The New Nation - Internet Edition

Staff Reporter

Eminent economist Prof Wahiduddin Mahmud has suggested the government to nationalise its entire food import system, at least for the time being, to save people from being battered by the market mechanism.

He was speaking at a discussion meeting on 'Global Financial Crisis: Impact on Bangladesh' organised by the Economic Reporters Forum (ERF) at the National Press Club in Dhaka yesterday.

Economists and businessmen in the meeting were at one to say that the ongoing global economic crisis would not adversely affect Bangladesh immediately but they alerted the policymakers to prepare to face any consequence of a possible prolonged global crisis or economic recession.

To avert any debacle in future, the experts also suggested the government to rethink its economic policies by shedding any kind fanaticism about capitalist free market economy or any kind of economic philosophies.

Some of the economists were also optimistic that Bangladesh may benefit in some respect due to some effects of the crisis in the rich world.

The laundered money by corrupt goons of Bangladesh may find its way back to Bangladesh, a former deputy governor of Bangladesh Bank observed in the meeting. He suggested the government and the Anti Corruption Commission to relax emergency rules and the drive against corruption to help them bring back the money.

"The dismantled financial system in most of the developed countries has made the laundered money of the corrupts, insecure. The corrupts will now try to bring back the money," said former deputy governor Khondoker Ibrahim Khaled.

He said, "Inward remittances may increase soon after withdrawal of the emergency, as the corrupts are now scared to bring the money back."

"If such money comes back, the authorities should consider relaxing investment rules," the noted banker suggested.

Wahiduddin Mahmud said the US and other countries are nationalising their banks in the wake of the financial crisis.

"Why don't we nationalise the entire food import system (to bring down prices)? It could be done, at least for a certain time," he said.

The economist suggested the government to be flexible about economic philosophy and to adopt policy in response to the needs of times.

Dr Mahmud said he believed external trade could be exposed to the crisis in the longer run. He suggested the local commercial banks to be careful about "risky" lending.

He said, "The Casino type economy will not be sustainable. US debacle suggests that credit in huge should not be encouraged for consumer products or fashionable goods. One can receive loan to invest in productive purpose, not to purchase consumer items.

"Consumer credit has to be restricted through enactment of law," he added.

Khondoker Ibrahim Khaled said, "the global crisis, affecting the investment climate in developed countries, may lead to lower inflation in Bangladesh."

He said, "Exports will not suffer because of the crisis as garments (the kind Bangladesh exports) is a product considered to be a necessity.

"Some 80 per cent of our (migrant) workers are based in the Middle East. The nature of their jobs will ensure they will not be affected by the economic crisis," Khaled said.

"If a few Bangladeshis lose jobs in Europe and North America and return, there won't be much impact on remittance. There may be some social impact."

BGMEA president Anwar-ul-Alam Chowdhury Pervez, the head of the largest exporters' group came up with three proposals for Bangladesh to steer clear of the crisis path.

"Build workforce, reduce prices of oil and fix two different exchange rates for export and import," he said.

CEO of the Dhaka Stock Exchange Professor Salehuddin Ahmed said, "Our share market will not suffer the crisis. Because the volume of foreign investment is very low, and the global crisis has virtually nothing to do with such markets."

Dr Ananya Raihan presented the keynote paper at the discussion where CPD executive director Prof Mostafizur Rahman also spoke. ERF president Nazmul Ahsasan moderated the discussion while its general secretary Sazzad Alam Khan offered vote of thanks.