Economy�s described take-off stage

The full thrust or momentum of this take-off on the whole will also crucially depend so much on major incentives created for potential private investors--foreign and local--to invest in the economy

The visiting World Bank (WB) Vice-President and Chief Economist, Kaushik Basu has described Bangladesh’s economy as having arrived at a take-off stage. This is a well earned observation from somebody who matters. The WB is an important development partner of Bangladesh and maintains an effective presence in Dhaka-- understandably so-- to monitor the progress or otherwise of various projects and programmes financed by it. Thus, its evaluation of the Bangladesh economy should be seen as reasonable or dependable.
   Kaushik in his speech before an audience on Sunday forecasted Bangladesh’s economic growth rate to be some 6.50 per cent in the current year. In his view the growth rate could increase to 6.70 per cent in 2016 or near the present annual growth rate of the Chinese economy. He further commented that presently Bangladesh is investing the equivalent of some 29 per cent of its GDP annually in its economy and this rate is not a poor one. He also said that such steady increases in growth was unthinkable a decade ago and if it keeps on then Bangladesh would be recognized as a tiger economy of Asia sooner than later.
  Looking at the existing satisfactory size of our foreign currency reserve, comfortable balance of payment (BOP) position, current account surplus, growing budgetary provisions while keeping inflation on a tight leash as well as other positive macro economic fundamentals, the  optimism of the Chief Economist of the WB  should be easy to understand. We also like to share in the same albeit some lingering worries about whether the progress attained so far would remain maintainable or  can be further improved.
   As stated by the WB Chief Economist, the investment operations in the economy are not poor. For example, public sector investments in on going big projects like the Padma Bridge under the public sector are serving the purpose of economy expansion, job creation and earnings, all right. Besides, the completion of these mega projects will also create the conditions for establishment of numerous business enterprises by the private sector based on the supports to be derived from these mega projects. Thus, he has aptly described that the economy is at a preparatory stage for a take-off.
    Nonetheless, the full thrust or momentum of this take-off on the whole will also crucially depend so much on major incentives created for potential private investors--foreign and local--to invest in the economy. Slashing down the interest rates on borrowing by the lending organizations, credibly assuring investors about energy sufficiency in the mid and longer terms, plus pledging policy continuity, these are the requirements to be fulfilled to incentivise the full free-flow of private investments.

Economy�s described take-off stage

The full thrust or momentum of this take-off on the whole will also crucially depend so much on major incentives created for potential private investors--foreign and local--to invest in the economy

The visiting World Bank (WB) Vice-President and Chief Economist, Kaushik Basu has described Bangladeshs economy as having arrived at a take-off stage. This is a well earned observation from somebody who matters. The WB is an important development partner of Bangladesh and maintains an effective presence in Dhaka-- understandably so-- to monitor the progress or otherwise of various projects and programmes financed by it. Thus, its evaluation of the Bangladesh economy should be seen as reasonable or dependable. Kaushik in his speech before an audience on Sunday forecasted Bangladeshs economic growth rate to be some 6.50 per cent in the current year. In his view the growth rate could increase to 6.70 per cent in 2016 or near the present annual growth rate of the Chinese economy. He further commented that presently Bangladesh is investing the equivalent of some 29 per cent of its GDP annually in its economy and this rate is not a poor one. He also said that such steady increases in growth was unthinkable a decade ago and if it keeps on then Bangladesh would be recognized as a tiger economy of Asia sooner than later. Looking at the existing satisfactory size of our foreign currency reserve, comfortable balance of payment (BOP) position, current account surplus, growing budgetary provisions while keeping inflation on a tight leash as well as other positive macro economic fundamentals, the optimism of the Chief Economist of the WB should be easy to understand. We also like to share in the same albeit some lingering worries about whether the progress attained so far would remain maintainable or can be further improved. As stated by the WB Chief Economist, the investment operations in the economy are not poor. For example, public sector investments in on going big projects like the Padma Bridge under the public sector are serving the purpose of economy expansion, job creation and earnings, all right. Besides, the completion of these mega projects will also create the conditions for establishment of numerous business enterprises by the private sector based on the supports to be derived from these mega projects. Thus, he has aptly described that the economy is at a preparatory stage for a take-off. Nonetheless, the full thrust or momentum of this take-off on the whole will also crucially depend so much on major incentives created for potential private investors--foreign and local--to invest in the economy. Slashing down the interest rates on borrowing by the lending organizations, credibly assuring investors about energy sufficiency in the mid and longer terms, plus pledging policy continuity, these are the requirements to be fulfilled to incentivise the full free-flow of private investments.