Proper steps seen vital to address adverse impact of global recession
Friday, 28 November 2008
FE Report
Proper protective measures might prevent the country's economy from the adverse impact of global financial slowdown, speakers at a seminar in the capital said on Thursday.
The seminar on "Global Financial Crisis and its impact on Bangladesh" was organised jointly by North South University and the World Bank, Dhaka on the NSU campus.
The speakers said Bangladesh exports low-priced garment products abroad. But the country's garment will still face a slowdown in export due cut in income of the people in the USA and European countries.
They expressed their fear that the global economic instability, especially in the USA and EU, is likely to result in financial slowdown in Bangladesh as the country relies on the European countries and Washington for its exports.
The speakers urged the government to take necessary steps to prevent the national economy from global recession although there is still no adverse impact on Bangladesh. In many countries of the world, growth rate is on the decrease due to global economic crisis, they said.
Speaking at the seminar, professor Wahiduddin Mahmud said capitalism is a trade and business-related system. Now it has turned into a global system though it is not always favourable to the people, he added.
He said corporate capitalism has derived from global economic system where the innovators run after money.
The crisis-gripped corporate capitalism in the USA, which is world's richest economy, has caused adverse impact on the global economy, he said.
"In the past, international community experienced several financial crisis one after another. In most cases, those problems were solved efficiently. Currently, the global crisis has taken a severe turn as a result of reckless activities of the corporate organisations of the world's richest country and these companies lack in transparency, morality and other virtues propitious to human development. The name of US-based Enron is an instance in this regard," he said.
Calling for introduction of modern financial system in Bangladesh, Dr. Wahid said the impact of global recession on Bangladesh is a controversial issue. "But we should keep it in our mind that as a developing country, Bangladesh has a long way to go to build its economy," he said.
Laying stress on diversification of exports, he said, in the free market economy, it is hard for a country to survive in the global market with only a handful of export products.
He said price of rice, wheat and other essential commodities is not likely to comedown to where it was earlier due to increase in production costs. So, future financial policies of the country should be formulated paying proper attention to this matter, he said.
NSU vice chancellor Hafiz G.A. Siddiqi said as an import-dependent country, Bangladesh has no way to protect its economy from global financial impact.
Dr. Mahbub Majumder and Mausumi Khan spoke at the seminar with WB economist Dr. Zahid Hossain presenting the keynote paper.
Proper protective measures might prevent the country's economy from the adverse impact of global financial slowdown, speakers at a seminar in the capital said on Thursday.
The seminar on "Global Financial Crisis and its impact on Bangladesh" was organised jointly by North South University and the World Bank, Dhaka on the NSU campus.
The speakers said Bangladesh exports low-priced garment products abroad. But the country's garment will still face a slowdown in export due cut in income of the people in the USA and European countries.
They expressed their fear that the global economic instability, especially in the USA and EU, is likely to result in financial slowdown in Bangladesh as the country relies on the European countries and Washington for its exports.
The speakers urged the government to take necessary steps to prevent the national economy from global recession although there is still no adverse impact on Bangladesh. In many countries of the world, growth rate is on the decrease due to global economic crisis, they said.
Speaking at the seminar, professor Wahiduddin Mahmud said capitalism is a trade and business-related system. Now it has turned into a global system though it is not always favourable to the people, he added.
He said corporate capitalism has derived from global economic system where the innovators run after money.
The crisis-gripped corporate capitalism in the USA, which is world's richest economy, has caused adverse impact on the global economy, he said.
"In the past, international community experienced several financial crisis one after another. In most cases, those problems were solved efficiently. Currently, the global crisis has taken a severe turn as a result of reckless activities of the corporate organisations of the world's richest country and these companies lack in transparency, morality and other virtues propitious to human development. The name of US-based Enron is an instance in this regard," he said.
Calling for introduction of modern financial system in Bangladesh, Dr. Wahid said the impact of global recession on Bangladesh is a controversial issue. "But we should keep it in our mind that as a developing country, Bangladesh has a long way to go to build its economy," he said.
Laying stress on diversification of exports, he said, in the free market economy, it is hard for a country to survive in the global market with only a handful of export products.
He said price of rice, wheat and other essential commodities is not likely to comedown to where it was earlier due to increase in production costs. So, future financial policies of the country should be formulated paying proper attention to this matter, he said.
NSU vice chancellor Hafiz G.A. Siddiqi said as an import-dependent country, Bangladesh has no way to protect its economy from global financial impact.
Dr. Mahbub Majumder and Mausumi Khan spoke at the seminar with WB economist Dr. Zahid Hossain presenting the keynote paper.