Dhaka: Bangladesh Economic Association Convener, eminent economist and National Professor Dr. Mahbub Ullah today called for moving away from a rent-seeking and opportunistic economy and building a sustainable, production- and development-oriented economy. He made the call while speaking at a discussion titled "Economic Context and Emerging Challenges: Priorities for the Future" at the Economic Reporters' Forum (ERF) here. ERF and the Centre for Policy Dialogue (CPD) jointly organised the discussion, chaired by ERF President Daulat Akter Mala. Adviser to the Prime Minister on Finance and Planning Prof Dr Rashed Al Mahmud Titumir attended the event as the chief guest.
According to Bangladesh Sangbad Sangstha, Dr. Mahbub Ullah emphasized the importance of repatriating capital siphoned out of the country and formulating effective policy strategies to stop the bleeding of the economy to maintain economic stability. He highlighted how infrastructure investment impacts inflation in developing nations, noting that returns from large projects like roads and bridges take time to manifest. He pointed out that substantial amounts of money have been injected into the market during such project implementations, yet production or output hasn't increased proportionately.
This imbalance between money supply and production has, as Dr. Mahbub Ullah stated, contributed to the rising inflation in the country. Criticizing the practice of withdrawing money from banks, converting it into dollars, and siphoning it abroad, he noted recent reports of capital outflows to Dubai and other destinations. He warned that if capital continues to flow abroad rather than being invested domestically, the desired growth, employment, and development will remain unachieved, describing this outflow as a serious "bleeding" of the economy.
Dr. Mahbub Ullah also pointed out new opportunities in the agricultural sector, noting a promising trend with expatriate workers leasing land to produce high-value crops. He stressed the importance of collecting information and monitoring this emerging sector to bolster the country's food security. He expressed regret over the impact of extortion on the informal sector, giving the example of street hawkers who must pay extortion money to conduct business.
He emphasized the need to eliminate this culture of extracting money without production and to redirect economic activities towards productivity. Dr. Mahbub Ullah advocated for the removal of existing barriers to attract genuine and honest entrepreneurs to invest in the country. He expressed hope that the government, with the role of the Finance and Planning Adviser, would take effective measures to address these issues and formulate policies considering the country's overall economic situation.