Saturday | 5 October 2024 | Reg No- 06
বাংলা
   
Saturday | 5 October 2024 | Epaper
BREAKING: ● 3 die in Sherpur flood; 60,000 stranded      ● Ex-president Badruddoza Chowdhury passes away      ● Killing during students' movement: 9 bodies to be exhumed in Sylhet      ● Malaysian prime minister leaves Dhaka for home      ● CA seeks Malaysian support for Bangladesh to be ASEAN dialogue partner      ● Malaysian PM assures of attention to 18,000 Bangladesh workers       ● Bid to kill Khaleda Zia: Sheikh Hasina among 113 sued      

Rising inflation is the greatest failure of the incumbent government

Published : Sunday, 23 June, 2024 at 12:00 AM  Count : 508
Nizam Ahmed
The failure of the Awami League government to rein in inflation has eclipsed all the unprecedented economic and infrastructural developments it has achieved in the country over the last 15 years.

The current general inflation and food inflation in the country stands at more than 9 percent and nearly 11 percent respectively. The Tk 7,97,000 crore national budget proposed recently for the fiscal year 2024-25 with an ambitious target of bringing down overall inflation to 6.5 per cent however, did not say how the inflation will be brought down, according to the economists.

Reining in inflation was supposed to be the main challenge for the government after the January 2024, national election, but the government has failed miserably to do so. It has also failed to restore financial order in the countrys sagging banking sector, where default and non performing loans are continuing to rise with the gradual depletion of foreign exchange reserves.

As the government has plans to fill the budgetary deficit by borrowing from local banks, it is feared that the banks would not be in a position to give loans to the businesses if the government continues to borrow from local banks.

Economists believe, this persistent failure of the government has been depriving the general people the benefits of the overall developments. As a result a major section of the people is passing their lives in severe economic hardship, due to unabated inflation.
It is evident that due to insincerity and inaction of relevant ministries and the departments the government has failed to control the inflation because the ruling party leaders who are well off and most of them are either businesspersons or related to business, apparently feel no grudge to tame the rising price.

They have miserably failed to read the mind of the fixed and low income group of people, who constitute the majority of the population. The incumbent government and the ruling party leaders perhaps do not feel the pain of an empty or half filled stomach or do not think that the cry of a hungry people often become louder than a thunder that can spark a political turmoil. The government and ruling party should know that lullaby on economic and infrastructural development would not induce sleep to the hungry people, rather it would make them agitated.

It is good luck for the government that at such a grim situation caused by unabated inflation, the country lacks an effective strong anti-government party or a third force which can compel the government to dedicate services to the people removing their all agonies including  inflation, instead of singing chorus of the development which has been possible simply due to persistent political stability.

According to analysts the food inflation spiked in the country after certain corporate houses grabbed the countrys supply and marketing system, which were earlier in the hand of small traders. As the big corporate houses stepped in and started procuring all the products directly from the farmers through deployed agents, small traders have been sidelined, especially in the big city markets.

After grabbing the market the corporate house in collusion among themselves have been fixing commodity prices at higher than the normal level forcing the consumers to pay higher prices fixed by the market cartel. But earlier, when the traditional traders used to market those items, people could visit different stalls to search cheaper items and they could buy anything at a reasonable price after bargain. However, now there is no such scope for bargain compelling the customers to buy commodities at higher prices fixed by the cartel.
This development occurred in the country since 2009, when Awami League returned to power for the second time following the election held in December 2008, under an army backed interim government.

In September last year, the Commerce Ministry fixed the prices of potatoes, onions, and eggs in the retail market and the Directorate of National Consumer Rights Protection and other government agencies  monitored  the market daily for over a month. Raids were frequent at small retailers and large business establishments. Many companies have been significantly fined, while small traders have been charged and jailed. Even eggs are being imported to stabilise the market.

However, all these went in vain and prices did not come down, because it is said that Bangladeshs business and trade are mainly standing on liberal economic policies, which means the laws and regulations work in favour of business and trade.

However, as the drive to control price hike by the government failed, the government has apparently given up the initiative to control inflation. It means the government has retreated from its initiative keeping the consumers hostage at the hands of the market manipulators.

It is feared that very soon, the cartel will control prices of our main food items including paddy, rice, potatoes, and maize, as they have taken production and sale of poultry eggs. As a result, farmers will not get a fair price for their crops, and consumers will never be freed from high prices.

Concerned people believed if the government fails to control the market through its relevant ministries and department, the market monitoring and execution of price control policies should be handed over to the defence forces, if necessary by amending laws and policies of the government.

Past experiences make the observers to believe that defence forces could successfully implement the government policies against hoarding. They also can help authorities to maintain supply of commodities in the market. Because, according to analysts, not only businesses, most people in the country have a trend to obey orders from the gun wielding members of the defence forces.

For a vivid example one may find orderly traffic in cantonment areas, when all vehicle operators regularly create chaos in city streets. The phenomenon proves that vehicle operators do not obey instructions of traffic police in city streets, but show respect to traffic rule in cantonments supervised by Military Police.

 In the past when the country was under strict military rule or army-backed interim government, less people dared to hoard commodities and make windfall profit by raising prices. It is irony that in democracy we all tend to behave with unlimited freedom, that often breaks the discipline and creates problems for all.

The democratic government that is formed by political party or parties in coalition must evolve policies that will make it mandatory to obey the laws enacted in the parliament. The government must not be indifferent  when anyone including the so called influential people tries to take laws in their hands to make undue fortunes pushing the general people in economic hardship.

Though the statistics show that the economic capabilities of the people are on the rise, the unrestricted inflation has been hurting many. The recently celebrated Eid-ul-Azha feast of sacrifice, showed that more people observed the rite this year sacrificing 3,67,106 more  cattle this year raising the total number slaughtered to 1,04,08,918 , according to the Ministry of Fisheries and Livestock.

To ease situation, economists feel that it is high time to evolve a sort of supply chain management (SCM), which deals with procurement, supply and marketing of products on the basis of demands. The SCM can be developed by the concerned ministries or the relevant government departments.

Also the government may assist local farmers, firms and traders to develop a chain to maintain adequate supply of commodities to the different spots across the country for distribution at reasonable prices.

The writer is Business Editor, The Daily Observer



LATEST NEWS
MOST READ
Also read
Is a full-scale war in Middle East imminent?  
How UN stays relevant by prolonging ME crisis
Unchanging value of literature in the age of algorithms
Teachers should focus on social justice in classrooms
Our fiscal transparency in the report of USA
Joviality in self exploration
The observance of the world teacher's day in the new light
Natural gas crisis in Bangladesh: Is LNG the only solution?
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Online: 41053014; Advertisement: 41053012.
E-mail: info©dailyobserverbd.com, news©dailyobserverbd.com, advertisement©dailyobserverbd.com, For Online Edition: mailobserverbd©gmail.com
🔝