Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Wednesday, November 14, 2018 09:46:55 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Commentary

Ignoring facts and quoting figures justifies nothing

By Editorial Desk
09th-Jan-2017       
Comments
Share your thought
Post a comment »
Read all () »

In releasing its report on the state of Bangladesh's economy, the Centre for Policy Dialogue (CPD) yesterday identified the robust GDP growth and rebounded investment in fiscal year 2015-16, low inflationary pressure, rising foreign exchange reserve, manageable fiscal deficit and positive capital market are comfortable spaces for Bangladesh economy. In our view, this findings prove reliance on figures ignoring facts on the ground. If a country's economy can be in "comfortable spaces" when the country is sinking under an ocean of corruption, administrative mismanagement, no country needs accountability of the government and fight corruption for economic growth and development. Mr Tawfiqul Islam said excessive sale of savings tolls, rising non-performance loans, weak governance amid new scams in banking sector, capital inadequacy in banks and lower remittance inflow are the major areas of concern for the economy.

 Nobody will know where lies the truth to steer the economy to the right direction.  So how independent CPD is for it to decide? But like the CPD Bangladesh Bureau of Statistics has claimed the economy showed resilient growth and expanded by more than 7 percent in fiscal 2015-16. It has crossed the threshold of 6 percent growth after nearly a decade and set to achieve 7.11 percent in 2015-16.

Finance Minister AMA Muhith made the disclosure saying  final estimate of last year's growth actually showed higher growth over initial estimate at 7.05 percent. But economists have sounded skeptical about the claim. Even the World Bank has openly expressed doubt it as a senior economist has questioned the claim saying it lacks consistently supporting figures.

In his view political stability is not the only factor, there are other major challenges like good governance, drastically cutting back corruption and quick development of energy and infrastructure to give business the pace for growth.  

The finance minister's claim has essentially highlighted the controversy over the growth figure to ignite further debates. 

The Planning Minister's claim has also invited similar rebuttal. Indeed we just see a situation where the government is trying to show its big success by highlighting higher GDP growth to which economists in the first place don't disagree but what they want to say is that such claims are too big and not sufficiently supported by the reality in the ground.

For instance they said the agriculture sector registered 2.79 percent growth during last fiscal year, down from 3.33 percent in earlier 2014-15. The services sector registered 6.25 percent growth in 2015-16, up from 5.8 percent a year earlier.
 
But CPD economist Dr Moazzem Hussain is of the view that the 7-plus growths may basically result from investment in the service sector rather than contribution from the manufacturing sector. Such success is not visible in terms of job creation that essentially needs more investment in manufacturing to make development visible.

"You will not see investment but there will be growth. We will have to switch to a scenario where a lot of investment will take place and jobs will be created." This is what he said important to bring benefits of development to common people. In his view there is no alternative to new private investment in the manufacturing to create income-generating job for workers and develop business chain for others.

Experts held the view that the country should increase investment-GDP ratio by at least 2 percentage points for the private sector to bring the desired spurt in GDP growth at a time when liquidity in the banking system is only soaring. Credit expansion to private sector declined during last year when banks were sitting over Tk120,000 crore excess liquidity without demand for investment.

Economists believe that there must be a new surge in domestic investment to encourage foreign investors to Bangladesh. But the country is now rather losing huge funds annually as many business houses are laundering it to make investment abroad instead of opening way for massive foreign investment in the country.
Our development and high GDP growth are now based on higher government spending to pay bureaucracy and implement some mega projects, which have no bearing on the life of the common people. Development in Bangladesh means development of higher echelons of the society, growth means growth for the rich. 
   
Indeed huge growth potentials remained underutilized and unless the government shows the leadership competence to mobilize resources and put it to efficient use for real development in the ground mere higher GDP figure will make no difference.

Indeed we need institutional capacity building, efficient bureaucracy and major policy reforms along with wiping out corruption and mismanagement to bring about real growth. 

The outgoing year saw annual remittance plummeted by around 2.5 billion from 15.50 billion in previous 2014-15 when outward migration hit all time high to 7 lakhs. Yet why remittance fell so drastically has no clear answer. But it is no secret that powerful quarters are running hundi business and diverting foreign exchange to third country destinations.    

The World Bank Chief economist in Dhaka office Mr Zahid Hussain said, "The question is whether the official estimate is consistent with other growth-related indicators." In his view ten out of 12 indicators saw less success during the period to create doubt on higher growth.

We are in a vicious cycle of lies by those who live in highly comfortable spaces when the country is in the midst of oceans of corruption (parliamentary proceedings) and mismanagement in every sector of public life. We need no ''independent think tank'' for telling us that we are having "robust growth" and good and honest governance is unnecessary for economic development. 

