Frustrated middle class gasping for fresh air
Sunday, 16 March 2008
Shahiduzzaman Khan
RAHIMA Khatun has queued up at BDR fair price shop at Azimpur. Coming from a low-income middle class family, Rahima has no way other than to buy rice, edible oil and lentil from the fair price shop with low income of her family. She had to shun conservatism and vanity of the middle class. This is now a common scene that the members of the low-income middle class families are now crowding fair price shops being run by the BDR and others.
With the rising prices of essentials, frustration among the middle class families in Bangladesh is rising alarmingly. As such, weakness in economic governance is emerging fast, which is creating a gap between middle class aspirations and lifestyles. The frustrated middle class tends to become a more vociferous political force, increasingly supporting non-government organisations (NGOs) in political life rather than traditional mainstream parties.
A recent study on 'Faltering middle class aspirations in Bangladesh' signifies that growing numbers of Bangladeshis have been able to achieve a middle class consumer lifestyle, driving the foreign direct investment (FDI) in the consumer goods market. However, the gap between aspirations and actual quality of life is huge and what the members of the middle class families want to buy amid their growing consumer demand, they cannot do it due to alarming price of the essential commodities. Essential items like rice, atta, lentil and edible oils devour most of their incomes.
However, in Bangladesh, estimates suggest that the size of the middle class is smaller than in its neighbours, constituting 5-13 million people out of a total population of 140 million or up to 9.2 per cent of the population, compared to 23 per cent in India, and that half of its members live in Dhaka and surrounding areas. Expansion in services, especially the retail, financial and public administration sectors have been responsible for the growth of a middle class. The sectors grew between 8.0 per cent and 12 per cent in 2006-07, compared with 4.0 per cent growth in agriculture, leading to the creation of a large number of middle class jobs.
The city-based rich middle class uses or consumes globally branded goods ranging from electronics, cars, motorcycles, fast food and music to DVDs. But the low-income middle cannot afford these items. Their aspirations are particularly confined to personal care and mobile phones. Beyond those, they cannot think of using other luxury goods.
The lifestyle of Bangladeshis has indeed changed dramatically over the past few years. So many items the rich middle class never thought of using, eating and buying have now become essential elements of their lives. Deodorants are a new addition to our shopping cart. How many Bangladeshis bothered to pay attention to their body odour even six years back? Today, however, after watching western and Indian ads of deodorants featuring sensual people whose love life changes overnight with a simple can of deodorant, the middle class attitude towards body odour and perspiration has also taken a new turn.
The spending pattern of rich middle class families of Bangladesh is certainly changing. These days they visit the Fantasy Kingdom during weekends to fight the elements of boredom that pile up in their monotonous lives. Spending some Tk. 500 on the rides of a theme park seems good for many of this middle class. These families are now the targets of most companies manufacturing consumer goods, building shopping malls, entertainment parks and exquisite food stores. Where rice and spicy curry was once considered the ideal lunch for a Bangalee, today the younger generation visits the fast food outlets for lunch with pizza and fried chicken.
There is a mushroom growth of supermarkets that sprouted in different locations of Dhaka over the last few years. The products that these supermarkets sell are also available in the small local stores and open markets, but still the families visit these superstores with elegant and air-conditioned atmosphere. The self-service facility of these grand stores has also eliminated the need to quarrel with the salesmen over price and quality. The supermarkets of Dhaka have definitely brought the largest change in consumers' shopping style in recent times.
Inflation is rising fast in the country and quickly burning a hole in the pockets of the general public. Almost everyone feels they are fighting a losing battle against price. Rising prices create mounting stress. That in turn raises blood pressure. In the country's societal segments the tiers of population have long since been divided into the three basic classes of upper, middle and lower classes based on income. The middle class comprises of most of the population and hence they have a greater influence.
The spending pattern of a typical middle class family could look something like this with an average income of about 30,000 taka. House rent 10,000 (including utility bills), groceries 4000, children's education 6000, transportation 5000, health 2000 and other costs 3000. At the rate the prices are rising, this family would find it very difficult to make ends meet. Commodity prices are rising sharply. Besides the utility bills there are many dues left over. Most of the increases are seen affecting the kitchen. Prices of necessary food items such as pulses, oil, meat and green vegetables are becoming costlier every day. One thing is clear that is the increase in grocery prices is also having a subsequent effect on other things.
On the other hand materials such as books, clothes etc. are being sold at increasing prices justifying such higher juices on higher import costs, expensive raw materials, rise in wages demanded, higher taxes and the now VAT. In the end, the business people argue that if the public does not buy at the prices asked then how would they feed their families. In the end it all relates to that logic of food. All the prices are rising because the food prices are going up. It is fast reaching the sky whereas the people are firmly rooted to the ground. So the dream of living a normal comfortable life remains just a dream after all. An orderly life remains just a disorderly dream. Those with limited earnings find it a major obstacle to realise theirs dreams in this market of inflated prices. The rate at which the price of necessities is going up, people fear to even think of buying something out of simple desire. It is becoming increasingly difficult to meet the budget.
The high prices, stress and the subsequent hardships and time constraints mean buying of these all have to be postponed for an unforeseen time.
Celebrations and gifts also suffer for this price hike. Gifts of gold and other precious materials have become more precious. A new custom has come up to present married couples with items they can use in their day-to-day lives. But that too is following the same trend, becoming unattainable.
The reigning thought is when and how money can be saved. As a result, fun is slowly fading from people's lives. Contentment is now a thing of the past.
