Change Means More Choices,Not Less

True change does not mean less choices, Competition raises through regulatory practices.

Perhaps the biggest victim of the present govt is the regulatory environment. Since this interim govt has an apolitical look, bureaucracy responsible for operations of regulatory bodies does not feel urge to function them. Regulatory bodies continued routine work during political govt. Even that is somehow stopped. Consumers are paying the price. Regime change is supposed to bring more options to consumers, giving them some comfort.

Yet experience so far is completely opposite. Let me share some personal experiences. Recent earthquake exposed once again that the mobile internet is terribly slow in the country.Except one leading operator,all the operators provide slow internet since January 10,2024. I desperately contacted in vain BTRC earlier to improve the service of mobile internet. Product prices have gone up,but speed is terribly slow. As I tried to post my situation at home on that frightening day, I found how slow the thing is. They however offered me free minutes to call the dear ones later. Meanwhile ,operators blame the govt for taxing them too much: Tk22-28 [goes] to govt for every Tk 100 spent on mobile phone services, the operators claim. Till July this year, there was some sort of public hearing at BTRC,even that is stopped. The biggest inaction is seen from the Bangladesh Competition Commission(BCC). It seems to stop functioning.

The dairy products of the local shops are overwhelmingly dominated by two brands: a govt-backed cooperative and an NGO-run subsidiary. [Govt-run] cooperative is still there because money can be appropriated without any accountability and a trade-union like atmosphere exists. The NGO-run subsidiary is there because they have other businesses in the neighborhood: Mobile Financial Services (MFS), microcredit business. These allow them to influence the local business environment and the supply chain. Microcredit agencies do not pay taxes. But the dairy brand does pay taxes.

This is where we badly need intervention of BCC. Those who are involved in credit/capital management businesses should not engage in any other business at all. In the USA, we do not see Citibank has a food subsidiary, tech company or an university. Even if it does have any,it should not possess a significant market share in the respective industry. Most of these subsidiaries control more than 50% market share at home. As the winter arrived, to my surprise, I found that only butter brand available at the local shop is that of NGO-run subsidiary. I do not have any issues with the brand. But I want more options. More choices mean more competition, low price, better quality. That is not happening around me.

Sometimes regulatory body feels awkward when top military bureaucrat's dear one,some advisors have lucrative professional engagement with NGO-run subsidiary.

Point is BCC does not need to wait for any complaint, it can intervene immediately whenever it sees capture of significant market share by a company, violating competition and consumer rights.

Consumers are paying the price from their pockets. Last year a tyre factory owned by a former ruling party MP witnessed vandalization. The tyre brand went out of the business, hiking the prices of tyres in the local market. The void is still not filled.

Another businessman cum politician,now in jail, owns a pharmaceutical company with global reputation and it had easy access to all the neighborhoods when Awami League was in power. Now some of its medicines are no more at the local market. Some of them are cheap and good in quality. So patients are forced to purchase the costly options.

The issues here are: first,it is indeed bad idea to finance lucrative businesses of politically exposed individual. Beximco's acquisition of GlaxoSmithkline operations here could have been stopped at the first place. It is a serious regulatory failure. Second, in the change of events ,regulatory body's intervention is needed to smooth operation of the troubled companies so that consumers do not get hurt and competition prevails.

Another business group currently under scrutiny for plundering a bank and laundering money abroad, is attempting to promote a new food brand. At one hand, authority remained mum when it plundered a bank. On the other, authority allows it to venture upon new businesses while taking a complete opposite stance against other groups with opposite creed. This kind of double standard should be avoided. Govt needs to mull about greater good of the consumer and business environment and its subsequent business should reflect it.

