IMF: Why has Bangladesh’s economic miracle lost its sheen? IMF agrees to give $4.5 billion loan
Bangladesh has become the third South Asian country, after Sri Lanka and Pakistan, to go to the IMF’s doorstep. America’s National Public Radio (NPR) has said in a report that it was not possible for this young country with a population of 170 million to survive the world recession.
The International Monetary Fund (IMF) has agreed to extend a loan of $4.5 billion to Bangladesh. For this, a staff-level (employee level) agreement has been reached between both the parties. But at the same time, this discussion has started among the experts that why did Bangladesh have to take a loan? Until recently, Bangladesh was seen as a charisma of developmental success. How did this story take a bitter turn, experts are raising this question.
Bangladesh, which came into existence five decades ago, was described by the World Bank in one of its reports as an ‘inspiring story of development. He said that the success of the textile industry had put Bangladesh in an economic position that could lift millions of people above the poverty line. Especially the success of the women workers in Bangladesh was remarkable. Life expectancy in Bangladesh increased by 50 percent during this period, while neonatal deaths declined by 90 percent.
🌑 Just last year, the International Monetary Fund said that Bangladesh’s gross domestic product (GDP) would soon exceed that of Denmark and Singapore. It has already overtaken India in terms of GDP per capita. According to analysts, Bangladesh was making headlines around the world due to its successes.
🌑 But now all his successes are in danger. Global circumstances have hit him hard. For this reason, he had to extend his hand to the IMF. In this way, it has become the third South Asian country after Sri Lanka and Pakistan, which has to go to the door of the IMF. America’s National Public Radio (NPR) has said in a report that it was not possible for this young country with a population of 170 million to survive the world recession. Due to the inflation of energy in the international market, it also became a victim of foreign exchange shortages like many other countries.
🌑 There has also been a sharp decline in the repatriation earnings of Bangladeshis working abroad. On the other hand, the market for the export of garments is also sluggish. All these factors ruined the success of Bangladesh within a few months. Faria Naeem, the economist at the London School of Economics, told NPR, “The current instability in the world economy has made things worse in Bangladesh.”
🌑 Economic experts in Bangladesh have said that the Corona epidemic hit the country’s textile industry first. During that time the factories remained closed for at least three months due to the lockdown. Due to this, one million people lost their jobs. Due to a lack of income, his family started falling prey to starvation. The relief from the epidemic had just begun and the Ukrainian war worsened the situation. According to Taslima Akhtar, president of the trade union- Bangladesh Garment Workers Solidarity, now the employees are not getting overtime despite working more time. Due to this, it has become difficult for them to survive in the midst of the current inflation.
🌑 Experts have pointed out that Bangladesh will have to implement some tough reforms to get the IMF loan. It will have a bad effect on the working class and the common people. This will affect the achievements made on the standard of living and human development. Faria Naeem said- ‘These are such circumstances, which could not have been anticipated. The result of all this is that Bangladesh is going through difficult times.
