Thursday, August 6, 2026

A Country Built On Fault Lines

A country built on fault line
Faces difficulty to shine.

In Bangladesh, we often see upending events cause deep division in the society ,leading on some occasions to polarization. Sometimes unsettled issues on historical events or violence involved in the events are behind such division. Failures to resolve differences through talk and justice create these fault lines. Some are major, some are minor. They are present almost in every sphere of life. Ordinary citizens, society and economy are paying a price for that.

Major years like 1971,1975,1990 and 2024 created some big fault lines. Apart from that one party rule BAKSAL, anti-Maoist campaign, some cultural movements, anti-shrine movement, persecution of minorities, indigenous movement, wage hike movement in industrial pockets and other movements also gave birth to several fault lines.

Driving a wedge between two opposing groups leads often to point of no return and brings destruction and loss to a country. Others exploit the crack of division and made it unbridgeable.

Yuri Bezmenov was a soviet journalist and diplomat. He defected to the West in 1970 and disclosed the psychological warfare model,which he had learned during his stint into his country's intelligence agency, used by the Soviets during the cold war to instill a new ideology into a society uprooting the prevailing ones. He publicly spilled the beans to Edward Griffin, an American journalist in the US,in 1984(see Yuri Bezmenov. Link: https://en.m.wikipedia.org/wiki/Yuri_Bezmenov and the interview , link: https://www.youtube.com/watch?v=s2b-I0Yqisc ). YouTube video is still available. I do not subscribe all his explanations and views about the 1971 and 1975. The timing of his defection and that of his interview depicts a different time. Lots of things were happening at home and abroad back then.The interview in particular is used to tell a particular narrative, to convince a particular audience. By the time the interview was aired, his subversion model had already been known to the world. Moreover, I find it a bit oversimplified and exaggerated. It is not that easy to fool a whole country. But there are some facts in that interview and you just cannot throw away the subversion model he exposed. So what is this subversion model he was talking about?

It comprises of 4 stages(for more read "4 Stages of Ideological Subversion According To Yuri Bezmenov", Nitigya Pant,February 24,2024. Link: https://medium.com/@nitigyaraj/4-stages-of-ideological-subversion-according-to-yuri-bezmenov-psychological-warfare-in-action-4ea01e2268c7 , and "Bezmenov's Steps(Ideological Subversion)", Porlando,July 14,2020. www.unintendedconsequences.es. Link: https://unintendedconsequenc.es/bezmenovs-steps/ ): Demoralization, Destabilization, Crisis and Normalization. Demoralization takes 15-20 years to complete and in this phase society's core values,beliefs ,traditions and identity are questioned in a bid to disorient the population. Methods employed include politicization and monetization of creed,monopolization of media,controlling flow of information,discrediting others, educate generation to accept things without challenging, glorifying the ideology comparing it with others,antagonism among political parties,less spontaneous response from individuals to address social issues etc.

Destabilization takes another 2-5 years to complete and in this phase subvert ideology is projected to be an alternative. Methods employed include diminishing bargaining process in the economy, unreasonable power struggle,populism in politics,mobs reigning laws and society,growing isolation in foreign relations. Solution is "grass is greener on the other side" or other ideology is better.

Crisis phase lasts 6 months. In this phase people lost their trust on existing institutions and discard them. They are ready to embrace radical change,including welcoming ideology they were taught to despise.

Normalization describes the phase when subverted ideology becomes the ideology of the ruling regime. Military takeover is also a feature of normalization.

In general, the whole subversion process takes 20 to 23 years to complete. But there is no specific timeframe. But I find it a bit hilarious because it is almost part of a political thriller's manuscript and it considers a whole nation as cattle stock. There are many competing interest groups within a nation and it is not easy to fool them.

