SANEM, an economic think tank of the country, suggests that the sector-specific and region-specific protocol, which will fully comply with health and safety standards, is required for resuming economic activity.
Releasing 13 point recommendations that also include providing the opportunity of whitewashing black money, saying it might be useful in financing the stimulus package, SANEM feels that with the fall in price of oil in the world market, the government can take measures to decrease the price of oil in domestic market, as it can provide some relief for lower-middle income and lower-income groups.
The proposals were made following the fourth episode of SANEM Netizen Forum on COVID-19 Pandemic took place on Saturday. Moderated by Dr. Selim Raihan, Executive Director, SANEM and Professor, Department of Economics, University of Dhaka, the forum focused on the current developments in domestic and world economy due the COVID-19 Pandemic.
The SANEM Panel included Dr. Sayema Haque Bidisha, Professor, Department of Economics, University of Dhaka and Research Director, SANEM and Mr. Mahtab Uddin, Lecturer, Department of Economics, University of Dhaka and Research Fellow, SANEM. Dr. Raihan talked about the problems and debates regarding the measurement of economic cost of the pandemic.
Dr. Raihan informed the forum that SANEM is estimating the social and economic cost of the pandemic. While the final results were yet to be shared, it was clear that achievements of Bangladesh in poverty scenario, made over decades, will be overturned by the pandemic. Observing that a global food crisis is imminent he pointed out the rise in inequality that will be occurring due to the pandemic.
Dr. Raihan urged that the government should explore first other means for financing the stimulus package, and consider printing money as the last option as it would be a challenge to handle this option with the current institutional weaknesses in the banking system.
Drawing the forum’s attention to the necessity of increasing allocation for the health sector, Dr. Raihan said that although the five-year plans of Bangladesh prioritizes the health and education sector on paper, the policymakers and elites have been hardly responding to it. SANEM has been proposing 4% of GDP to be allocated for the health sector. However, question remains regarding the response of policymakers. After Dr. Raihan’s brief introductory remarks, the forum discussed the following suggestions and proposals:
With the fall in price of oil in the world market, the government can take measures to decrease the price of oil in domestic market, as it can provide some relief for lower-middle income and lower-income groups.
Providing the opportunity of whitewashing black money might be useful in financing the stimulus package. But it must be noted that repeated chances of whitewashing only increase the accumulation of black money. Therefore, strengthening the NBR is important.
Sector-specific and region-specific protocol, which will fully comply with health and safety standards, is required for resuming economic activity. Rather than a five-percent interest rate loan, farmers should be provided with zero interest loans.
Government should increase the procurement of crops from farmers. Mechanization of agriculture is highly important. Policies should specifically address workers in newly emerging gig economy, who are hardly hit by the current lockdown.
Post-crisis, opportunity home based digitalized work might increase. Although, work from home is feasible only for highly skilled people. However, psychological aspect of this practice be taken into consideration. Also, most working environment is not suitable for work from home.
Skilled and educated youth will face problems in finding employment while uneducated and low skill youth will find employment comparatively easily. Government must assess this situation and address this issue.
Rent subsidy must be considered for low income families. For the government to reach and assist the marginalized people, technology must be utilized to the fullest. Bangladesh will be affected by the situation in the agricultural sector of India. There should be a prior assessment of such effects.
Experts need to immediately start planning for education programs in all levels. Difficulties for students in rural areas must be addressed.
