Bangladesh's economic progress and its features are drawing attention to the world. In 1971, when Bangladesh achieved independence, some economists called Bangladesh a Test case of development, in this small land where natural resources are not adequate, but a large population lives. The development challenges were many and extremely difficult. The test was a special test for the countrymen, that is how their skills, strategies and action plans can be made as a sustainable state. Within 45 years, Bangladesh has not only become a durable state in many strokes, a 'Model case of Development', which is known as an example of Bangladesh for developing countries.
A few positive developments are seen in the development of Bangladesh's development by observing several macro indicators like development, inflation, inflation, per capita income, export, remittance and foreign exchange reserve. But it is not right to take our self-esteem to see them. We look at two main topics by reviewing the nature of development and the impact on the general public. First of all. The developmental benefits are not reaching the grassroots level properly. Secondly. Disparity in personal income and quality of living is becoming increasingly day by day. High middle-class and middle-class people are being cornered day by day in comparison to special category rich men. On the other hand, the majority of the underprivileged people are enjoying the negative consequences of day-to-day development. At the same time, another topic may be mentioned, that the benefits of development of Bangladesh due to not decentralization of development process, the benefits of most of the cities, including Dhaka city and some other places, are in place. Its significance is the benefits of development, the country's resources, financial institutions, and even banks and financial institutions are concentrated in some places. The benefit of which is to deprive the majority of the common people of the country.
In this article, we want to discuss Bangladesh's challenge in light of the current situation.
At first, the matter of financial sector is seen. A few years ago, the activities of the banks and financial institutions were also consolidated and well-organized in comparison to other sectors of the country. As a result, economic growth is at satisfactory level due to the productive sector and trade, playing a vital role in the services sector. But due to lack of good governance, corruption and legal work in recent days, disaster has hit many banks, especially in the public sector banks. The lack of financial scandal, due to lack of adequate supervision and subsequent, rapid, visible, and correct steps in the post-banking process, the banking sector is being hit by 'mischief'.
In 2008, the main reasons for the global meltdown were the financial sector, especially in the United States financial sector irregularities and corruption. As a result, employment and trade, including productive sectors of the US, had negative effects on all economic activities and spread it worldwide. Bangladesh has remained free from the impact of this crisis as Bangladesh Bank took appropriate steps in cooperation with the government. Starting from the US housing sector, its totalitarian impact on investment, banks, insurance and capital markets has been two special reasons. One is the weakness of the law and the lack of compliance and secondly the low interest rate. The greed of the operators of the companies involved, which encourage immoral and unacceptable activities. After reviewing the issues of Bangladesh, it is possible to understand the significance of the above mentioned issues. Here also the law and policy weaknesses and the rules of the bank are not properly followed. Corruption is added to it There has been a special dimension in Bangladesh, that is the political intervention, which would end up on the coffin and kill the good governance in the financial sector.
To get out of this situation, we will have to make appropriate reforms in the financial sector quickly. But it does not stop there, because reform has been much earlier, but they have not been implemented properly.
We need political goodwill, avoid bureaucratic complexion and work through skilled-honest people. In order to overcome America's problem, the government has given a lot of money in different organizations, especially to bailout the central bank. That means they have been rescued by the government with huge money to finance some financial institutions, insurance companies and housing mortgage companies. It is very difficult to do such activities in Bangladesh, because of the inadequacies of our money. Apart from the financial sector, Bangladesh government has more responsibilities, such as socioeconomic development of the people of the country. It is seen that despite the adjustment of the current financial sector crisis with the causes of the global financial crisis, Bangladesh can not be the same way to solve problems.
To get ideas about the future of Bangladesh, we need to discuss three special features of the world's current economic situation. First of all. Although America could come out of the crisis, Europe and other countries in the world did not do so much. The American housing sector has been largely rehabilitated with government assistance.
Government investment is a lot more than investment in individuals or non-government organizations here.
US housing sector financing is usually in mortgage mode, where there is a full guarantee and funding public sector. Though Bangladesh's housing sector is in recession, financial mortgages and Government guarantee in such mortgage system are very difficult. Another economic challenge in the world is the recession in Europe and the financial crisis of most countries. Greece, Italy and Portugal are facing many risks to come out of recession due to the European Union's complex economic relations. The International Organization for the World Bank, with the terms of the IMF, sometimes conflict with the European Central Bank (ECB) policies and conditions. As a result, some action plans and conditions were imposed on the sovereign nations. In Bangladesh, the role of international organizations is very important. These agencies often provide action plans and conditions on countries like Bangladesh based on their traditional theory and specific models. Many times it is not suitable for the country's interest. Such examples are in the financial reform process of Bangladesh. It is now evident that the Asian Crisis, known for its influence and actions taken by various countries to deal with it, is now being noticed that the advice of the IMF and other multinational companies of the world is not very fruitful. What is needed now in Bangladesh is that the reforms that have been made in the financial sector have been re-organized for the needs of the era and some other important reforms. In particular, a consolidated control policy will be formulated in conjunction with banks, non-bank financial institutions, capital markets, insurance and microcredit sectors. For example, in relation to currency markets and capital markets, there is a need to coordinate and consolidate the role of both the Bangladesh Bank and the controlling capital market.
Another example is that if someone is a bank manager, he will not be the director of any other bank, financial institution or an insurance company - that is good, but this is avoided by the current law of Bangladesh. As a result, credit and financial benefits have recently been reduced to a small number of people or individuals. This is the goal of financial inclusion, the obstacle in achieving it.
Finally, the banking sector can be focused on increasing default lending. There has been a crisis in banking sector for huge amount of unpaid debts. No interest rate on loan repayment, low interest rate of deposits, and above all, the spread of the bank's spreads and non-performing loans. The financial crisis in the financial sector is increasing due to the weakness of the banks' governance, internal control, management, supervision. Along with this, the lack of corruption, inefficiency and lack of transparency. Other such incidents, including Hall-Mark scandal, Bismillah Group scandal and Basic Bank irregularities, are unlikely, while taking timely visible and appropriate action, the banking sector is rotating inside a vicious cycle. This is an anticonvulsant. If we do not come out of this problem, we will be hampered by great achievements including growth, employment, income growth, equality development. A technical sector like financial sector will be completely free from the effects of political influence and negative bureaucracy. Now Bangladesh is on an era. To bring the tide of economic development, the regulatory bodies have to take a tough stance. And supervision should be more stable. However, it should be noted that excessive control or over regulation and loose control are not desirable either. We have to ensure the compliance of policies and regulations by maintaining balance between the two. The work will be possible if we are willing to go ahead with skilled, honest and enthusiastic people.