RAHIMA Khatun has queued up at BDR fair price shop at Azimpur. Coming from a low-income middle class family, Rahima has no way other than to buy rice, edible oil and lentil from the fair price shop with low income of her family. She had to shun conservatism and vanity of the middle class. This is now a common scene that the members of the low-income middle class families are now crowding fair price shops being run by the BDR and others.
With the rising prices of essentials, frustration among the middle class families in Bangladesh is rising alarmingly. As such, weakness in economic governance is emerging fast, which is creating a gap between middle class aspirations and lifestyles. The frustrated middle class tends to become a more vociferous political force, increasingly supporting non-government organisations (NGOs) in political life rather than traditional mainstream parties.
A recent study on 'Faltering middle class aspirations in Bangladesh' signifies that growing numbers of Bangladeshis have been able to achieve a middle class consumer lifestyle, driving the foreign direct investment (FDI) in the consumer goods market. However, the gap between aspirations and actual quality of life is huge and what the members of the middle class families want to buy amid their growing consumer demand, they cannot do it due to alarming price of the essential commodities. Essential items like rice, atta, lentil and edible oils devour most of their incomes.
However, in Bangladesh, estimates suggest that the size of the middle class is smaller than in its neighbours, constituting 5-13 million people out of a total population of 140 million or up to 9.2 per cent of the population, compared to 23 per cent in India, and that half of its members live in Dhaka and surrounding areas. Expansion in services, especially the retail, financial and public administration sectors have been responsible for the growth of a middle class. The sectors grew between 8.0 per cent and 12 per cent in 2006-07, compared with 4.0 per cent growth in agriculture, leading to the creation of a large number of middle class jobs.
The city-based rich middle class uses or consumes globally branded goods ranging from electronics, cars, motorcycles, fast food and music to DVDs. But the low-income middle cannot afford these items. Their aspirations are particularly confined to personal care and mobile phones. Beyond those, they cannot think of using other luxury goods.
The lifestyle of Bangladeshis has indeed changed dramatically over the past few years. So many items the rich middle class never thought of using, eating and buying have now become essential elements of their lives. Deodorants are a new addition to our shopping cart. How many Bangladeshis bothered to pay attention to their body odour even six years back? Today, however, after watching western and Indian ads of deodorants featuring sensual people whose love life changes overnight with a simple can of deodorant, the middle class attitude towards body odour and perspiration has also taken a new turn.
The spending pattern of rich middle class families of Bangladesh is certainly changing. These days they visit the Fantasy Kingdom during weekends to fight the elements of boredom that pile up in their monotonous lives. Spending some Tk. 500 on the rides of a theme park seems good for many of this middle class. These families are now the targets of most companies manufacturing consumer goods, building shopping malls, entertainment parks and exquisite food stores. Where rice and spicy curry was once considered the ideal lunch for a Bangalee, today the younger generation visits the fast food outlets for lunch with pizza and fried chicken.
There is a mushroom growth of supermarkets that sprouted in different locations of Dhaka over the last few years. The products that these supermarkets sell are also available in the small local stores and open markets, but still the families visit these superstores with elegant and air-conditioned atmosphere. The self-service facility of these grand stores has also eliminated the need to quarrel with the salesmen over price and quality. The supermarkets of Dhaka have definitely brought the largest change in consumers' shopping style in recent times.
Inflation is rising fast in the country and quickly burning a hole in the pockets of the general public. Almost everyone feels they are fighting a losing battle against price. Rising prices create mounting stress. That in turn raises blood pressure. In the country's societal segments the tiers of population have long since been divided into the three basic classes of upper, middle and lower classes based on income. The middle class comprises of most of the population and hence they have a greater influence.
The spending pattern of a typical middle class family could look something like this with an average income of about 30,000 taka. House rent 10,000 (including utility bills), groceries 4000, children's education 6000, transportation 5000, health 2000 and other costs 3000. At the rate the prices are rising, this family would find it very difficult to make ends meet. Commodity prices are rising sharply. Besides the utility bills there are many dues left over. Most of the increases are seen affecting the kitchen. Prices of necessary food items such as pulses, oil, meat and green vegetables are becoming costlier every day. One thing is clear that is the increase in grocery prices is also having a subsequent effect on other things.
On the other hand materials such as books, clothes etc. are being sold at increasing prices justifying such higher juices on higher import costs, expensive raw materials, rise in wages demanded, higher taxes and the now VAT. In the end, the business people argue that if the public does not buy at the prices asked then how would they feed their families. In the end it all relates to that logic of food. All the prices are rising because the food prices are going up. It is fast reaching the sky whereas the people are firmly rooted to the ground. So the dream of living a normal comfortable life remains just a dream after all. An orderly life remains just a disorderly dream. Those with limited earnings find it a major obstacle to realise theirs dreams in this market of inflated prices. The rate at which the price of necessities is going up, people fear to even think of buying something out of simple desire. It is becoming increasingly difficult to meet the budget.
The high prices, stress and the subsequent hardships and time constraints mean buying of these all have to be postponed for an unforeseen time.
Celebrations and gifts also suffer for this price hike. Gifts of gold and other precious materials have become more precious. A new custom has come up to present married couples with items they can use in their day-to-day lives. But that too is following the same trend, becoming unattainable.
The reigning thought is when and how money can be saved. As a result, fun is slowly fading from people's lives. Contentment is now a thing of the past.