Md. Joynal Abdin
The Financial Express on May 29, 2009
THE current global crisis of capitalism originated from the financial meltdown in the United States of America (USA). The idea that the economies needed no regulation was abandoned after the great depression of 1930s. It was Keynes who pointed out the need for regulations to keep the economies in good health. The US policy-makers had, in recent years, deliberately abandoned regulations on the slogan of unbridled market economy. They allowed companies to go for profits without any checks until the economy came to verge of collapse. The US economic meltdown, in no time, adversely affected the other developed economies due to their close links with the US economy. Before long, it became a global economic crisis.
Unchecked greed for profit among big American companies and the American habit of spending more than their earning, even if it meant borrowing, were at the root of the economic crisis that engulfed the world. The crisis dried up the sources of credit in an opulent America. Now gone are the credit cards and credit without which the American consumers could not pull on for a day.
Despite its limited share in global trade, Bangladesh, too, like the other least developed countries (LDCs), has started feeling the heat of the global crisis. No country is immune to the impacts of globalisation, good or bad.
Readymade garments, Bangladesh’s principal export earner is likely to be affected as the entrepreneurs fear that the hard-pressed western buyers could buy less.
Despite the difference in opinions among the economists, there is an apprehension that the remittance from Bangladeshi workers abroad could fall if the global crisis continues for long.
Foreign direct investment (FDI), a source of industrialisation of the LDCs, could fall because of the global crunch.
The grants and other assistance from the developed countries could also decrease as a fallout from the global financial crisis. Bangladesh needs to prepare itself to come out of the global crisis unhurt.