Public has to bear the cost of corruption ultimately: Fahmida Khatun

The public has to ultimately bear the cost of corruption, said Centre for Policy Dialogue (CPD) Executive Director Fahmida Khatun.

"Because of corruption, not just the cost of production, but also the cost of service increases; and the public has to bear it. In such a situation, both the economic and business environment is hampered," she said while speaking at the CPD's event to present its report titled "Bangladesh Business Environment 2022: Findings from the Executive Opinion Survey" on Sunday (29 January).

"The current situation is unstable. We have the pressure of inflation on one side, then there is the crisis caused by the Ukraine-Russia war, also there are geopolitical factors because of which the global economy is going through a recession. Even big economies are going through recessions," she added.

Citing data from international organisations like World Bank, the IMF, Fahmida Khatun said the economic downturn will linger till 2024.

"Many big economies will enter recessions. The whole world is struggling, people in Bangladesh are also struggling with food prices, and fuel inflation. Individuals, as well as businesses, are facing pressure due to this," she added.

Harkening to the CPD report, she said, "This survey was done in April-July of 2022, after which many decisions that affected businesses were taken. Prices of electricity and gas were hiked. Because of this, businesses don't have an amicable environment. Production cost will rise because of this, it will reach the consumer level. The public has to bear the high prices. Because of this, the pressure of inflation will continue to sting."

She said that the rise in production cost results in decrease in competitive advantage.

"Many businessmen export to foreign countries. If the production cost rises, then the competitiveness decreases. If we lose a competitive advantage, then it will affect the export earnings. If this continues, then we can't achieve the growth and employment we hope would come from businesses," the CPD executive director said.

Talking about subsidies, she said: "We want the waste of wealth to stop that comes from subsidising fuel prices. There should be an integrated pricing system for this. As economists, we think it is very important, and it has to be implemented gradually. Subsidies are a waste of national wealth. Both rich and poor enjoy the benefit of it. However, when the price is adjusted, subsidies should be given targeting the poor."

Deeming the agriculture sector most important for food safety, Fahmida Khatun said: "Agriculture is very important for food safety. Assistance in this sector should be continued. Especially now more than ever as many places are facing food shortages."

"Many are blaming the IMF loan. Loans create pressure, but that doesn't mean the reality of the people will be ignored. Conditions should only be agreed to if they are beneficial to the public. Social safety has to be maintained. I would advise negotiating in a way that benefits the broader mass. Every policy is intertwined with another one," she added.