'Development can not be sustained while not reforms'
'Development can not be sustained while not reforms'
Mashiul Alam | Update: 17:10, Sep 08, 2019
Source: Prothom Alo
Ahsan H MansurEconomist Ahsan H Mansur was a lecturer at Dhaka University before occurring to require up a senior position at the International money (IMF). one in every of the founders of Policy analysis Institute, Ahsan has recently been appointed the chairman of BRAC Bank. In associate degree exclusive interview with Prothom Alo, he spoke concerning the country’s economy, investment, employment, the trend in regional and world economy and its impact on East Pakistan.
Prothom Alo: thus what's the country’s financial condition at the moment?
Ahsan H Mansur: there's a distinction between the government’s statistics regarding the economic sector and also the numerous economic indicators of the important state of affairs on ground. The government’s projection of the economy is bright and dynamic, however really it's not thus.
The government claims that growth is at its highest at the instant, however if truth be told investment has plummeted and also the credit flow within the non-public sector has over-involved, too. In fact, the credit flow is at its lowest ebb. that the claim that economy is at its highest purpose makes no sense.
Then if we glance at the opposite indicators, like the state revenue financial gain, we have a tendency to see a discrepancy between the projected growth figures and reality. it's solely natural for revenue to extend if there's economic process, however our revenue financial gain isn't increasing. Official records show that there has been associate degree eighteen to nineteen % growth within the producing sector, however revenue growth has solely been eight to nine %. Why ought to this be so? It mustn't be like that. commonly once the economy is powerful, revenue growth may be a bit above the economic process. that's not happening here.
Prothom Alo: Shouldn’t inflated growth conjointly cause increased employment?
Ahsan H Mansur: affirmative, however the use situation isn't smart either. there's some informal employment evidently, however there's a evident deficiency in formal sector employment. the speed of state is extremely high among the educated population.
Even if we glance outside of those sectors to determine the particular state of the economy, we'll see several issues. for instance, exports aren't increasing in proportion to the gross domestic product. In fact, exports haven’t inflated over the past 5 years. that's a foul sign. After all, we have a tendency to feel exports play a outstanding role in our economic process.
It is an equivalent with remittances, that are steady falling. antecedently remitment would frame ten to twelve % of Bangladesh’s gross domestic product. This has currently dwindled to five to six %. This long-run trend doesn't portend well for the economy.
Prothom Alo: You say the official statistics that show economic process don't mirror reality. thus has there been negative growth or is that the economy at a standstill?
Ahsan H Mansur: i'd not say there has been overall negative growth, however there has actually been a downtrend in some sectors. Despite all this, there's economic process, however maybe not the maximum amount as being projected. Having same that, i'd add that Bangladesh’s economy is spirited, however we have a tendency to sure as shooting do have associate degree eight or nine % rate.
Prothom Alo: thus however is that the economy still vibrant?
Ahsan H Mansur: There are several reasons for the country’s economy to be spirited. One reason is that Bangladesh’s labour force has inflated at a rate of three %. they're doing a little work or the opposite to earn a living. that's however we've got economic process.
Prothom Alo: will this growth really signify economic development or simply associate degree growth in size?
Ahsan H Mansur: It helps to expand the scale of the economy. If growth isn't half-dozen % or additional, then the economy doesn't modification. Our actual growth is probably half-dozen to seven %, not more.
Prothom Alo: we have a tendency to hear that India’s economy is during a unhealthy state. Is that true?
Ahsan H Mansur: the image we have a tendency to get of Indian economy is that the real picture. They get an annual image of marginal-based data of their economy that they'll analyse. we have a tendency to don’t get such data in our country. But yes, Indian economic process has fallen to but half-dozen %. however they're endeavouring to extract themselves from matters and that they have the flexibility to try to to thus. they need an honest economic policy.
Prothom Alo: Why is it being same that India’s economy is during a unhealthy condition?
