Downing inflation to enable common people to survive
Sunday, 4 November 2007
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 Muhammadpur 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 family of seven. He requires at least Tk 20,000 a month to fulfill his family's basic needs. Who will give him the remaining money? Of late the gentleman started taking bribe to get the additional amount.
He says people do need food, clothing, shelter and medicare for survival. But, if the essential prices keep soaring it becomes difficult for the people of lower-income group to get on with life.
The government needs to pay attention to increasing commodity supply and at the same time gear up its revenue policy.
In recent months the prices of essentials from onion to edible oil, reached 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. In July, it went up to Tk 33.37, showing a 14.83 per cent increase. Flour price rose from Tk 27.83 per kg in January to Tk 33.33, posting a 19.76 per cent increase. Similarly, the prices of lentil, edible oil, fish, meat, egg, spices and vegetables have gone up by 12.17 per cent during January-July period.
Under the circumstances, many people are resorting to dishonest means to maintain 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. And this is how the social discipline is shattered."
He says, "Two classes in the society have been hit hardest by the price hike. Firstly, the have-nots and the lower income class people who even don't have shelter. Secondly, the middle-class people who can't come below 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 the extra money needed. Their pay structure being weak they can't strike a balance between earning and spending.
The salary of government officers and employees being inadequate, they either have to engage themselves in other work or take to corruption. For example, a government college teacher takes to tuition, doctors of government teaching hospitals are working for clinics and public university teachers are teaching at private universities or working for NGOs as consultants.
The number of jobs has increased significantly in the private sector offering much higher pay and perk than that of the government. A BCS officer feels worse off finding executives of multinationals or even many level mobile companies affording better life.
According to available data, inflation soared firm 5.94 per cent in January to close to the double digit figure. Until recently, the upward inflationary trend was limited to food indicator. But, now it is seen in other aspects too.
A product bought Tk 100 the other day now costs Tk 108. Those who don't have the additional money have to buy less. Affording has become the main problem for the common people. According to government statistics, 54 per cent of income is spent on rice.
A day labourer does not know how he will pay for the extra price for rice he has to buy everyday for his family of fine.
Economist Dr Atiur Rahman suggests reintroduction of the rationing system. So that price hikes can't affect the low-income group."
Bangladesh Bank Governor Dr Salehuddin Ahmed a recently announced an advanced monetary policy and proposed to keep the inflation within 6.0-7.0 per cent during July to December.
Controlling inflation, he said, was the main challenge of the monetary policy. He requested the government's to pay attention to the supply situation and the revenue policy needs to gear up its policy.
Families are forced to cut down consumption, at times they have to exclude items to make two ends meet.
Low rather than demand supply remains the main case behind the price hike affecting the income expenditure balance.
The upshot is financial crisis in the life of the people aggravating by the day.
Transportation cost, fall in production at home and abroad, import deficit, increase in fuel prices and profiteering by middlemen are also contributing factors.
.......................
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 Muhammadpur 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 family of seven. He requires at least Tk 20,000 a month to fulfill his family's basic needs. Who will give him the remaining money? Of late the gentleman started taking bribe to get the additional amount.
He says people do need food, clothing, shelter and medicare for survival. But, if the essential prices keep soaring it becomes difficult for the people of lower-income group to get on with life.
The government needs to pay attention to increasing commodity supply and at the same time gear up its revenue policy.
In recent months the prices of essentials from onion to edible oil, reached 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. In July, it went up to Tk 33.37, showing a 14.83 per cent increase. Flour price rose from Tk 27.83 per kg in January to Tk 33.33, posting a 19.76 per cent increase. Similarly, the prices of lentil, edible oil, fish, meat, egg, spices and vegetables have gone up by 12.17 per cent during January-July period.
Under the circumstances, many people are resorting to dishonest means to maintain 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. And this is how the social discipline is shattered."
He says, "Two classes in the society have been hit hardest by the price hike. Firstly, the have-nots and the lower income class people who even don't have shelter. Secondly, the middle-class people who can't come below 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 the extra money needed. Their pay structure being weak they can't strike a balance between earning and spending.
The salary of government officers and employees being inadequate, they either have to engage themselves in other work or take to corruption. For example, a government college teacher takes to tuition, doctors of government teaching hospitals are working for clinics and public university teachers are teaching at private universities or working for NGOs as consultants.
The number of jobs has increased significantly in the private sector offering much higher pay and perk than that of the government. A BCS officer feels worse off finding executives of multinationals or even many level mobile companies affording better life.
According to available data, inflation soared firm 5.94 per cent in January to close to the double digit figure. Until recently, the upward inflationary trend was limited to food indicator. But, now it is seen in other aspects too.
A product bought Tk 100 the other day now costs Tk 108. Those who don't have the additional money have to buy less. Affording has become the main problem for the common people. According to government statistics, 54 per cent of income is spent on rice.
A day labourer does not know how he will pay for the extra price for rice he has to buy everyday for his family of fine.
Economist Dr Atiur Rahman suggests reintroduction of the rationing system. So that price hikes can't affect the low-income group."
Bangladesh Bank Governor Dr Salehuddin Ahmed a recently announced an advanced monetary policy and proposed to keep the inflation within 6.0-7.0 per cent during July to December.
Controlling inflation, he said, was the main challenge of the monetary policy. He requested the government's to pay attention to the supply situation and the revenue policy needs to gear up its policy.
Families are forced to cut down consumption, at times they have to exclude items to make two ends meet.
Low rather than demand supply remains the main case behind the price hike affecting the income expenditure balance.
The upshot is financial crisis in the life of the people aggravating by the day.
Transportation cost, fall in production at home and abroad, import deficit, increase in fuel prices and profiteering by middlemen are also contributing factors.
.......................
Newsnetwork