The New Nation - Internet Edition

DESPITE forecasts of a global economic slowdown and its likely impacts on Bangladesh, the government has not yet taken any significant move to face the challenges leaving the task for the elected political government. Of late a number of international institutions have predicted that due to impacts of the global financial crisis on emerging markets, the average economic growth in South Asia slowed down to 5.4 per cent. Bangladesh's prospective growth is yet to be reassessed, given the spillover effects of the global recession as news reports appeared in the national media recently. The government is yet to make any assessment of the probable impacts on the country's economy as a whole.

A leading expert of a global think-tank, International Food Policy Research Institute, warns the stage is set for the next international food crisis. In Bangladesh only a technical committee headed by the finance secretary has been formed, although civil society leaders as well as some political leaders have assured their support for constituting a crisis taskforce to address the challenges. The global slump hits developing countries as credit squeeze impedes trade and growth, a new World Bank report on 'Global Economic Prospects-2009' said following examination of the impacts of the financial crisis on gross domestic product growth across the world.

Growth already in South Asia, meanwhile, has eased to 6.3 per cent in 2008 from 8.4 per cent in 2007. High food and fuel prices, tighter credit conditions, and weaker foreign demand have led to worsening external accounts and a slower investment growth. Economists however, suggest that constant monitoring of the situation and taking measures on the basis of necessary intellectual exercise by the relevant authorities and experts should be made to face the challenges.