Ahsan H Mansur: India’s economy is coupled to the world market. India should be viewed in perspective of the world economy. the world economy isn't faring well at the instant and India is littered with this.
Prothom Alo: however so much can India’s financial condition have a sway on Bangladesh?
Ahsan H Mansur: It won’t have a really robust impact on East Pakistan. There could also be a sway from their currency devaluation that they're doing deliberately. China has devaluated its currency and then India is following suit. peninsula and Japan have devaluated their currency too. they're all doing this to shield their export sectors. however East Pakistan isn’t devaluating its currency. this is often driving down the worth of Indian and Chinese product and their products can flood our market. which means our balance with them can widen additional.
Prothom Alo: what's the state of our monetary sector? The banking sector is alleged to be during a unfitness.
Ahsan H Mansur: Bangladesh’s monetary sector is in an exceedingly} very poor state. The monetary sector has four pillars: the currency market that is comprised of the banking and non-banking sectors, the share market, the insurance sector, and also the bond market. 3 of those four pillars are during a unhealthy state. The bond market hardly exists. The poor state of the share market is nothing new. The insurance sector is simply on paper with the insurance corporations simply premium assortment agencies. they are doing not shield the purchasers in any manner. None of the native insurance corporations have the desired calculator allowance. that the solely hope is within the currency sector. Most of the establishments in its non-bank monetary sector are stricken by acute credit crunch.
Prothom Alo: thus what's the long run of our economy?
Ahsan H Mansur: If the rife trends continue, then it'll not be potential to carry onto no matter smart we've got achieved in our economy to date. Unless investment will increase and contemporary employment is generated, there may be no development.
Prothom Alo: what's the manner forward then?
Ahsan H Mansur: There should be intensive reforms everywhere. In perspective of India and China’s currency devaluation, we have a tendency to should do thus too or our export sector can fall back additional. Our product won't be able to get up to world competition. There should be intensive reforms in revenue management. The constituted unconditional interests within the revenue department should be uprooted.
Prothom Alo: what's the most weakness in our revenue management?
Ahsan H Mansur: There are no reforms within the administration of the revenue management since land rule. we have a tendency to lack the technology-based administration needed for revenue assortment, given this size of our economy. the govt. should realise this.
The corrupt components within the revenue department are proud of the manner things are as a result of they'll fill their pockets. The unscrupulous section of taxpayers is additionally proud of this system. they'll pay the revenue officer ten % and keep ninety percent for themselves. Nothing can go in the state coffers. This corrupt culture has seeped all the way down to the grassroots. This should finish. this needs intensive reforms.
There should be technological development and policy reforms within the system. If not, revenue can fall additional in proportion to the gross domestic product. Our tax to gross domestic product magnitude relation is eight %. obscurity else within the world is it thus low. it'll not be potential to implement the property Development Goals with this magnitude relation, nor can it's potential to become the next medium financial gain country.
There is a great deal to be done. Our investment situation isn't smart. Our ‘ease of doing business’ indicators are poor. Our power state of affairs has improved however our ‘enforcement of contract’ culture isn't smart. we have a tendency to sign contract however don't follow the clauses.
Our treatment of foreign investors isn't forever exemplary. the way during which our revenue department has treated Grameenphone offers out a negative message. The revenue department suspect Grameenphone of evading Tk twelve billion in taxes, however Grameenphone rejects these charges. they're job for neutral arbitration, however the revenue department refuses. Grameenphone is one in every of the 2 biggest foreign corporations in East Pakistan and also the manner during which they're being treated may be a deterrence to foreign investors. we have a tendency to conjointly annoyed the Korean EPZ investors.
An surroundings contributing to native investors should even be ensured. a talented men should be created. there's a great deal to be done.
Bangladesh’s individuals are hard-working. we are able to take our economy a lot of forward. this needs political can to hold out intensive reforms within the economic and monetary sectors.
Prothom Alo: many thanks.
Ahsan H Mansur: many thanks, too.
*This interview, originally printed in Prothom Alo print edition, has been rewritten in English by Ayesha Kabir.