Now coming back to Bezmenov's subversion technique. If we consider it in the context of Bangladesh, then we can see two major ideological shifts took place in Bangladesh: one in 1975 and another in 2009. Ideology dominating post-75 finally gave in in 2009. The demoralization phase lasted till 2006. Destabilization and crisis phase lasted till 2008. And in 2009 the so called normalization came.Then another demoralization phase started. Another ideological shift took place in 2024.(for more read "Bezmenov's Leak Still Relevant: From Awami Policing To Moral Policing", Rezaul Hoque,https://hoquestake.blogspot.com,September 11,2024, https://hoquestake.blogspot.com/2024/09/bezmenovs-leak-still-relevant-from.html?m=1).

Two years have passed since the July uprising. Justice has yet to be delivered to the victims of that uprising. And victims include victims of both the feuding parties. Chaotic atmosphere still prevails. Any kind of narrative building approach to dominate others only widens the crack. Accommodating all the views including the vanquished ones,like in a democracy, can lead to reconciliation. Resolving differences and bridging the gaps are keys to prosperity and stability.

Monday, August 3, 2026

Stop Policy Duality

Practising policy duality
Does not create same reality.

Govt backed dual system may be present in many areas. But exchange system is the area where it is present conspicuously and does much harm than benefit. Last week the central bank verbally notified all the banks not to trade US dollar above Tk 123.82 after the greenback witnessed increase in demand (for more read"BB imposes informal cap on dollar rates amid rising pressure",ASM Saad,The Business Standard, July 29,2026,https://www.tbsnews.net/economy/banking/bb-imposes-informal-cap-dollar-rates-amid-rising-pressure-1500561). Sudden rise in import bills caused the demand for USD to soar. In the foreign currency market, the USD is being traded at more than Tk 124 on some occasions. Govt is still following the crawling peg system, allowing the exchange rate varies between lower limit and higher limit with the difference with the market rate no more than a Taka. Yet setting another exchange rate is not unprecedented.

During the Awami League govt,we saw multiple exchange systems. Importers paid for dollars one exchange rate while exporters paid other exchange rate and remittance earners faced another exchange rate plus the incentive.The incentive was 5% initially and later reduced to 2.5%. Exchange system for the remittance was the highest offered by the govt including the incentive. Mr Ahsan H Mansur,the central bank governor during the interim govt,in an interview revealed that govt annually spent Tk 7000 crore to support the remittance incentive.

Having too many systems have downsides. Those who have access to subsidized official rate of USD could easily sell part part of the USD holdings in the unofficial market where the rate was high and made windfall gains. Credit was cheap back then as the central bank was pursuing a flawed 9% lending rate and 6% deposit rate. Money laundering soared. Part of the laundered money brought back under the cover of remittance,reaping benefits like incentive. So people with easy access to USD laundered it abroad and brought them home later to take the incentive money plus the extra money the exchange system offered for remittance. Police even arrested a chairman who turned out to be highest remittance earner in a given year and thereby highest recipient of the incentive. Even news reports showed parents of a student studying abroad stashed USD under floor. USD hoarding became a booming business back then.

Venezuela is perhaps the perfect example that shows the consequences multiple exchange system brings. Back in 2016 and 2017, the country introduced multiple exchange systems for foreign currency market. Politically connected rich people took full advantage of it. They availed the cheap subsidized dollar from the govt. Some importers also got hold of this cheap subsidized USD. Then they resold the USD in the black market where the exchange rate was staggeringly high. Importers found the arbitrage opportunity increasingly profitable. So they used a big part of the USD meant for importing essential goods to trade in the black market. Venezuela, which imports almost everything from abroad, witnessed shortage of essential goods as less goods imported. Bolivar was losing its value against other currencies. At one point, 1 Euro fetched 35000 Bolivars. This hyperinflation impoverished ordinary Venezuelans but enriched the elite of the society(for more read "Venezuela’s hyperinflation fuels misery for poor but enriches elite through currency exchanges",Jay Weaver and Antonio Maria Delgado,September 13,2018,Miami Herald, https://www.miamiherald.com/news/local/article217868465.html#storylink=cpy https://www.miamiherald.com/news/local/article217868465.html).

