In recent years, it is quite evident that poverty has increased. Many businesses have closed down due to various reasons, while both domestic and foreign investment has been almost non-existent. The economy has also been experiencing a downturn and a truly investment-friendly environment has yet to return.
Since the arrival of the interim government, efforts have been made to restore an investment-friendly climate. Without an increase in investment, the economy cannot expand, nor can employment opportunities grow. This will continue to impact the poverty situation and may even worsen it further.
During the Awami League government, many privileged businessmen dominated the commodity markets. It is imperative to separate politics from business and to establish a business sector free from political influence
The extent of urban poverty is noticeable. We are aware of how industries and factories in urban areas have performed over the past few years, performance has been poor. However, the rural economy has fared somewhat better, as agriculture has not collapsed.
To reduce poverty, employment opportunities must be expanded, which requires fresh investment. Therefore, all barriers to trade and commerce must be removed. The obstacles to investment are not unknown. What is needed is decisive initiative.
Inflation has had a significant impact on the rise in poverty. The poor have suffered the most due to high inflation, as declining incomes have pushed many further into poverty. However, adequate measures have not been taken for their protection. It is essential to ensure adequate safeguards for the poor. Current initiatives to curb poverty remain limited, particularly in stabilising the prices of essential agricultural commodities such as rice and lentils.
In addition, the supply chain must be streamlined. During the Awami League government, many privileged businessmen dominated the commodity markets. It is imperative to separate politics from business and to establish a business sector free from political influence.
The present government has undertaken certain initiatives concerning the macroeconomy, from which some benefits are already being observed. Reforms in the revenue sector, automation within Bangladesh Bank and other necessary reforms must be advanced further.
The task force on re-strategising the economy and mobilising resources had recommended reforms in investment, employment and other related sectors. The interim government has adopted these recommendations, though it appears that it has not yet had sufficient time to give them due consideration. Had some reform initiatives been implemented, a positive message could have been conveyed to the economy. Unfortunately, that message has not materialised.
* KAS Murshid is former Director-General, BIDS and Head of the Task Force for Re-strategising the Economy and Mobilising Resources
(The views expressed here are of the author)