Timely move demands early follow-up actions
Monday, 10 September 2007
Shamsul Huq Zahid
LATE last week the Chief Adviser of the caretaker administration and the Chief of Army Staff while addressing a function held in the capital tried to ally fear of the businesses about the ongoing anti-corruption and other administrative actions of the government. They made the government's intention about the current anti-graft drive clear when the businesses on their part explained the reasons for becoming scared of the government's ongoing administrative and policy-related actions. The government leaders and the army chief assured the business community that nothing would be done to shaken its confidence.
The businesses were told how far the government would go in its bid to punish the corrupt elements and assured that none would be pursued if they did not indulge in fresh irregularities.
A number of suggestions did also come from the Chief Adviser such as formation of the Better Business Forum to help continue private-public sector dialogue and constitution of Regulatory Reform body headed by the Chief Adviser to review laws concerning trade and business and help reduce bureaucratic hassles that the businesses have to go through very often.
The 11-point formula placed at the function by the army chief designed to infuse dynamism into all areas of national life, including the economy, also demands particular attention.
There is no denying that some of the government actions that are very much pertinent to its goals triggered erosion in confidence of the business community. The businesses had a feeling that the government was deliberately harassing them in the name of drives against graft, tax-evasion, hoarding etc.
The eviction of hawkers from pavements and demolition of unauthorized shops and other businesses establishments constructed on government lands and alongside roads and highways had added to their resentment. All these together have resulted in a slowdown in business activities and investment and contributed to the inflationary pressure on the economy.
Some macro-economic indicators until now seem to be healthy but the situation may not be so in the coming months unless there was a turnaround in the business activities and investment.
The business leaders have found the deliberations, exhortations and proposals made by the CA and the army chief very helpful in putting their confidence on the right track. But what they want now is the early implementation of the actions suggested by the government top brass.
Instances were galore in the past that many decisions taken at the highest level of the government got stuck up in bureaucratic quagmire and remained unimplemented, finally. Under the changed circumstances, one can expect things to move in right direction.
However, the businesses do need make a bit of soul-searching to see whether all of their business practices have been lawful and genuine. The common men have lot of questions about honesty and integrity of a section of businessmen who are found more prone to making undue profit at the cost of poor consumers and following all the wrong routes of doing business. The business leaders and trade bodies in particular while demanding justice and fairness from the government do need to put their own house in order.
The consumers in the recent past generally used to blame both traders and government for hike in prices of essential commodities, particularly the food items. But there has been a noticeable change in their attitude. They now tend to blame the administration more than the traders out of the feeling that the sense of panic developed among businesses because of various government actions has been largely responsible for the price hike.
Moreover, the external factors that played a major part in rising inflationary pressure on the economy have not been adequately explained by the administration or the media to the people. For instance, the prices of essentials such as rice, wheat, edible oils have been rising unabatedly in the international market for the last few months. Many food exporting countries have become net importers of the same because of the shortfall in production. That is why even after the withdrawal of duty from a number of food items have had no impact on their prices.
The flood in the month of August, in addition to making millions of people homeless, added fuel to the rising prices since it caused extensive damage to standing crops and other infrastructures. Yet another flood has engulfed a vast tract of land in north and north eastern districts during the last couple of days, posing a serious threat to country's food security in particular and economy in general.
The latest business confidence-building session organized by the government was a step in the right direction. But its outcome needs to be appropriately translated into action by the government to help buoy business activities and investment and bring the prices of essential commodities within the reach of the poor consumers.
The argument on the part of men in authority that income level of the people has gone up is not at all tenable in the context of the hike in essential prices that, in many cases, have increased by 60 to 70 per cent. Instead of paying attention to such argument they should rather make sincere efforts to restore discipline in business activities taking the businesses into confidence.
LATE last week the Chief Adviser of the caretaker administration and the Chief of Army Staff while addressing a function held in the capital tried to ally fear of the businesses about the ongoing anti-corruption and other administrative actions of the government. They made the government's intention about the current anti-graft drive clear when the businesses on their part explained the reasons for becoming scared of the government's ongoing administrative and policy-related actions. The government leaders and the army chief assured the business community that nothing would be done to shaken its confidence.
The businesses were told how far the government would go in its bid to punish the corrupt elements and assured that none would be pursued if they did not indulge in fresh irregularities.
A number of suggestions did also come from the Chief Adviser such as formation of the Better Business Forum to help continue private-public sector dialogue and constitution of Regulatory Reform body headed by the Chief Adviser to review laws concerning trade and business and help reduce bureaucratic hassles that the businesses have to go through very often.
The 11-point formula placed at the function by the army chief designed to infuse dynamism into all areas of national life, including the economy, also demands particular attention.
There is no denying that some of the government actions that are very much pertinent to its goals triggered erosion in confidence of the business community. The businesses had a feeling that the government was deliberately harassing them in the name of drives against graft, tax-evasion, hoarding etc.
The eviction of hawkers from pavements and demolition of unauthorized shops and other businesses establishments constructed on government lands and alongside roads and highways had added to their resentment. All these together have resulted in a slowdown in business activities and investment and contributed to the inflationary pressure on the economy.
Some macro-economic indicators until now seem to be healthy but the situation may not be so in the coming months unless there was a turnaround in the business activities and investment.
The business leaders have found the deliberations, exhortations and proposals made by the CA and the army chief very helpful in putting their confidence on the right track. But what they want now is the early implementation of the actions suggested by the government top brass.
Instances were galore in the past that many decisions taken at the highest level of the government got stuck up in bureaucratic quagmire and remained unimplemented, finally. Under the changed circumstances, one can expect things to move in right direction.
However, the businesses do need make a bit of soul-searching to see whether all of their business practices have been lawful and genuine. The common men have lot of questions about honesty and integrity of a section of businessmen who are found more prone to making undue profit at the cost of poor consumers and following all the wrong routes of doing business. The business leaders and trade bodies in particular while demanding justice and fairness from the government do need to put their own house in order.
The consumers in the recent past generally used to blame both traders and government for hike in prices of essential commodities, particularly the food items. But there has been a noticeable change in their attitude. They now tend to blame the administration more than the traders out of the feeling that the sense of panic developed among businesses because of various government actions has been largely responsible for the price hike.
Moreover, the external factors that played a major part in rising inflationary pressure on the economy have not been adequately explained by the administration or the media to the people. For instance, the prices of essentials such as rice, wheat, edible oils have been rising unabatedly in the international market for the last few months. Many food exporting countries have become net importers of the same because of the shortfall in production. That is why even after the withdrawal of duty from a number of food items have had no impact on their prices.
The flood in the month of August, in addition to making millions of people homeless, added fuel to the rising prices since it caused extensive damage to standing crops and other infrastructures. Yet another flood has engulfed a vast tract of land in north and north eastern districts during the last couple of days, posing a serious threat to country's food security in particular and economy in general.
The latest business confidence-building session organized by the government was a step in the right direction. But its outcome needs to be appropriately translated into action by the government to help buoy business activities and investment and bring the prices of essential commodities within the reach of the poor consumers.
The argument on the part of men in authority that income level of the people has gone up is not at all tenable in the context of the hike in essential prices that, in many cases, have increased by 60 to 70 per cent. Instead of paying attention to such argument they should rather make sincere efforts to restore discipline in business activities taking the businesses into confidence.