This is why multiple exchange and pegging currency at fixed value ignoring the market value is bad. And ultimately people pay the price for belated adjustment and correction. Foreign currency market often sees upward or downward pressure on major currencies, resulting from sudden import surge or record remittance inflow ahead of major festivals. In a bid to control currency exchange rate , any unconventional intervention like capping the rate through verbal notice is not desirable. By doing this kind of act govt is introducing some sort of dual policy into the system. It will ultimately benefit few but hurt a great lot of people. Apart from currency exchange, we see central bank plays a dual role in the credit market too. Central bank's policy rate was 10% and now it becomes 9.5%. Central bank in a latest move offered Tk 2000 crore at 7% interest rate to the people involved in leather industry. Earlier it had made subsidized interest rate offer to other sectors as part of the stimulus package, bizarrely managed by the central bank. Remember it is the central bank,not commercial banks, that offered this subsidized interest rate much below the inflation rate, which is still hovering around 9%. By offering such move, the central bank is undermining its policy rate and its inflation containing effort. And it is doubtful whether central bank can achieve the stated objectives from subsidized interest rate when high interest bearing assets like treasury bills may easily draw this money. While ordinary citizens and SMEs are paying higher rate of interest , policy duality creates opportunity for some people to make money through arbitrage.

Policy duality should be avoided. As it is seen,less accountable society has policy duality that ultimately hurts the ordinary citizens. If we are a democracy , then any kind of duality in policy should be discarded.

La Semaine Dernière A Mes Yeux



(01 août --- 07 août)

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Ma Semaine Gastronomique
Date Petit déjeuner Déjeuner Dîner Snacks,Sucreries,Boissons et Fritures
01 Pain,Pomme de terre,Œuf Pilaf,Poulet,Papaye-Banane verte Pilaf,Poulet,Papaye-Banane verte Goyave
02 Pain,Poulet, Œuf Riz, Épinard malabar,Papaye-Banane verge,Soupe aux lentilles «Tandoor bread»,Poulet Jaque
03 Pain,Pomme de terre,Œuf --- --- --

Tuesday, July 28, 2026

Foreign Currency Bond: A Cart Before The Horse

Foreign currency bond will set a new course,
Without true reform,this is just a cart before the horse.

News broke out that Bangladesh govt formed committee to issue bonds in foreign currencies across different international markets. Funds raised through such foreign currency bonds will be used to finance development projects(see "High Level Panel Formed To Assess Feasibility of Issuing Panda,other Foreign Currency Sovereign Bonds", Abul Kashem & Rafiqul Islam,Daily Business Standard, July 28,2026,https://www.tbsnews.net/economy/high-level-panel-formed-assess-feasibility-issuing-panda-other-foreign-currency-sovereign). This is the first time govt is exploring foreign capital markets to finance domestic initiatives.The news also says govt is mulling regulatory changes to allow purchase of such bonds by Bangladeshi nationals who under current regulatory set up cannot purchase such bonds.

Question is whether there is a drastic change in governance and macroeconomic indicators that [calls] for contemplating launch of such foreign currency bonds. The very same day this news came out another report says S&P Global Ratings revised Bangladesh's outlook on long-term sovereign credit rating from stable to negative. The agency attributed reasons for the revision to weak banking sector,poor revenue collection, external factors and high likelihood of delayed recovery (see "S&P Revises Bangladesh Outlook To Negative On Banking Sector,Fiscal Risks",The Business Standard, July 18,2026,https://www.tbsnews.net/economy/sp-revises-bangladesh-outlook-negative-banking-sector-fiscal-risks-1499791). The agency observed that non performing loan in the banking sector reached about 40% of total loans, govt revenue collection accounts for 8%-9% of GDP and interest payments represent 30% of govt revenue. That means revenue collection is still inadequate and more than a quarter of that revenue goes for paying up the the interest of govt debt.

