Energy & Power

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World Bank money sweeter than sufferings of ordinary people?
Farid Hossain

When the caretaker government raised the fuel prices on the first of April, it was hardly a surprise. The raise was expected. The World Bank had been pressing for the increase to cut down on the subsidies the government gives in this sector. It had also been one of the preconditions for $200 million development assistance Bangladesh so much sought from the World Bank. In raising the fuel prices from 8 percent to 21 percent, the government focused its attention on the World Bank money than the sufferings of the ordinary people. Consider kerosene that is widely used by the poor people. The prices of kerosene and diesel have been raised by Tk 7 per liter so it now sells at Tk. 40 a liter. Seven takas are not a matter of joke for the common Bangladeshis who are already spending more to cope with the rising prices of the essentials. Raising the fuel prices means raising the transport fare. Transport fare has already been raised. Even though the new price is not applicable to the CNG-run vehicles, it has made no difference. CNG vehicles are also raising their fares.

The government feels the adverse effect will be temporary. It has also promised to subsidize the farmers who will be affected by the diesel price hike. Diesel is used for running irrigation pumps. Whether the government is able to meet the commitment is another issue. The immediate past government of BNP-led four-party alliance’s track record in this field is poor. It was high in making promises, and low in leaving them unfulfilled. But the new caretaker government headed by Dr. Fakhuddin Ahmed appears to be more dynamic in its approach. Good results are expected this time. The concern, however, is that Dr. Ahmed has a pro-World Bank image. Having bias towards the World Bank is no offence. It should rather be seen as an asset. For the World Bank too wants to see a stable Bangladesh politically, economically and socially. Why some of the steps taken by the World Bank are unpopular is a matter to be investigated. Raising the fuel price citing hike in the international market should sound fine with those who make decisions at meetings held in air-conditioned rooms. Whether the middle class and the poor afford the increase should be a concern of the government. A government no matter it’s elected or not should be able to help its citizens, especially the poor, cope with the problems and lead an easy life. However, the ordinary people know by their bitter experience that how bitter the life is. Bazaars have plenty of commodities. The buyers are short with money. That’s why poor people or even the middle class are mostly unable to buy a fish of their choice say a Hilsha because of lack of money and abnormally high rates. Thus inflation has gone up 7 percent in February mainly due to the high food prices. Who are hard hit by rising inflation? Certainly, the poor and the middle class people. Their income has fallen, but the cost of living has gone up. The caretaker government does well in trying to fix the situation. It asks the Bangladesh Rifles (BDR) to take moments from their frontier duty and instead intervene in the kitchen market. Initial results have been good and encouraging. When BD could sell at an affordable price even without making any loss, it is not done in the conventional market. Why?

Also, how long can such intervention continue? Something else has to be done. Why don’t we bring the traders under a sot scrutiny and fix the problem of market syndicates often blamed for price hikes -- once and for all.