Bangladesh To Continue With Its Own Policies: BB Boss
Saturday, 23 January 2010

Bangladesh Bank governor Atiur Rahman said the country would carry on with its own policies, rejecting the World Bank's recent projection about Bangladesh's downward economic growth.

"We must determine what to do, where and when to do it," he told a discussion on inclusive banking and widening formal financial services on Saturday.

"We need to take up the challenge since investment is increasing impressively," the governor added.

Global Economic Prospects (GEP) 2010, launched worldwide on Thursday, estimated Bangladesh's economic growth at 5.9% in FY 2009 and projected a continued downturn with just 5.5% growth in FY 2010.

A modest recovery in FY 2011, projected at 5.8%, would still fall short of the desired growth of six per cent and above.

Finance minister Abul Maal Abdul Muhith rejected the projections when asked by bdnews24.com to comment on the World Bank's forecast as it came out last Thursday.

The governor said on Saturday, "The poor countries have many problems, while advice and prescriptions pour in from many directions. Sometimes we cannot even gauge what benefits we might derive out of them."

He said, unable to decide on their own, poor countries like Bangladesh, sometimes end up accepting that advice and find themselves in a worse situation.

"Due to such decisions, the future of our state-owned banks has become uncertain."

Atiur Rahman said a multilateral lending agency had also suggested dissolution of Bangladesh Bank's agriculture department, which he has taken steps to revitalise since he took up the reins of the central bank last year.

Bangladesh could not overcome the effects of the recent global economic meltdown if the agricultural sector did not contribute significantly, he added.

"Observing grassroots level activities and investment potential, I do not see any symptom of downward growth," Atiur added.

The governor also said inclusive banking across the country could sustain economic growth and a robust economy.

Source: bdnews24.com

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