In this backdrop, govt is pondering to draw money from foreign debt market. Govt is not increasing the pace of domestic revenue collection to meet the existing debt servicing obligation but embarking on issuing bonds that will require more revenue money to pay the interest/ coupon.

Proper use of the raised fund is another issue otherwise whole initiative will be jeopardized. Indonesia is an example. Foreign investors account for 14% of Indonesian govt debt and 40% [of] traded stocks(see "Patriot Bonds,An Indonesian Shakedown?", Philip Bowring,Asia Sentinel,October 06,2025,https://www.asiasentinel.com/p/patriot-bonds-indonesia-shakedown). Money raised through foreign bonds often goes to spending on public projects with inefficient outcomes and leakages. Free school meal program is marred with corruption as vendors ,contractors embezzled funds by submitting swollen bills and delivering poor quality food items that caused illness to the students. This kind of politically motivated projects plus subsidy already pushed up budget deficits beyond legal threshold of 3% of GDP,worrying foreign investors about sustainability of govt programs. They pulled out $3.9 billion from Indonesian market this year. Plus $46.1 billion of govt debt comes to fruition this year. This puts tremendous pressure on Indonesian Rupiah,which already witnessed [8%] depreciation against USD("Why Indonesia's Economy Is Under Pressure", Nik Martin, Deutsche Welle,July 15,2026,https://www.dw.com/en/indonesia-economy-prabowo-emerging-market-status/a-77847180).

Point is unaccountable public spending programs coupled with lack of regulatory checks may hurt the very spirit of the funding objective. In addition, when foreign currency bond will mature, it will put pressure on local currency Taka if macroeconomic situation is not in favor. Any rapid depreciation of Taka may result in worsening the inflation.

Foreign investors seek detail and clear information on bond issuer economy. They will certainly not bank on info like Bangladesh never fails to pay back its debt and its low debt-to-GDP ratio(38.9% according to CEIC data). They will certainly inquire about why the country fails to provide gas to the new factories. They will seek information about banking sector reform,distress asset management.Vital reforms should be carried out to draw attention of foreign investors to foreign currency bonds.

Indonesia's Patriot Bond allows undisclosed wealth to enter the economy. The govt even passed a law that says investors are not obliged to provide any info on investment on the bond that can be used to prosecute them later. Such provision is a boon for money laundering activity and poses risks for the financial sector(see "The Hidden Amnesty In Indonesia's Cut-Rate Patriot Bond",Ronny P Sasmita,Asia Times,June 24,2026,https://asiatimes.com/2026/06/the-hidden-amnesty-in-indonesias-cut-rate-patriot-bonds/). Bangladesh should avoid such provision in issuing foreign bonds. And greater transparency in issuing will thwart money laundering activity.

Without serious commitment to implement reform in financial sector, revenue collection and governance, the initiative of issuing foreign currency bond seems like cart-before-the-horse case. In this era of free-flow-of-information govt backed assurance will not convince the foreign investors to rest their trust on Bangladeshi foreign currency bonds. Deeper reform,fiscal prudence and accountable public spending may set the context for any such future initiative.

Monday, July 27, 2026

La Semaine Dernière A Mes Yeux



(25 juillet --- 31 juillet)

Cliquez pour voir/cacher
Ma Semaine Gastronomique
Date Petit déjeuner Déjeuner Dîner Snacks,Sucreries,Boissons et Fritures
25 Pain,Yardlong beans,Œuf Riz,Purée de sésame, Purée de feuilles de Moringa,Sec ruban avec haricot rouge et graine de jaque Riz,Sec ruban avec haricot rouge et graine de jaque Riz gonflé,Pois chiches ,Tchanatchur
26 Pain,Pomme de terre Riz, Latya poisson, Sec ruban avec haricot rouge,Feuilles de taro --- Riz gonflé, Pois chiches,Tchanatchur,«Pianju»,«Tchop»
27 Pain,Pomme de terre,Œuf Riz,Poulet,Feuilles de taro,Courge amère,Sec ruban avec haricot rouge --- --
28 Pain,Yardlong beans,Œuf Riz,Aïr poisson ,Sec ruban avec haricot rouge et graine de jaque,Courge amère Soupe aux champignons,Pain Mangue,Goyave,Malta,Sweets
29 Pain,Yardlong beans,Œuf Riz,Poulet,Courge amère,Soupe aux lentilles --- Riz gonflé,Goyave
30 Pain,Poulet,Œuf Riz,Poulet,Courge amère,Soupe aux lentilles --- Yaourt,Riz gonflé
31 Pain,Poulet,Œuf Riz,Aïr poisson,Feuilles de courge amère,Soupe aux lentilles,Papaye-Banane verte «Tandoor bread»,Papaye-Banane verte Lait

