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CPD sees no political stability without inclusive polls

Staff Correspondent

The Centre for Policy Dialogue on Saturday said that political uncertainty was unlikely to end completely unless there was an inclusive and acceptable election.
A prolonged political uncertainly would continue to affect investment and in such a situation, the acceptability and duration of any government would remain questionable, it said.
The CPD, an independent think-tank, stressed the need for dialogue between the government and opposition political parties along with other players outside the ruling quarters for smooth implementation of development projects and bringing back confidence of investors and entrepreneurs.
‘It seems political uncertainly would not be completely over unless an inclusive, fair and acceptable election takes place,’ CPD fellow Debapriya Bhattacharya told reporters at a briefing organised to release its analytical review of Bangladesh macroeconomic performance in FY 2014 (second reading).
Investors would remain doubtful about investment if policy predictability was not ensured, he said.
Debapriya said that an effective and morally strong government was needed for restoring political stability and overall democratic development and fulfilling the aspirations of the people.
According to the CPD study, road and railway transportation, agriculture and agro-based industries, export-oriented clothing and textiles and tourism had incurred a loss of Tk 49,017.92 crore which was equivalent to 4.7 per cent of the GDP of last fiscal year due to political violence centring the national elections in the first half of the current fiscal year.
The CPD termed the current political environment a ‘ceasefire’ between contending political camps. ‘Such a situation may restore the operational efficiency of economic capacities but will not be enough to induce expansion of capacities to attain a higher economic growth, new investment and more employment,’ Debapriya said.
Adopting policy decision and its implementation would face problems if the uncertainly continued, he said.
Dialogue with local communities, policy-oriented civil society, private sector and political opposition was important in taking policy decisions and its implementation, he said.
Without greater predictability on the political front, a significant upturn of private investment – both local and foreign – could not be expected, the CPD said.
Creation of more democratic space for the ‘non-state actors’ might have positive influence on energising economic activities, it said.
CPD executive director Mustafizur Rahman said they expected such political consensus which would help the economy grow.

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