Bangladesh Businesses has been extremely critical at the interference of the 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 recent letter of IMF, as reported in the newspaper, to the Finance Adviser directing for further trade liberalization for growth momentum and urging to strongly resist formation of a ‘Safeguard Body’ is uncalled for and unwarranted.

In comparison to other developing countries, Bangladesh — being an LDC — has substantially liberalised its economy at the cost of hardship of entrepreneurs and common people, even though under WTO umbrella Bangladesh could avail and follow more domestic support measures. During the past two decades or so a number of Asian countries, through appropriate economic policy measures within the framework of WTO, have achieved remarkable progress, transforming themselves from largely agrarian, underdeveloped economies into a dynamic export powerhouse. 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 prove to help in achieving the desired growth level and alleviate poverty. The best examples are Malaysia, Thailand, Singapore, South Korea and the Philippines who have come out of Bretton Wood prescription and we all are aware of the achievements made by them. It is quite interesting to note that following meticulous IMF prescription Bangladesh has been experiencing double-digit inflation.

The IMF also directed the government for adjustments in domestic prices of natural gas which, in our opinion, will be the suicidal decision for the economy. It is known that increase in gas price automatically lead to cost of production as well as to increase in fertilizer price and have consequent effect 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 business community reiterates their earlier recommendations to effectively support local industries through fiscal and other means including ‘Safeguard 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 our Asian neighbours.

The signatories to the statement are Mahbubur Rahman, President of International Chamber of Commerce-Bangladesh (ICC-B), Mir Nasir Hossain, President of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Latifur Rahman, President of Metropolitan Chamber of Commerce and Industry (MCCI), Hossain Khaled, President of The Dhaka Chamber of Commerce & Industry (DCCI), MA Latif, President of (in-charge) Chittagong Chamber of Commerce and Industry (CCCI), Masih Ul Karim, President of Foreign Investors’ Chamber of Commerce and Industry (FICCI), Anwar-ul-Alam Chowdhury, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Md. Fazlul Hoque, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Muhammad A (Rumee) Ali, Vice-Chairman of Bangladesh Association of Banks, Abdul Hai Sarker, President of Bangladesh Textile Mills Association (BTMA), Nizamuddin Ahmed, Acting Chairman of Bangladesh Insurance Association and Kamran T Rahman, President of Bangladesh Employers’ Federation.