& 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

MCCI fears slowdown

Star Business Report
The Metropolitan Chamber of Commerce and Industry' (MCCI) yesterday advised the govern ment to maintain macroeconomic stability in response to the recession, as the domestic economy remains exposed to a possible slowdown in exports and remittances.
"Maintaining macroeconomic stability should be of paramount importance," the MCCI observed in what came to be known as a "contingency plan" to help fight fallout from the global recession.
It said the economic crisis is global and multidimensional. engulfing both developed and developing countries. "Developing countries, like Bangladesh, cannot remain immune to the crisis. "
But this is not the time to be alarmed. It is the time to forge public-private partnership in meet ing the economic challenges and seizing opportunities," the MCCI recommended in its proposals to Prime Minister Sheikh Hasina.
"No doubt, difficult times are ahead, but Bangladesh has a history of exceeding expectations."
The MCCI submitted a set of proposals to the prime minister (PM) for an economic agenda of the new government that promises to tackle the impact of the global recession. MCCI President Abdul Hafiz Choudhury led the business team to the meeting.
It is an economic breakthrough, which can neutralise socio-economic tensions, manifestations of which are quite disturbing, the MCCI pointed out.
Some 38 percent of the over 68 million employable persons are now unemployed.
"The rural economy is increasingly failing to provide employment to the poor." To alleviate poverty and provide employment to even one-third of the employable hands, which are joining the labour market, it is essential to maintain a GDP growth rate of 7.5 percent a year in the next five years, the MCCI said.
If the industrial world continues to go deeper into recession due to the ongoing global meltdown, maintaining growth and financial stability will become increasingly challenging to
Bangladesh in 2009-10, MCCI said.
In particular, there will be a slowdown (if not a decline) in the inflow of workers' remittances, it said. "Export growth may also be significantly lower. Thus, it would be difficult to project more than a 5.5 percent to 6 percent real GDP growth in 2009-10," the MCCI said.
Although there is no need to be overly alarmed, the government must prepare a contingency plan to tackle the recession, the MCCI said.
Bangladesh, with its $5.7 billion in external reserves (2.5 months of coverage) may not be in a position to undertake a large stimulus package to tackle any major external shock on its own, the MCCI said. In contrast, neighbouring India and China, respectively has reserve levels of $247 billion and $2 trillion.
There will be need for external assistance to supplement Bangladesh's own contribution, the MCCI said.
The MCCI feared a prolonged global slowdown might deepen the degree of deprivation of
existing poor households.
Exports could experience a sharp decline in response to weak demand in destination mar-’ kets, compounded by collapsing global trade, the MCCI said.
In its proposal, the MCCI said import growth however has also been robust as of January 2009 (up 23 percent), with a respectable number for raw materials, intermediates and capital machinery, signalling strength in economic activities.
Protectionism or a threat of it could become a major barrier to the growth of trade, at a time when expansion of trade could be the panacea to the deepening recession.
"There is increasing evidence of restrictive trade practices being implemented even across the G20 countries through various tariff and non-tariff barriers, including the use of contingent protection such as antidumping and countervailing duties, and support to specific industries titrough subsidies coming as part of the fiscal stimulus packages," the MCCI said.