Syndicates most pressing challenge in Bangladesh: Economists

Economists have said syndication is the biggest problem in the country now. 

At a discussion meeting of the Newspaper Owners Association of Bangladesh (NOAB) on Sunday, they said there are many other problems in the economy, including inflation, reserve crisis, data discrepancies, and dollar exchange rate.

The economists believe that syndicates are a major threat to the economy because they are involved in many illegal activities, such as corruption, money laundering, and extortion.

They also said that syndicates are infiltrating the political system and are using their power to influence government policy. 

Professor Wahiduddin Mahmud highlighted two pressing concerns for Bangladesh's economy: foreign exchange reserves and trade sanctions.

He expressed concern about the decline in foreign exchange reserves and emphasised the need for Bangladesh Bank to maintain the current level. He cautioned that further depletion could fuel speculation and destabilise the economy.

Professor Mahmud also underscored the potential impact of trade sanctions on Bangladesh's economy, particularly given the country's reliance on a single export product. He warned that new restrictions could have a significant adverse impact.

On the banking sector, former BB Governor Salehuddin Ahmed said addressing Bangladesh's challenges requires a holistic approach that goes beyond delegating all responsibilities to the governor. 

CPD Fellow Mostafizur Rahman said despite achieving GDP growth, other economic indicators remain stagnant, suggesting underlying data discrepancies. Investment, a crucial factor for growth, fell short of the target by over 70%, casting doubt on the reliability of economic assessments. The decline in import, export, and revenue ratios further highlights the economy's underlying challenges.

Professor of SOAS University of London Mushtaq Khan said, "The presence of vested interests in the country's current system is hindering the development of a competitive economic environment." 

Economist Ahsan H Mansur said the country is facing a moderate balance of payments crisis. It is a medium or moderate crisis. It did not turn into a full-blown crisis. The government has been forced to implement policy measures to address the situation, including adjusting the exchange rate.

Professor Rashed Al Mahmoud Titumir, chairman of the Department of Development Studies of Dhaka University, also shared their views at the programme. NOAB President AK Azad presided over the meeting.