Editorial
Govt should not heed IMF suggestions
The international financial institutions, championing the neo-liberal agenda, consistently harp on the necessity of duty reduction, even on a unilateral basis, to spur economic growth. Such suggestions, controversial as they are, are often contrary to the interests of developing countries and transition countries like Bangladesh. It has been evidenced that numerous developed countries have, during their own transition phase, resorted to heavy import tariffs in order to protect their domestic products from the competition of cheaper imports and abolished such tariffs only after their industries attained certain advantage and were able to compete internationally. Even today the United States protects its domestic textile sector with tariffs levied on products originating from the poorest countries, including Bangladesh. But it should not come as a surprise that the International Monetary Fund, a mere extension of the US Treasury, as many would claim, has made an about turn suggesting the abolition of the prevailing zero-duty tariff structure for capital machinery required for export-oriented industries. As reported in New Age on Sunday, the lending agency has suggested that the government scrap this zero-duty facility by mid-2008 and implement import tariff to increase state revenues. We believe that the suggestions of the IMF, including an increase of energy prices, imposition of service tax on the transport sector and repeal of the tax holiday for new industries as well as abolition of the zero-duty structure, would impede industrialisation, economic prosperity and human development. We point out that the sole purpose to retain liberal tariff regimes for capital machinery is to encourage industrialisation and thereby economic growth that would presumably lead to poverty reduction and development of the nation. It is quite evident that the lending agency intends to thwart potential industrialisation and development of Bangladesh by compelling it to become wholly dependent on imports and quash possibilities of additional export sectors to emerge. We further point out that an imposition of tariff would lead to multiple increases since the value-added tax would be imposed on the value of imports including the taxes imposed. This would discourage entrepreneurs even more from setting up export-oriented industries while making the economy heavily dependent on imports. That is perhaps the end objective of the international financial institutions. As for the IMF, the organisation itself faces a financial crisis, failing to balance its own books, which it pretends to be an expert in. The revenue shortfall of the institution, according to its own projections, is set to increase for the years to come since increasing number of countries have refused its services and loans. Starting with Argentina, its largest debtors — Brazil, Indonesia and, according to rumours, Turkey as well — have either refused to renew their arrangement with the agency or announced their intention to part with it. India, Thailand and a number of Latin American countries have also taken the same path. We believe it is high time that Bangladesh seriously begins to weigh its options in light of the precedents set by these countries.
All hail the Aussies
Pundits and punters of cricket must have been satisfied with the outcome of the eleventh edition of the World Cup. It went the way they had predicted it would, more or less. The two best teams in world cricket today played in the final and the superior side took the trophy home. The same cannot be said about millions of cricket fans around the world, though; more so for those who follow the game with their heart rather than their head. For them, such predictability, if not inevitability, took the gloss off the Caribbean carnival. As the Australians swept aside one team after the other with disdainful ease, cricket ceased to be what it supposedly is — a game of glorious uncertainty. Right from the first match that they played in the tournament, Ricky Ponting and his men had made their intentions loud and clear: They were in the Caribbean to do what no team had done before — win the cup three times on the trot. Their resolve was not tested even once in the 12 matches they played in the tournament, not because the other teams were bad but because they were just too good. As it stands now, there is the gulf of difference between the blend of cricket the Australians play and that of the rest of the world. The onus is, therefore, on the others to bring the glorious uncertainty back to the game, and to do that they must start doing what the Australians have started years back and almost taken to perfection. Cricket is a team effort and the Australians have simply redefined the very concept of team effort. Of course, there are cricketing greats in the side — Matthew Hayden, Ricky Ponting, Adam Gilchrist, Glenn McGrath, to name the obvious few; however, they are just the best among the equals. The Australians have taken cricket to a new level and there should not be even an iota of doubt in anyone’s mind that it has followed years of hard work and not come about overnight. The side Ponting has led to glory is all about discipline and determination, something no team in the world at this point in time can boast of. Be that as it may, the Aussie hat-trick seems to have been the only bright side of the Caribbean carnival. Touted as the largest and longest World Cup ever, it was too large and too long for anyone’s comfort. Fifty-one matches over seven weeks or more turned the game’s showcase into a veritable drag. Such complaints flew in from all directions, fast and furious, so much so that the chief executive of the International Cricket Council, Malcolm Speed, promised to get the World Cup ‘down to somewhere between five and six weeks next time’. It was the most expensive as well. The tickets were way too expensive for the local people to lay their hands on; as a result, too many games at too many venues were played in front of virtually empty stands. The farcical end to the final, in which the Sri Lankan batsmen had to play the last three overs in near-darkness, one may feel, truly encapsulated the disappointment that this World Cup unfortunately turned out to be.
