Bangladesh News

Economists yesterday underscored the need for taking the benefits of economic growth to the marginalised section of population to offset the increased level income inequality.

They suggested creation of a central agency for economic affairs for the government’s macro-, micro- and sector-based policies to address future development challenges.

They also recommended autonomy for Bangladesh Bureau of Statistics (BBS) and more operational independence for Bangladesh Bank and the think tanks for economic advancement.

The recommendations came at the inaugural session of a two-day international conference styled “Development Prospects of Bangladesh: Emerging Challenges” presided over by Centre for Policy Dialogue Chairman Prof Rehman Sobhan.

Bangladesh Institute of Development Studies (BIDS) organised the seminar in association with The Daily Star as media partner at Dhaka Sheraton Hotel on the occasion of the institute’s golden jubilee.

“The sectoral ministries can seldom take effectively the wider view and examine the interconnectedness of the policies in different sectors,” said International Food Policy Research Institute Emeritus Fellow Prof Nurul Islam at the programme.

Referring to the examples of trade policy issues of the commerce ministry, Prof Islam said it deals with selected issues such as commodities and comparative advantage. “At the same time, there are economy-wide consequences of foreign trade policy, which need to be analysed in the contexts of fiscal, monetary and exchange rate policies,” he said.

He suggested establishing a ministry for the coordination of economic affairs and said the BBS should be given autonomy “to fulfil the desired goal of high quality statistical information”.

Prof Rehman Sobhan said, “Millions of people live on the margin of development. We need to look at how to incorporate these people into the development process. If they remain out of the development process, it will hamper economy and political life.”

According to economists, although Bangladesh’s economy has grown over 5 percent in the last 15 years, income inequality has also risen.

Yale University Professor Emeritus Gustav Ranis said Bangladesh suffers from policy continuity problems.

Referring to the growth rates of Bangladesh and India, Ranis said India is doing better on growth but less on human development. “But Bangladesh is ahead of India in human development,” he added.

Ranis also said an abundance of foreign capital appeared to be a problem for Bangladesh as the capital “is not responding to what the country decided”.

The conference concludes today focusing on Bangladesh’s rural development, its prospects and challenges. Brac Executive Director Dr Mahbub Hossain will present the keynote paper on the issue.

The concluding day will feature a panel discussion on the emerging challenges and policy options for Bangladesh’s development. Finance and Planning Adviser AB Mirza Azizul Islam will attend the programme.

Gustav Ranis, Rehman Sobhan, Chr Michelsen Institute Emeritus Fellow Prof Just Faaland, California University Professor Emeritus AR Khan, Dhaka University Professor Wahiduddin Mahmud and Brac Executive Director Mahbub Hossain will be present as the panellists.

The conference will also discuss challenges of inequality and poverty from Bangladesh’s perspective. Prof Arthur MacEwan of University of Massachusetts will focus on the meaning of poverty while Rehman Sobhan will highlight the issues of injustice of poverty.