Competition and consumer rights are always less prioritized issues for any govt. By fixing the two , we could fix many issues including the political ones. Unfortunately regulatory bodies take a hit instead of becoming more active during the interim govt. I highlighted here before in many pieces(See"Growing Unease:Revenue & Inflation" published here on December 06,2024), companies and institutions that have capacity to mobilize resources at the ground and have political aspirations should be subject of intense scrutiny and regulations*. Somehow conflict of interest and inaction of bureaucracy hold back the regulatory body to function properly. Competition at the market cannot be ensured unless the regulatory bodies do the routine work regularly. I think the constitution and the Parliament should empower the bodies so that a fair play ground prevails for all and consumers can get more choices. Any true change means more choices,not less!

[*Update: this piece is updated by me on November 25,2025 at 9:10 AM Bangladesh Standard Time. Update includes reference to seeking regulations on institutions that have huge capital and political aspirations.]

Trust The Micro Lenders

Govt backed Social security program ,
Seldom reach village & slum.
Micro lenders doing great job,
Helping borrowers hit by disaster.
Setting shining example in the globe.
Yet calamity hobbles their operation,
Hampering the process of resource creation.

There is little doubt that Coronavirus will leave an anemic economy. There has ,however, been little plans afoot to bring life to vital sectors of the economy with the help of others. Government initiated some local level social security programs without bringing aboard the non governmental organizations. Government-backed social security programs seldom trickle down to target group of people, a view pretty popular among ordinary citizens.

There may be some truth in it. Back in November and December last year, I interviewed 40 rickshaw pullers to grasp well spending and savings behavior of Dhaka rickshaw pullers. When I asked them whether they received any social security benefits from the government, I got three affirmative responses. One got rice from vulnerable group feeding program, another's father received old age benefit and one rickshaw puller's wife got lactating mother's benefit. All three had closer ties with local government representatives: one's relative was union parishod member, the other two had links with ruling elites. So three out of forty rickshaw pullers received government sponsored social security benefits. The forty-respondent strong study may not representative but is an indication how ineffective the government social security program is.

Meanwhile, micro-lending institutions are far more helpful in post disaster periods. In that study, one rickshaw puller, hailing from Borishal, told me one leading microcredit institution gave him, an existing borrower, a calf to recuperate the loss he sustained in Sidr. It is also important to note that a huge section of beneficiaries are women and bottom rung of the society, who generate resources in the economy by raising livestock and sharecropping.

Despite a sustained effort to cast aspersions on microcredit institutions, they are doing a commendable job to scale up the have-nots and accelerate the economy. However, disasters also hobble their operations and seriously harm empowerment of the poor. Microcredit institutions are vital to provide any economic support to the marginalized and vulnerable population.

Recently, I embarked upon to look at disaster year's influence on microcredit operations of three leading microcredit institutions. Data for the period 2005-2018 gathered from Bangladesh Economic Review. Disaster years were political or international or natural disasters that hurt the economy.

Durbin-Watson statistic for ASA and Grameen reported no autocorrelation. For 14 observations and 1 explanatory variable, ASA had a statistic d= 1.695 and Grameen's statistic was d = 1.716. However, for BRAC, it fell into indecisive zone (d = 1.048). Modified d test was found to have positive autocorrelation (d= 1.084< d_u= 1.35).

For ASA and Grameen , following regression functions were constructed:

lnDisb_t = b₁ + b₂Rec_t + b₃D_t

Where lnDisb_t = log natural of disbursement at t,
Rec_t = Recovery at t,

D= 1 for disaster years,
= 0 for calm years.
And for BRAC, following regression function was chosen:

Disb_t = a + b D_t + c Rec_t + d D_t Rec_t
+ u_t

where Disb_t = Disbursement at t,
Rec_t = Recovery at t,
D= 1 for disaster years,
= 0 for calm years.
and u_t was generated through AR(1) scheme:

u_t = u_t-1 + e

Since BRAC data had positive correlation, transformed function was constructed. From known P, I derived (Disb_t - PDisb_t-1) as regressand and (Rec_t - PRec_t-1) as regressor. This approach was resulted in loss of 1 observation for both. Prais-Winsten transformation (√1-P² Disb_t and √1-P² Rec_t ) was done to prevent it. For calm years, values of D were zero. But first observation of disaster years was set 1/(1-P) and 1 for the rest of the disaster years. D_t Rec_t
was zero for the calm years. First observation for disaster years was assigned D_t Rec_t
= Rec_t and all observations were assigned (D_t Rec_t - D_t Rec_t-1) = ( Rec_t - P Rec_t-1)
The resulting functions appeared to be:

