The recent increase in the price of food, especially rice, has been a cause of concern all over the world and has been critically important issue in Bangladesh; as a net importer of food, the price has closely followed the trend of international markets. The result of this unusually high rate of inflation has had a direct bearing on the poverty status of the country as the incidence of poverty is intimately related to the change in food prices due to the fact that food constitutes a considerable portion of the expenditure of the poor.
Several studies have assessed the impact of food price increase on the level of poverty in Bangladesh. According to the World Bank (2008), a reduction in poverty by 5%, between 2005 and 2008, was expected in Bangladesh resulting from the strong GDP growth during that period. However, the study instead projects around a 3% increase in the incidence of poverty from the baseline rate of 40% in 2005 as a result of the increase in food prices. Therefore, the net impact on poverty, from the combined effects of economic growth and the inflation of food prices, is likely to result in a decline of about 2%; from 40% in 2005 to 38% in 2008. On the other hand, the Centre for Policy Dialogue (CPD) estimates that in fact an additional 8.5% of households have actually fallen below the poverty line because of the high inflation (CPD 2008). Their estimates take the Household Income Expenditure Survey of 2005 as the benchmark, and their projection considers the increase in cumulative Gross National Income (GNI). However, they concluded that the cumulative impact of high inflation (particularly the weighted inflationary impact of the price of rice) has resulted in significant income erosion of the low income groups in Bangladesh.
THE MAIN REASONS AND
PUBLIC’S REACTION ABOUT RECENT PRICE
HIKE IN Bangladesh
“THE MAIN REASONS AND PUBLIC‟S REACTION ABOUT RECENT PRICE HIKE IN Bangladesh
because recently the price hiking problem has become the main social problem in Bangladesh. People are suffering most in this problem now specially the poor people. There are many reasons behind this problem. . But I think formation of syndicate and corruption is the main reason behind this. But international market price, fuel cost, power crisis, natural disaster, transportation problem, illegal toll collection, action against corruption by the caretaker Government, street vendors and illegal construction drive by the joint forces, lack of communication and co-ordination in-between different Government officers etc are also responsible for recent price hike in Bangladesh. And the rate of this price hike is very fast. Even the military back Government was failed to solve this problem. They were not able to find the root behind this problem due to lack of appropriate monitoring system. But just the Government can solve this problem by using his intelligence agency, by introducing effective monitoring system, by improving law & order and by identifying the evil syndicate groups.
But it is not a very easy job. The support of general public is also needed to solve this problem.
The main reasons behind this problem
The prices of commodities are almost uniform across the capital, which only implies that a group of people are fixing the prices and that they have enough clout in the market to be able to decide what the prices should be. Corruption of so called political leaders, corruption of different Government officials and law enforcing agency is the main reason behind this problem. We can solve this problem by taking the following measures
Identify the syndicate groups.
By improving law and order.
By framing appropriate laws by the Government to eliminate middle classes intruding.
By introducing effective monitoring system.
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