Short-term recession 'won't affect Bangladesh'
Friday, 24 October 2008
FE Report
Economist Dr. Qazi Kholiquzzaman Ahmad said Thursday that short-term recession in major global economies would not affect Bangladesh.
"But the country will face severe losses if there is a prolonged recession in the developed countries," he said at a press conference in Dhaka on global economic recession and Bangladesh's economy.
Dr. Ahmad said: "As Bangladesh has not opened its capital market to foreign participation and the local banking system is not involved with the overseas capital markets directly, the economic meltdown in the larger economies will not affect Bangladesh much."
The economist suggested the government and the private sector to monitor the situation "cautiously" and take necessary measures if needed.
"The government should adopt a "tight regulatory system" to overcome the global impact on its economy and financial sector," said Dr. Ahmad, also chairman of the Bangladesh Unnayan Parishad, which opposes the present "open market economy."
Financial institutions of the world's largest economies like USA and some European countries are facing a meltdown over the last few weeks which prompted those governments to inject billions of dollars to salvage their economies.
Dr. Ahmad, who is also the president of the Bangladesh Economic Association (BEA), said during this prevailing situation massive reforms are required to be carried out by the global lenders World Bank and IMF.
"Those lenders should work to improve social-economic condition of the nations instead of promoting the open market economy," he said.
"In the production and marketing sides the private sector will play the key role in Bangladesh. But there will have to be strict government regulations to enable the sectors flourish," the economist said.
Economist Dr. Qazi Kholiquzzaman Ahmad said Thursday that short-term recession in major global economies would not affect Bangladesh.
"But the country will face severe losses if there is a prolonged recession in the developed countries," he said at a press conference in Dhaka on global economic recession and Bangladesh's economy.
Dr. Ahmad said: "As Bangladesh has not opened its capital market to foreign participation and the local banking system is not involved with the overseas capital markets directly, the economic meltdown in the larger economies will not affect Bangladesh much."
The economist suggested the government and the private sector to monitor the situation "cautiously" and take necessary measures if needed.
"The government should adopt a "tight regulatory system" to overcome the global impact on its economy and financial sector," said Dr. Ahmad, also chairman of the Bangladesh Unnayan Parishad, which opposes the present "open market economy."
Financial institutions of the world's largest economies like USA and some European countries are facing a meltdown over the last few weeks which prompted those governments to inject billions of dollars to salvage their economies.
Dr. Ahmad, who is also the president of the Bangladesh Economic Association (BEA), said during this prevailing situation massive reforms are required to be carried out by the global lenders World Bank and IMF.
"Those lenders should work to improve social-economic condition of the nations instead of promoting the open market economy," he said.
"In the production and marketing sides the private sector will play the key role in Bangladesh. But there will have to be strict government regulations to enable the sectors flourish," the economist said.