Home ›› 09 Jun 2022 ›› Editorial
The world is going through turbulent times. Right on the heels of the Covid-19 pandemic, the globe is now under the menace of a war, which shows all the ominous signs of a prolonged conflict. In addition to carving out a stark division in geopolitics, the Ukraine war is now exhibiting its impact on world economy, faced with inflation, supply chain disruption plus a pervasive feeling of malaise.
At such a critical juncture, the wise counsel from the highest authority of the country to practice austerity in all spheres of life must be taken into cognizance.
In a globalised world where countries depend on each other and a sense of stability for commerce to run smoothly, the war has come as a major disruption. Given the fact that Russia and the West have taken two distinctly opposite sides with sanctions being imposed on the former, a realistic assessment indicates to a period of belt tightening in the coming days.
The world has to prepare for soaring food costs, inflation, job losses and a slowdown in growth. The impact of the war is starting to show as several nations, including Bangladesh’s South Asian neighbours, are facing an economic meltdown.
The dire situation in the island nation of Sri Lanka can work as a warning because of a fall in foreign currency reserves plus a slump in the tourism industry, the country teetered on the edge of an abyss.
Although Bangladesh’s foreign currency reserve is currently around $ 42 billion, there cannot be any room for complacency; the whole nation should act now to forestall possible economic debacles.
The rise in the price of essentials is a manifestation of a supply chain plagued by obstacles and this sudden cost spike is noticed across the globe.
Reportedly, Europe is seeing 17 per cent inflation while in the USA it is 10 per cent; shipping cost has also seen an astounding surge from $800 to $ 2500-3000.
Two years of the pandemic clobbered all segments of society and even before the global economy could stand up, the war has come to compound already existing travails.
Naturally, the most affected will be the middle and the lower middle classes because their incomes will remain unchanged while prices soar. Faced with such a situation, an austerity move is the most practical step, not only for these two classes but also for the affluent and the prosperous.
The core message of the PM is to curtail unnecessary expenses, which means a cap on needless luxury and extravagance.
The common saying is that austerity begins at home and the government has already imposed restrictions on foreign travel of officials – a step that can be replicated by the corporate sector.
A global economic slowdown will impact the demand for garments, meaning the RMG industry will face turbulent times ahead. Keeping this in mind, it would be judicious for all garment workers to refrain from any activity that may destabilise the sector, jeopardising their job security.
However, RMG factory owners must not shirk their responsibility regarding looking after the welfare of workers. Since orders from Europe will be adversely impacted, the government has to proactively seek out new markets in South America and Africa.
In a time of economic stringency, the wealthy have a role to play instead of just wallowing in a cocoon of comfort. A considerate approach laced with empathy instead of a mercenary mind-set can help in minimising the tribulations of the masses.
The government’s subsidy in several utility sectors is commendable although a concerted effort to rein in arbitrary price increase is still missing. This can be attained when ward commissions, UP chairman offices and all grass-root administration services work in coordination with law enforcers to rein in the unprincipled traders.
