Price hikes and social unrest in Bangladesh
Sadia Sultana Rimi
Bangladesh is a developing country, where despite economic progress, rising prices have become a persistent problem in the lives of the common people. In recent years, rampant price increases in food, fuel, and transportation sectors have left the lower and middle classes of society in a kind of struggle for survival. This has been compounded by employment crises, income inequality, corruption, and administrative failures, resulting in extreme social unrest.
In Bangladesh, the productive sector, especially in agriculture and industry, is not growing at the desired rate. On the other hand, population and consumer demand are increasing, resulting in a large gap between supply and demand in the market. This is one of the reasons for the increase in product prices. Inflation is increasing due to the policy weakness of Bangladesh Bank, decreasing reserves, and increasing import dependence. Due to the depreciation of the rupee, the prices of foreign products are increasing, which is also affecting the domestic market. Numerous middlemen and brokers in the supply chain cause unreasonable increases in product prices. This cycle remains active due to the lack of market monitoring. Sometimes the weakness of government policies and bureaucratic complications exacerbate this situation. When the prices of fuel, especially diesel and gas, increase, production and transportation costs increase. As a result, the prices of consumer goods, starting from agricultural and industrial products, also increase. The Russia-Ukraine war and instability in international markets have increased Bangladesh's import costs, which has put the energy market in a state of uncertainty. In addition, natural disasters such as drought, floods, river erosion and cyclones have caused major damage to Bangladesh's agricultural sector. On the one hand, this reduces production, while on the other hand, affected farmers try to compensate for the losses by raising prices.
The increase in commodity prices has a direct impact on the lives of the common people. Families face endless hardships as their expenditure on food, education, and medical care increases. Even though the income of the middle and lower class people remains stable, their expenditure is constantly increasing, resulting in them falling below the poverty line. As it becomes difficult to make a living, various criminal activities including theft, robbery, and kidnapping are increasing in the society. Even a section of the educated youth is inclined to earn money through immoral means. As a result of the increase in prices, small and medium entrepreneurs are unable to manage their expenses and lay off workers. On the other hand, unemployment is increasing due to the lack of new jobs, which depresses the youth and creates instability. In addition, price increases create dissatisfaction among the people, which can be used politically. Opposition political forces use this dissatisfaction as fuel for movements, resulting in disruption of good governance and stability.
Although the government sometimes sets prices for daily necessities, there is no proper monitoring and strictness in its implementation. Corruption, incompetence and irregularities are observed in the sale of TCB products. The lack of a coordinated policy on the part of the government to control prices is clear.
It is important to form independent market supervision committees in each district and upazila to regularly inspect the markets, verify the prices of products and take legal action as needed. The activities of the Department of Consumer Rights Protection must be further strengthened. Incentives, subsidies and ease of access to agricultural loans must be ensured to increase agricultural and industrial production. If farmers are provided with improved seeds, irrigation facilities and technical training, food shortages will be reduced. Middlemen in the supply system must be brought under control. In addition to taking strict action against corrupt bureaucrats, transparency must be ensured in food warehouses. The low-income population will get some relief if the salaries of government and private employees are re-determined, the social safety net expanded and unemployment allowances introduced. The use of solar energy and other renewable energy must be increased by reducing dependence on diesel and gas. It is possible to reduce transportation costs through the development of railways and waterways.
In Bangladesh, price increases and social unrest are interrelated problems. To get rid of them, the government needs to formulate and implement strong economic policies. At the same time, it is possible to restore balance in society by curbing corruption, increasing production, and increasing public awareness. If this crisis can be addressed through long-term planning and implementation, the overall progress of the country will be ensured.
The writer is a student, at Mathematics department of Jagannath University, Dhaka
