22/10/2024
Yunus can do no Reforms, and neither can Hasina. We can:
For Bangladesh to unlock its full economic potential, it is time to adopt supply-side economics as the national strategy. This approach prioritises empowering businesses and citizens by reducing government interference, especially in tax policies, and allowing the private sector to drive growth. A central pillar of this strategy is ensuring low, stable, and predictable taxes that foster an environment of certainty for investors and entrepreneurs without the arbitrary fluctuations that often characterise government fiscal policies.
A consistent low-tax regime is critical to long-term growth. Rather than offering tax breaks or fluctuating rates, the government should set a fixed, affordable tax rate that encourages businesses to plan for the future confidently. This stability allows companies to make long-term investments in expansion, innovation, and job creation, knowing that they won’t face sudden changes in their financial obligations. A simplified tax system benefits businesses and reduces the government's ability to interfere, ensuring that the private sector has the freedom to drive the economy forward.
By limiting the government’s fiscal power to manipulate tax rates or impose new levies, businesses are encouraged to invest in Bangladesh, as they know they are operating in a fair and transparent environment. This is crucial for attracting domestic and foreign investment, fueling growth in critical manufacturing, agriculture, and technology sectors. Bangladesh’s economic growth should be driven by a private industry that can operate freely without the constant threat of unpredictable tax burdens.
Moreover, low and stable taxes are a crucial driver of job creation. When high taxes do not overburden businesses, they have the capital to expand operations and hire more workers. This means real jobs and sustainable economic empowerment for the Bangladeshi people instead of relying on government handouts or subsidies. A low-tax system fosters entrepreneurship, allowing small businesses to thrive and creating opportunities for millions nationwide. Job creation is not just about employment—it’s about giving people the means to lift themselves out of poverty and into prosperity.
In the global market, Bangladesh must remain competitive. High taxes and excessive regulations hinder our ability to compete on price and quality. By adopting a low-tax regime, the government will lower production costs, enabling Bangladeshi companies to offer more competitive prices and capture a larger share of international markets. This is essential for sustaining and growing our export-driven economy, especially in vital industries like textiles and garments.
Supply-side economics also limits the scope for government overreach. A simplified, low-tax system reduces the opportunities for corruption and favouritism, where selective tax breaks are given to politically connected businesses. By keeping taxes stable and low for everyone, the government minimises its ability to manipulate the economy in favour of special interests. This creates a level playing field for all businesses, ensuring that growth is driven by innovation and market forces, not by government intervention.
When taxes are kept low and stable, businesses have more resources to reinvest in innovation and productivity improvements. This encourages companies to adopt new technologies, improve processes, and invest in research and development. The result is more competitive industries and the diversification of Bangladesh’s economy into higher-value sectors, such as information technology and pharmaceuticals. A stable tax regime gives businesses the confidence to invest long-term in these future-oriented industries.
Ultimately, supply-side economics offers Bangladesh a path to sustainable growth. It empowers the private sector by creating an environment of low, predictable taxes and minimal government interference. By allowing businesses to thrive, we ensure that job creation, innovation, and competitiveness are at the heart of our economic strategy. This approach builds a strong foundation for Bangladesh’s future, where growth is driven by the market, not by government manipulation. Supply-side economics will enable Bangladesh to achieve long-term prosperity, create a wealth of opportunities for its people, and solidify its position as a rising economic power on the global stage.
Of course, the monetary monopoly that leads to hyperinflation & crony loot of the system will be replaced by a multiple-competitive currency system as in the international economic order. We have to ignore IMF or WB advice. Big banks may not be our friends, but many will be.
