Overcoming economic crisis is the main challenge for new govt

Executive Director of Policy Research Institute and senior economist Dr Ahsan H Mansur. Today Tuesday, it is known that he is being appointed as the Governor of Bangladesh Bank. Dr. Mansur joined the International Monetary Fund in 1981. He worked in the Fiscal Affairs Department of the International Monetary Fund from 1983 to 1989. In 1989, Finance Minister Wahidul Haque appointed him as Finance Advisor and served till 1991. From 1996 to 2007, he served in the Middle East and Central Asia Department of the International Monetary Fund.
Recently, this internationally renowned economist talked about various issues in an exclusive interview with Daily Bangladesh.

What is the main challenge of the interim government?

Dr. Ahsan H Mansur: Overcoming the country's economic crisis is the main challenge of the new interim government. For that they have to work 100%.

Which direction will the country's economy follow now?

Dr. Ahsan H Mansur: There are many problems in the economy of Bangladesh. A major problem is the imbalance of the overall economy. Inflationary pressure, appreciation of the dollar, dwindling reserves, exports and remittances are not increasing as expected. All in all, the overall economy is not good. Along with this, two problems in our economy have been prevailing for a long time. Firstly, the problem is in the financial sector, especially the banking sector, the stock market and the insurance sector are all in a fragile state. Secondly, the problem of revenue sector management.

The root cause of these problems is political. Abetting the criminal and in many cases acting as an accomplice. There have been so many robberies in such big banks - it is not possible for a single person or 2-4 people. It must be assumed here that thousands of crores of taka cannot be passed without cooperation at the highest level. Because the economy of Bangladesh is very small. Looting has taken place under the political safeguard.

What should be done now to return the country's economy to the mainstream?

Dr Ahsan H Mansur: Our interim government needs to act fast on some issues. Firstly, the country's political system must be restructured. The family politics that is going on cannot be allowed to continue. Leaders can be created within each group. For this reason, the political system should be changed.

Secondly, we need to establish good governance in all government and private offices of our country. The government needs to make changes quickly in some areas. The passport office, land office, and license office should be changed. Comfort should be brought back to common people. People will not see that there will be an unelected government for 3-4 years, but will not produce any results. Political parties want quick elections to come to power, and loot again. To prevent them, some good results should be given to the people quickly. People's rights should be reinstated. 

Thirdly, the education sector needs to be reformed. The government should intervene to improve the quality of education, and the quality of teachers. Student politics should be stopped. A commission should be formed for economic recovery. A committee should be formed with bank-centric experienced people. 60 banks should be reviewed quickly. The government should try to reduce the number of banks to 15-20. We don't need so many banks. Bank owners who have left the country should not be able to come back to the country. They don't even need to own a bank. Banks should be strengthened by integrating them.

A separate committee should be formed for the stock markets. They will oversee non-banking institutions, insurance and stock markets. The revenue sector of the country should be reformed. Three committees should be formed for major reforms in this sector. Separate committees should be constituted for VAT, Director Tax, and Trade Tax. The road map should be prepared within six months. Our aim should be to bring tax GDP closer to India. If we can take it closer to India's 18 per cent, we will have no problem. 

What is the way to increase remittance and export income?

Dr Ahsan H Mansur: They will increase once good governance is established. Money laundering is the main reason for declining remittances. Bribery and corruption will be stopped in the establishment of good governance. Then money laundering will stop. No one will launder legitimate money.

Will the reserve increase?

Dr Ahsan H Mansur: Reserves will increase if the country's overall economy is brought back into balance. Interest rates are market-based and should be kept that way. The size of the budget should also be reduced. In all cases, if corruption is reduced, reserves will increase. Due to money laundering, the country's reserves have decreased.