BB Governor highlights policy coordination

Dr. Atiur Rahman, Governor, Bangladesh Bank spoke Wednesday at Astana, Kazakhstan during the session on "Secular Stagnation in the Global Economy' of the World Anti-crisis Conference, inaugurated by Mr. Bakhyt Sultanov, Deputy Prime Minister and Finance Minister of the Republic of Kazakhstan.

The session panelists included interalia Daniel Heller, Executive Director, IMF, Fouad Siniora, former Prime Minister of Leanon and Domingo Cavalli, Senior Fellow of the Institute for Global Affairs, Yale University and former Economic Minister of Argentina. Dr. Atiur Rahman attributed sluggishness of global recovery to underinvestment in the developed economies, with lax monetary policies injecting too much money creating asset price bubbles but not touching real economic outcomes.

Yet, this may not end up in secular stagnation provided developed economies make adequate public investment in infrastructure and encourage private investment with necessary incentives. He suggested further that developed economies make more public investment in innovation and human capital through universities and research centers where from developing countries could also be benefited. BB Governor emphasized policy coordination and quality investments by governments of developing countries like Bangladesh in infrastructure, human development and technological innovations for boosting and sustaining economic growth.

He shared with the audience the experience of Bangladesh in promoting inclusive growth through well targeted financial inclusion in areas of agriculture, SMEs, and exports facilitations, upholding domestic demand with six plus percent stable annual average real growth over more than a decade. Panelists appreciated Bangladesh's policy initiatives and agreed with BB Governor that investment in innovation for human capital development would be a win-win strategy for recovery from the global growth slowdown. Mr. Abdul Mannan, State Minister for Finance, Ashadul Islam, Additional Secretary, ERD and Mosud Mannan, Bangladesh Ambassador to Kazakhstan also participated in the conference.

In the afternoon Governor Rahman also participated in the session on reviving global growth where he again emphasized on higher investment in Infrastructure, both physical and social in addition to creating more investment space for higher level of women in labour force participation. Also he identified institutional development remaining to be a challenge for enhancing growth in most emerging economies including Bangladesh, said a press release.