Mashiul Alam | Update: 17:10, Sep 08, 2019
Source: Prothom Alo
Ahsan H MansurEconomist Ahsan H Mansur was a lecturer at Dhaka University before occurring to require up a senior position at the International money (IMF). one in every of the founders of Policy analysis Institute, Ahsan has recently been appointed the chairman of BRAC Bank. In associate degree exclusive interview with Prothom Alo, he spoke concerning the country’s economy, investment, employment, the trend in regional and world economy and its impact on East Pakistan.Prothom Alo: thus what's the country’s financial condition at the moment?
Ahsan H Mansur: there's a distinction between the government’s statistics regarding the economic sector and also the numerous economic indicators of the important state of affairs on ground. The government’s projection of the economy is bright and dynamic, however really it's not thus.
The government claims that growth is at its highest at the instant, however if truth be told investment has plummeted and also the credit flow within the non-public sector has over-involved, too. In fact, the credit flow is at its lowest ebb. that the claim that economy is at its highest purpose makes no sense.
Then if we glance at the opposite indicators, like the state revenue financial gain, we have a tendency to see a discrepancy between the projected growth figures and reality. it's solely natural for revenue to extend if there's economic process, however our revenue financial gain isn't increasing. Official records show that there has been associate degree eighteen to nineteen % growth within the producing sector, however revenue growth has solely been eight to nine %. Why ought to this be so? It mustn't be like that. commonly once the economy is powerful, revenue growth may be a bit above the economic process. that's not happening here.
Prothom Alo: Shouldn’t inflated growth conjointly cause increased employment?
Ahsan H Mansur: affirmative, however the use situation isn't smart either. there's some informal employment evidently, however there's a evident deficiency in formal sector employment. the speed of state is extremely high among the educated population.
Even if we glance outside of those sectors to determine the particular state of the economy, we'll see several issues. for instance, exports aren't increasing in proportion to the gross domestic product. In fact, exports haven’t inflated over the past 5 years. that's a foul sign. After all, we have a tendency to feel exports play a outstanding role in our economic process.
It is an equivalent with remittances, that are steady falling. antecedently remitment would frame ten to twelve % of Bangladesh’s gross domestic product. This has currently dwindled to five to six %. This long-run trend doesn't portend well for the economy.
Prothom Alo: You say the official statistics that show economic process don't mirror reality. thus has there been negative growth or is that the economy at a standstill?
Ahsan H Mansur: i'd not say there has been overall negative growth, however there has actually been a downtrend in some sectors. Despite all this, there's economic process, however maybe not the maximum amount as being projected. Having same that, i'd add that Bangladesh’s economy is spirited, however we have a tendency to sure as shooting do have associate degree eight or nine % rate.
Prothom Alo: thus however is that the economy still vibrant?
Ahsan H Mansur: There are several reasons for the country’s economy to be spirited. One reason is that Bangladesh’s labour force has inflated at a rate of three %. they're doing a little work or the opposite to earn a living. that's however we've got economic process.
Prothom Alo: will this growth really signify economic development or simply associate degree growth in size?
Ahsan H Mansur: It helps to expand the scale of the economy. If growth isn't half-dozen % or additional, then the economy doesn't modification. Our actual growth is probably half-dozen to seven %, not more.
Prothom Alo: we have a tendency to hear that India’s economy is during a unhealthy state. Is that true?
Ahsan H Mansur: the image we have a tendency to get of Indian economy is that the real picture. They get an annual image of marginal-based data of their economy that they'll analyse. we have a tendency to don’t get such data in our country. But yes, Indian economic process has fallen to but half-dozen %. however they're endeavouring to extract themselves from matters and that they have the flexibility to try to to thus. they need an honest economic policy.
Prothom Alo: Why is it being same that India’s economy is during a unhealthy condition?
Ahsan H Mansur: India’s economy is coupled to the world market. India should be viewed in perspective of the world economy. the world economy isn't faring well at the instant and India is littered with this.
