Addressing Income Inequality in Bangladesh: A Call for Comprehensive Reform

 

The recently released "Household Income and Expenditure Survey (HIES) 2022" by the Bangladesh Bureau of Statistics has brought to light a concerning rise in income inequality within the country. This article delves into the key findings and proposes constructive measures to address this growing issue.

Understanding the Numbers:
According to the HIES 2022, as much as 40 percent of the country's total income is concentrated within the top 10 percent of the wealthy, reflecting a three-percentage-point increase since 2016. The Gini coefficient, a measure of economic equality, stands at 0.499 in 2022, indicating a rise from 0.482 in 2016.

Expert Insights:
Experts such as Selim Raihan and Hossain Zillur Rahman attribute this inequality to irregularities in the banking sector, tax evasion, and money laundering. While the government's commitment to addressing corruption is acknowledged, concrete actions are essential to combat these issues effectively.

Poverty Dynamics:
While poverty has decreased overall, the rate of decline between 2016 and 2022 is not as substantial as the preceding years from 2010 to 2016. Regional variations in poverty rates suggest the need for targeted measures in specific divisions.

Proposed Solutions:

• Anti-Corruption Measures: Strengthening efforts to combat corruption in the banking sector and ensuring transparency in financial systems is crucial. The commitment made in the election manifesto to take stern action against irregularities is a positive step.

• Social Safety Net Enhancement: To mitigate the impact of economic shocks, particularly in urban areas like Dhaka, there is a need to strengthen social safety net programs. Ensuring these programs reach both rural and urban areas is essential.

• Investment in Education and Skill Development: To address the root causes of inequality, investing in education and skill development programs is paramount. This can contribute to job creation and empower individuals to participate more actively in the economy.

• Progressive Tax Policies: Drawing inspiration from successful global models, implementing progressive tax policies, promoting small and medium-sized enterprises, and prioritizing social welfare can contribute to a more equitable distribution of wealth.

Conclusion:
Addressing income inequality in Bangladesh requires a comprehensive and multifaceted approach. By tackling corruption, strengthening social safety nets, investing in education, and learning from successful global examples, the nation can work towards a more equitable and prosperous future.

The Eternal Flame: The Tragic Story of Giordano Bruno, the Martyr of Science

 

Giordano Bruno was a man of many identities - a monk, philosopher, cosmologist, and mathematician, who lived a brief yet impactful life between 1548 and 1600. He was a man who studied magic and briefly rose to prominence among European nobility due to his exceptional recall, which some attributed to hidden magical talents. However, Bruno was also labelled a heretic for his contentious views on the nature of the universe and his rejection of key Catholic teachings. Despite the fact that the Roman Inquisition burnt him at the stake, they were unable to obliterate his legacy. Today, many see Giordano Bruno as a martyr who was willing to confront power with the truth. But who was the man behind the labels?

Bruno was born in 1548 in Nola, near Naples, and entered a Dominican monastery as a teenager. He was ordained a priest in 1572, but after contemporaries discovered heretical texts in his possession, he was excommunicated and forced to flee. Bruno was a man who seemed to attract trouble wherever he went, and this was a familiar cycle for him. He resided in various Italian cities between 1576 and 1578, before leaving Italy and traveling around Europe in search of teaching employment or patronage. However, due to his penchant for disagreeing with local religious or political authorities, he struggled in this endeavor. In Geneva, for example, Bruno began to make a living as a theology professor, but after writing a thesis criticizing the president of the Genevan academy, he was obliged to apologize and leave the city immediately.

Despite these obstacles, Bruno was able to gain access to Henry III's court in France. He moved to Paris in 1581, where he became a lecturer and produced some works on memory, notably Circe's Song (1582) and The Art of Memory (1585). His reputation as a master of the 'mnemonic arts' (the art of memorization) truly took off here. Mnemonics was a popular practice in 16th-century Europe, and academics appreciated learning how to memorize speeches and writings as it hearkened back to the old Greek skill of rhetoric. After gaining some notoriety for his talents in the French court, Bruno decided to travel to London in 1584.

Upon his arrival in England, Bruno had already accepted his status as an academic firebrand. He defines himself as "Bruno from Nola, Academic of no Academy, called The Troublemaker" on the title page of his play The Candlebearer (1582). In England, he mostly caused difficulty by authoring a series of six works that probed his provocative beliefs about the nature of the universe. With titles such as On The Infinite Universe and Worlds (1584), Giordano Bruno was clearly willing to challenge Renaissance society's prevalent notion of a closed, finite universe.

Bruno argues vehemently in favor of many things that we now know to be true, such as the sun being at the center of the solar system, the Earth rotating on its axis, and the world itself being infinite, in these six works. The tragedy of Bruno's life was his inability to persuade anyone to believe his beliefs. However, 16th century cosmology was inextricably linked to Christian beliefs, and to argue against it was to argue against Christianity itself.

