Taking cue from BB report

To the extent that intransigence and lack of dialogue between the government and the main opposition might put into jeopardy the holding of elections that would be acceptable to all, we have called on both sides to decrease tensions and work together to bridge their differences and ensure that a workable solution is reached.

Bangladesh Bank's annual report suggests that there is another reason that we should be concerned with the escalating political tensions.

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This is the damage that will potentially be done to the economy in 2006 if the political tension is not ratcheted down. Spiking politics is one of the four risk factors that the Bank identified in its report, and as we enter the year 2006 it is necessary for our leaders to focus on the economy, which if left untended could lose some of its steam in terms of sustaining the growth level.

The international price of oil remains volatile due to the unstable situation in the Middle East, and though we have survived (indeed thrived) one year in the post-MFA era, we cannot afford to be complacent. It is still incumbent on the government to improve the business climate and implement structural reforms so that the economy does not slow down in the new year.

The report brought into sharp focus many of the problems that have bedeviled the economy for a long time, from inadequacy of infrastructure and utilities to high taxes to lack of continuity and consistency in government policies.

Amidst all the acrimony and name calling and positioning in terms of elections, let us not forget that the economy needs careful stewardship in these uncertain times. Whatever the distractions, we must not lose our focus.