Economist urges Bangladesh toward sustainable, production-driven economic growth.
Bangladesh Economic Association Convener, eminent economist and National Professor Dr. Mahbub Ullah today called for moving away from a rent-seeking and opportunistic economy and building a sustainable, production- and development-oriented economy.
He made the call while speaking at a discussion titled "Economic Context and Emerging Challenges: Priorities for the Future" at the Economic Reporters' Forum (ERF) here.
ERF and the Centre for Policy Dialogue (CPD) jointly organised the discussion, chaired by ERF President Daulat Akter Mala.
Adviser to the Prime Minister on Finance and Planning Prof Dr Rashed Al Mahmud Titumir attended the event as the chief guest.
Dr Mahbub Ullah said repatriating capital siphoned out of the country and formulating effective policy strategies to stop the bleeding of the economy are essential to maintaining economic stability.
Highlighting the relationship between infrastructure investment and inflation in developing countries, he said returns from large infrastructure projects such as roads, bridges, railways and ports take a long time to materialise.
"Thousands of crores of taka have already entered the market during the implementation of such projects, but production or output has not increased proportionately," he said.
As a result, he said, an imbalance has emerged between money supply and production, contributing to rising inflation in the country.
Criticising the practice of withdrawing money from banks, converting it into dollars and siphoning it abroad, Dr Mahbub Ullah said reports of substantial capital outflows to Dubai and other destinations have emerged recently.
"If capital flows abroad instead of being invested at home, the desired growth, employment and development cannot be achieved," he said, describing the outflow of capital as a serious "bleeding" of the economy.
He warned that the national economy could face a much bigger crisis unless such capital flight is stopped immediately.
Dr Mahbub Ullah also highlighted new opportunities in the agricultural sector, saying a promising trend has emerged as expatriate workers returning home are leasing land to produce high-value crops.
He stressed the need to quickly collect information and monitor the expansion and depth of this emerging sector in the interest of the country's overall food security.
Referring to the substantial income generated by the informal sector, he regretted that such economic activities are being hampered by extortion.
Citing the example of street hawkers in the city, he said many hawkers cannot conduct business without paying extortion money.
"It is essential to eliminate the culture of extracting money without production and bring economic activities back to a productive path," he said.
Dr Mahbub Ullah said existing barriers must be removed to attract genuine and honest entrepreneurs to invest in the country.
Referring to the role of the Finance and Planning Adviser, he expressed hope that the government would take effective measures to address these practical problems and formulate appropriate policies considering the country's overall economic situation.