Prothom Alo: however so much can India’s financial condition have a sway on Bangladesh?
Ahsan H Mansur: It won’t have a really robust impact on East Pakistan. There could also be a sway from their currency devaluation that they're doing deliberately. China has devaluated its currency and then India is following suit. peninsula and Japan have devaluated their currency too. they're all doing this to shield their export sectors. however East Pakistan isn’t devaluating its currency. this is often driving down the worth of Indian and Chinese product and their products can flood our market. which means our balance with them can widen additional.
Prothom Alo: what's the state of our monetary sector? The banking sector is alleged to be during a unfitness.
Ahsan H Mansur: Bangladesh’s monetary sector is in an exceedingly} very poor state. The monetary sector has four pillars: the currency market that is comprised of the banking and non-banking sectors, the share market, the insurance sector, and also the bond market. 3 of those four pillars are during a unhealthy state. The bond market hardly exists. The poor state of the share market is nothing new. The insurance sector is simply on paper with the insurance corporations simply premium assortment agencies. they are doing not shield the purchasers in any manner. None of the native insurance corporations have the desired calculator allowance. that the solely hope is within the currency sector. Most of the establishments in its non-bank monetary sector are stricken by acute credit crunch.
Prothom Alo: thus what's the long run of our economy?
Ahsan H Mansur: If the rife trends continue, then it'll not be potential to carry onto no matter smart we've got achieved in our economy to date. Unless investment will increase and contemporary employment is generated, there may be no development.
Prothom Alo: what's the manner forward then?
Ahsan H Mansur: There should be intensive reforms everywhere. In perspective of India and China’s currency devaluation, we have a tendency to should do thus too or our export sector can fall back additional. Our product won't be able to get up to world competition. There should be intensive reforms in revenue management. The constituted unconditional interests within the revenue department should be uprooted.
Prothom Alo: what's the most weakness in our revenue management?
Ahsan H Mansur: There are no reforms within the administration of the revenue management since land rule. we have a tendency to lack the technology-based administration needed for revenue assortment, given this size of our economy. the govt. should realise this.
The corrupt components within the revenue department are proud of the manner things are as a result of they'll fill their pockets. The unscrupulous section of taxpayers is additionally proud of this system. they'll pay the revenue officer ten % and keep ninety percent for themselves. Nothing can go in the state coffers. This corrupt culture has seeped all the way down to the grassroots. This should finish. this needs intensive reforms.
There should be technological development and policy reforms within the system. If not, revenue can fall additional in proportion to the gross domestic product. Our tax to gross domestic product magnitude relation is eight %. obscurity else within the world is it thus low. it'll not be potential to implement the property Development Goals with this magnitude relation, nor can it's potential to become the next medium financial gain country.
There is a great deal to be done. Our investment situation isn't smart. Our ‘ease of doing business’ indicators are poor. Our power state of affairs has improved however our ‘enforcement of contract’ culture isn't smart. we have a tendency to sign contract however don't follow the clauses.
Our treatment of foreign investors isn't forever exemplary. the way during which our revenue department has treated Grameenphone offers out a negative message. The revenue department suspect Grameenphone of evading Tk twelve billion in taxes, however Grameenphone rejects these charges. they're job for neutral arbitration, however the revenue department refuses. Grameenphone is one in every of the 2 biggest foreign corporations in East Pakistan and also the manner during which they're being treated may be a deterrence to foreign investors. we have a tendency to conjointly annoyed the Korean EPZ investors.
An surroundings contributing to native investors should even be ensured. a talented men should be created. there's a great deal to be done.
Bangladesh’s individuals are hard-working. we are able to take our economy a lot of forward. this needs political can to hold out intensive reforms within the economic and monetary sectors.
Prothom Alo: many thanks.
Ahsan H Mansur: many thanks, too.
*This interview, originally printed in Prothom Alo print edition, has been rewritten in English by Ayesha Kabir.
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