Originally posted in The Business Standard on 3 December 2023
Economy held hostage by ongoing political unrest: Business leaders
Bangladesh’s economy has been under pressure due to the ongoing political unrest centering the 7 January parliamentary elections, according to economists and business leaders.
The current spell of blockades and hartals was launched by opposition BNP and its like-minded parties on 29 October, a day after their grand rally at Nayapaltan was foiled by police. Police went into action after a police constable was beaten to death during the protests.
According to figures revealed by the FBCCI president, the financial losses from 20 days hartals and blockades (29 October to 20 November) stood at Tk1.30 lakh crore (Tk6,500 crore loss per day), in the overall economic sector of the country.
“The economy is losing Tk6,500 crores a day because of the hartals and blockades,” said Mahbubul Alam, president of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI).
“So, we repeatedly urged political parties in Bangladesh to avoid activities, which cause financial loss and create public sufferings,” he added.
Even though the campaign of hartals and blockades has failed to cripple the normal life, the unrest hit the transport sector hard, disrupted the transportation of goods resulting in price hikes.
The opposition has resorted to street protests as the government has rejected its demand for holding the country’s upcoming 12th parliamentary polls under a neutral caretaker government.
The transport owners said that the estimated financial loss suffered by the sector is around Tk161 crore per day. Then in 20 days of hartals and blockades, the financial loss is estimated at around Tk3,220 crore.
Speaking about the losses, eminent economist Dr Debapriya Bhattacharya told UNB that “the financial loss from hartal and blockade is multi-dimensional and you cannot count it only in figures.”
He said the international business groups, the global buyers of Bangladesh or any other particular country get worried when instability breaks due to political or any other reasons. Then they divert their purchase orders and investment plans to more secured and stable areas.
“While a big global buyer is shifts orders from a country, the small buyers then follow them,” said Dr Debapriya who is also a distinguished fellow of Centre for Policy Dialogue (CPD), a think tank.
Executive Director of PRI (Policy Research Intuition) Dr Ahsan H Mansur echoed Dr Debopriya.
He said a growing economy requires a stable and democratic environment in every sector to attract global investment and global buyers.
Because, trading and investment is totally related to money gain or loss, the buyers and investors always look for a place for financial gains. They prefer save heaven for investment, he pointed out.
The protests are affecting the transport sector most. Long-distance inter-district busses sat idle at stations. The city buses had to operate with fewer passengers amid the fear of arson attacks. This has left many transport workers without work and pay.
Abul Kalam, president of the Mohakhali Inter-city Bus Owners’ Association told UNB that around 700 vehicles leave Mohakhali bus terminal daily in the normal time. It has now come down to 100 a day due to hartals and blockades.
He expressed concern that running buses only two days a week makes it financially challenging to cover workers’ wages and fuel cost. Consequently, business owners are grappling with managing expenses, including bus operation costs and bank loan installments.
Mahbubur Rahman, vice president of the Bangladesh Road Transport Owners’ Association, said that around 3,500 buses operate daily in the capital. Owners and workers collectively earn Tk1.58 crore per day, averaging around Tk4,500 each.
However, this income has plummeted to Tk32.50 lakh, resulting in a daily loss of Tk1.26 crore for operating buses in the capital due to a hartal and blockade, he said.
Under normal circumstances, approximately 200,000 long-distance bus trips across the country generate about Tk10,000 each, resulting in a daily earning of Tk200 crore nationwide, Mahbubur said.
According to the information of the Fire Service and Civil Defence (FSCD) headquarters media cell, a total of 228 incidents of arson attacks were recorded across the country since 28 October to 29 November morning.
The FSCD headquarters media cell only recorded the incidents of arson attacks. The control room of the FSCD headquarters got information from the spot or near the spot after a vehicle was set on fire, said Deputy Assistant Director (DAD) of the FSCD media cell Shahjahan Sikder.
Replying to a question, he said several other incidents of arson attacks occurred during the period, but the FSCD control room was not informed.
In unreported cases the fire was doused locally. That means the blaze was doused either by the transport employees themselves or with the help of passengers or local people. In those cases, the arson attack incidents were not included in the fire service arson attack statistics, the DAD of the FSCD media cell added.
Shahjahan said a total of 217 vehicles were set on fire by miscreants in the last one month from 28 October to 29 November at 6:00am.