ASA: lnDisb_t = 8.99 + 0.0000067Rec_t - 0.144D_t (F= 2.588, p= 0.12) (t=35.70, p=0) (t=2.27, p= 0.043) (t= -0.42, p= 0.67)
Grameen: lnDisb_t = 9.083 + 0.00012Rec_t - 0.0038D_t (F= 67.85, p= 0.0)
(t=73.07, p=0) (t=11.53, p= 0.00) (t= -0.038, p= 0.96)
BRAC: Disb_t = -0.506 - 37.214 D_t + 1.112 Rec_t + 0.0037 D_t Rec_t (F= 506.9, p= 0)
(t= -0.001, p= 0.99) (t=-0.125, p=902) (t=18.63, p=0.00) (t=0.061, p=0.95)

The model fit well for BRAC. However, differential intercept and differential slope coefficients were found to be insignificant. Had the differential intercept coefficient been significant, we would say that BRAC's disbursement of microcredit during disaster years was lower by Tk 37.214 crores.

Regression model for Grameen fit well at 5% level of significance, as reported by F. Meanwhile, it did not fit well for ASA at that level of significance. However, slope coefficient for dummy variable for both the model did not appear to be significant. Had it been significant, we would say Grameen's disbursement for disaster years was 0.38% lower than that of normal years and ASA's disbursement for disruptive years was 13.45% lower than that of normal years.

It is evident that disruption resulting from various forms of disasters has harming effect on microcredit operations. This may affect economic activities of have-not communities.

Since microcredit institutions scattered all across country and they have a large borrowers' base, post disaster efforts will be better implemented with their help. Misappropriation will be lower if the fund is distributed through them. At the same time, more government money should be injected into microcredit institutions so that microcredit operations, or economic activities of the have-nots, do not get affected by Coronavirus. Money at the hands of Have -nots and marginalized groups means resource creation, leading to increase of GDP. And microcredit institutions are leading the way in terms of resource creation.

La Semaine Dernière A Mes Yeux

(13 décembre ---- 20 décembre)

Selon un reportage, incendie dans une usine d' éventail a tué 10 personnes à Gazipur. Plupart d' ouvriers sont morts asphyxiés au 3 ème étage.

Selon un reportage, le bilan de mort  depuis l'incendie à Keraniganj a augmenté à 19 personnes.


Selon un reportage, le gouvernement a publié une liste de collaborateur, pleine d' erreur. La liste a tellement heurté des guerriers de la guerre de 1971. Des manifestants ont aussi demandé démission de ministre responsable.

Selon un reportage, police a arrêté deux agresseurs après ils avaient tenté de violer une voyageuse étrangère à Cox's Bazar.

Selon un reportage, le fondateur de la plus grande ONG du monde est mort. BRAC est aussi la grande organisation microcrédit qui lutte contre la pauvreté au Bangladesh. Il a aussi créé BRAC Bank et BRAC Université qui a mis le premier satellite en orbite.

Spare The Cane, Correct The Commerce

What has started as a mere drive to protect consumers' rights develops into debate that demands attention and further discussion. As soon as the Ramzan started a drive led by a government agency to oversee violation of consumer rights was initiated. One of the officials came to the attention of the media after he had fined top beauty parlors and shopping mall. There are no short of panegyrics for him. But it was his action against country's top fashion outlet, which maintains a well-organized supply chain of handicraft items, that provoked a debate, opening new avenues for serious thought.

