Doing the equation of earning and expenditure
Saturday, 15 March 2008
Fahmida Rahman
Latifur Rahman, a government official in his late 40s, is known as an honest man. Sincerity, devotion and dutifulness are among the qualities Rahman thinks a government official should have. But, his recent behaviour has made even his close colleagues suspicious. What happened to Mr Rahman?
Latifur Rahman (not his real name) lives in Mohammadpur area of Dhaka City. His monthly salary is around Tk 15,000 of which Tk 9,500 goes on house rent. With the remaining money, he cannot manage the other expenses of his seven-member family. He requires at least Tk 20,000 a month to fulfill his family's basic needs. Who will give him the remaining money? The gentleman lately started taking bribe to get the additional amount.
He says people do need food, clothes, shelter and medicine for survival. But, if the prices of these essential commodities keep going up it is very difficult indeed for the people of lower-income group to get on with life.
In recent months, the prices of essentials, from onion to edible oil, marked an all-time high, breaking the financial backbone of the commoners.
According to information provided by the Consumers Association of Bangladesh (CAB), the average rice price was Tk 29.06 per kg in January this year. In July, it went up to Tk 33.37, showing a 14.83 percent increase. Flour was sold at Tk 27.83 in January and now it was selling at Tk 33.33, posting a 19.76 percent rise. Similarly, the prices of lentil, edible oil, fish, meat, egg, spices and vegetables have gone up by 12.17 percent during January-July period.
Under the circumstances, many people are resorting to dishonest means to run their families because their monthly expenditure is more than income.
CAB secretary Kazi Faruk says, "Having failed to strike a balance between their earning and spending people are taking loans. When they are getting loans they are begging arm. And this is how the social discipline is shattered."
He says, "Two classes of the society have been hit hardest by the price hike. Firstly, the have-nots and the lower-class people who don't have even a shelter. Secondly, the middle-class people who can't come down a certain standard."
It is true that the recent unusual price hike of essentials has prompted many government officers and employees to resort to malpractice just to earn some extra money. Their pay structure is very weak which is why they can't strike a balance between earning and spending.
As the salary of government officials and employees is poor, they are either indulging in corruption or engaging themselves in other works. For example, a government college teacher tutors privately, doctors of government medical colleges are working in clinics and public university teachers are teaching at private universities or working in NGOs as consultants.
The number of private jobs has increased significantly in the country. And, private companies give much higher salaries than that of the government. When a BCS officer sees that despite being less qualified an employee of a multinational or mobile company leads a much better life he gets frustrated. And, this frustration makes him resort to corruption.
Dr Atiur Rahman, an eminent economist, says, "Government servicemen indulge in corruption just for survival. There are many officers and employees who simply can't maintain their families with their salaries. So, there should be a change in the pay structure."
According to available data, the inflation was 5.94 percent in January. Now, it's close to double digit. Until recently, the upward trend in inflation was only limited to food indicator. But, now it is seen in other aspects too. At present, a product worth Tk 100 has to be bought by Tk 108. Those who don't have the additional money have to buy less. Buying rice is the main problem for people. According to government statistics, 54 percent of income is spent on rice.
The spending for a five-member family that needs two and half kilos of rice a day has increased by Tk 12 to 15. So people with little income suffer more than the well-off ones.
As a remedial measure, Dr Atiur advocates for introducing a rationing system as in neighbouring India. "Therefore, any price hike can't affect the low-income group people."
Bangladesh Bank Governor Dr Salehuddin recently announced an advance monetary policy. According to his announcement, the inflation will be kept within the target of 6-7 percent in the first six months (From July to December) of 2007-08 fiscal.
He said controlling inflation is the main challenge of the monetary policy. Declaring to run the monetary policy more carefully for the next six months to keep inflation under control, he said inflation would not come down all on a sudden. But, it would be bearable in future. And to make that happen, Dr Salehuddin emphasised the government's revenue policy and increase in product supply.
In his various articles, Dr Atiur Rahman stated the reasons behind the price hike of essentials. He finds the lower supply than demand as the main reason behind the price hike.
The most harmful aspect of this is not to have a similarity between earning and spending. So, there is a financial crisis in public life and people's sufferings kept worsening. Among other reasons, there are interference in stockpiling, increase in transportation cost, fall in production both at home and abroad, import deficit, increase in fuel prices and profiteering by middlemen.
To solve the price-hike problem, Dr Atiur in one of his books wrote about the formation of a cell that would always monitor the movement of the prices of essentials. He says extortion in the transport sector will have to be stopped completely besides taking measures to watch the prices of commodities on the international market. He feels that consumer rights organisations should be more vocal.
According to Dr Atiur, there is a necessity to formulate competition guidelines in addition to having price committees to find the reasons behind price hike.
He also underlines the need for changes in the existing policies and strategies to have an effective answer to the problem.
