একটা আই,সি,ইউ, কেউ ম্যানেজ করে দিতে পারবেন, আমার আব্বুর জন্য?
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লাগবে না আই,সি,ইউ আর।
- ‘করোনাক্রান্তী’ (জুন '2020)
Showing posts with label Bangladesh. Show all posts
Showing posts with label Bangladesh. Show all posts
Sunday, June 14, 2020
Thursday, June 4, 2020
(Would be) Legacy of Sheikh Hasina
All things that
were, are, or to be must have an end. Even the good ones!
Sheikh Hasina, the incumbent Prime Minister
and the leader of the largest political party of the country, has
been in office since 2009. During this period, her stature in public eye,
both domestic & international, has grown steadily. But, with the passing of
time, there will eventually come a future that the people of Bangladesh must navigate without the able leadership of the Apa (as she is
affectionately called). However,
objective of this write-up is not to plan for that future; it is rather an effort to ponder
& contemplate how future generations will evaluate her contributions. I, for one, like to think that she asks herself the same question, and that very question propels her to
wake up every morning, and work for her people.
In terms of
achievements regarding economy, Sheikh Hasina is already the most
successful Head of Government in history of Bangladesh. Coming at a time to
rule, when her political capital could at best be termed as precarious, she
consistently defied the odds and made sure the Govt of Bangladesh makes the
'practical' decisions when it comes to economy and development. The result has
been a palpable shift (toward a more confident nation) in the public psyche,
visible creation of wealth, and measurable reduction of poverty among the
so-called bottom of pyramid. In fact, not in any other period of time since
independence (in 1971), did Bangladesh demonstrate such sustained level of
economic promise for such a long time. The promise of turning Bangladesh into a
middle income economy (the popular moniker is Digital Bangladesh) by
2020, which sounded hollow and out-of-touch even 10 years back, is well on
track now.
However, the time
in being can hardly be judged by a single dimension. During this time, an
extremely partisan brand of politics has seen politicization of institutions of
the society. Judicial system has not been an exception. Trust and reliability
of general populace on Judiciary is waning fast. This in turn is perpetuating a
culture of non-accountability. Democratic values, instead of forging ahead,
have been tamed into a gilded frame. Bangladesh has been regularly topping the
list of most corrupt nations in surveys conducted by international
bodies. Distribution of wealth has been a major issue, manifested by the
fact that Bangladesh is one of the countries with fasted growing list of super-rich!
And the economic numbers which appear so bright and shiny in books &
publications, have not really resulted into real increase in income for many of
the rural and urban poor. Quality of mass education is questionable. Health
sector, although has seen some investments, is still lacking behind in both
quality & access. The crumbling and indiscipline tangle of infrastructure
of the country must improve a lot even to match the regional standards.
Environmental degradation has been rampant as the issues of environment took a
back seat in the face of hard economic reality. However, probably the most
darkening feature has been the growing culture of administering ready-made
justice and a "Govt knows best" attitude in governance. Rights Groups
have long been complaining of disappearing dissenting voices under questionable
circumstances. Little has been done to bring perpetrators to justice; on the
contrary, this has often been touted as the preferred method of addressing
sociopolitical issues.
One can see that
darkness and light has walked hand-in-hand under the stewardship of the
incumbent PM. There has been rays of hope, and there has been moments of
extreme despair. But, it is probably too early and too current to reach a
conclusion.
Only time has the
right and the vantage position to pronounce a fair judgment.
Wednesday, March 16, 2016
Ahead of the Super Tuesday in US election primaries
15 March 2016 (as I started to draft the article on that day)
Yesterday, two important things happened that will impact the lives of people in #Bangladesh for years to come. Let us talk about the first One that took place first.
Dr. Atiur Rahman, the Governor of the Central bank or the Bangladesh Bank as it was Christened, resigned from his post after 7 successful (disputed by many) years following the incidence of money being illicitly siphoned of the central bank reserve. That the money stolen was part of the reserve kept in US Federal Reserve Bank in New York is but a small anecdote. The actual incidence of stealing actually happened in early February, and the Bangladesh Bank people in their infinite wisdom manged to keep it secret from the other branches of the State for almost a month! This move, politically and administratively an error of horrendous proportion, probably cost the fellow his job. Nevertheless, it is how things unfolded in reality and by the time I am putting pen to paper, this Holywoodesque story captured the imagination of the country and to some extent that of some parts (banking & finance) of the world. So, why or how it happened is anybody's guess and subject to dozens of investigation. Therefore, I will conveniently bypass those questions (for you to be wiser from mainstream media) and focus on a more fundamental question.