The exile misadventure
It has now not only become clear as daylight, especially after the exile saga, that this government has been trying its hand at political engineering and restructuring of the polity, but it has also become obvious that it intends to do it all in a manner that is non-transparent. Unfortunately, neither of those decisions by the government bode well for the country, writes Shameran Abed
THE military-backed interim government’s plans to decapitate our two main political parties — the Bangladesh Nationalist Party and the Awami League — through forcing their leaders into exile, have been thwarted, at least for now. This apparent success of the political parties and more specifically their leaders was achieved mainly because of the efforts of the AL president, Sheikh Hasina, in mobilising public opinion at home and, importantly, abroad in her favour. Hasina, who was denied passage back to Bangladesh by a major airline on instruction from the interim administration and on whose statements a media gag was placed here at home, proceeded to take her case to the world through a highly effective international media blitz. So successful were her attempts to turn the world opinion in her favour and against the position of this government that the administration was forced into damage control through the lifting of the ban on her return to Bangladesh. At the same time, it was forced to suspend its plans to send the BNP chairperson, Khaleda Zia, to Saudi Arabia, even though it has been widely reported that Khaleda will leave for Saudi Arabia within a few days to ‘perform Umrah’. At a time when the government has so openly and embarrassingly backtracked from its earlier stance of expelling from the country its two main political leaders, the ‘disclosure’ of the law adviser, Mainul Hosein, that the actions taken by the government to send the two women into exile were initiated on the advice of certain quarters from within the BNP and the Awami League has generated more questions than answers. The adviser, it seems, was so intent upon shifting the responsibility of the blunder, at least in part, from his government to the political parties, that he failed to realise that the explanation that he was offering for the government’s misadventure was not only wholly inadequate but was also clearly contradictory to his previous comments and those of his fellow advisers to this interim administration. This indeed has been the season of blaming politics — be it the politicians, the political parties or political process altogether — for all the problems in our country. The current administration, with its backing from the military, has been on the offensive from its very inception in trying to discredit the existing political parties, and through that, wittingly or unwittingly, the political process as well. While it is true that our major political parties are squarely responsible for the decay of our political and electoral process, this government has made little attempt to differentiate between constructive politics and destructive politics, preferring to ban all politics and choking all democratic space in its efforts to bring peace, harmony and stability back to the country. What this government has repeatedly failed to realise is that proper democratisation of the political and electoral system, which this government claims that it is out to do, can never be achieved by banning all political activity in the country. Therefore, every time the suggestion has been made to this government that it cannot bring about the necessary electoral and administrative reforms in a manner which will be sustainable in the long term without constructive engagement with the major political parties, its response that the time had not yet come has only reflected its myopia. The law adviser himself has on several occasions explained to the hordes of journalists who seem to flock to him like bees to honey that his was a ‘non-party’ government, and hence listening to or dealing with the political parties was not its job. The law adviser recently even suggested that the current administration was ‘non-political’. What he meant, of course, is that the current administration is ‘non-partisan’, for all governments are political, but the message there was essentially the same: This government was not in the business of politics and hence not interested in engaging with the political parties. This government, it seems, is not even willing to take the advice of the Election Commission to lift the ban on politics so that the commission can initiate dialogue with the parties on necessary electoral reforms. Given that hard-line stance of the government, the law adviser’s recent claim that the two major leaders were only being ejected from the country on the advice of certain members of the parties themselves, apparently because these members feel that internal reforms are not possible within the parties as long as these two women are at the helm, appears utterly inconsistent. Obviously then, a certain dialogue has taken place between the government and the political parties unbeknownst to the public at large and contrary to what the advisers to the government have been telling the public. One wonders, firstly, why the conversations that have been had between the government and the political parties were held under a veil of secrecy and secondly why the government has been telling us one thing and doing another. The people have a right to know who exactly the government has been engaging with within the political parties and what the government’s agenda is with regard to its engagement. Furthermore, if the law advisers statement is based on fact, and in the absence of more information, there is little option other than to give him the benefit of the doubt, it must be queried why and since when this government has started acting on the advice of certain members of the same political parties that it has repeatedly blamed for the country’s problems. The law adviser cannot claim that it is a ‘non-political’ government that he is a part of on one day and suggest that the government has been acting on the advice of the political parties, or even of certain politicians, the next. His comments have only contributed to a higher level of confusion in the public mind at a time when the entire political and administrative process is mired in intrigue. The law adviser now owes the country a proper explanation regarding what exactly has transpired behind the scenes that led to the government deciding to exile Khaleda and Hasina abroad in the first place, only to have to retract the decision later in the face of considerable and mounting international pressure. It has now not only become clear as daylight, especially after the exile saga, that this government has been trying its hand at political engineering and restructuring of the polity, but it has also become obvious that it intends to do it all in a manner that is non-transparent. Unfortunately, neither of those decisions by the government bode well for the country. If the government must impose reforms on the political parties themselves, it must do so in a transparent way that allows for the public to understand its agenda. The exile saga and all the mystery surrounding it was a diabolical error, and the government must learn its lessons from its short-sighted dig at reforming the leadership structure of the parties. This government’s main responsibility is to hold credible elections to the next parliament and it has always been correct in its assessment that free, fair and credible elections are impossible without certain political and administrative reforms being brought about. Yet, it still fails to realise that once the institutions that are necessary for a democracy to function are put in place and empowered, the system itself should correct the problems in the political process. Once a proper system is put in place, the change that is desired will come about organically. Any attempt by the government to impose its own reforms on the political parties will not only confuse its mission, it will also plunge it into troubled waters. One can only hope that this government has the ability to realise when it has overplayed its hand and learn from its mistakes.
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