Transport and supply chain disruption main reason for food inflation – Tribune Editorial says quoting CPD study, published in Dhaka Tribune on Sunday, 8 December 2013.
Wake up to the economic costs of political unrest
Tribune Editorial
Government economists claimed that the political turmoil would have no major effect on the economy but it is already having a major negative impact
Evidence is mounting of the damage being done to the economy by the prolonged period of blockades and hartals caused by the political crisis.
The Centre for Policy Dialogue and Policy Research Institute have highlighted disruption to transport and the supply chain as the main reason for food inflation hitting a seven month high of 8.55% in November. Supplies of essentials like fish, pulse and vegetables are being slowed down and the resulting price hikes are hitting consumers hard.
Export industries have been particularly hard hit as they suffer not only from lost production days when factories are closed, but the disruption to transport is reducing both access to raw materials and their ability to ship finished goods to market.
Another concern is that Bangladesh Bank’s latest data shows that remittances received fell 14% in November. While this vital source of income which accounts for 11% of GDP has tended to grow throughout past periods of political strife, it will be a major concern if remittance income continues to drop.
Last week government economists claimed that the hartals and unrest would have no major effect on the economy, but this data shows that political turmoil is already having a major negative impact. Regardless of the lip service political leaders are paying to the plight of innocent victims, the cost of the economic damage being done by blockades and strikes is mounting.
Our leaders must wake up to reality and take action to stop damaging the country further.