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Tuesday, November 18, 2014, Agrahayan 4, 1421, Muharram 24, 1436 Hijr

Greek economist cautions
B'desh may face recession if financial discipline not maintained
Observer Online Report
Publish Date : 2014-11-18,  Publish Time : 20:47,  View Count : 9
Low-income countries including Bangladesh may face economic recession risks unless they can maintain strict discipline in the financial sector, cautioned a former minister of Greece on Tuesday.

Professor Dr. Katseli, former Labour and Shipping Minister of Greece, also called for adopting strict policies and framing harsh laws to check forgery in banking sector and prevent money laundering.

Besides, she laid emphasis on waging a war against tax evasion worldwide.

"Controlling and supervision mechanisms will have to be strengthened to maintain discipline in the financial sector. Apart from enhancing institutional capacity, transparency and accountability will have to be ensured. If these can be done, there will be no scopes of indulging in corruption and evading taxes. These are imperative for a sustainable economy," she said.

Also an economist, Professor Dr. Katseli was delivering a lecture on 'Recent Fiscal and Labour Market Adjustment Experience in Europe: Lessons for the Low-Income Countries' at a function at a hotel in the capital.

She said: "Economic recession in Europe was originated from the irregularities and indsciplines in the financial sector."

Professor Dr. Katseli also suggested that Bangladesh economy should reduce its dependence only on the readymade garment sector and frame a dynamic industrial policy by undertaking governance and institutional reforms.

"Generating employment and increasing production are essential for economic stability. Bangladesh should try to maintain its economic growth through increasing investment and creating employment opportunities," she said.

Centre for Policy Dialogue (CPD) organised the function marking its 20th founding anniversary with CPD chairman Dr. Rehman Sobhan in the

CPD distinguished fellow Dr. Debapriya Bhattacharya and executive director Dr. Mustafizur Rahman also spoke at the function which was attended by politicians, academia and researchers.

Dr Katseli, also a former director of the OECD Development Centre, said Bangladesh also requires building public-private sector partnership for development and mobilising development assistance, trade and domestic taxes to finance infrastructure.

In her long deliberations, she described how and why Greece experienced the economic recession and what sort of economic help extended to the historic nation by the European Union, and also what kind of efforts are being made to return from the recession.

Referring to a European survey, she said 66 percent respondents declare that 'the citizen's voice does not count'.

Giving her focus on checking tax evasion, Dr. Katseli said that as per a survey, approximately US$ 7.6 trillion--8 percent of the world's personal financial wealth--is stashed in tax heavens.

If all this illegally hidden money were properly recorded and taxed, global tax revenues would increase by more than US$ 200 billion a year, she said.


Editor : Iqbal Sobhan Chowdhury
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