We must kickstart economic revival
It goes without saying that Bangladesh's economy stands at a critical juncture. It has been suffering immensely amidst all the political unrest of late and the prolonged crisis that preceded it. Following Sheikh Hasina's resignation as prime minister, we're now in the process of having an interim government. It is, therefore, crucial to take advantage of the normalisation of the situation to kick-start economic activities with full vigour, and bring the country on a path of recovery.
Among the main challenges we are facing are high inflation, falling foreign exchange reserves, high burden of default loans, poor governance in banking sector (and in general), and corruption. On top of that, the recent spate of violence leading to the massive destruction of public and private properties will have terrible impacts on the economy. Hence, it is urgent for order to be restored and for any further act of vandalism to stop. The air of uncertainty regarding the type of government that will be formed next needs to be addressed. It must be remembered that the system of governance has become so corrupt that people's democratic and economic aspirations cannot be met without significant structural changes.
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Parallel to bringing back normalcy in the country and ensuring justice, all forms of disruption to internet connection and other communications have to be prevented. Moreover, regular educational and business activities need to be resumed with full vigour to restore confidence among people. Transportation and logistical operations received significant hits during recent weeks. These must also be resumed with utmost urgency. And the supply chain disruptions that are leading to rising inflation must be fixed.
There are a number of systemic issues that have been plaguing the banking sector, all regulatory bodies, stock market, bond market, the insurance industry, and the tax administration. So, separate committees need to be set up to identify and address the problems plaguing these sectors. While these steps are taken, it must be recognised that lower-income groups are already enduring severe financial hardship. They cannot wait for committees to be set up and for things to stabilise. Many need urgent help, for which we request the relevant departments to take special initiatives including society safety measures.
Ultimately, the political and economic quagmire that the country currently finds itself in has been the result of years of undemocratic practices. So while we focus on fixing the damage that has been done in recent weeks and over the years, we must strive to transition to a more democratic system so that rent-seeking, inequality and all other economic ills can be overcome in the long run.
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