Twelve top business bodies on Wednesday resented the interference of international agencies, especially the International Monetary Fund, in the economic management of Bangladesh. A joint statement of the Federation of Bangladesh Chambers of Commerce and Industry and 11 other business bodies urged the government to come out of the vicious cycle of the prescriptions made by the IMF and similar institutions.

‘Bangladesh businesses have been extremely critical of the interference of international agencies, particularly the IMF, in influencing and trying to impose conditions and dictate terms in every trifle detail of the economic management of a sovereign country,’ the statement said. It said the recent IMF instruction to (Bangladesh’s) finance adviser directing further trade liberalisation and opposing the formation of a ‘safeguard body’ was ‘unwarranted.’

The business leaders said in comparison with other developing countries, Bangladesh, being an LDC member, had substantially liberalised its economy at the cost of hardship of entrepreneurs and common people, ‘even though under WTO umbrella, Bangladesh could avail itself of and follow more domestic support measures.’ The leaders said during the past two decades or so a number of Asian countries, through appropriate economic policy measures within the framework of the WTO, had achieved remarkable progress, transforming themselves from largely agrarian, underdeveloped economies into dynamic export powerhouses.

‘The experience of those 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 statement said. ‘The IMF prescription regarding further trade liberalisation is not at all desirable as it could not prove to help in achieving the desired growth level and alleviating poverty,’ the statement said.

They cited, as examples, Malaysia, Thailand, Singapore, South Korea and the Philippines which have come out of the Breton Woods prescription. ‘It is quite interesting to note that by following meticulous IMF prescription, Bangladesh has experienced a double-digit inflation.’

Resenting the IMF directive for the government to adjust domestic prices of natural gas, the statement said, ‘It will be a suicidal decision for the economy. An increase in gas price automatically leads to the cost of production.’ It said an increase in fertiliser price would have effects on the already soaring prices of essential commodities. ‘The cost of doing business will also increase,’ with direct impact on the economy and the much-needed employment opportunities.

The business leaders reiterated their earlier recommendations to effectively support local industries through fiscal and other measures. They suggested ‘safeguard measures’ that are in place in other countries to boost export, create solid industrial base for the long-term benefits of the county and to create employment opportunities.

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