In the 1500s, Europeans thought the Earth (rather than the sun) was at the center of a single solar system. Humans were God's most superior creation, thus they had to be at the middle of everything. A border beyond the other planets and stars signified the beginning of the heavenly realm where God resided, encompassing the entire solar system with his divine presence. For many centuries, this view of the universe was the acknowledged norm in Europe.

Bruno's insistence on the limitless nature of the universe created severe theological quandaries. If the universe expanded indefinitely, where did God reside? And if the universe was infinite, what was the significance of humanity in the grand scheme of things? These were questions that many of his contemporaries were unwilling to grapple with, and as a result, Bruno was met with fierce resistance.

Despite this, Bruno's ideas were not completely without precedent. The ancient Greek philosopher Pythagoras had also believed in the infinity of the universe, and Bruno drew inspiration from his teachings. He also found support among a small group of like-minded individuals, who recognized the revolutionary nature of his ideas.

In the end, it was Bruno's refusal to recant his beliefs that led to his downfall. He was arrested by the Inquisition in 1592 and put on trial for heresy. He was offered the chance to recant his beliefs and save his life, but he refused, stating that "to recant would be to tell a lie." He was found guilty and sentenced to death by burning at the stake. As the flames consumed him, it is said that Bruno shouted "Perhaps you, my executioners, pronounce this sentence upon me with greater fear than I receive it!"

Bruno's death was a tragic end to a brilliant and unorthodox mind. But it was not the end of his legacy. His ideas on the infinity of the universe were eventually proven to be true, and today he is recognized as a pioneering thinker who dared to challenge the status quo. As he wrote in one of his works, "The limits of my language mean the limits of my world." Giordano Bruno pushed beyond those limits and expanded our understanding of the world we live in.

Bangladesh's Inflation Rate and Threat to Food Security: SANEM Study

 

From last May through October, the country's inflation rate ranged between 7.5 and 9.5 percent. The underprivileged people are starting to feel the harmful effects of this rising inflation. Fish and meat must be left from the food list. Since lower middle-class individuals have just been added to the list of marginalized groups, this number is rising. The food security index for garment workers focused on export is declining. This indicates that food consumption among textile workers and their offspring has decreased.

Based on these findings, the South Asian Network on Economic Modeling (SANEM), a private research organization, claims that the current economy's main concern is the threat to food security. They placed a strong emphasis on broadening the area of social protection, increasing agricultural product production, looking for new sources to import food grains, and keeping an eye on the market in order to resolve this situation.

According to SANEM, maintaining food security is essential as we exit the present economic downturn. Preventing the loss of foreign exchange reserves is also crucial. Otherwise, everyone's confidence will drop.

In addition, the banking and revenue sectors should undergo change in the short- and medium-term. The administration of bank interest rates and the dollar exchange rate needs to alter. In addition, a high-level committee made up of all parties involved needs to be constituted. The committee's recommendations may be put into action.

Salim Raihan, the executive director of SANEM, made these remarks during a seminar he held on Thursday called "Bangladesh Economy: Areas of Concern and Actions" on the online platform. Bajlul Haque Khandkar, the chairman of SANEM, also addressed.

 

Every month, reserve is losing $1 billion

The foreign exchange reserve for the previous fiscal year 2020–21 was $4,640 million (46.4 billion). The reserve was $4 billion 495 million last January as well. In the 11 months leading up to November, it decreased to an average of $1 billion (1 billion). The reserve currently stand at $3 billion 447 million.

According to Salim Raihan, Bangladesh's reserve situation is not dire. However, if the amount of money that is being subtracted from the reserve each month is not stopped, there is a risk. Additionally, he noted that other nations significantly raised their reserves during the Corona epidemic. They are hence heavily dependent on the crisis at the moment. We also need to reconsider reserve. Reserve should be increased until they can cover import obligations for 8 to 10 months.

According to Bajlul Haque Khandkar, the ongoing loss of reserve must be stopped. Otherwise, everyone's confidence can drop. There will be widespread discontent if it occurs. 

Requisites for stopping hundi

Due to illicit hundi, expatriate income cannot be raised. For hundi, there is a problem with both supply and demand, both domestically and internationally. The dollar exchange rate needs to be set in order to stop the hundi. Money laundering in the nation should be eliminated concurrently. Hundi will continue as long as money laundering is not prevented. According to Salim Raihan, this requires political will.

Salim Raihan added that in addition to this, India occasionally changed the exchange rate of its currency in relation to the dollar. However, Bangladesh has not done it in a very long time. As a result, a large amount of money must be rapidly discounted. No one can trust it once more because distinct rates are fixed for import, export, and expatriate income exchange.

Salim Raihan emphasized the need for banking sector reform, stating that the absence of effective banking sector governance is the root cause of a number of economic issues. Willful defaulters are so strong that they are impossible to manage. Within a week after taking office, the current finance minister declared that the number of delinquent loans will not rise. Then, loans in default rose by an additional 30%.

Salim Raihan once observed that rumors are always rumors, and lately there have been many speculations spreading regarding the banking industry. It has no basis in reality. The credibility of more people will rise if reliable information is made available more frequently. The dissemination of rumors will also dissuade those who do it.