Tuesday, July 21, 2026

Empire Of Football

A navigating star called football
Connects cultures and mesmerizes all.

FIFA World Cup 2026,the greatest show on Earth,was over. Euphoria surrounding it subsided. But bondage,passion and connections the festival created do not wither away. This year too Bangladeshi football fans stole the show and became news items of world media. Rooftops in Bangladesh decorated with flags of Latin American countries. Fans from all walks of lives donned jerseys of Brazil,Argentina, Portugal and Spain. And their love did not go unrecognized! Brazil has an embassy here long before the Qatar World Cup 2022. After the World Cup 2022,Argentina reopened its embassy, which was closed back in the 80's, in Dhaka to show solidarity with the Bangladeshi football fans. Travel bloggers of both the countries visited the two countries and made special vlog on football love. In Bangladesh, Argentina, Brazil, France and US ambassadors acknowledged football love of the Bangladeshis before the press.

Just after the 2022 World Cup ,I wrote a piece titled "Latin America's Asian Colony" ,published here on December 23,2022, where I argued the crazy euphoria for football should have some meaning to know(see https://hoquestake.blogspot.com/2022/12/latin-americas-asian-colony.html?m=1). Bilateral trade with the South American countries grew manifolds in the last 5 years. But Brazil is way ahead of Argentina and dominates the bilateral trade with Bangladesh. In 2021,Bangladesh imported $1.74 billion worth of goods from Brazil and exported $90 million worth of goods to the country. In 2025, Bangladesh's import from Brazil grew to $2.64 billion and Bangladesh's export to the country grew to $190 million. Meanwhile, in 2021,Bangladesh [imported] $620 million worth of goods from Argentina and exported $10 million worth of goods to the country. In 2024, import from Argentina grew to $780 million and export to the country increased to $20 million.Bangladesh imports mostly sugar,cotton,oilseeds, wheat etc from Brazil. Meanwhile imported items from Argentina includes mostly soybean, sunflower oil,wheat, corn etc. Bangladesh mainly exports RMG, leather, leather goods,footwear etc to these countries (see "Argentina'r Cheye Brazil Egiye(Argentina Way Ahead of Brazil)", Shafiqul Islam,Daily Prothom Alo,p-6,June 28,2026).

This world cup also witnessed how ticket prices of [a] match varied with popularity and interest to the match. Resale opportunity and more interest to a particular match drove prices of ticket up. This dynamic pricing plus sponsorships and other fees swelled FIFA's revenue to $15 billion. FIFA plans to spend part of the revenue behind football associations of the poor countries.

Apart from revenue, no other sports generates so much pride and prestige. Besides the 2 million people gathered in Madrid to celebrate the return of the champions, hundreds of thousands of people descended into streets to welcome their football heroes in Cabo Verde,Egypt,Norway and other parts of the world. In Norway, Parliament and the Army performed viking row in solidarity with the Norwegian football team. Former UK prime minister Keir Starmer announced to call a day public holiday if England would win the world cup. Belgian Parliament asked for a probe on President Trump's alleged intervention in cancelling red card against US footballer Balogun. UK complained to FIFA,which do not allow political manifestation,about Argentine team's display of messages about Falklands. President Trump requested FIFA,according to some news reports,to host again the Football world cup in the US soil in near future discarding Canada and Mexico. In Bangladesh, during President Ershad's time, Parliament passed a bill denouncing referee's action against Argentina! I do not know any other sport that causes this much upending reaction at the national and international level.

