& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

Interview: BIDS DG Mashiur Rahman Khan

’Open Market Policy at Present Is a Premature Step'
AS the Director General of the Bangladesh Institute of Development Studies (BIDS), MASRItnt RAHMAN KHAN Is at the helm of the country's top institution conducting research work on development Issues. In an extensive Interview given to TOUFIflUK 1MROSC KHAUDI of The Daily Star recently. Khan discussed a wide range of ■•sues facing the economic development process In Bangladesh, from free market economics to education to the bureaucracy, which Included a brief observation on the national budget of 1982 93:
DAILY STAR How do you summarise the country's present economic scenario?
MASHIUR RAHMAN KHAN: Well. I would like to start with the Industry. Our Industrial base to very narrow. Policies tn the past were not appropriately tuned to develop the industrial and manufacturing sector. At present, the Government is talking about open market policy which. 1 would say. is a too premature step. This will result tn our national Industries' facing competition with the outside world. But the level of our industries needs more protection.
Development of Industrial sector is necessary since growth rate In the agricultural sector is limited. If we look at the agricultural sector, again we will find that polices are not very helpful to the poor farmers who are the main contributors to the development of this sector. The price subsidy we give is a disincentive to the growers. Farmers get Input subsidy even in the developed countries whereas we have reduced Input subsidy. So the whole picture of our economy is very dismal.
DS: Then do you want to say that there is no hope for our economy?
MRK: No, I didn't mean that at alL What I am trying to say is that the policies were not appropriate due to which we could not achieve whatever we could. But the potentiality of our people Is unlimited. 1 nave great faith in them. They are very hard-working. In fact, we are In an advantageous position. We have a small land, homogenous people with same culture. What is needed is a good and congenial atmosphere. Bureaucratic complexities. red-taplsm should be removed. Government should be pragmatic and dynamic to recover from the Ills which have been Inherited from the mis-rule of the past For example, huge amount of money has been given to different pro facts and Industries which Is hardly being utilised for Indus trial set-up and productive sectors Once people get the money, they think it is their own money and do not Intend to repay it.
DS. What Is reason behind borrowers not repaying the bank loan and what is your suggestion to get the money back from the defaulters?
MRK. There has been a gross Irregularity tn the pro cess of sanctioning the money The decision makers did not bother to examine the entrepreneurship of the industri allsts. check the papers and feasibility of the projects. This was because they were bribed adequately. There was no monitoring system as to see whether the money had been properly utilised or not. Misuse of money could not generate adequate income out of which loans could be paid back. On the other hand. Interest rate was very high which encouraged the people to keep the money tn the bank
rather than invest. Nowhere in the world interest rate is so high. 1 am glad that this has been reduced.
The government should get the money back Immediately otherwise new loans cannot be sanctioned. Rules and regulations should be tightened to make the lending and the recovery system efficient and free from political pressure. As you know that the Government has exempted the farmers from repaying their loan, mainly for political reasons. This will encoura^r the next borrowers not to repay. This kind of decisions obstruct the system to work smoothly. If we really want to help the poor people there are many other ways. What is happening now is that investment Is not being made in rural areas
Moreover, whatever money is generated is being trans ferred to the urban areas. Counter-active policies should be made to keep the money in the rural area, to invest that money In productive ways and curb unemployment and underemployment in the agricultural sector. In this respect. 1 would like to mention the ac-ttvtttcs of the non government playing a good role to help the rural poor. The success of the Grameen Bank Is well known
However, the activities of the NOOs can only stop poverty form worsening fur-
ther So there should be more powerful mechanism to eradicate poverty. It Is important
because it can create various social problems. The erosion of values among the students Is linked to the uncertainties about their future.
DS: Do you think there should be a change in our edu cational system? If so then how do you think that change can help solve problems like unemployment?
MRK 1 do think that there should be a change In the education system. It is better to have less educated earning member than an educated unemployed tn a poor family. What wc are making now is an educated "babu" who does not have respect for agricultural work, does not want to slay in the village. If we could give technical and profession-oriented education students could be engaged in more gainful activities. For example, nursing profession has a very high demand abroad. If we could train people and send them abroad their families would be bcnefltlcd.
DS: You were talking about the education system... what do you think about the idea of private universities? MRK: It is not a bad idea Though it will be an expensive affair all through but there are people who can afford to send their children abroad for edu cation, then why not here In
□S: Should there be a regulatory role gf the Government In running the qffalrs of these institutions?
MRK: They can Interfere only when a system starts getting exploitative character. The government's regulatory role should be to help not to thwart. In the same way the Government can check the activities of the kindergarten schools and private clinics from time to time.
OS In the beginning you talked about red tapis m Don't you think that their decisions are influenced by people in power to attain their political ends and thus Jeopardising the original purposes?
MRK In one sense bureau crats are the government Of course there are some efficient bureaucrats but cannot do any thing due to the system Every government wants to implc
ment its party's decisions. If the ruling party has some good policies there is no harm to publicise and implement those But victimisation Is bad Each and every government In our country tend to throw the decisions and Initiatives taken by the previous government Into the drain knowing pretty well how much it will be harmful fonour country.
DS. It is said that our bu reaucracy is ectra large What would you suggest to deal with the bloated bureaucracy?
MRK Wc have excess man power in every sector whose productivity Is close to zero and who are tn many cases not accountable. Many people think there would be no de cline tn productivity even if they are fired. But how can you do that? Finance Minister himself spoke of this excess manpower who should be sacked. But he had to rethink about IL In fact, before remov fng this excess manpower we have to think of alternative jobs. Otherwise It will give rise to social and political Instability . , .
DS. How do you relate de velopment to foreign aid. the accompanying conditional! ties? Can we do without foreign aid?
MRK: When somebody gives money, there is some condi tiongnties most of the time The donors have some set principles which they try to Impose and which may not be favourable to us. But 1 think we are also responsible for that. We misuse the money, cannot use effectively and cannot mobilise resources. Therefore, our demand for foreign aid keeps going up every year which brings along more con dltlonallties. Can we do with out foreign aid? You see we have a savings of three to four per cent of our gross domestic product. With this much savings we can have a growth rate of one per cent annually. But then if population growth rate Is two per cent the economy will have a negative growth rate — minus one per cent fn this situation, ft is Impossible to do without foreign aid but io starve.
DS: How do you evaluate this year's budget (1992 931?
MRK This year s budget favours the rich, no doubt. Tax has been lowered on Import of vehicles. Prices of kerosine and petrol have been made equal which is ridiculous be cause It is the poor who use kerosine and the rich who uses petrol Development as such Is a process when the rich will be richer and the poor will be poorer This process continues unless and until policies are taken to neutralise the situation This would not be very helpful for Industrial and agricultural growth either. 1 have already told you about the agricultural and Industrial policies However, I think the tax policy. If Implemented properly, would be able to reduce corruption and tax evasion. Keeping the tariff and lax rate low Is good in the sense that whole amount can be collected. People tend to lower the value of land and other •property to evade tax if the rate is too high
DS People often talk about national consensus.... on fundamental policy issues?
MRK: If consensus on na tlonol Issues is achieved that s well and good. Consensus is possible only when everyone s demand is same. It is sad that consensus on the MPs remuneration and privileges 1s eas lly achieved but not on important national Issues. There should be open discussion and criticism from all walks of life and we should have the patience to listen to everyone simply because democracy achieves maturity through this