What’s the point of revolution
FROM PAGE B1
three-month high of 10.87 percent in October.
Besides, he called for increasing food security and strengthening the social safety net.
On the macro front, the economist advocated for prioritising the revival of private investment, resolving the tight liquidity and strengthening the energy sector.
To increase public investment, Debapriya said the government should hold a meeting with foreign development partners by December or January next year to inform them about the country’s inclusive and sustainable development plan.
Debapriya, also a distinguished fellow at the Centre for Policy Dialogue (CPD), suggested that the National Board of Revenue (NBR) should be digitalised, which would help the government increase revenue collection.
He said the government’s measures to lower the inflationary curve have not been effective as price pressures still remain high.
He, however, said that the current high inflation rate was inherited from the previous government.
In his keynote, titled “Fixing the Macroeconomy: A Daunting Task Inherited from the Previous Regime”, Mohammad Abdur Razzaque, chairman of RAPID, told the seminar that Bangladesh has been paying the price for the previous regime’s reckless macroeconomic management.
The country has faced high inflation, dwindling foreign exchange reserves and a depreciating currency, which was further complicated by poor governance and widespread corruption, Razzaque commented.
Despite the inflationary pressures, the previous government borrowed heavily from the central bank in an unprecedented manner, he said.
The RAPID chairman also credited the interim government for taking some positive steps, such as stopping fund embezzlement in the banking sector, reducing credit demand, increasing remittance inflows, improving bank deposits and expanding exports.
He also said that restoring macroeconomic stability is critical for transitioning out of least developed country (LDC) status. Uncertainty just ahead of the graduation also could deter foreign investment, he said, adding that exporters and investors need predictability.
“For LDC graduation, consider the importance of the Indian and Japanese markets as there will be an additional three-year transition period in other important markets,” he added.
As a discussant, Shawkat Hossain Masum, head of national daily Prothom Alo’s online edition, said journalists criticised the previous government’s reckless economic policies but were rarely heard.
He said the country’s economic downturn began in 2019, even before the Coronavirus pandemic, as the central bank’s foreign currency reserves dwindled.
“The pandemic and the Russia-Ukraine war further worsened the situation,” he commented.
Masum said containing inflation will take more time. However, the government needs to improve public confidence in its steps to counter the price pressures.
During the launching of the Open Budget Survey (OBS) 2023 Bangladesh Results at the same seminar, RAPID Executive Director M Abu Eusuf said Bangladesh has a transparency score of 37 out of 100.
It assesses the online availability, timeliness and comprehensiveness of eight key budget documents using 109 equally weighted indicators and scores each country on a scale of 0 to 100.
A transparency score of 61 or above indicates a country is likely publishing sufficient information to support informed public discourse on the budget.
ERF President Mohammad Refayet Ullah Mirdha chaired the session while ERF General Secretary Abul Kashem moderated the seminar.