Bangladesh Bank, which was formed in the immediate aftermath of the bloody liberation war (in fact, 16th Dec 1971 or the Victory day of Bangladesh is the official Birthday of Bangladesh Bank), many would argue, never really came out of the shadow of the Executive branch of the government. It was directly and indirectly controlled by the ministry of Finance. Therefore, It came as no surprise that once the Bank got its first 'Independent thinking' Pilot in Dr. Atiur Rahman, there would be a host of powerful people who would hate the very idea of the central bank having its own strategy and a path to achieve those strategy. To be more specific, the bank under his leadership focused on bringing the un-banked poor (the vast majority of the populace who were mostly out of formal banking system) into the banking system. He understood early that the brick and mortal approach will itself not achieve his dream. Rather, Dr. Atiur aimed to do this by utilizing the phenomenal growth of mobile technology, through encouraging mobile banking even to the extent where he formulated regulation for motivating commercial banks to have mobile banking arms. He also implemented a '10 taka bank account' for the rural poor (an account for 10 cent only), that attracted praise and following from the Prime Minister of India himself. Did his approach work? According to a feature published in the Daily Star (23rd March 2015), these strategies brought in 55 million people into banking sector, with 25 million mobile banking accounts and 10 million '10 taka' accounts targeting farmers! Towards financial inclusion | The Daily Star Well, that should be called a success even by the most cynical. However, bringing people into the scion of formal banking in itself is not the end, rather it opens up opportunities and economic emancipation in many other ways (including, but not limited to influencing how expat workers choose to send money home!) that I think is beyond debate. Now, praising the erstwhile Governor is not the idea of this write up, rather, to focus on the issue of central bank independence. So, it was beyond doubt that the central bank was gradually taking a more autonomous form. But, why is it important for a central bank to have independent thinking?
Well, to answer in plain words, central banks are for people's economic right what judiciary is for people's moral and legal right. A balancing act against the all powerful Executive branch, preventing it from implementing vested agenda or policies with too narrow a focus or politically motivated. Central banks also have the research capability and know how regarding economic and monetary matters that departments with in executive branch are not likely to have. All in all, importance and necessity of central bank independence is unquestionable. Example???? Just look at the major and successful economies of the world and you will not see any detractors to this doctrine. There can be varying degrees to that freedom, with the system of USA allowing most freewill to it Federal Reserve Bank (ironically, from where this current debacle of Bangladesh central bank started causing all those dominoes to fall). Fate sometimes can work in miraculous way indeed! However, it's important for people of Bangladesh to not get blinded by the rage of loosing all those hard earned money to robbers. It will not be prudent in infinite hatred to the outgoing Governor forget all the good things happened due to having an free thinking economist in the helm of Bangladesh Bank. And, the worst thing would be to give a free reign to the executive branch to reestablish their blindfold control on the central bank and trust, given the slightest opportunity the vested groups will gleefully gobble up the chance. And, without even a polite thank you!
So, what should be your course of action? Stop taking part in the slanderous and often suicidal discussion centering on how incompetent the outgoing management of central bank was. Rather focus on how to carry on the good deeds forward.
(I took too much time on topic number one, so, the 2nd one will have to wait for the next post). Thank you.
Yesterday, two important things happened that will impact the lives of people in #Bangladesh for years to come. Let us talk about the first One that took place first.
Dr. Atiur Rahman, the Governor of the Central bank or the Bangladesh Bank as it was Christened, resigned from his post after 7 successful (disputed by many) years following the incidence of money being illicitly siphoned of the central bank reserve. That the money stolen was part of the reserve kept in US Federal Reserve Bank in New York is but a small anecdote. The actual incidence of stealing actually happened in early February, and the Bangladesh Bank people in their infinite wisdom manged to keep it secret from the other branches of the State for almost a month! This move, politically and administratively an error of horrendous proportion, probably cost the fellow his job. Nevertheless, it is how things unfolded in reality and by the time I am putting pen to paper, this Holywoodesque story captured the imagination of the country and to some extent that of some parts (banking & finance) of the world. So, why or how it happened is anybody's guess and subject to dozens of investigation. Therefore, I will conveniently bypass those questions (for you to be wiser from mainstream media) and focus on a more fundamental question.
