The problem of poverty and inequality

The long unmentioned subject — income disparity and level of poverty — has been the theme of a recent discussion in Dhaka, organised by Bangladesh Economic Association (BEA). Ever since the country's journey on the road to free market economy in the changed global and regional context, the emphasis was on wealth creation. There was little time to see how it is created. Mostly the privileged class took the most advantage of it to pursue their narrow interests and thus alongside the moneyed class up came a tout section. Together they have plundered resources of the country. The discussants at a Senate hall of the University of Dhaka at BEA-sponsored lecture titled "Poverty-Disparity-Inequality: In Search of a Unified Political Economic Theory', have now made it a point to identify the malaise. It is categorical that only 1.0 per cent such people are responsible for much of the woes. What is of particular importance is that they do not actually create assets; rather they take away from existing amount of wealth through, what the participants in the discussion there have termed, embezzlement, misappropriation, lobbying and many other improper means. The problem with them is that they control politics, power and all state machinery in order to strengthen their monopolistic hold on resources.
What emerges from the observations by the discussants is that genuine merit gets neglected when 'lackeys' and 'touts' get the better of honesty on the one hand and talent and efficiency, on the other. No wonder, therefore, that growers of foods do not get a fair return for their produces while the middlemen and hoarders make outrageous profit. Market economy tends to get perversely distorted here because in theory there is no scope for manipulation of the market by foul means. Loan defaulting industrialists enjoy reprieve on several counts while poor farmers become victims of oppression for negligible amounts. Those who feed the nation certainly deserve better. Clearly, the system prevailing right now is not farmer-friendly or labour-friendly or a competitive market-oriented one. Any socio-economic system that allows the rich to get richer and the poor poorer can be anything but unwelcome. The cause of social inequality lies here. If productivity and creativity are not encouraged, third-rate and motivated cliques are sure to grab undue opportunity. This is what is mostly happening here. The genuine entrepreneurship is getting cornered.
Now it is not easy to come out of this less than normal situation. Much depends on governance. Establishing good governance has so far remained a wistful thinking in this country. One cannot hope for politics to be cent per cent perfect but at least people must have the right to decide their own lot. Unfortunately, the kind of political system the country has been able to introduce so far in the name of democracy has largely gone off target. The spirit with which the Liberation War was fought has faded in independent Bangladesh. Most of the problems issue from this fundamental flaw. There are definitely reasons for doubting the patriotism of people who launder money in order to settle abroad. The recent incidents involving the owners of some so-called business personnel, as was indicated by a recent report from Chittagong and published in this paper, who fled the country say it all. Certainly, there is a need for shifting the focus on talent and commitment to the country.