Whither market mechanism?

Higher lending rate is obviously a barrier to investment; it enhances the cost of doing business. So, there is always a demand for rate cut or lowering the lending rate. To provide the policy support for rate cut, the Bangladesh Bank in April last reduced the Cash Reserve Ratio (CRR)...

When privatisation creates new rentier opportunities

International financial institutions (IFIs) have typically imposed wide-ranging policy reforms - called 'conditionalities' - in exchange for country governments to secure access to financial assistance. While IFIs may demand anti-corruption policies, other IFI policy conditionalities, such as the privatisation of state-owned enterprises (SOEs), can create new rentier opportunities, undermining government...