Growing inequality challenges country’s development: Economists
Economists have called for developing policies on universal health coverage and education by collecting taxes from the rich
Increasing inequality is putting Bangladesh's development in jeopardy when the country is moving towards achieving middle-income country status and planning to become a developed country by 2041, said economists.
"We have been talking about achievements of the country in 50 years, about per capita income growth, and GDP growth. But we hardly talk about those whom we are leaving behind. Some people are becoming isolated," said Dr Qazi Kholiquzzaman Ahmad, chairman of Palli Karma Sahayak Foundation (PKSF), at the webinar titled "50 Years of Bangladesh: Achievements, Challenges and Lessons."
"In 2010, 5% of the population with the lowest income contributed 0.73% of the country's economy. At present, their contribution has come down to 0.28%. In other words, the GDP contribution of these people has decreased," said Dr Qazi Kholiquzzaman, who participated in the panel discussion at the webinar organised by South Asian Network on Economic Modeling (Sanem) on Monday.
Keep updated, follow The Business Standard's Google news channel
"On the other hand, the GDP contribution or income of top rich people is increasing. This is a big proof of the increase in inequality," he added.
Echoing Dr Kholiquzzaman's comment, Professor Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD), said, "Our per capita income has risen from $2,227 to $2,500. It increased by $300 overnight. But if you ask a rickshaw puller, he will say that his income has not increased at all. Workers say their income has decreased. This has happened because of discrimination. Some people's income is increasing and inequality is emerging in society."
Dr Mostafiz said overcoming this inequality has appeared as a big challenge after 50 years of independence. He thinks that a system providing universal social security should be developed in this regard.
Professor MM Akash, chairman of Department of Economics, University of Dhaka, said, "The tendency to become super rich is more prevalent in Bangladesh compared to other countries in the world. Our state is going through a process of capitalisation. As a result, the distribution of wealth is not being done properly. And that is why inequality is increasing."
Apex Footwear Managing Director Nasim Manzur, said despite the country's achievements in the last 50 years, there is a huge lack in the education system.
"We are not producing skilled manpower as per the industry's needs, which is a big problem in our country. We are creating educated but unemployed people. Most of the students are studying subjects like history and literature," he said.
"Another big problem is that a student wants to get a desk job even after becoming an engineer. They do not want to work at production level. We have to give importance to this issue," he added.
Dr Mostafizur Rahman also said the country is lagging behind in education.
He said, "We need to focus more on technical education. The curriculum needs to be developed keeping in mind what kind of industries we have in our country and what will happen in future. We have to take a five- or six-year crash programme."
MM Akash said, "The quality of education needs to change. We cannot even provide a quality environment for education. Unemployment is increasing due to these reasons."
Dr Sayema Haque Bidisha, professor at Department of Economics in University of Dhaka and research director of Sanem, said, "There was a silent revolution in our agriculture in the last 50 years. Infant mortality rate has decreased. However, there are many issues regarding what we expected and what we got. There is room development to overcome employment challenges."
"There is also a question whether women's empowerment achieved at the level we wanted it to be. There is a huge inequality," she added.
Dr Selim Raihan, executive Director of Sanem, said, "We have to assess what we have achieved and what we could not in 50 years. We need to discuss what obstacles hinder the achievement of our goals."
Dr Sohela Nazneen, research fellow at Institute of Development Studies, University of Sussex, said, "There is a relationship between the Sustainable Development Goals 2030 and Bangladesh's position in the world. After 50 years of independence, as we move from a least developed country to a middle-income country, we are getting surrounded by many problems. We have to find a way out of this."
