and every year a large number are becoming eligible for jobs. The big challenge for the present government as well as the one to be elected to power only months from now, would be how best to set the economy on a higher growth track.
Specially, investment operations must increase optimally to create employment-generating and income-earning opportunities for people. The latest statistics show that the otherwise encouraging progress achieved in poverty alleviation steadily over the last one and a half decades until 2006, has met a setback with the relapsing of nearly 4.0 million people below the poverty line. The purchasing power of people, specially the non-affluent ones, has eroded alarmingly from inflation and other factors. Therefore, this trend needs to be addressed with the fastest implementation of appropriate policies. The poor are under greater pressure from reduced opportunities for earnings. Planned creation of ways of earnings for them is very important to arrest the worsening of the poverty situation.
Under this fiscal's budget, the government has announced programmes for much expanding the social safety net programmes. But these are not all productive in nature. Greater value for the economy involves executing specially those plans that would create employment leading to asset formation. Particularly important is starting of the assured employment-giving scheme that was declared in the current fiscal's budget. This scheme needs to be properly implemented in a well-targeted manner, with full vigour under the remaining months of the tenure of the present government. All other ways of stepping up the rate of public sector investments should be explored. Boosting the public sector investments is very necessary in view of the still-sluggish private investments. The private sector, of course, cannot be dictated to invest. But under the prevailing scenario of under-investments which is worsening poverty conditions, the government should be strongly pro-active right at the beginning of the current fiscal for gearing up activities relating to the execution of projects and schemes that are included in the annual development programme to create income-earning and employment-generating opportunities for addressing the poverty situation.
Industry and trade as a whole felt the adverse impact of not a well-focussed anti-corruption drive. Many industrial conglomerates have been lift in a limbo. The net of economic activities, thus, was squeezed in the country during the last two years or so. Then, the shattering effects of the Sidr storm dealt further blows to the economy. Government, since then, realized the unappreciated parts of its policies and revised the same considerably. Thus, business confidence has been reviving, alongwith the enthusiasm from different sections to engage wholeheartedly in economic activities. But nonetheless, investment operations, both by local private investors and foreign ones, are seen to be far lower in scale compared to the past. But without investment operations running on full gears, the economy will not be enlivened to the degree that is needed. The country has a huge backlog of unemployed people and every year a large number are becoming eligible for jobs. The big challenge for the present government as well as the one to be elected to power only months from now, would be how best to set the economy on a higher growth track.
Specially, investment operations must increase optimally to create employment-generating and income-earning opportunities for people. The latest statistics show that the otherwise encouraging progress achieved in poverty alleviation steadily over the last one and a half decades until 2006, has met a setback with the relapsing of nearly 4.0 million people below the poverty line. The purchasing power of people, specially the non-affluent ones, has eroded alarmingly from inflation and other factors. Therefore, this trend needs to be addressed with the fastest implementation of appropriate policies. The poor are under greater pressure from reduced opportunities for earnings. Planned creation of ways of earnings for them is very important to arrest the worsening of the poverty situation.
Under this fiscal's budget, the government has announced programmes for much expanding the social safety net programmes. But these are not all productive in nature. Greater value for the economy involves executing specially those plans that would create employment leading to asset formation. Particularly important is starting of the assured employment-giving scheme that was declared in the current fiscal's budget. This scheme needs to be properly implemented in a well-targeted manner, with full vigour under the remaining months of the tenure of the present government. All other ways of stepping up the rate of public sector investments should be explored. Boosting the public sector investments is very necessary in view of the still-sluggish private investments. The private sector, of course, cannot be dictated to invest. But under the prevailing scenario of under-investments which is worsening poverty conditions, the government should be strongly pro-active right at the beginning of the current fiscal for gearing up activities relating to the execution of projects and schemes that are included in the annual development programme to create income-earning and employment-generating opportunities for addressing the poverty situation.