Inequality has eaten away much of economy's gains: Experts

Growing inequality has eaten away the benefits of economic growth and achievements in recent years, said Dr M Asaduzzaman, a former research director of the Bangladesh Institute of Development Studies (BIDS).

Quoting the Bangladesh Bureau of Statistics, he said, "The income inequality index, Gini coefficient or index, has increased at an abnormal rate in the last 10 years. While the overall Gini is below 0.50, it is 0.54 in urban areas, indicating high inequality."

At a discussion meeting organised by the Centre for Policy Dialogue (CPD) in memory of the late Professor Nurul Islam, the first deputy chairman of the Planning Commission, Dr M Asaduzzaman said Professor Nurul Islam in his lifetime talked a lot about political economy and inequality. 

The reality is that sustainable development goals (SDGs) have been undertaken to ensure equality, but inequality is increasing, he added.

Participating in the discussion, another former research director of BIDS Dr Rushidan Islam Rahman, called for comprehensive research to find out the real cause of ongoing inequality in Bangladesh.

"Although loan defaulters and wealth smuggling are blamed for the increase in inequality, research is needed on the real reasons," she said.

"In general, it is assumed that inequality is increasing because the rich are defaulting on loans and laundering money. But there are also valid reasons like the lack of skilled workers and lack of employment in the industry," Rushidan Islam said.

"The main reason behind the discrimination is that quality employment is not being created in the local industry. As a result, many poor people are forced to join low-income jobs. Such income does not eliminate poverty, but rather raises inequality," Rushidan added. 

In the discussion titled "Thoughts of Professor Nurul Islam and Contemporary Bangladesh Economy", Dr Rehman Sobhan, the chairman of the Board of Trustees of CPD, cherished his memory of Nurul Islam who was his colleague at Dhaka University and Planning Commission.

"Nurul Islam was a complete academician, researcher and political economist," Rehman Sobhan said.

Dr Fahmida Khatun, the executive director of CPD, said in her introductory remark, "Professor Nurul Islam was not only an economist. He spoke about economic justice in independent Bangladesh as he spoke during the Pakistan period."

"He [Nurul Islam] has written prolifically throughout his long career and even in retirement. He authored over 25 books, research papers, journals and hundreds of articles. In all these writings, he reflects on his valuable experience in national and international policy-making and his political-economic perspectives," Fahmida said.

Dr Mohammed Farashuddin, a former governor of the Bangladesh Bank, said, Dr Nurul Islam was a complete welfare economist. It was on his advice that Bangladesh joined the LDC. This has resulted in good progress in trade and growth.

Professor Mustafizur Rahman, a distinguished fellow at CPD said, "If there is no transparency and accountability of the government, other countries come to impose authority in the name of trade and investment. Professor Nurul Islam has said that even if a country is small but has a strong government, democracy and accountability, then other countries will not be able to exert influence."