Analyze the recession economy of Bangladesh

There is a wide unrealized and depressive area in the concept of standard or conventional economics of growth and development that we have followed for so many years. Largely since the end of the Second World War, the world got itself in a big dam hurry of production, export and trade couched in liberal words like globalization and industrialization and as a result, it arrived at an unbalanced state of both wealth distribution and environment. This unbalanced state is the prime reason for the current recession, the current dependence on crude oil prices and its geopolitical dominance by Arab nations, current dominance of one currency over the other, the ongoing denomination of Africana and underdeveloped nations and worsly, the reason behind more concrete issues besides recession itself. Consequences global warming, over dependence on fossil fuels, power shortage and even overlooked issues like electronic waste and potable water are just early sings of this imbalance only. Recent global damages of economic livelihoods caused by natural disasters, whether droughts in Australia or floods in Bangladesh, are also absolute preambles of the consequences of pursuing economic development policies that are less concern of its effects on climate change and biodiversity. If not understood, all these concerns will ironically have severe effects on food production, water supply, and social livelihoods, things that economy aims to serves. Certainly, these issues now need to be addressed at a global scale with immediacy and acute sense of responsibility and the first place to change is the economic policies and outlook itself. According to the former US vice president Al Gore and general secretary UN Ban Ki Moon, the world will be heading towards a new economic order after the recession get sufficiently over by 2010. This new economic order has to be based on the principles of sustainable development if we are to save our planet from these catastrophes of the economic policies we held for so many years. The notion to project an economy for sustainable development came in 92 during a UN conference on environment and development (UNCED), popularly known as Earth summit, held at Brazil. Out of its five significant conclusions, Agenda 21 proposes global initiatives and policies on sustainable development in social, economic and practical context for the 21st century. It elegantly summarizes objectives, various conditions and ways to achieve sustainable developments but sadly missed out relevant issues of environmental ethics and implementation details of such ethical decisions which is the reason why the economies of the world have paved all the ways for its own future destruction. The new macro economics of sustainable development differs in definition and analysis with its conventional counterpart that the world follow still, because it respectfully incorporates the more important factors of sustainable development as a form of national capital, defined as the values of the existing stock of natural resources such as forests, fisheries, water, mineral deposits and environment in general. Both these macro Economic theories, however, conceptualize Growth as sin-qua non. The strategies to accomplish growth in economics-of sustainable development and the way how growth

itself is conceived governs the way how we are going to achieve a durable eco friendlyeconomic system, an increased GDP and prominently a sustainable development thats free of recessions and its aftermaths like millions of job cuts. Besides, a growth that takes necessary custodianship of environmental issues also and is utmost sensitive towards the use of scarce natural resources. Environmental concerns like ecological exploitation, knowledge-less agricultural practices, deforestation, uncontrolled emissions of green house gases and global warming that now holds a rigid grip now needs new technological avenues to be sought and implemented. The Agenda 21 of the 92 earth summit outlined key policies for sustainable development but remained inconclusive in suggesting permanent solution to the problems. However, it evidently recapitulates the role of various organizations and government to achieve sustainability besides warning about the poor ways of economic development that adversely effects ecosystem and leaves little ability for future generations to hope for a prosperous living. As we head towards new vibrant hopes and foresee a new world economic order thats based on the eco-centric views we must make it absolutely sure that mistakes that we did in implementing policies of the 92 Kyoto protocol is not repeated again. The slowly melting away and its a good sign, but it will cash only when we understand oat an international, national and individual scale the reasons why we faced it and learn from our past behaviors and mistakes. Since change is inevitable, it makes more sense to embrace it than to offer resistance says Narayani Ganesh. The change from developed economy to Green economy must be realized this way only. The recession has shown its peak and is now reversing its journey, so we should ensure that fruits of the recession in terms of our understanding are carefully propagated and substantially and sustainably established in its truest of sense. This is the only benefits we can draw out of the current recession. It is been a long age of environmental and economic distress. Millions of job cuts and a year long life of panic. Recession make us see corporate Big wigs going down shut into a store and CEOs reduced to a salary of 100. Alls this is not a good sign of progress. Lets hope to not face it again. Dhaka: The Asian Development Bank (ADB) has said the deepening global recession has begun to affect Bangladesh's economy, challenging its near-term growth prospects. The bank proposed a massive campaign to generate domestic resources to offset the impact. "With the financial crisis worsening into a global recession, the real economy (of Bangladesh) has begun to be affected. Exports and remittance growth have both moderated, slowing GDP growth in the near term," the Manila-based lending agency said in its Bangladesh quarterly economic update released late yesterday. It said the government must generate massive domestic resources by carrying out effective revenue reforms to increase public sector investments to cope with the recession. The ADB comments

came as the Bangladesh Bank yesterday admitted that the global meltdown was still a big challenge to the economy and that it was likely to hit export growth, the flow of remittances and foreign fund inflow. Although the Bangladesh economy has remained somewhat unaffected by the global recession, significant downside risks remain, especially regarding the country's exposure to the economic effects of the financial crisis involving exports, remittances and foreign capital inflow channels, it said. "The continuing slowdown of global growth, especially growth in the advanced economies, may pose a big challenge to our economy if it persists for long," Economic Adviser of the Bangladesh Bank Habibullah Bahar told journalists. The ADB, however, said that despite the slow growth, Bangladesh would perform better than most Asian countries since it had avoided the initial impact of the global meltdown. "Bangladesh is doing well within South and South-east Asia. Its macro-economic management was very, very good despite the global recession," Paul J. Heytens, ADB's country director, told journalists while releasing the econ-omic update in Dhaka. Asked about economic growth, Heytens said it might be above five per cent, but "much would depend on how long the recession will continue." The World Bank earlier feared Bangladesh would witness its lowest-ever GDP growth in seven years in the current fiscal year after the ADB forecast that the country would be exposed to the deepening effects of the recession. According to the World Bank's Global Economic Prospect 2009 report released last month, Bangladesh's GDP growth in the current fiscal year would be 4.5 per cent, the lowest in seven years. The ADB earlier projected this year's GDP growth at 5.6 per cent, the lowest in five years. It is down by 0.6 percentage points from the previous year. Bangladesh Bank initially projected a 6.5 per cent GDP growth rate in this fiscal year, but finance minister A.M.A. Muhith on Wednesday said that the growth would be around six per cent. ADB last month offered an additional $200 million (Dh734 million) in budgetary support while the European Union promised assistance to help the country tackle the fallout of the recession. The assurances came as Prime Mnister Shaikh Hasina's five-month old government announced a 34.24 billion taka stimulus package to cushion the blow of the economic downturn alongside a plan to cut 10 per cent of government jobs to cut public spending through suspending recruitment for vacant posts. Finance Minister MA Muhith has declared the long awaiting stimulus package to combat economic recession in Bangladesh.

Daily Star Prothom Alo Finance Minster said that the package is not all. Government is also giving tax rebit and banks will give more credit support to the businesses. The package was appreciated by the economists but to business lesders it falls short of expectations, specially the garments sector feels that it was neglected in the package. The Daily Star in its editorial urges the goverment to reach the target sector in time. An Star Analysis says it is a wise first recession step. Stimulus package also puzzles the leather industry. Primary Textile Sector also urge the government to extend the incentive to the textile industries. MA Muhith, Minister for Finance said that necessary modifications will be made to relieve the grivances and said spinners will be included in the package. Recession is already creeped into Bangladesh and now it is time to see how effectively the package could help in combating the recession.