Apart from the Covid-19 pandemic, the war between Russia and Ukraine may lead to economic crisis across the globe. Economists have already rung the alarm bell loud that if this conflict is not stopped immediately, it could lead to food insecurity in many countries especially poor and developing ones.
Not to mention People especially low income groups in many countries including Bangladesh will bear the brunt. Bangladesh has been able to keep running the country’s economy amid the Covid-19 pandemic since the onset of the deadly virus. However, the Covid-19 pandemic crisis is yet to end. But when the economy has started turning around, Russia-Ukraine war is adding salts into wounds.
The pandemic and Russia-Ukraine war put pressure on the economies of all countries across the globe. There are some countries in Europe where prices of essentials went up from 17 percent to 50 percent.
The whole world is witnessing inflation. The current situation is hampering supply chain, production and overall marketing of all businesses. Cost of transportation (vessel rent) went up, production decreased where the war is going on.
We should not spend
our resources unnecessarily
Prime Minister Sheikh Hasina on Tuesday asked for countrymen’s extra caution, calling them to maintain austerity and cautiousness in using everything. If people do that they might not face any problem. Therefore, we should not spend our resources unnecessarily. Besides, the government will have to set the priority for implementation of the projects which is immediately essential to avoid unnecessary pressure on the economy. The authorities have to remain cautious in spending public money as the world is passing through an economic recession. The government will have to implement those projects which are very much important right now, and those which are not necessary right now should be implemented slowly.
There is no risk in repaying the foreign debt of Bangladesh in medium and long terms. If the government can run the country with strategic calculation, Bangladesh will not face any problem in the coming days.
The government will have to give special emphasis on the implementation of an integrated revenue policy and monetary policy to control inflation in the domestic market in the context of abnormal price spiral of fuel, food products and other items in the international market. Besides, it will also have to increase production using the country’s fertile land and people to meet the domestic demands. Last but not least, we all should be economical in spending money and do not waste it on things that are unnecessary.