Salim Raihan brought up the need to restructure the revenue sector in addition to banking. He declared that Bangladesh's tax to GDP ratio needed to quadruple from its current level. Our ability to spend more money would have increased. Reforms are the only way to boost tax collection.

At that time, the Executive Director of SANEM stated that the IMF's requirements for overhauling the banking and revenue sectors are nothing new in order to obtain a loan from the IMF for 4.5 billion dollars. All of the measures will be implemented, the government has already committed. These reforms have been mentioned in the Sixth to Eighth Five Year Plan. As a result, without a strong political commitment, these measures are not feasible.

 

Is a famine on the horizon?

The entire amount of foreign debt during the fiscal year 2015–16 was $4,117,000,000. The amount climbed to $9,015,000,000 in the previous fiscal year. However, there have been certain modifications made to the design of foreign loans. Short-term debt was 17 percent in 2015–16; it rose to 21.5 percent in the current fiscal year. However, private debt to foreign governments is also rising.

Salim Raihan stated that the repayment of foreign debt is not now an issue after presenting these figures. The makeup of the foreign debt is altering, though. For exports and foreign income in the upcoming days, there is no positive news. As a result, the amount of foreign debt that may be repaid using reserves and current account is decreasing. In a few years, this will put further strain on the economy.

The highest echelons of government frequently express their fears about famine. Salim Raihan responded that there is little chance of starvation in response to a question in this respect. But repeatedly discussing starvation incites dread. A group may benefit from that. There won't be a famine, although there might be temporary food shortages in some places. If such a threat exists, action should be done beforehand.

Here's how to manage the biggest problem of Event Activation Business

 

Companies that specialize in planning, organizing, and carrying out events as well as marketing campaigns that involve below-the-line (BTL) and above-the-line (ATL) activations are known as event management, BTL, and ATL activation agencies. BTL activations are marketing initiatives that emphasize engaging consumers directly, such as through in-store promotions, experiential marketing, and other direct marketing techniques. On the other side, ATL activations place a greater emphasis on mass communication via media including television, radio, and print advertising. Corporate events, trade fairs, conferences, product launches, and other events can all be managed by event management companies. Additionally, they could provide services like branding, public relations, and the formulation of marketing strategies.

Event management, BTL, and ATL activation companies frequently make money by charging clients for their services. These costs could be determined by an hourly rate, a fixed charge, or a share of the entire budget for the campaign or event. Additionally, agencies may charge fees for costs like travel, lodging, and supplies. Some businesses might additionally provide extra services like selling event tickets or goods, which can increase their earnings. Additionally, it's feasible for agencies to get commissions or savings from suppliers and vendors, which they can then give to their clients in the form of decreased prices or fees. Additionally, some organizations may make money through sponsorships or joint ventures with other businesses or organizations.

Because they are involved in the planning and implementation of events and campaigns, which can be complicated and require a variety of resources, event management, BTL, and ATL activation companies frequently have a sizable portion of their expenses classed as overhead costs. Costs associated with running a business that are not directly tied to the creation of goods or services but are nevertheless necessary. Rent or lease payments for office space, salaries for executive and support employees, insurance, and utility costs are a few typical examples of overhead costs for event management companies. These costs are frequently constant, which means that they are unaffected by the volume of events or campaigns the agency manages. Therefore, overhead costs could account fora large chunk of an event management company's overall costs.

Event management, BTL, and ATL activation companies can take the following actions to effectively control their overhead costs:

Identify and prioritize essential overhead expenses:

Determine which overhead costs are necessary for the functioning of the business and rank them in priority. It is crucial for agencies to properly assess their overhead costs. They will be able to concentrate on cutting or getting rid of unneeded expenses as a result.

Negotiate advantageous terms with suppliers and vendors:

Agencies can cut their expenses for supplies and services by negotiating advantageous terms with suppliers and vendors. This can entail negotiating reduced costs, protracted payment arrangements, or quantity discounts.

Implement cost-saving measures:

Agencies can minimize their overhead costs by implementing cost-saving measures including employee training programs, telecommuting policies, and office equipment and lighting that uses less energy.

Regularly check expenses:

By keeping an eye on overhead costs, organizations can find ways to cut costs and make sure they aren't going overboard in any one area.

Utilize technology to automate and streamline operations:

By using technology to automate and streamline processes, organizations can spend less time and money getting things done, which can cut down on overhead costs.

By offering independent and impartial confirmation that the organization's financial and operational controls are working, an internal audit function can assist event management, BTL, and ATL activation agencies in controlling their overhead costs. The agency's financial and operational procedures may need to be reviewed and assessed, and transactions and other data may need to be tested to make sure they are correct and compliant with applicable laws, rules, and policies. The internal audit function can help discover potential for cost reductions and recommend adjustments that can help to minimize overhead costs by locating areas where the agency may be overspending or incurring unnecessary costs. Additionally, by ensuring that the agency's financial reporting is accurate and transparent, the internal audit function can contribute to increasing the organization's credibility with clients and stakeholders.