Reform data first before making policies: analysts

The interim government must first reform data, as the previous government not only mismanaged but also manipulated various types of data, making it difficult to form effective policies based on the existing information, economists, and entrepreneurs said today।

They made the comment at an event titled "Dialogue for democratic reconstruction" organised by the Centre for Governance Studies (CGS) in the capital.

Almost all data in Bangladesh is inaccurate due to malpractice, said Md Sabur Khan, chairman of Daffodil International University.

"You are making your policy depending on wrong data, then how will the policy give you a good result?"

For instance, the country's population is assumed to be 18 crore, but in reality, it is likely much higher, he said.

If the population size is inaccurate, then data related to food demand and per capita income do not reflect the actual figures, he added.

So, the first priority should be correcting the data and finding a way to build a sustainable and correct data set, he added.

M Abu Eusuf, former chairman of the Department of Development Studies of the University of Dhaka, also emphasised on the presence of reliable data.

Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue, said the data correction has already been set as the first priority in the white paper, which is going to be prepared to assess the extent of corruption in the country and identify the reasons behind it.

People have seen how the previous government has just played with the data of per capita income, inflation, and export income and how the data impacted on the economy, he said.

People will have to realise that the interim government was formed just three months back and it found a country almost disabled by the previous government, he said at the event as the guest of honour.

Still, the country's bureaucracy is not functioning well and its law enforcement department is not working properly, he said.

So, it is difficult to fulfill the dreams of all people overnight, he said, adding that people should understand the situation properly.

Bhattacharya said he realises how tough the situation is for the interim government and that is why he would talk in favour of the government although he is not a part of it.

The government will have to reform things that were piled up and should have been done by the previous government, he said.

It also has to reform policies so that the country can prepare itself to the next level of development, he said.

To do that, the government is bringing institutional reforms along with reforming the election system, he said.

Abdul Awal Mintoo, a veteran businessman and vice-chairman of Bangladesh Nationalist Party (BNP), also stressed the need for correcting all types of data, saying: "All data are wrong and full of lies now."

Regarding the business environment, Mintoo said that conducive social capital and savings are necessary to boost investment. 

However, this type of social capital, along with law and order and good relationships among people, is currently lacking, while savings are also decreasing, he said.

Some infrastructure has been built, but the healthcare and education systems are not conducive for the public, he said.

"I think there should be an act prohibiting members of parliament, ministers, the president, bureaucrats, and their family members from going abroad for healthcare services," said Mintoo, also a former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

He noted that the interim government may not be able to implement all reforms, so it should focus on those that are achievable in a short time frame.

Additionally, it could engage in discussions with political parties so they can carry out the remaining reforms in progress within the government, enabling the next elected government to fulfill all reform tasks.

Professor Rashed Al Mahmud Titumir, a director at Bangladesh Bank, commented that merely meeting with government officials and running Trading Corporation of Bangladesh (TCB) activities will not control stubborn inflation; planned actions from the commerce ministry are also necessary.

He recommended consulting with food importers who bring in essential items like wheat and onions from abroad.

Mir Nasir Hossain, also a former FBCCI president, argued that simply contracting the money supply will not curb high inflation unless market management and the supply chain are improved.

Rent-seeking within the supply chain is driving up the costs of goods, he noted.

With tighter money supply, interest rates in the banking sector have risen, and loan classification standards have been made stricter, creating significant challenges for industries.

"If this continues, how will new jobs be created in the private sector?" he asked.

Hossain emphasised the need to make the education system more need-based and to create a conducive environment in the equity market so that entrepreneurs can also raise funds from the stock market.

Prof Sayema Haque Bidisha, pro-vice chancellor of Dhaka University; Muhammad Abdul Mazid, a former chairman of the National Board of Revenue (NBR); Md Jashim Uddin, a former president of the FBCCI; Asif Ibrahim, a former president of Dhaka Chamber of Commerce and Industry, and MS Shekil Chowdhury, chairperson of the Centre for NRB, also talked at the event.