Tuesday, November 06, 2012

In response to an article on The Economist


Bangladesh and development

The path through the fields


http://www.economist.com/news/briefing/21565617-bangladesh-has-dysfunctional-politics-and-stunted-private-sector-yet-it-has-been-surprisingly/print

The case study on Bangladesh shows us a path to lift up poverty and to empower the bottom community, WITHOUT rapid or substantial economic growth (in terms of GDP). This serves as a good reminder to the leaders out there who still believe in the myth of high number GDP growth rate is a good thing for the nation and a sure thing to benefit the people. Bangladesh just proved otherwise.

Thriving and strong civil society, NGOs and grass root movement are an important indicator for the measure of success on how the poor could help themselves (to get out from poverty line) and let others help effectively. Microcredit system is an impressive one. This demonstrates that capitalism is not necessarily the source of evil but could combine with social goals and good will to generate mutually beneficial outcome for all.

Handing out money like Santa Claus, is no way to help poor people in a meaningful way. One needs to reform the current structure and set up a good social and economic model. Perhaps Malaysia, India and China should take a lesson from Bangladesh how to improve the life quality of the lower income group. Parti Sosialis Malaysia would be proud to implement some of these ideas to their grassroot supporters. 

However, Bangladesh model does not have an answer for us at how to overcome the current Middle-Income-Trap economic problem our nation is facing now.

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