Staff Correspondent
The Awami League-led government has expressed unwillingness to kick-start the ailing Trading Corporation of Bangladesh, a public sector arm for market intervention, in a marked shift from its pre-polls pledge for a ‘multi-pronged approach to control prices and monitor the market’.
Making public the government’s position on the corporation, the commerce minister, Faruk Khan, on Sunday said he had enough confidence in businessmen who he considered as honest, and who, he believed, would play a positive role in bringing down prices of essentials to ease sufferings of the common people.
‘I don’t want to reactivate the TCB. The government’s joining business will not solve the problems facing businesses. I would like to create a business-friendly atmosphere,’ the minister said at a meeting with the leaders of Dhaka Chamber of Commerce and Industry at the ministry.
When asked about the role of the state in market management, economists Quazi Kholiquzzaman Ahmad and Atiur Rahman said the government should possess ‘some weapons’ for taking contingency measures – be it in the form of TCB or any other body – which, they thought, could be effectively used for keeping prices at reasonable levels by breaking the cartel.
After assuming the office on January 7, the commerce minister said in a lighter vein that he would not go for reactivating the TCB if the business community played a responsible role, but on Sunday he spoke out openly in favour of free market economy without the government’s ‘control and monitoring’ over the market.
‘I don’t want to control or monitor the market because such practice results in loss of confidence in market forces. The duty of the commerce ministry is to create a business-friendly environment,’ said Faruk Khan, the ruling party’s lawmaker for Gopalganj 1 constituency, also brother of business tycoon Aziz Khan of Summit Group.
In its election manifesto announced on December 12, the Awami League said measures would be taken to reduce the unbearable burden of price hike and keep it in tune with the purchasing power of the people. ‘A multi-pronged drive will be made to control prices along with monitoring the market. Hoarding and profiteering syndicates will be eliminated,’ the party pledged, adding that an institution for commodity price control and consumer protection would be set up.
Against the backdrop of severe shortages of essential commodities and industrial raw materials after the country’s liberation in 1971, the Trading Corporation of Bangladesh was established under a presidential order in 1972 to ensure steady commodity supply and making them available to the consumers at reasonable prices.
Even the interim administration of Fakhruddin Ahmed, a protagonist of the free market economy, in early 2007, pledged to make the TCB operational again to prevent local cartels from raising prices at whim. But no progress was made thereafter, although the corporation was used partially to sell different goods from its city outlets. The corporation became dysfunctional since the 1991-1996 BNP government adopted a free market economy, dismantling the state’s monopoly.
Avoiding any mention of syndicates or cartels for the skyrocketing prices over the past few years that is largely blamed for BNP’s debacle in the December 29 polls, Faruk Khan observed that the prices of essentials rose exorbitantly during the interim government as a result of lack of confidence among businessmen following drastic measures taken at that time.
‘The businesspeople will take the responsibility of doing business and the government will not create any hindrances. You [businessmen] will look after the market,’ he told the 23-member DCCI team led by its president Zafar Osman.
Faruk termed the country’s businessmen honest, efficient and industrious.
The minister asked the businessmen to identify problems in doing business that usually led to corrupt practices by officials, to help the government take corrective measures.
‘I think, TCB has a role to play and it needs to be rather restructured for a balance in the market so that no one dares to go for profiteering,’ said Kholiquzzaman, adding that the financial meltdown in the west had proved that neo-liberalism was not a solution to all problems.
Acknowledging the relevance of a body for crisis mitigation, Atiur Rahman underscored an active role of the state and use of confidence of the business community in keeping prices stable. ‘Knowing that there is an adequate stock of rice, traders keep price stable,’ he said adding one should not underrate the role of the public sector.
According to its own officially proclaimed functions, the TCB is supposed to carry on business of imports and exports in accordance with the government policy, arrange sales and distribution of imported goods, appoint dealers and agents for the purpose and also do all other relevant activities.
Headquartered in Karwanbazar in the capital, the corporation now has only over 180 staffers, as against its approved 235 posts, stationed at its four offices in Dhaka, Chittagong, Khulna and Rajshahi.
The DCCI delegation put forward a six-point charter of demands at the meeting. They are – rescheduling weekly holiday on Sunday, giving Bangladesh Better Business Forum a legal shape, solving problems of power and energy, promoting small and medium enterprises, giving incentives to farm sector and ensuring political stability.
The minister assured the businessmen that he would look into the matters and said that the government would take all necessary steps for generation of electricity up to 7,000 megawatts in the next 5 years.
Courtesy: newagebd.com