Bangladesh Bank, which was formed in the immediate aftermath of the bloody liberation war (in fact, 16th Dec 1971 or the Victory day of Bangladesh is the official Birthday of Bangladesh Bank), many would argue, never really came out of the shadow of the Executive branch of the government. It was directly and indirectly controlled by the ministry of Finance. Therefore, It came as no surprise that once the Bank got its first 'Independent thinking' Pilot in Dr. Atiur Rahman, there would be a host of powerful people who would hate the very idea of the central bank having its own strategy and a path to achieve those strategy. To be more specific, the bank under his leadership focused on bringing the un-banked poor (the vast majority of the populace who were mostly out of formal banking system) into the banking system. He understood early that the brick and mortal approach will itself not achieve his dream. Rather, Dr. Atiur aimed to do this by utilizing the phenomenal growth of mobile technology, through encouraging mobile banking even to the extent where he formulated regulation for motivating commercial banks to have mobile banking arms. He also implemented a '10 taka bank account' for the rural poor (an account for 10 cent only), that attracted praise and following from the Prime Minister of India himself. Did his approach work? According to a feature published in the Daily Star (23rd March 2015), these strategies brought in 55 million people into banking sector, with 25 million mobile banking accounts and 10 million '10 taka' accounts targeting farmers! Towards financial inclusion | The Daily Star Well, that should be called a success even by the most cynical. However, bringing people into the scion of formal banking in itself is not the end, rather it opens up opportunities and economic emancipation in many other ways (including, but not limited to influencing how expat workers choose to send money home!) that I think is beyond debate. Now, praising the erstwhile Governor is not the idea of this write up, rather, to focus on the issue of central bank independence. So, it was beyond doubt that the central bank was gradually taking a more autonomous form. But, why is it important for a central bank to have independent thinking?
Well, to answer in plain words, central banks are for people's economic right what judiciary is for people's moral and legal right. A balancing act against the all powerful Executive branch, preventing it from implementing vested agenda or policies with too narrow a focus or politically motivated. Central banks also have the research capability and know how regarding economic and monetary matters that departments with in executive branch are not likely to have. All in all, importance and necessity of central bank independence is unquestionable. Example???? Just look at the major and successful economies of the world and you will not see any detractors to this doctrine. There can be varying degrees to that freedom, with the system of USA allowing most freewill to it Federal Reserve Bank (ironically, from where this current debacle of Bangladesh central bank started causing all those dominoes to fall). Fate sometimes can work in miraculous way indeed! However, it's important for people of Bangladesh to not get blinded by the rage of loosing all those hard earned money to robbers. It will not be prudent in infinite hatred to the outgoing Governor forget all the good things happened due to having an free thinking economist in the helm of Bangladesh Bank. And, the worst thing would be to give a free reign to the executive branch to reestablish their blindfold control on the central bank and trust, given the slightest opportunity the vested groups will gleefully gobble up the chance. And, without even a polite thank you!
So, what should be your course of action? Stop taking part in the slanderous and often suicidal discussion centering on how incompetent the outgoing management of central bank was. Rather focus on how to carry on the good deeds forward.
(I took too much time on topic number one, so, the 2nd one will have to wait for the next post). Thank you.
Thursday, April 12, 2012
More banks than you need?
Recently the Central Bank of Bangladesh has declared their intention to issue licenses for new banks that, once issued, will almost double the number of commercial banks in a single stroke. The expressed reason has always been the fact that the majority of the country's population are outside the reach of formal banking channels. So, new banks will increase coverage as well competition in the financial sector. However, the latent motive can be something else as most of the licensees are leaders of the ruling party or their cronies. And, every indication is there to suggest these banks will target an over crowded segment of the populace. Although these do not surprise many, the important discussion is what this influx of new banks in a saturated market-segment will mean in the long run.
