Poverty, disguised unemployment, school dropouts show gaps in interim’s vision: Hossain Zillur

The rising poverty, disguised unemployment and growing primary school dropouts expose major gaps in the interim government's priorities and vision, said economist and former adviser to the caretaker government Hossain Zillur Rahman.

Speaking at a seminar in Dhaka today (8 September), he noted that these trends were creating frustration among young people.

The seminar titled "Bangladesh's Actions in the Context of Trade War and the Role of FBCCI" was organised by the Bangladesh Business Forum (BBF) at a Dhaka hotel.

Zillur said, "Poverty in Bangladesh is moving in the wrong direction. Disguised unemployment has taken the shape of a pandemic. It becomes evident when one sees the frustration among the youth. Dropout rates in primary education have also gone up.

"I see a lack of vision from the interim government on these issues, and I am deeply concerned about this shortfall."

Explaining his concerns, he said, "Macroeconomic stability is very important, but even more important is the dynamism of the economy, its momentum. In economic terms, macroeconomic stability is a necessary condition."

"When we talk about Bangladesh, we often fall into a trap of complacency. The narrative that 'Bangladesh is progressing' must be discarded."

Former adviser to the caretaker government Hossain Zillur Rahman

He also warned against complacency in national discourse.

"When we talk about Bangladesh, we often fall into a trap of complacency. The narrative that 'Bangladesh is progressing' must be discarded. The real agenda today is the pace of progress. There is no room for complacency just by saying the country is moving forward," Zillur said.

"Today, the most crucial thing is momentum – the momentum of the economy. The government needs speed in its actions and in decision-making. The economy needs momentum…Without momentum, discussions about Bangladesh are meaningless," he added.

Reflecting on the past 15 years, Hossain Zillur said, "During the past government's 15 years of authoritarian rule, we witnessed the grim reality of unethical cronyism. But holding the entire private sector accountable for that cronyism would be a mistake."

Emphasising the need to restore confidence in the private sector, he added that it is these entrepreneurs who will keep the wheels of the economy running.

Identifying new 'growth drivers'

Meanwhile, while addressing the seminar, Zillur Rahman called for the identification of new "growth drivers" to keep Bangladesh's economy on track in the wake of the recent political change.

"While the ready-made garment (RMG) sector exists, new sectors must be explored," he said.

He highlighted the potential of the pharmaceutical, agriculture, IT, and leather sectors to that end.

He also recommended that harassment in carrying out business activities be recognised as a "state malady," similar to the corruption index.

Prominent economist and Chairman of Policy Exchange Bangladesh Masrur Reaz said the global trade war has created new opportunities for Bangladesh.

"American imports are shifting away from China, and American companies are looking for alternative markets," he said.

"Amid this situation, Bangladesh, as a non-aligned or openly non-political country, can become a promising destination" he said, advising improving competitiveness, trade facilitation, product diversification, and governance to capitalise on such opportunities.

However, business leader Safi Ullah Chowdhury criticised the business environment, stating that the organisation was "ineffective" under the previous government and failed to protect the interests of businessmen.

He claimed that after the July Uprising, a former bureaucrat with no business experience has been appointed to lead the organisation.

Describing the current situation for businessmen as like "orphans," he said, "We don't know who to go to or what to do." He pointed to a sudden increase in port charges and various forms of harassment faced by businessmen.

Business leaders have also criticised the role of the FBCCI, saying the organisation has been unable to address pressing challenges faced by businesses, including rising gas and electricity prices.

They demanded early elections to make the body more effective, while the BBF announced that a panel led by Abdul Haque would contest the upcoming FBCCI polls.