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No let-up in essentials’ prices

Published : Wednesday, 19 February, 2025 at 12:00 AM  Count : 426
Muhammad Jahid Hasan
Bangladesh is facing a severe economic crisis. Prices of essentials are soaring, the currency is losing value, and economic growth-once the nation's proudest achievement-is slowing to a crawl. Official inflation hovers around 9.94 (Bangladesh Bank, 2025), but for ordinary citizens, the reality is far worse. The cost of food, fuel, and daily necessities has outpaced wage growth, crushing low-income families and small businesses. The White Paper on Economic Affairs (2024) paints a bleak picture: industries are struggling, and policy responses have been inadequate. The question now is not just how Bangladesh got here, but whether it has the vision and courage to break free from the cycle of crisis-driven governance.

The economic difficulties faced by Bangladesh are not just a result of global shocks, but also of structural weaknesses. Over-reliance on key sectors like ready-made garments (RMG) and remittances has left the economy vulnerable to international fluctuations. The war in Ukraine and soaring commodity prices disrupted essential imports, forcing the country into costly emergency energy deals. The depreciation of the Taka further exacerbated inflation and deepened poverty. Meanwhile, the country's poor economic governance, coupled with pervasive corruption, continues to drag the nation deeper into crisis. The elite, who remain insulated from the worst effects of inflation, continue to amass wealth, with billions siphoned out of the country, contributing to a growing divide between the rich and the poor.

The interim government led by Mohammad Yunus, established after the July Uprising of 2024, has taken short-term measures to curb inflation, such as price monitoring and temporary subsidies. While these efforts provide some relief, they fail to address the underlying causes of the crisis. The government's approach appears to be reactionary rather than proactive, focusing on temporary fixes rather than long-term reform. Despite promises of transparency and financial sector reform, the deeper issue of systemic corruption remains unaddressed, undermining the trust of the population in their leadership.

International factors also contribute to the crisis. The global economic slowdown, compounded by supply chain disruptions and climate change, has impacted Bangladesh's ability to recover. Climate-induced disasters, such as floods and droughts, have worsened food insecurity and inflation, with little international support to alleviate the burden on vulnerable nations like Bangladesh. At the same time, external debt, particularly from the IMF, has come with austerity measures that have only deepened inequality. Bangladesh's overreliance on external income, such as remittances and garment exports, has made it difficult for the country to diversify its economy and develop resilience in the face of global economic downturns.

In light of these challenges, Bangladesh must rethink its economic strategy. Sustainable growth will require a shift toward agricultural self-sufficiency, investment in renewable energy, and economic diversification. By strengthening local industries, modernizing agriculture, and exploring new export markets, Bangladesh can reduce its dependence on volatile external markets.

Ultimately, the key to breaking the cycle of inflation, corruption, and crisis-driven governance lies in political accountability. The people of Bangladesh have already voiced their demand for systemic change. Now, the question is whether the leadership will take the necessary steps to address corruption, strengthen institutions, and create a fairer economic system that serves all citizens, not just the elite. Bangladesh stands at a crossroads-whether it continues down the path of crisis management or seizes the opportunity for lasting reform will shape its future.

The writer is a contributor


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