Renowned economist and distinguished fellow of the Centre for Policy Dialogue (CPD) Dr Debapriya Bhattacharya on Tuesday said that there are four deviations in the country’s economy.
He said these deviations are: not getting adequate investment in the private sector, weakness in revenue generation, lack of necessary investment in education and health sectors, and discrimination in the social safety net programmes.
“If these can’t be faced, then it won’t be possible to successfully overcoming those and thus reaching into the next stage. Side by side, there is also an apprehension whether the already achieved attainments will be sustainable or not,” he said.
Dr Debapriya, a macroeconomist and public policy analyst, came up such observation at the “ERF Dialogue” organized by the Economic Reporters Forum (ERF) held at its auditorium in the capital today. Presided over by ERF President Sharmeen Rinvy, its general secretary SM Rashidul Islam moderated the programme.
Noting that the present economic situation is passing through a complex and crisis period, the economist said it was apprehended earlier that such kind of situation could emerge in the world and also in the country.
“Besides, it was also highlighted that short-term measures are important to face such kind of situation. For this, many have suggested for taking prudent financial and foreign transaction policies instead of the high ambition on attaining GDP growth,” he added. Apprehending that the situation created in foreign trade, investment, exchange rate and inflation, over the months would not be resolved very soon. “Our main problem is not in foreign transaction, rather the main problem is the weakness in the financial sector as well as not mobilizing adequate revenues. This is why it has gradually becoming not possible to provide subsidies in the energy sector and also to provide food assistance to the poor,” He said the growth is now being propelled by public investment as the private investment ratio to GDP has not increased over the years still hovering around 23 to 24 percent of GDP. On the other hand, the ratio of public investment to GDP has been increased to 7 to 8 percent from 5 to 6 percent.
“There has been no such foreign direct investment as the FDI is still below the one percent of GDP which is not enough for a dynamic economy,” he said adding that whenever there is increased public investment, then the private investment also increases, but that didn’t happen in Bangladesh. The situation of Bangladesh is like a flying airplane with one engine which can’t go far and look for a runway,” he added.
Referring to the attaining of GDP growth at 5 to 7 percent on average over the last 10 years, the eminent economist said this suggests that the income is growing. “Then why the desired revenues are not being collected…is there any mismatch in the calculation?’
