Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Monday, June 18, 2018 07:08:35 PM
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

Editorial »

Eid Mubarak


EID UL FITR is an important religious event celebrated by Muslims worldwide that marks the end of Ramadan, the Islamic holy month of fasting (sawm). The Eid (Muslim religious festival) is the first and only day in the month of Shawal during which Muslims are not permitted to fast. The ...

Cricket »

History-making Afghanistan get baptism of fire in Test cricket


AFP, Bangalore :Afghanistan were handed a bruising introduction to Test cricket by India on Thursday as they capped their astonishing rise from war and refugee camps to joining the sport's elite.Afghan skipper Asghar Stanikzai called it a "very proud moment" as he strode onto the field at Bangalore's M. Chinnaswamy ...

Football »

Orlando City midfielder Josue Colman kicks the ball away from Montreal Impact defender Rod Fanni during the second half of an MLS soccer match on Wednesday in Montreal.


Football »

German Chancellor Angela Merkel (center) and the former German national soccer team player and integration commissioner of the German soccer association, Cacau (right) attend a women soccer training session at a soccer club in Berlin, Germany on Wednesday.


International »

World can `sleep well` after North Korea summit: Trump


A jubilant-sounding President Donald Trump declared Wednesday that his "deal" with Kim Jong Un has ended the North Korean nuclear threat, as his top diplomat said he hoped to see "major disarmament" of the country by 2020.Despite the lack of detail, or binding terms in the joint statement agreed with ...

International »

UN rights office calls for int’l probe in Kashmir


AP, Geneva :The U.N. human rights chief called Thursday for an independent, international investigation into reports of rights violations in the disputed region of Kashmir, laying blame for civilian deaths and injuries on the actions of both India and Pakistan.In its first report on the region, the office of Zeid ...

City »

Air Chief adorned with Air Marshal rank badge


A ceremony marking the adorning of rank badge of new Chief of Air Staff Air Marshal Masihuzzaman Serniabat was held at the Prime Minister's Office (PMO) on Thursday.In the presence of Prime Minister Sheikh Hasina, Chief of Army Staff General Abu Belal Mohammad Shafiul Huq and Chief of Naval Staff ...

Entertainment »

Sylvester Stallone under probe for sexual assault


Los Angeles prosecutors said on Wednesday that their sex crimes team was reviewing a case against Rocky actor Sylvester Stallone. Los Angeles District Attorney's office spokesman Greg Risling did not give details but said the case was presented by police in the California beach city of Santa Monica.Representatives for Stallone, ...

Editorial »

Pay the workers immediately, let them celebrate the Eid


NEWS media reported that nearly 40 percent of the garment factories, most of which are small and not members of any trade bodies like the BGMEA or the BKMEA, are yet to pay the workers' salaries or festival bonus although Eid-ul-Fitr is knocking at the door. Most of the 4.4 ...

International »

N Korean state media hails Kim-Trump summit success


Reuters, Seoul  :US President Donald Trump and North Korean leader Kim Jong Un were splashed across North Korea's official party newspaper on Wednesday as state media hailed Tuesday's historic summit between the two men.The North's state media framed Tuesday's summit as a win for Pyongyang as it listed concessions made ...

Entertainment »

Secrets of Punam Priyam`s success


Entertainment Report :Punam Priyam is a popular media personality in Bangladesh. She is an anchor, producer and writer. In an interview with The New Nation, she has shared her life story and her views on different professional and personal issues. Details below:1. In our male dominated society men are still ...

Cricket »

Rahane says 'ruthless' India will not take Afghans lightly


AFP, Bangalore :Top-ranked India will be "ruthless" and not take Afghanistan lightly when they make their Test debut in Bangalore, skipper Ajinkya Rahane said Wednesday.It will be a historic moment for Asghar Stanikzai's team when they step out on Thursday for their maiden five-day outing against the world's number one ...

City »

Railway Minister Majibul Huq visited Kamalapur Railway Station in the city on Wednesday to witness the Eid journey of home-bound passengers.


Editorial »

Take urgent steps to prevent further landslides in hill region


AT least 11 people have been killed in separate incidents of landslides triggered by heavy rainfall in Rangamati and Cox's Bazar. Among the deceased, 10 were killed in Naniarchar upazila of Rangamati and one in Maheshkhali upazila of Cox's Bazar, as per a local daily report.In Naniarchar, landslides in Boro ...

Entertainment »

Chitrangda Singh wears the producer's hat!


Recently, 'Soorma' trailer starring Diljit Dosanjh and Taapsee Pannu in lead roles was released. While actress Chitrangda Singh who is been staying away from onscreen for a while has now overtaken the role of a producer for the movie, 'Soorma'. After Anushka Sharma and Priyanka Chopra trying their hands as ...

 
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