By Eric Eisenberg
AsiaInt South Asia Review
8/13/08
Despite double digit inflation, losses by state-run enterprises, and various natural disasters, a senior official reported on 23 July that Bangladesh's gross domestic product miraculously rose 16% in the fiscal year that ended on 30 June.
Compared with the 2006/07 fiscal year, the country’s GDP rose from US$68bn to US$79bn in 2007/08. Per capita income also rose in the same period from US$520 to US$599, a 15% increase. The growth came after a year in which state enterprises incurred 53bn taka (US$774m) in total losses (a 131% rise from the previous fiscal year), the prices of imports rose significantly, the consumer price index consistently hovered around 10%, and the value of the nation’s currency depreciated.
Mohammad Rafiqual Islam, the government’s deputy economic advisor, said that the growth stemmed from increased export earnings; record remittances of $7.94bn from more than 464,000 Bangladeshis who have found work abroad; growth in capital markets; increased production of boro rice; and stabilization in both the manufacturing and service sectors.
Also providing stability has been the Durniti Domon Commission, also known as the Anti-Corruption Commission, which was established in January 2007 following Fakhruddin Ahmed’s appointment as the country’s chief adviser and his decision to suspend democracy for two years. On 15 July the United Nations Development Programme (UNDP) issued a report praising the agency’s work over the past 18 months, referring to the achievements as "monumental".
"Very few commissions in other countries have made as much progress in such a short time frame," said Michael Th. Johnson, an anti-crime expert for the UN. The report was issued after a full investigation by the UNDP, which included the analysis of case studies, field visits, statistical surveys, as well as interviews with officials and experts within the commission.
Since its inception, according to the report, the ACC has incarcerated over 170 political and business figures for alleged corruption, including two former prime ministers. Corruption has recently been unearthed in the Bangladesh Telecommunications Company and two construction projects overseen by the Roads and Highways department, while the nephew of detained former prime minister Khaleda Zia has also been charged. "One percent of Bangladesh GDP went down the drain every year owing to corruption," said Renata Dessallien, the UNDP Resident Representative. "The [anti-corruption] efforts have sent a powerful message to the Bangladesh public that corruption can no longer be tolerated."
© Intelligence Research Ltd.