At present, there are 44 commercial banks with thousands of branches but almost all of them are concentrated in the urban population centers targeting professionals and business people within a narrow segment of the population. There is every indication that the new banks will target the same customers and share into the same capital base rather than creating new pies as promised by the Central Bank. Once the new ones start operating, competition in retail banking will be fierce prompting the risk of increasing percentage of bad loans. On the other hand a increasing portion of the capital base will be disbursed as consumer loans putting inflationary pressure on prices of consumer goods. At the same time, available finance for capital goods will shrink, negatively impacting industrial growth.
But, the gravest evil apparently evident in the pattern of government policies is the fact that distribution of wealth is becoming far more skewed toward the well-off section of the society. Be it the tax structure of the country, or awarding of government contracts, allocation of budgetary incentives or without-retribution-hijacking of people's money from capital market, it is always the cronies and extreme high end of the pyramid who are the beneficiaries. The weak justice system and lack of democratic institutions help to perpetuate the trend. And, the end result is a humongous gap in the wealth of the rich and poor that will shame even most capitalist of thinkers!
At present, there are 44 commercial banks with thousands of branches but almost all of them are concentrated in the urban population centers targeting professionals and business people within a narrow segment of the population. There is every indication that the new banks will target the same customers and share into the same capital base rather than creating new pies as promised by the Central Bank. Once the new ones start operating, competition in retail banking will be fierce prompting the risk of increasing percentage of bad loans. On the other hand a increasing portion of the capital base will be disbursed as consumer loans putting inflationary pressure on prices of consumer goods. At the same time, available finance for capital goods will shrink, negatively impacting industrial growth.
But, the gravest evil apparently evident in the pattern of government policies is the fact that distribution of wealth is becoming far more skewed toward the well-off section of the society. Be it the tax structure of the country, or awarding of government contracts, allocation of budgetary incentives or without-retribution-hijacking of people's money from capital market, it is always the cronies and extreme high end of the pyramid who are the beneficiaries. The weak justice system and lack of democratic institutions help to perpetuate the trend. And, the end result is a humongous gap in the wealth of the rich and poor that will shame even most capitalist of thinkers!
Sunday, August 28, 2011
August 28th 2011 as it happened...
Today is a Sunday. It's already night in most of the northern hemisphere.. On American East coast, the first hurricane of the Atlantic season, Irene is hammering the coastal metropolis'. At London, Manchester City has has just pummeled Tottenham Hotspur in English Premier League Football, sending a strong signal across the board. A little east to London, Belgium Grand Prix has just concluded and Sebastian Vettel, young German race car driver has all but assured his prospect of becoming the youngest F1 champion in history. And f-a-rther east in India Anna Hazare, the activist, has called off his hunger strike against corruption-in-his-country after receiving firm pledges from the political leadership of strong anti-corruption legislation. This last piece of events has ringed a bell somewhere....and couple of questions need answering!
I don't know how severe corruption is, in India, or whether this selfless & patriotic gesture of Mr. Anna will bring any real change. But one thing I know is, here in Bangladesh, we are a deeply corrupt society. Here, it (corruption) has long passed ankle deep or knee deep level and now it's almost nose deep, choking life out of our beloved country... India is just beside us, we share almost identical socioeconomic heritage and there in India, a guy is going almost 12 days without food or water forcing their mighty Government to take measure to root out corruption! and, in the process he is creating huge public opinion drawing thousands and millions to the cause... But, here we are sleeping. Oblivious to the silent hemorrhage that corruption is inflicting on us in every moment and every seconds of the day! Probably none of my fellow countryman will see my lamenting or see the great chasm that lie in front of us, but still I want to pose this question: What will bring our nation and its people to the senses? When will we get our Anna Hazare??
I don't know how severe corruption is, in India, or whether this selfless & patriotic gesture of Mr. Anna will bring any real change. But one thing I know is, here in Bangladesh, we are a deeply corrupt society. Here, it (corruption) has long passed ankle deep or knee deep level and now it's almost nose deep, choking life out of our beloved country... India is just beside us, we share almost identical socioeconomic heritage and there in India, a guy is going almost 12 days without food or water forcing their mighty Government to take measure to root out corruption! and, in the process he is creating huge public opinion drawing thousands and millions to the cause... But, here we are sleeping. Oblivious to the silent hemorrhage that corruption is inflicting on us in every moment and every seconds of the day! Probably none of my fellow countryman will see my lamenting or see the great chasm that lie in front of us, but still I want to pose this question: What will bring our nation and its people to the senses? When will we get our Anna Hazare??
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