Tariff
Add Rate

News Archive

Inside The New Nation

Sports »

Los Angeles Clippers guard Sindarius Thornwell (left) and Golden State Warriors forward Draymond Green scramble for a loose ball during the first half of an NBA basketball game in Los Angeles on Monday.


Football »

Rooney excited for 'great moment' in England farewell


Wayne Rooney says he is honoured to make a final appearance for England and happy for manager Gareth Southgate to decide his playing time Thursday against the United States.Former Manchester United star Rooney, in video comments released Monday by his Major League Soccer club DC United, detailed his excitement at ...

City »

Chief Election Commissioner KM Nurul Huda, among others, at a press briefing for returning officers on the occasion of eleventh parliamentary election in the auditorium of Election Commission Secretariat in the city on Tuesday.


International »

Nobody can stand in its way in Pacific island cooperation: China


Reuters, Beijing :No country can block China's cooperation with island nations in the Pacific and the area is no country's sphere of influence, a senior diplomat said on Tuesday, ahead of a summit between President Xi Jinping and Pacific island leaders.Australia, in particular, has been vying for influence with China ...

International »

Israel-Gaza border facing most serious fighting since 2014 war


Reuters, Gaza :Israel launched more air strikes on Gaza on Tuesday as Palestinians kept up rocket fire on Israeli territory, in the worst surge of violence since a 2014 war.The fighting - that has killed six Palestinians, five of them militants, and a civilian in Israel since Monday -threatened to ...

Entertainment »

Oishee in China to win `Miss World` crown


Jannatul Ferdous Oishee crowned 'Miss Bangladesh 2018' on November 30. Now, she is in China for participating in the 'Miss World' beauty contest. There she will represent Bangladesh. On Saturday night at 1:00 am, Oishi left Dhaka for Sanya in China. And she reached there on Sunday morning.Swapan Chowdhury, chairman ...

Football »

New York City forward David Villa (7) movers the ball as Atlanta United defender Miles Robinson (12) defends during the first half of their MLS playoff soccer match in Atlanta on Sunday.


Football »

Ronaldo ends San Siro hoodoo as Juventus beat Milan 2-0


AP, Milan :Cristiano Ronaldo ended his San Siro hoodoo to help Juventus to a 2-0 win after AC Milan forward Gonzalo Higuain missed a penalty against his former team on Sunday.Higuain left Juventus in the offseason following the signing of Ronaldo and he had a nightmare game as he was ...

Editorial »

No development yet in city's road traffic management


THE directives to ensure discipline in traffic system issued by higher authorities have failed to bring any result. The traffic rule violation is still rampant. Almost all directives addressing owners and workers of city service buses and human haulers, pedestrians and drivers went unheeded. If the traffic management system returns ...

International »

California wildfires: Death toll reaches grim milestone


The death toll in wildfires sweeping California has risen to 31, with more than 200 people still unaccounted for, officials have said.Six more people were confirmed killed in the Camp Fire in the north of the state, taking the toll there to 29.That fire now equals the deadliest on record ...

City »

Prime Minister Sheikh Hasina receiving ASOCIO 2018 Digital Government Award from Post, Telecommunication and Information Technology Minister Mostofa Zabbar at the cabinet meeting on Monday.


Entertainment »

Mamo, Puja share big screen for first time


Sheikh Arif Bulbon :It was earlier fixed that Raihan Rafi directed and Jaaz Multimedia produced movie Dohon was scheduled to release on November 16. Later releasing date was changed to November 30. Owner of Jaaz Abdul Aziz confirmed the matter yesterday. Main theme of the story was given by him ...

Entertainment »

Sonakshi Sinha has only special appearance in Mission Mangal?


Actor Akshya Kumar recently announced the entire cast of India’s first space film Mission Mangal. The film is set to go on floors next month and will be helmed by Jagan Shakti. Besides Akshay as the main lead, Mission Mangal has an impeccable leading cast that includes names like Vidya ...

Football »

Iran women attend Asian Football final in rare `victory`


Hundreds of Iranian women attended a crunch football match in Tehran, in a rare step seen Sunday as a "victory" by local newspapers and hailed by FIFA as an "historic and festive day" for the sport.About a thousand women were allowed into Azadi Stadium late Saturday to watch Iranian giant ...

Editorial »

Bring the criminals to book and ensure their harsher punishment


ANOTHER woman was killed in a running bus on Friday night. This time her father was also pushed off the vehicle on Dhaka-Tangail highway in Savar. The incident may remind one of the rape and murder of law student Rupa Khatun inside a running bus in Tangail over a year ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news