Keep politics, economics apart for avoiding risks, say experts

Some economists suggested keeping politics and economics apart for avoiding risks for both. Their opinion came as an international meet in Dhaka Sunday focussed on pursuing higher economic growth through integration, investment in infrastructure and human resource development in Asia.
They see these as big challenges in Asia to boost the economies in the continent that now hold the potential to be growth engines for the world economy as a whole.
Some 10 leading discussants, mostly economists, came up with the views on the concluding day of the International Chamber of Commerce, Bangladesh (ICC,B)-sponsored international seminar.
Speaking in a session styled 'Asian Growth: Realities and Challenges', Professor MA Taslim, chairman at the Department of Economics of the University of Dhaka, said the relationship between democracy and economics must be differentiated, failing which both will be at risk.
He said business should be allowed to operate based on the market forces (demand and supply) instead of intervention by political forces.
"If this does not happen, economics will not be stabilised in the region," the professor of economics told the meet.
Former caretaker government adviser Dr. AB Mirza Md. Azizul Islam presided over this one among four sessions of the two-day conference.
Professor Dr. Taslim said: "In the democratic practices majority party runs the government but they cannot be the employers of economics.
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But, unfortunately, that has been happening ….."
In his view, in major part of Asia, democracy is at risk for the mix-up.
"Politics should not be in business and business should not be in politics," Dr. Taslim noted.
Dr Hossain Zillur Rahman, an eminent economist and sociologist, said politics in the developing nations has now become a 'crony business'.
This, he added, is leading to "misuse of tax money by a group of people loyal to the party in power".
Dr. Rahman, also a former adviser of the caretaker government, observed that growth acceleration now emerged as a main concern in the developing nations, including Bangladesh, simply due to the misuse of political power and poor governance.
He said resilience is an achievement by the nations-what now needed are advances.
"We've to expand and come out of from the cycle of around 6.0 per cent growth," the economist said about dos for giving a nudge to Bangladesh economy.    
He noted that governance issue is now also a hot topic in the western democracies that have been practicing it for centuries.
"There is now huge inequality in the West in terms of wealth distribution as the moneyed men took benefit from the democracies depriving the others."
Dr. Rahman, also chairman of the Dhaka-based think-tank PPRC (Power and Participation Research Centre), cited the case of China where democracy remained absent and is ruled by authoritarian government that takes the issue of governance and its people seriously.
President of the American Chamber in Bangladesh (AMCHAM) Aftab-ul-Islam told the function that Asia is stuck in political problems.
"India-Pakistan conflict is one of them, and such type of clashes lead to the mistrust among the nations."
He said there is now need for proper leadership for stopping such political conflicts among the developing nations of Asia.
However, Dr. Taslim put emphasis on investment in the field of infrastructure, education and training and anti-environment pollution schemes aimed at tackling impacts of climate change.
Dr. Taslim said there is need for growing attention for combating the challenges in relation to extending urban facilities for the growing number of urban population in Asia.
Policy Research Institute of Bangladesh (PRI) vice-chairman Dr Sadiq Ahmed said developing Asia has been doing better than the rest of the world on the growth front despite slowdown in global economy.
"With its rising share of world income and trade there are good prospects that Asia will lead the way for global recovery," he said,
However, much depends upon what happens in the two giant economics: China and India.
Terming the basic fundamentals of China and India strong, DR Ahmed said: "With concerted domestic reforms, it is expected that growth will recover to 6.0-7.0 per cent in India and stabilise at around 7.0-8.0 per cent in China."
He said along with restoration of stability and growth in advanced economics in the range of 2.0-3.0 per cent, these performances can be an important pull factor for global recovery.
Centre for Policy Dialogue (CPD) distinguished fellow Dr Debapriya Bhattacharya said the continent has three types of trends in terms of economic indicators ---dazzling, dancing and the dazed.
He said the Asian economies have been growing in terms of its share in the global economy.
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md Atiqul Islam told the meet that Bangladesh is now second- largest clothing exporter in the world. But it has less than 5.0 per cent in the total clothing market of around $450 billion.
Mr Islam said Bangladesh has adequate room for expanding its exports to both Asia and the rest of the world.
Citing the McKinsey report on Bangladesh's garments, the export-industry leader said Bangladesh now needs five Ps' (people, power, place, port and politics) for boosting its exports to $40-billion mark.
Adeeb Hossain Khan, councillor member at the Institute of Chartered Accountants of Bangladesh, said Asia should now focus on its own market in the region and their respective domestic markets following squeezes in the growth outside Asia.

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