— NewsNetwork
Latifur Rahman, a government official in his late 40s, is known as an honest man. Sincerity, devotion and dutifulness are among the qualities Rahman thinks a government official should have. But, his recent behaviour has made even his close colleagues suspicious. What happened to Mr Rahman?
Latifur Rahman (not his real name) lives in Mohammadpur area of Dhaka City. His monthly salary is around Tk 15,000 of which Tk 9,500 goes on house rent. With the remaining money, he cannot manage the other expenses of his seven-member family. He requires at least Tk 20,000 a month to fulfill his family's basic needs. Who will give him the remaining money? The gentleman lately started taking bribe to get the additional amount.
He says people do need food, clothes, shelter and medicine for survival. But, if the prices of these essential commodities keep going up it is very difficult indeed for the people of lower-income group to get on with life.
In recent months, the prices of essentials, from onion to edible oil, marked an all-time high, breaking the financial backbone of the commoners.
According to information provided by the Consumers Association of Bangladesh (CAB), the average rice price was Tk 29.06 per kg in January this year. In July, it went up to Tk 33.37, showing a 14.83 percent increase. Flour was sold at Tk 27.83 in January and now it was selling at Tk 33.33, posting a 19.76 percent rise. Similarly, the prices of lentil, edible oil, fish, meat, egg, spices and vegetables have gone up by 12.17 percent during January-July period.
Under the circumstances, many people are resorting to dishonest means to run their families because their monthly expenditure is more than income.
CAB secretary Kazi Faruk says, "Having failed to strike a balance between their earning and spending people are taking loans. When they are getting loans they are begging arm. And this is how the social discipline is shattered."
He says, "Two classes of the society have been hit hardest by the price hike. Firstly, the have-nots and the lower-class people who don't have even a shelter. Secondly, the middle-class people who can't come down a certain standard."
It is true that the recent unusual price hike of essentials has prompted many government officers and employees to resort to malpractice just to earn some extra money. Their pay structure is very weak which is why they can't strike a balance between earning and spending.
As the salary of government officials and employees is poor, they are either indulging in corruption or engaging themselves in other works. For example, a government college teacher tutors privately, doctors of government medical colleges are working in clinics and public university teachers are teaching at private universities or working in NGOs as consultants.
The number of private jobs has increased significantly in the country. And, private companies give much higher salaries than that of the government. When a BCS officer sees that despite being less qualified an employee of a multinational or mobile company leads a much better life he gets frustrated. And, this frustration makes him resort to corruption.
Dr Atiur Rahman, an eminent economist, says, "Government servicemen indulge in corruption just for survival. There are many officers and employees who simply can't maintain their families with their salaries. So, there should be a change in the pay structure."
According to available data, the inflation was 5.94 percent in January. Now, it's close to double digit. Until recently, the upward trend in inflation was only limited to food indicator. But, now it is seen in other aspects too. At present, a product worth Tk 100 has to be bought by Tk 108. Those who don't have the additional money have to buy less. Buying rice is the main problem for people. According to government statistics, 54 percent of income is spent on rice.
The spending for a five-member family that needs two and half kilos of rice a day has increased by Tk 12 to 15. So people with little income suffer more than the well-off ones.
As a remedial measure, Dr Atiur advocates for introducing a rationing system as in neighbouring India. "Therefore, any price hike can't affect the low-income group people."
Bangladesh Bank Governor Dr Salehuddin recently announced an advance monetary policy. According to his announcement, the inflation will be kept within the target of 6-7 percent in the first six months (From July to December) of 2007-08 fiscal.
He said controlling inflation is the main challenge of the monetary policy. Declaring to run the monetary policy more carefully for the next six months to keep inflation under control, he said inflation would not come down all on a sudden. But, it would be bearable in future. And to make that happen, Dr Salehuddin emphasised the government's revenue policy and increase in product supply.
In his various articles, Dr Atiur Rahman stated the reasons behind the price hike of essentials. He finds the lower supply than demand as the main reason behind the price hike.
The most harmful aspect of this is not to have a similarity between earning and spending. So, there is a financial crisis in public life and people's sufferings kept worsening. Among other reasons, there are interference in stockpiling, increase in transportation cost, fall in production both at home and abroad, import deficit, increase in fuel prices and profiteering by middlemen.
To solve the price-hike problem, Dr Atiur in one of his books wrote about the formation of a cell that would always monitor the movement of the prices of essentials. He says extortion in the transport sector will have to be stopped completely besides taking measures to watch the prices of commodities on the international market. He feels that consumer rights organisations should be more vocal.
According to Dr Atiur, there is a necessity to formulate competition guidelines in addition to having price committees to find the reasons behind price hike.
He also underlines the need for changes in the existing policies and strategies to have an effective answer to the problem.
— NewsNetwork