Muhith contests ADB study that excludes BD from Asian top-8
FE Report | Monday, 21 March 2011
FE Report
Finance minister AMA Muhith Sunday contested an Asian Development Bank (ADB) study that excluded Bangladesh from the list of top drivers of growth in the continent by 2050. In a study, the ADB said the countries such as China, India, Indonesia, Thailand and Vietnam would join the more developed Japan, South Korea and Singapore as the leading Asian economies in the next 40 years. But Mr. Muhtih and several local think tanks contested the study saying it undermined Bangladesh's growth potentials and also the strength of its 150 million people -- the fifth most populous nation in the continent. The minister said despite the energy crisis and infrastructure problems Bangladesh has been clocking a robust growth in the recent past and this year it is expected to register a record seven per cent growth. "While the country like Vietnam made it into the top-eight economies of Asia, Bangladesh was dropped despite it has been clocking quality growth for years. I contested the projections. It should be reviewed," he said. He made the comments during a closed-door consultative meeting on a study titled 'Asia 2050' at a hotel in the capital Sunday. Economic Relation Division (ERD) and ADB jointly organised the meet to get views from the local policy makers, academics, researchers, think tanks and the private sector. Mr Muhith was the keynote speaker in the meeting where he highlighted Bangladesh's economic strength and its future potentials. Prime Miniter's Economic Affairs Adviser Dr. Mashiur Rahman also attended it. Ex-advisors Mirza Azizul Islam and Hossain Zillur Rahman, Bangladesh Bank governor Atiur Rahman, economist Rehman Sobhan, Policy Research Institute executive director Ahsan H Mansur, Centre for Policy Dialogue executive director Mustafiqur Rahman spoke in the meet. ADB country director Thevakumar Kandiah and Managing Director General Rajat Nag were also present. The finance minister said Bangladesh can chart a higher growth path for the next 40 years by boosting domestic demand and exports, and fixing infrastructure bottlenecks through innovative approaches such as public-private-partnership. He said the country needs investment from high-saving Asian nations such as Japan, China, South Korea if its wants to bolster Gross Domestic Product growth and overcome resource limitation. "It is true our growth is less. But I think it should be around seven percent this year," he said and added for achieving higher growth the country needs more investment. "We lag in investment and have limited resources." He said quick-fixing the energy crisis and commissioning of key infrastructure projects such as elevated expressways, container terminals and ports can stimulate the country's growth for decades to come. The minister said Bangladesh would pin hopes on exports to lead its development drive. "Our growth will be export-led," he said, adding this year the country's outbound shipment would surpass US$20 billions. "In the next two to three years, we'll have significant exports. We still have that chance. Unlike South Korea, Japan and China, we still have chance to grow our exports," he told reporters after the meeting. Muhith said the private sector of India and Bangladesh are the main impediments to establishing connectivity between the two neighbours. "The private sectors are a bit insular. They are yet to make themselves open to a large extent." Central bank governor Atiur Rahman told the FE after the meeting that the country had introduced a number of financial innovations which will close the gaps on its rivals in the continent. (With contribution from UNB news agency)
Finance minister AMA Muhith Sunday contested an Asian Development Bank (ADB) study that excluded Bangladesh from the list of top drivers of growth in the continent by 2050. In a study, the ADB said the countries such as China, India, Indonesia, Thailand and Vietnam would join the more developed Japan, South Korea and Singapore as the leading Asian economies in the next 40 years. But Mr. Muhtih and several local think tanks contested the study saying it undermined Bangladesh's growth potentials and also the strength of its 150 million people -- the fifth most populous nation in the continent. The minister said despite the energy crisis and infrastructure problems Bangladesh has been clocking a robust growth in the recent past and this year it is expected to register a record seven per cent growth. "While the country like Vietnam made it into the top-eight economies of Asia, Bangladesh was dropped despite it has been clocking quality growth for years. I contested the projections. It should be reviewed," he said. He made the comments during a closed-door consultative meeting on a study titled 'Asia 2050' at a hotel in the capital Sunday. Economic Relation Division (ERD) and ADB jointly organised the meet to get views from the local policy makers, academics, researchers, think tanks and the private sector. Mr Muhith was the keynote speaker in the meeting where he highlighted Bangladesh's economic strength and its future potentials. Prime Miniter's Economic Affairs Adviser Dr. Mashiur Rahman also attended it. Ex-advisors Mirza Azizul Islam and Hossain Zillur Rahman, Bangladesh Bank governor Atiur Rahman, economist Rehman Sobhan, Policy Research Institute executive director Ahsan H Mansur, Centre for Policy Dialogue executive director Mustafiqur Rahman spoke in the meet. ADB country director Thevakumar Kandiah and Managing Director General Rajat Nag were also present. The finance minister said Bangladesh can chart a higher growth path for the next 40 years by boosting domestic demand and exports, and fixing infrastructure bottlenecks through innovative approaches such as public-private-partnership. He said the country needs investment from high-saving Asian nations such as Japan, China, South Korea if its wants to bolster Gross Domestic Product growth and overcome resource limitation. "It is true our growth is less. But I think it should be around seven percent this year," he said and added for achieving higher growth the country needs more investment. "We lag in investment and have limited resources." He said quick-fixing the energy crisis and commissioning of key infrastructure projects such as elevated expressways, container terminals and ports can stimulate the country's growth for decades to come. The minister said Bangladesh would pin hopes on exports to lead its development drive. "Our growth will be export-led," he said, adding this year the country's outbound shipment would surpass US$20 billions. "In the next two to three years, we'll have significant exports. We still have that chance. Unlike South Korea, Japan and China, we still have chance to grow our exports," he told reporters after the meeting. Muhith said the private sector of India and Bangladesh are the main impediments to establishing connectivity between the two neighbours. "The private sectors are a bit insular. They are yet to make themselves open to a large extent." Central bank governor Atiur Rahman told the FE after the meeting that the country had introduced a number of financial innovations which will close the gaps on its rivals in the continent. (With contribution from UNB news agency)