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Country running with 'corruption-fatigue economy'

Advisor in charge of Commerce, Industries and Post and Telecommunications Ministries Moinul Hossain Chowdhury yesterday said the country is running with a 'corruption-fatigue economy' where people of each and every section are involved in corrupt practices.

He also said it would not be an easy task to wipe out corruption from every where at one go.

Moinul Hossain Chowdhury was speaking as Special Guest at the pre-election policy brief on Industry and Trade at the CIRDAP auditorium

The discussion was jointly organised by Centre for Policy Dialogue (CPD), the Prothom Alo and The Daily Star. President of Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, Latifur Rahman Chaired the session that was largely attended by the country's business leaders.

Professor Mustafizur Rahman, Research Director of CPD, presented the policy brief on Industry and Trade while President of Dhaka Chamber of Commerce and Industry (DCCI) Benajir Ahmed played the role of Co-Chairman at the session.

When some of the speakers on the occasion called for fixing Sunday as weekly holiday, the Advisor Moinul Hossain Chowdhury said they are not in a position to take such decision.

"This is, in fact, a policy-level decision, but the constitution does not permit the caretaker government to take any such decision," Chowdhury said.

He also said unfortunately some of the actions of the interim administration, taken to ensure free and fair election, have already raised debates in different quarters. "We are already facing quite a few fronts. We don't want to involve in policy matters," Chowdhury said in reply to the request from a discussant.

The issue to fix one-day weekly holiday was raised by Executive Committee Member of FBCCI A Rouf Chowdhury as he said it would help the business community a lot specially in the era of globalisation. But, Rouf Chowdhury raised the issue for the consideration of the next government.

Later, taking part in the discussion Bazlur Rahman, Editor of Bengali daily the Sangbad, asked the caretaker administration to make Sunday weekly holiday.

He also said that it would be easier for the caretaker administration to take such step, as it does not have any political ambition or interest.

Turning to the next election, he said the political parties should focus their debates on policy matters that matter for the development of the country.

Chowdhury said the main task should be to put the economy on a strong footing for a steady democracy.

Focusing on the ailing state-owned enterprises, Chowdhury said the leaders of trade unions want overtime bills for the workers whether they work or not.

The business people taking part in the discussion said that governance problem is the main hurdle to industrial development.

President of International Chamber of Commerce (ICC), Bangladesh Chapter Mahbubur Rahman said the policy should be designed in a way so that the small and medium enterprises (SMEs) have a healthy growth as SMEs would be major source for job opportunity.

Rouf Chowdhury of FBCCI said the political parties should reach a consensus to ban hartal for the next 10 years for the betterment of economy. He also said they have to ensure an effective parliament that would deal with policy issues.

Chairman of Square Group Samson H Chowdhury, former Deputy Prime Minister Jamaluddin Ahmed, former President of Dhaka Chamber Aftab Ul Islam, former bureaucrat Faruque Sobhan, Momtazuddin Ahmed of Dhaka University, women entrepreneurs Selima Ahmed and Dr Ferdousi also spoke on the occasion among others.

The Task Force report suggested for designing a long-term vision strategy for industrialisation and stimulating resource mobilisation for industrial development as the growth rate of the country's industrial sector is still far off the mark necessary for the manufacturing sector to claim a share of 25 per cent in GDP, a target set in the Industrial Policy 1999.

Presenting the paper, Professor Mustafizur Rahman said there has been some important reforms in exchange rate policy. "However, it appears that the current basket of currencies for determination of Real Effective Exchange Rate (REER) does not reflect the actual direction and volume of trade, both formal and informal, which consequently has given rise to erosion of competitiveness vis-a-vis important trading partners, such as India and Pakistan."

The paper suggested designing attractive incentives for foreign exchange earners and also ensuring flexibility in the operation of foreign currency accounts by resident Bangladeshis to encourage retention of foreign exchange within the country and discourage leakage through hundi.

In view of great potentials of the country's agro-based industries both in domestic and export markets, the Task Force suggested for providing credit, interest and tax support and other incentives to promote export-oriented agro-processing sector.

This is more important as the European Union's zero-tariff, zero-quota facility for the least developed countries opened up enormous opportunities for the country's agro-processing sector, the report added.

The Task Force also suggested constituting a Commission to formulate strategies for commercial viability of the State-owned Enterprise (SOEs) and identify the sectors, which have a natural comparative advantage to be an SOE as in the case of utility services.