Stabilising prices of essentials
ONE of the major factors for AL's landslide victory in the national election was its emphasis on bringing down the prices of essential items to an acceptable level. At the initial stage of its regime, the AL-led government showed commendable performance by doing so.
Needless to say, prices of essential goods play a critical role in maintaining a government's popularity to a great extent in the sub-continent. Not long ago, we saw how the BJP-led alliance had to face the displeasure of the people due to abnormal rise in the price of onions.
In a country like Bangladesh, with a vast majority of people below the poverty line, the prices of essentials affect the people enormously. Nothing is more important to a poor man than his stomach. The question of freethinking or democratic rights comes later.
The performance of AL, it may be recollected, was highly commendable in respect to stabilising prices of essentials during its regime in 1996-2001.
Later, we saw the performance of BNP-led alliance during 2001-06. In the later part of that regime we saw how prices of essentials rose.
It is indeed regrettable that instead of supporting the efforts of the government to control the prices of essentials, BNP is pointing out flaws of the government. How can it forget that it may also find itself in a similar situation in case it comes to power?
We have to agree that in the capitalist free market economy the state, instead of involving itself in trading, prepares grounds for free trading. Ultimately, it is seen that a vast population of the country is held captive by the capitalists.
During the nineties, Bangladesh left the domestic market at the hands of the foreigners in the name of free market economy. This created syndicates consisting of middle-men and importers. Bangladesh, an import-based economy, has to satisfy demands of the syndicates, whose members belong mainly to both the major parties. Thus, it is extremely difficult, if not impossible, to bring these syndicates under the dictates of the government.
Slowly and gradually these syndicates have made huge profit, which helped them consolidate their position. Thus, whatever the AL government of 1996-2001 was able to do in regard to stabilising the prices of essential items may not be possible for them to do today. The war is now between the syndicates and the government. Let us see how far the government can go.
State trading saves the common men from importers and middle-men, who make excessive profit. With regard to the Trading Corporation of Bangladesh (TCB, estab.1967), we may say that it was never an efficient organisation. It earned a bad name through corruption and mismanagement. However, it could, to a certain extent, act as a deterrent against importers making high profits. With the stoppage of its activities there was nothing to stop the capitalists from making unlimited profit.
By considering the revival of TCB to stabilise the prices of essentials, the present government has committed an error. As such, despite its sincerity, it has not yet been successful. Broadly speaking, the following appear to be its omissions:
-Instead of spending time in discussions with various organs of government and the FBCCI, some time should have been spent with prominent members of the syndicates and the retailers' associations;
-More time should have been spent on appointing the dealers of TCB;
-There is an inadequate supply of materials to the dealers;
-There has been too much delay in arranging imports.
The prime minister has taken note of the price fluctuation of certain essentials. TCB has been advised to provide requisite items at the earliest. Some fiscal measures have already been taken.
The syndicates have also been given a clear message about the government's intention to bring down or stabilise prices of essentials. However, due to lack of efficiency, dynamism and coordination it is not expected that the present situation can be improved much before the Eid-ul-Fitr.
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