Price juggernaut is roaring on
Wednesday, 19 March 2008
Fahmida Akhter
THE caretaker government seems to be indifferent to the prices of essentials, already unaffordable to many, soaring by the day. The prices of basic food items such as rice, cooking oil, lentils etc., have been rising to the detriment of the millions and millions of common consumers of the country. They expected in vain that this government would do something at the earliest to save them from the sky rocketing prices and the 'manipulators'. Even coarse rice is now selling at Taka 22-24 per kg, much beyond the capacity of the poor to pay. The prices of these rice varieties ranged between Taka 16 and Taka 18 last year. The hardship of the poor knows no bounds. Rice is the unavoidable staple in their daily diet. Its unprecedented high price is causing them a great distress.
When the price of rice goes up, the prices of other things follow.
The rate of inflation has crossed the double digit mark. This has been a unique negative development in this country in decades. Its adverse impact on poverty alleviation is obvious. The way inflation continues to climb creates the apprehension where it would stand next year. These are indeed worrying developments dictating the urgency for going for an all-out competitive marketing measure to make the prices bearable.
The continuing price escalation increased the costs of living and the agonies of ordinary people. The poor and the extreme poor comprise nearly half of the population. Understandably, price increases tend to have devastating effects on them. This is more so the case as the prices of mainly common but indispensable items that the poor consume, are rising. The purchasing power of the poor, at its lowest now, is getting eroded day by day. If the high prices persist, the poor will be the poorer and poverty's pangs will only deepen.
The poor, given relatively stable or improved purchasing power, create demand for a large number of goods and services beyond food and other basic necessities. The production and marketing of these not-so-essential products, in turn, create employment and income for people. The economy grows in the process. But with constantly eroding purchasing power, the poor or common people are unlikely to create demand for such non essential items. Hence a slump in economic activities can be expected with all the other obvious consequences on the national economy. Aggravation of poverty, worsening unemployment and economic slowdown would be the fallouts.
The economic planners and the authorities need to realise the sufferings of the low income groups and the poor under the prevailing circumstances. Even the middle classes, specially the urban lower middle classes -- usually above the poverty line -- are in a precarious state of existence. Possibly they have been pushed below the poverty trap. What then the nation is getting out of the much-trumpetted poverty reduction strategy.
The reality is that many people have lost their jobs in one year. And the real income of all are in the decline. Family managers in the fixed income groups are finding their backs to the wall. They are trying in vain to balance their family budgets with their static incomes while the prices continue to soar.
The people are ringing the alarm bells for the government to listen to, and give, them relief from the unbearable situation. But so far, there has been no response to the outcry 'save our souls'. The government, run by the country's most talented economists, must respond to the public demand as it is also in the interest of the economy.
THE caretaker government seems to be indifferent to the prices of essentials, already unaffordable to many, soaring by the day. The prices of basic food items such as rice, cooking oil, lentils etc., have been rising to the detriment of the millions and millions of common consumers of the country. They expected in vain that this government would do something at the earliest to save them from the sky rocketing prices and the 'manipulators'. Even coarse rice is now selling at Taka 22-24 per kg, much beyond the capacity of the poor to pay. The prices of these rice varieties ranged between Taka 16 and Taka 18 last year. The hardship of the poor knows no bounds. Rice is the unavoidable staple in their daily diet. Its unprecedented high price is causing them a great distress.
When the price of rice goes up, the prices of other things follow.
The rate of inflation has crossed the double digit mark. This has been a unique negative development in this country in decades. Its adverse impact on poverty alleviation is obvious. The way inflation continues to climb creates the apprehension where it would stand next year. These are indeed worrying developments dictating the urgency for going for an all-out competitive marketing measure to make the prices bearable.
The continuing price escalation increased the costs of living and the agonies of ordinary people. The poor and the extreme poor comprise nearly half of the population. Understandably, price increases tend to have devastating effects on them. This is more so the case as the prices of mainly common but indispensable items that the poor consume, are rising. The purchasing power of the poor, at its lowest now, is getting eroded day by day. If the high prices persist, the poor will be the poorer and poverty's pangs will only deepen.
The poor, given relatively stable or improved purchasing power, create demand for a large number of goods and services beyond food and other basic necessities. The production and marketing of these not-so-essential products, in turn, create employment and income for people. The economy grows in the process. But with constantly eroding purchasing power, the poor or common people are unlikely to create demand for such non essential items. Hence a slump in economic activities can be expected with all the other obvious consequences on the national economy. Aggravation of poverty, worsening unemployment and economic slowdown would be the fallouts.
The economic planners and the authorities need to realise the sufferings of the low income groups and the poor under the prevailing circumstances. Even the middle classes, specially the urban lower middle classes -- usually above the poverty line -- are in a precarious state of existence. Possibly they have been pushed below the poverty trap. What then the nation is getting out of the much-trumpetted poverty reduction strategy.
The reality is that many people have lost their jobs in one year. And the real income of all are in the decline. Family managers in the fixed income groups are finding their backs to the wall. They are trying in vain to balance their family budgets with their static incomes while the prices continue to soar.
The people are ringing the alarm bells for the government to listen to, and give, them relief from the unbearable situation. But so far, there has been no response to the outcry 'save our souls'. The government, run by the country's most talented economists, must respond to the public demand as it is also in the interest of the economy.