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Price hike triggers political unrest PDF Print E-mail
Friday, 21 March 2008

As WFP predicts rising prices of food items trigger political and social unrest in Bangladesh, the interim government alone has to bear the responsibility for it. The govt. simply ignored all past warnings of economists, politicians and civil society members about it. It continued to bask under the glory of ‘saving the country from utter lawlessness before 1/11’. We do not know how the Finance Adviser, who used to give rosy picture of the economy since the day he assumed office, could say that the budget has no relation with prices of essentials. Being economists, the Finance Adviser as well as the Chief adviser must be aware of the fact that poorer households spend up to 80 percent of their income on food and they are already the worst sufferers. And Army chief General Moeen U Ahmed had quite rightly described price rise as national disaster. The WFP quite rightly feared that political, economic and social unrest is growing as the price of food is rising much faster than people’s wages in Bangladesh along with regional neighbours like Pakistan and Afghanistan. The WFP has seen often riots and civil disturbances occurring when higher food prices hit specific local areas. The poorest households were spending nearly 70 percent of their incomes on food in 2005. So as prices have risen abnormally it would not be surprising to see their expenditure on food go up to 80 percent. The real income in Bangladesh has dipped by 2-5 percent last year, according to BIDS. The worst affected in rural areas have seen their incomes drop by more than 5 percent. The caretaker government has to take the full responsibility of fuelling such instability as it went beyond its lone constitutional agenda of holding the stalled parliamentary polls. It laid its hands on so many areas of governance that it simply ignored agriculture that keeps the health of the economy sound. The government had displayed its utter inefficiency in providing timely inputs at fair prices immediately after two recurrent floods and Sidr although our men behind the ploughs were ready to make up the losses by toiling day and night.

 
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