Call to boost purchasing capacity
An economist yesterday stressed the need for enhancing people's purchasing capacity by creating more jobs.
Debapriya Bhattacharya, distinguished fellow of Centre for Policy Dialogue (CPD), also said the South Asian region still fares better than any other region even in terms of inflation, although it has the highest number of poor people in the world.
At a press briefing at CPD office in the city, he said: "Poverty and discrimination are yet to be removed."
He was speaking as investment climate, water sharing and the role of non-state actors in the development of democracy will dominate a South Asian summit in Dhaka tomorrow.
The CPD organises the two-day gathering, which will talk on issues such as the implications for South Asia in the face of global economic recovery and role of regional cooperation in attaining inclusive growth in South Asia.
At a session, discussants will also share views on the political challenges to realising the vision of a South Asian Economic Union.
To focus on these broader issues, nine working sessions will be held on the current obstacles to trade acceleration in South Asia; policy initiatives to ensure food security in the region by tackling supply uncertainties and price volatility; and remittance flow and managing international migration in the wake of recent developments in migrant worker employing regions.
It will also focus on the current status of transport connectivity in South Asia and beyond and suggest steps for greater regional integration.
The summit will also look at tackling the implications of climate change within a regional framework and a regional approach to ensuring energy security.
Discussants are expected to focus on the current obstacles to acceleration of investment in South Asia and suggest ways for a win-win situation on sharing water resources in the region.
They will also talk on the role of non-state actors or civil society and private sector in the development of democracy in South Asia.
The summit takes place at a time when South Asian economies, which withstood the fallout of global economic crisis, experience new risks along with the prevalent widespread poverty.
These risks include increasing volatility in the global food prices, rising petroleum and other commodity prices, crunch in public finance in the developed countries, devaluation of major currencies, and growing uncertainties in the host countries of the migrant workers from the region, said a concept note prepared by CPD marking the summit.
It said the experience of the recent global economic crisis and the slowdown in the developed economies brought to the fore, once again, the need to rebalance the demand for accelerated economic growth in the region.
"This rebalancing of demand ought to take place, at least in part, through greater exploitation of domestic market opportunities and by greater access to regional markets."
South Asia, which accounts for 15 percent of world's gross output, is home to 20 percent of global population.
The CPD economist said the major problem standing in the way of deepening regional cooperation remains in various areas including violence, problem in water and energy sharing and unequal economic progress among Saarc nations.
"For the development of South Asia, we should not give political obstacle less priority. It will be difficult to ensure development of the region unless we can tackle political challenge," said Bhattachrya.
CPD Executive Director Mustafizur Rahman, Research Director Fahmida Khatun and Senior Research Fellow Khondaker Golam Moazzem were present at the briefing.
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