Reflections

World economic crisis and Bangladesh October 15, 2008

The world is undergoing an economic crisis. It started with the bankrupcy of the large companies of the USA,which is followed by the same fate of some of European companies. The US government tried to offset the effect by giving proposal of bailing out by 700b$. McCain dramatically stopped his election campaign and with Barak Obama attended the special conference of the leaders of the congress and the government. They all appeal in suppost of the bailout.

But in the voting of the congress, the verdict went against the bailout. The congressmen who voted against the bailout actually echoed the concern of the voters of their locality. The voters could not understand the inner reason why billions of taxpayers money is prposed to be drained to the companies who are at fault. The share market in Wall Street nosedived , the reflection felt in Europe and Asian markets. The US government become desperate to make the bailout passed in the Senate at a margin so that there remain no hindrance in its ultimate passing. Special lobbying were made, explanations were given and the Senate passed the bailout bill in large margin. The European leaders also appealed the US congressmen to vote in favour to rescue the world economy. The congress in its second ballot compelled to pass the bill.
The EU leaders also sat together and discussed the magnitude of the crisis and thought of the measures to be taken to avoid the economic crisis in their own countries.

Bangladesh, a small developing nation in Asia,was eagerly looking the evolving events in the US and world market. Though the share market was initially stable here, but it suddenly nosedived.But the experts tried to convince the stakeholders that Bangladesh market affected because of panic as it has little connection with the other markets. It will be regulated with its own market dynamics. Then in a seminar/round table discussion jointly organised by Centre for Policy Dialouge (BCPD) and South Asian Center for Policy Dialogue(SACPD), Dr. Muhammad Yunus , Economist and Nobel laureate said that Bangladesh could not remain unaffected from the new economic crisis that is developing in the world. He fears that the poor will be mostly affected and poverty will be more deepened. He however stressed to find out ways to overcome the situation and to be more competative to combat the crisis.

In the meantime , President of Garments Exporters (BMGE) appeals to the Goverment to protect the largest exporting sector of the country by creating special fund like that of India.

Let us see how Bangladesh face the crisis and take necessary measures to overcome the situation.

An ordinary citizen

More on world economic crisis:
World econmic crisis: The Schiller Institue
World gripped by largest financial crisis in 100 years
What I learned at the world economic crisis-Josheph Stiglitz
US gambles blamed for world economic crisis
European Union tested by world economic crisis
IMF predicts major global slowdown amid financial crisis
Fallout from global crisis looms over export-DS
Likely impact on Bangladesh-Zahid Hussain

Post Script:
1/4/09

Bangladesh though a little late started to feel the effect of global recession.
despite some prediction that it will not be affected by the recession.