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G-20 and Bangladesh April 20, 2009

Posted by bdoza in BANGLADESH, ECONOMY.
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g20-leadersOn 2nd April, 2009, the 20 most industrialised and emerging nation met together at London to address the world economic recession and to find the way out of the recession. It was the first major summit for Obama after he has taken oath as the President of the largest economy of the world of USA.
Though there was dissent among the participating countries and a fear that French President Sarkozy may walk out of the summit, but no such dramatic event happened despite the media’s speculation.

The summmit declared a joint communique at the end citing measure to combat the world economic crisis.
Many critics says that it is dialouge among the rich where the poor has no saying though the summit alloted an amount of money for the deveoping countries, it is not enough to improve the situation of those countries. Bangladesh could be the missing voice of the developing countries in the summit.

Bangladesh will get a share if it wants to from that portion which will be distibuted through IMF and World Bank. G-20 suggested to strengthen the IMF and World Bank though the present economic crisis may be a failure of these bodies. Are the devoping countries are falling into into the trap of greater vicious cycle in future?

Should Bangladesh go for its own crisis to get loan from IMF? Experts opined that it will be better for Bangladesh initially to depend on its own resources.

An ordinary citizen

G-20 in Wikipedia
London Summit Communique

Final Report of G-20 working group

London Summit 2009
Recession in G-20 and Bangladesh
G-20 and missing voice of Bnagladesh

Bangladesh announces stimulus package for economic recession April 20, 2009

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stimulus-packageFinance Minister MA Muhith has declared the long awaiting stimulus package to combat economic recession in Bangladesh.
Daily Star
Prothom Alo
Finance Minster said that the package is not all. Government is also giving tax rebit and banks will give more credit support to the businesses.

The package was appraciated by the economists but to business lesders it falls short of expectations, specially the garments sector feels that it was neglected in the package.
The Daily Star in its editorial urges the goverment to reach the target sector in time. An Star Analysis says it is a wise first recession step.
Stimulus package also puzzles the leather industry.
Primary Textile Sector also urge the government to extend the incentive to the textile industries.
MA Muhith,Minister for Finance said that necessary modifications will be made to relieve the grivances and said spinners will be included in the package.

Recession is already creeped into Bangladesh and now it is time to see how effectively the package could help in combating the recession.

An ordinary citizen

Bailout, Stimulus Package and US Economy March 25, 2009

Posted by bdoza in BANGLADESH, ECONOMY, IMF.
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US economy is feeling the pain of economic recession for the last few years. But the crisis surfaced at the end of Bush Administration when both Obama and MaCaine were at the height of their campaign. Both of them attended the special meeting of President Bush with the congress and Senate leaders where consensus for bailing out the financial institutions were made by extending support of 900b $.
This bail out proposal was later passed reduced by congress and the senate amid confusion and criticism from the ordinary citizens. To common people it is not clear then and still now why tax payers’ money would be expended for rescuing the companies who failed for their own reasons. Logic came in favour of bail out that the rescueing of the companies will save the jobs of the common people.

After Obama came to Power, as a part of economic plan, he declared the Stimulus Package for the growth of the economy by supporting home owners, Small business, education,transportation and infrastructure, medical support, art etc.

The plans faced criticism when AIG distributed a major portion of its money as bonuses to the executives. Public rage was so much that the congress formed a special Committee for hearing the explanation from the CEO of AIG.

Is the economy is improving after all these measures. Not likely. Not only US, the Europe, Japan and China are also feeling the pangs.

In a recent statement IMF told that the developing countries, though their economy will be affected but the growth rate will be less affected than the developed nations.

To ordinary citizen, the perplexing question is why US economy vis a vis the world economy is collasping? Is is a normal phenomon or a mere cycle of depression which hit in 30, in 50 and now? or Is it a failure of capitalism itself? Is the concept of capitalism on the wane like the communism? and a new world order is necessary?

The governents are busy with the remedy and the it looks that measures are temporary and superficial and will not cure the illess of the of the system itself. But very few people are actually looking into the fault of the system and analysing the permanent way out of the complexity.

An ordinary citizen

Parallel thoughts:
The end of Capitalism? by Mirza Azizul Islam, Former Adviser of the last Caretaker Government

Follow Davos 2009 January 31, 2009

Posted by bdoza in BANGLADESH.
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Public figures
Business leaders
Latest press releases
Davos conversations on blogs
Davos 2009 in CNN.com
Davos Diary -NY Times

An ordinary citizen

Global economic crisis, World Bank and Bangladesh November 29, 2008

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World Bank in a recent press briefing in Dhaka projected that GDP growth in Bangladesh might come down to 4.8% in the current fiscal year from the Government projected 6.5% as readymade garments and remittence inflow will suffer due to global financial crisis.

Mirza Aziz, Finance and Planning Adviser, rejected the the idea and hopes that it might cross 6% and expressed wonder on what basis the world bank officials made the prediction.

Bangladesh Bank Governor Salehuddin Ahmed also dismissed the idea and said,’World Bank projection is grossly an underestimation and is not based on critical analysis.’ He urged for ‘ not to rely on numbers alone’ but ‘to make value judgment.’

On the growth of exports, remittence and agricultural output and ease of inflation, BB Governor opined that the economic fundamentals are stable in Bangladesh. He said that export grew by 42.39% in the first 3 months of of the fiscal year while the remittence inflow were about $ 3 billion from July to October in the current fiscal year.

Apex Body of Garments Exporters BGMEA President said, ‘World Bank prediction is whimsical and unrealistic’. He opined ‘the ongoing global economic recession will rather create opportunites for Bangladesh RMG sector and export will not decline as Bank predicted’. He said,’the comment is irresponsiblle’ as ‘ such comment will make the buyers and bankers nervous in taking business decision, which will ultimately create negative impact on the industry’.

BGMEA urged the present & future governments to avoid the World bank fund in formulating next budget.

An ordinary citizen

World economic crisis and Bangladesh October 15, 2008

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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:

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.