ADB alerts BD to face worst of recessionby priyo.com | February 20, 2009 - 12:06am  Preparation not being delayed: Muhith Visiting ADB deputy director general for South Asia Department Frederick Roche on Thursday said Bangladesh needs to begin preparation by now to face any worst situation of the global economic recession, which has gone beyond predictions by world's top economists. "Bangladesh's macro-economy has so far remained immune from the impact of recession. But, of course, time is now to begin preparation," he told reporters, after a meeting with Finance Minister AMA Muhith at the Finance Ministry. The last caretaker government had discussions with the major stakeholders, who are vulnerable to the recession, while the then Finance Adviser Dr Mirza Azizul Islam apprehended that the recession would affect Bangladesh in the fiscal 2009-10 if the global recession deepens further. The new government continued the discussion and immediately after assuming office announced formation of a high-powered body to monitor the emerging situation and take necessary measures to face the challenges. Finance Minister AMA Muhith after a meeting with the frozen food exporters on Thursday told reporters that he was planning to call a meeting of the body very soon - in the first week of next month. Asked if the country's safeguard measures were falling behind the pace of recession's impact on the economy, he said: "I don't think so. It (preparation) is not being delayed in that sense." He said the frozen food sector has so far become the worst victim of the recession while leather, jute, jute goods and apparel sectors were also affected by the recession. During his 4-day visit to Bangladesh that ended today (Thursday), the ADB senior executive had a series of meetings with ministers, Bangladesh Bank Governor and senior officials of the key line-ministries receiving ADB assistance, and exchanged views on issues including macro-economy, priorities of the new government and emerging situation of the global recession. "The situation of Bangladesh would remain quite manageable until this fiscal year (2008-09). But, if the recession deepens further, the situation could worsen in the next fiscal year," Roche said, stressing the need for careful attention to exports, remittance, external sectors and budgetary measures. Replying to a question, he said the Finance Minister has not raised the need for any assistance from the Asian Development Bank at this stage. However, he said, ADB would be willing to provide any support, if necessary, to help Bangladesh maintain its macro-economic stability. Replying to another question, the ADB official said the major challenge for Bangladesh in the changed scenario is to protect the poor through sustained social safety net programmes and emergency response to food crisis, while generating employment through setting up of labour-intensive small and medium enterprises would be another strategy to support the poor. Asked if it would be required to expand the safety net programmes, he said: "We hope it will not be needed. The donors will be there if additional fund is required." ADB country director Paul J. Heytens, who accompanied Roche, supplemented that "we stand ready to assist Bangladesh on food security issues." Roche said the Finance Minister seemed quite confident in managing the situation despite the fact that the world situation was changing every moment. "Hope for the best and prepare for the worst," he said, replying to another question. ADB's South Asia region comprises Bangladesh, Bhutan, India, the Maldives, Nepal and Sri Lanka. Based in Manila, ADB is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development and good governance. Established in 1966, it is owned by 67 members - 48 from the region. --- On Sun, 2/8/09, M. M. Chowdhury (Mithu) <cgmpservices@yahoo.com> wrote: From: M. M. Chowdhury (Mithu) <cgmpservices@yahoo.com> |
__._,_.___