This world cup is no short of interesting things. "Promise","Providence","La Margarita" are names of few players. I think in future world cups, we may see "Patience","Perseverence","Joy","Victory" will run on the football pitch! Kids barely know what football is perform victory moves of CR7,know Mbappé! Peruvian parents of the newborns are naming their children after the name of Scandinavian football star [Haaland] whom I thought a tall white came all the way from another world to help Norwegians win their first world cup! Local Bangla press is full at what [Haaland] ate daily: 4 scrambled eggs,yogurt, beef steak,chicken and many more things. God must be crazy that a Texan raccoon(stuffed) chased Braut [Haaland] all the way to Norway. Argentina brought 500 kg of Argentine beef to feed their players in the USA. A 400-foot long jersey is flying over the head in some neighborhood of Dhaka. Argentine footballer Antonino Rattín was behind the incident that saw introduction of yellow card and red card in football.

Despite so many goals, I think the pace of the match is held back by offside rules. In cricket, people go to field to see six and four are being scored at regular intervals. To make the sport more popular, International Cricket Council changed restrictions on field settings, introduced shorter version of the game. Nowadays T20 sees more sixes and fours. Similarly in football, people go to the field to watch more goals being scored. To make that happen, setting the number of offside is a must. Say, each side can have at most two offsides in a match. Number of player can present before the D-box can also influence the game. At the same time,making the game shorter will make the game more popular.30 minutes for each half and 15 minutes for extra time will seal the fate of the game in 1 hour 15 minutes instead of current 120 minutes!

Currently, China,India,Bangladesh, Pakistan, Indonesia do not play at the world cup stage. They are half of the world's population and their economies matter a lot. It is indeed a good news that FIFA is contemplating to increase the number of participating countries from 48 to 64. If that happens, then these countries will have greater chance to play in the world cup. Shorter version of the game will increase that chance even more.

Football is bigger than Olympic! No other sport draws this much crowd,causes this much sensation. It has a language and appeal that cross border and culture.In galaxy [Milky Way] if there is a planet called earth, then it has only one popular sport. It is called football.

La Semaine Dernière A Mes Yeux



(18 juillet --- 24 juillet)

Cliquez pour voir/cacher
Ma Semaine Gastronomique
Date Petit déjeuner Déjeuner Dîner Snacks,Sucreries,Boissons et Fritures
18 Pain,Gourde serpent,Œuf Riz,Latya,Épinard malabar,Soupe aux lentilles --- Mangue,«Chapli pitha»
19 Pain,Œuf Riz, Petit poisson, Purée de sésame, Purée de feuilles de coriandre Pois chiches,Riz gonflé Mangue
20 Pain,Œuf Riz,Gobie aux yeux barrés,Purée de graine de jaque,Purée de sésame,Soupe aux lentilles Pois chiches,Riz gonflé Mangue,Jaque
21 Pain,Œuf Riz,Latya poisson, Purée de sésame, Épinard malabar,Soupe aux lentilles,Tige de taro avec graines de jaque --- Mangue,«Sondesh»,Jaque
22 Pain,Œuf Riz,Gobie aux yeux barrés,Tige de taro avec graine de jaque,Gourde blanche,Soupe aux lentilles Cacahouète,Riz gonflé Goyave
23 Pain,Pomme de terre Khichuri,Poulet Riz,Sec ruban poisson avec graine de jaque Mangue,«Sondesh»
24 Pain,Gourde blanche,Œuf Riz,Sec ruban avec graine de jaque,Purée de feuilles de moringa,Purée de sésame,Soupe aux lentilles --- Mangue,«Sondesh»,Riz gonflé,Tchanatchur