Top business leaders lashed Wednesday at the international agencies, particularly the International Monetary Fund (IMF), for interfering in the country’s economic management and urged the government to ignore their prescriptions. The leaders in a strongly worded joint statement took serious exception to the IMF’s suggestion made in a recent letter to the finance adviser to liberalise trade further and its opposition to the government move to institute a ‘Safeguard Body’ in accordance with the WTO rules. They found the IMF suggestion unwarranted and uncalled for.

“In comparison to other developing countries, Bangladesh — being an LDC — has substantially liberalised its economy at the cost of entrepreneurs and common people, even though under WTO umbrella Bangladesh could avail and follow more domestic support measures,” they said. During the past two decades or so a number of Asian countries, through appropriate economic policy measures within the framework of World Trade Organisation (WTO), have achieved remarkable progress, transforming themselves from largely agrarian, underdeveloped economies into dynamic export powerhouses, they said adding that the experience of these high-performing economies provide many useful lessons for countries like Bangladesh in identifying the right policies and strategies to adopt, while reversing or shunning what have proved to be wrong strategies.

“The IMF prescription regarding further trade liberalisation is not at all desirable as it could not help achieve the desired growth level and alleviate poverty,” they said adding the best examples are Malaysia, Thailand, Singapore, South Korea and the Philippines, which have come out of ‘Bretton Wood’ prescription and all are aware of the achievements made by them. The leaders of the country’s main trade bodies said, “It is quite interesting to note that following meticulous IMF prescription Bangladesh has been experiencing double-digit inflation.”

They felt that the IMF advice for upward adjustments in domestic prices of natural gas, if implemented, would be suicidal for the economy. “It is known that increase in gas price automatically leads to higher cost of production as well as increase in fertiliser prices and have consequential effects on already soaring prices of essentials. In addition, cost of doing business will also increase, which will have a direct impact on the economy and much needed employment opportunities for the common people,” the trade body leaders pointed out.

They reiterated their earlier recommendations to effectively support local industries through fiscal and other means including ‘afeguard Measures’ as has been made in other countries to boost export and create solid industrial base for the long term benefit of the country and to create employment opportunities. The businesses, therefore, strongly urge upon the government to come out of the vicious cycle of prescriptions by IMF and similar institutions and follow the already proven development strategies of other developing countries including the Asian neighbours.

The signatories to the statement were president of International Chamber of Commerce (ICC), Bangladesh Mahbubur Rahman, president of Federation of Bangladesh Chambers of Commerce and Industry Mir Nasir Hossain, president of Metropolitan Chamber of Commerce and Industry Latifur Rahman, president of the Dhaka Chamber of Commerce and Industry Hossain Khaled, president (in-charge) of Chittagong Chamber of Commerce and Industry M. A. Latif, president of Foreign Investors’ Chamber of Commerce and Industry Masih Ul Karim, president of Bangladesh Garment Manufacturers and Exporters Association Anwar-ul-Alam Chowdhury, president of Bangladesh Knitwear Manufacturers and Exporters Association Md. Fazlul Hoque, vice-chairman of Bangladesh Association of Banks Muhammad A (Rumee) Ali, president of Bangladesh Textile Mills Association Abdul Hai Sarker, acting chairman of Bangladesh Insurance Association Nizamuddin Ahmed, president of Bangladesh Employers’ Federation Kamran T. Rahman.