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MY PRESENTATION

Impact of political turmoil on economy & society in Bangladesh

Introduction

Bangladesh revealed as a free country in the world map in 1971. From then

Bangladesh saw many political ups & down. Before independence politics

was for welfare of the general people. But the matter of regret is by the

passage of time politics become a money making field rather than welfare of

society. Whoever possessing the power are misusing his/her power to fulfill

own interest. That’s why there is always a confliction between the governing

political party & opposition party. Hartal or strike is used for political

purpose by the opposition party. When they disagree about any issue they call

for hartal as an act of constitutionally sanctioned right rather than negotiate

with government in parliament. Historically, calls for hartals in Bangladesh

are made by major political parties when they lose their grip on positions of

power which has become economical terrorism. 

What is Political turmoil ?

Political turmoil is a term often used to describe a state of extreme

unrest, unease or agitation, in relation to a government or other

policy-making body. In particular, countries with complicated or

conflicted histories are often said to have had periods of political

turmoil.

IMPACT OF CURRENT POLITICAL TURMOIL ON ECONOMY

The most affected field on the economy is in the business sector especially in

RMG sector, export import oriented among the adverse effect. Decrease of

normal transaction in bank results a huge amount of liquidity stored at every

branch of commercial bank that creates high risks in operating banking activities

during hartal. An analysis of the UNDP data on hartals show that between 1947

and 2002 an estimated 1,172 hartals were observed in Bangladesh, while 611 of

them took place from 1995 to 2002 since democracy in the country

The most affected field on the economy is in the business sector especially in

RMG sector, export import oriented among the adverse effect. Decrease of

normal transaction in bank results a huge amount of liquidity stored at every

branch of commercial bank that creates high risks in operating banking activities

during hartal. An analysis of the UNDP data on hartals show that between 1947

and 2002 an estimated 1,172 hartals were observed in Bangladesh, while 611 of

them took place from 1995 to 2002 since democracy in the country. The

influences are briefly describing below.

CONTINUED….

UNDERPRICE AGRICULTURE PRODUCTS

Now entire agriculture is falling down. Farmers have stopped selling vegetables since they do

not get enough prices to meet up production cost let alone profit. Middlemen are offering low

prices to farmer telling that transportation cost has been increased because a lack of

transport movement.

SUFFERINGS OF DAY LABOURERS

During the period of hartal, they can’t go their work. For this

purpose they can’t earn money. Their income is very limited

which is not sufficient to maintain their family and they can’t

teach their children properly.

PRICE HIKE & ROTTEN VEGETABLES

Prices of essentials, especially vegetables & fish have been increased with the

sufferings of low and middle groups. Goods from outlying areas could not reach

the capital timely due to hartal, price witnessed a fresh hike because of the

transportation problem caused shutdown. 

IMPACT ON TRADE & COMMERCE

Hartal affects the entire production and supply chain. Manufacturers had to cut production

to avoid jam at warehouses. The recent shutdown affected production in factories as all

workers cannot attend work.

At Chittagong Port, the shutdown caused a dip in delivery of imported products, forcing

importers to count huge losses for overstay of their imported goods in the port yards.

IMPACT ON EDUCATION SYSTEM

Hartal delayed education, which can have severe long term effects

on younger people’s future prospects. Moreover frequently

reschedule of SSC & HSC exam also effects the preparation of the

students and for this reason results also be affected. According to

UNDP report, 97% of their respondents felt that hartal have

negative effect on education system.

  

ConclusionThe consequences of hartal in terms of economic costs is huge that has

great negative impact on our economy. While the negative economic

consequences of hartal draw a great deal of attention, its economic

losses could not be recovered. The political turmoil in the first quarter

of 2015 cost Bangladesh one percent of its GDP, or $ 2.2 billion, says the

World Bank. Economic growth would have between 6.4 and 6.6 percent

in the ongoing 2014-15 fiscal, if there were no political turmoil it would

be increase rapidly.

The only way to resolve political hartals is to reach understanding and

argument through dialogue and negotiation between the government in

power and the opposition to resolve the issues that sparked off the

hartals.

 

THANK YOU