Editorial
ONE of the few factors perceived to be the reasons behind the downfall of the Bangladesh Nationalist Party-led government and the unpopularity of the military-controlled interim government was the rising prices. In the last few years of the BNP-led government, and for the entire tenure of the state of emergency, prices of food essentials went on an upward spiral with food inflation crossing well past the double-digit mark. At the same time, the economy went through marked stagnation with little employment generation. This was perhaps one of the reasons, besides the obvious anti-incumbency factor, that the masses took well to the Awami League’s pre-election pledges of cheaper essential commodities, food security and prosperity for all. But, according to a report, published in New Age on Monday, it appears that the pledge of cheaper food and better living was no more than campaign rhetoric. Although the prices came down sharply after the new government assumed office, they are on the rise again.
It should be mentioned here that prices of rice which is one of the most politically sensitive factors, still remains low along with that of flour. The two items together make up for the staple of almost the entire population of the country. However, it is not just rice and flour that people eat since even a poor diet would include other food items such as vegetables, spices and lentils. There are also a number of essentials such as spices and salt. While cheap rice does provide the poor sections of the populace with some respite the rising prices of other commodities would still cause a severe drain on their funds. This also does not necessarily mean that food commodities will have to get cheaper by the day or remain low for ever so that people may have cheaper food. With the rising production cost, food prices are also bound to increase. What is of prime importance is affordability. The question is whether people can afford to have a nutritious diet with their income. To ensure that they do, the government will have to ensure employment generation and increase of the real wage. Provided there is sufficient employment and people have decent enough income, it may be presumed that a certain price level is sustainable for the population. But without much effort on the employment front, the government’s efforts to keep prices low, no matter how effective, would still not have the desired impact.
It is here that we expect the government to exert most. There should be strong and effective initiatives to encourage private investment as well as public infrastructure development that would generate employment. The government should also indicate, through signals to the market, that it is trying to create a situation in the economy which is conducive to labour intensive industrial projects. Besides, the government should explore different avenues, above and beyond the traditional means, to increase investment and assist small scale farmers to make the rural farm economy more dynamic.
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