Muhith for structural changes in economic management
Sunday, 14 February 2010
FE Report
Developing countries should take the leading role in bringing necessary reforms in the global economy in the aftermath of the world financial turmoil, Finance Minister AMA Muhith said Saturday.
"The recent economic downturn around the world has brought forward the need of necessary structural changes in economic management", Muhith said at a book launching ceremony in the city.
"The world is now faced with the critical questions of whether or not to depend on export oriented growth and whether or not to lessen the control on private ownership", he added.
Underlining the need for instilling new ideas in the way global financial system is operated, the finance minister urged the third world countries to pioneer the much-needed change.
"Poor, underdeveloped countries like Bangladesh should initiate new forms of economic management by bringing in fresh ideas and theories which is now decisive for the global economy as a way forward", he said.
Addressing the issue of widespread corruption in the country, Muhith underscored the need for systematic reforms in preventing the ill practices at organizational level.
"And such systematic reforms is best possible through the effective use of information technology at every organizations", he said.
Later in the ceremony, the book "Egiye Jaoer Orthoniti" authored by Mamun Rashid, Country Manager of Citibank N A in Bangladesh, was formally unveiled.
According to its publisher Onnoprokash, the book addresses various contemporary economic issues of Bangladesh against the backdrop of the transition in world economy and covers the subjects like private sector investment, energy security, infrastructure financing and the recent entry of the telecom operator Grameenphone in the capital market.
Speaking on the occasion, former adviser to the caretaker government Dr. Akbar Ali Khan said, "Although, lately there has been calls for lowering the bank interest rate in the country, such measure may also get resulted in the decrease in the flow of credit".
With regard to corruption and evil practices at the organizational level, Akbar Ali Khan said, "The best remedy is to take tough measures against the corrupted individuals".
Earlier, in his speech, former Adviser to the caretaker government Mirza Md Azizul Islam addressed the issues of sovereign credit rating, inflation and fiscal policies that have been widely discussed in the book.
"Global experience shows that there should be a control on the amount of foreign loan that can be taken by the private sector", Mirza Azizul Islam said.
"Also in countries like Bangladesh, fiscal policy cannot play an effective role in controlling inflation due to the lack of investment and the absence of effective mechanism from the central bank".
With regard to the high interest rate on bank loans, Mirza said, "Overall there is a lack of transparency in the banking system as there are too many banks in the country and a lot many of them are run in small scale, thus reducing the scope of huge scale profit".
Later, the author of the book Mamun Rashid in his speech said that sovereign credit rating system, through its effective implementation, has brought about positive changes in many neighboring developing countries.
Mazharul Islam, the chief executive of Onnoprokash, the publisher of the book also spoke on the occasion.
Developing countries should take the leading role in bringing necessary reforms in the global economy in the aftermath of the world financial turmoil, Finance Minister AMA Muhith said Saturday.
"The recent economic downturn around the world has brought forward the need of necessary structural changes in economic management", Muhith said at a book launching ceremony in the city.
"The world is now faced with the critical questions of whether or not to depend on export oriented growth and whether or not to lessen the control on private ownership", he added.
Underlining the need for instilling new ideas in the way global financial system is operated, the finance minister urged the third world countries to pioneer the much-needed change.
"Poor, underdeveloped countries like Bangladesh should initiate new forms of economic management by bringing in fresh ideas and theories which is now decisive for the global economy as a way forward", he said.
Addressing the issue of widespread corruption in the country, Muhith underscored the need for systematic reforms in preventing the ill practices at organizational level.
"And such systematic reforms is best possible through the effective use of information technology at every organizations", he said.
Later in the ceremony, the book "Egiye Jaoer Orthoniti" authored by Mamun Rashid, Country Manager of Citibank N A in Bangladesh, was formally unveiled.
According to its publisher Onnoprokash, the book addresses various contemporary economic issues of Bangladesh against the backdrop of the transition in world economy and covers the subjects like private sector investment, energy security, infrastructure financing and the recent entry of the telecom operator Grameenphone in the capital market.
Speaking on the occasion, former adviser to the caretaker government Dr. Akbar Ali Khan said, "Although, lately there has been calls for lowering the bank interest rate in the country, such measure may also get resulted in the decrease in the flow of credit".
With regard to corruption and evil practices at the organizational level, Akbar Ali Khan said, "The best remedy is to take tough measures against the corrupted individuals".
Earlier, in his speech, former Adviser to the caretaker government Mirza Md Azizul Islam addressed the issues of sovereign credit rating, inflation and fiscal policies that have been widely discussed in the book.
"Global experience shows that there should be a control on the amount of foreign loan that can be taken by the private sector", Mirza Azizul Islam said.
"Also in countries like Bangladesh, fiscal policy cannot play an effective role in controlling inflation due to the lack of investment and the absence of effective mechanism from the central bank".
With regard to the high interest rate on bank loans, Mirza said, "Overall there is a lack of transparency in the banking system as there are too many banks in the country and a lot many of them are run in small scale, thus reducing the scope of huge scale profit".
Later, the author of the book Mamun Rashid in his speech said that sovereign credit rating system, through its effective implementation, has brought about positive changes in many neighboring developing countries.
Mazharul Islam, the chief executive of Onnoprokash, the publisher of the book also spoke on the occasion.