He fined the outlet because it sold one kind of panjabi at two different prices in a week. Owners called it "human error" and apologized to people. But the misogynist official broadcast his actions on his social media account and even gave interviews to private TV channels. Soon news broke out that he had been discharged from his duty. The decision was made prior to his drive against the fashion outlet. But sympathy for him deluged the social media and his removal was attributed to the foul play by the outlet. Alerted by the reactions, a minister came forward to tell the press that he had been reinstalled. But decision and counter decision did not stem the debate but left many questions unanswered.

In our country , public officials face some restrictions while giving frank views and opinions to the press. They usually need superiors' nod. Has there been any change to such rule? If not , then how could he appear before the TV and broadcast his actions on Facebook?

Most of his victims are non partisan brands and many are run or operated by women. Some of the charges were whimsical. For instance a renowned beauty parlor was fined because it kept imported goods that had no validity date. For that reason, he slapped exorbitant fine to the parlor. The fashion outlet in question is run by world's largest NGO. It is also country's biggest marketplace for numerous  local artisans scattered across the country. Most of the profits earned have gone to support social and developmental programs run by this NGO. NGOs have a tough time during the tenure of this government.

The drive did not insinuate a conspiracy theory. But given the type of entrepreneurs who bore fully the brunt of this campaign , it would not be exaggeration to call it a publicity stunt.

The timing of the drive also calls into question the motive of this drive.The drive disported the people but disquieted the business community. This kind of trumpeted campaign cannot be seen throughout the year. Just a year ago similar campaign at a mega shopping mall during the Ramzan brought forth the issue. Back then, a raiding team seized cache of mobile phones from a mobile shop. Ramzan is the month that accounts half or quarter of the annual sales of boutique shops and markets. Retailers often hoard imported goods sold by migrant workers and these goods do not have any valid documents. Furthermore, businessmen have tendencies to stock goods due to the surge in demands in this month. Just imagine how much a mobile shop owner could stock in this month. Now should it be punished for illegal hoarding?

In a corruption-stricken country where businessmen are paying unofficial levies to stalwarts, men-in-uniform and functionaries regularly, they can only stay at the business by compromising consumers' rights. This is perhaps the case in Bangladesh.

In a country where party apparatchik and former foot-soldiers became editor ,owner  of media and journalists , there have been growing tendency to portray business community as "blood sucker", "money making machine" and "super normal profit maker", this vilification made a banal impression among consumers about them.

To my dismay, I noticed none of businesses associated with parties or defense establishment were touched. Eventually the motive of such drive came under closer scrutiny.

I am not against this kind of drive. But it was not done in an even handed way. And vindictive behavior may soil its fruition. Such harsh measures may lead to dishonest practices at a later date to recuperate the "loss" the businessmen incurred during the drive. So instead of improving consumers' rights this kind of action may further worsen it.

I also noticed this kind of drive was blind to the roadside illegal markets that generate steady-stream of revenues to cadre-based parties. I have no issues with such market if it really lifts a person out of poverty. Last year I noticed a recruitment advertisement of an SME financing company operated by a principal law enforcement agency. How could a state organ that is supposed to  do a certain task run such business that may lead to contradict the very objective it is designed to do? If microcredit institutions or SME financing companies were to finance the markets then there would be no issues until they operate within some legal framework. But recently we witnessed incidents of attacks against grass-root level workers of microfinance institutions and mobile financial services. This is more true for the high-end garments boutique owner NGO that also operates a mobile financial service.

Another thing that came to the light is that we really do not have any standard of consumer goods, rating of businesses. It will be wrong to treat a family run business with that of a conglomerate, to equate a street food seller with a posh restaurant , to compare the services of a chain boutique shop on a per with those of a retail clothes seller. It is unjust to expect hygiene and services exist in developed country from a local restaurant and retail shop as we do not see and practice here the degree of governance  prevails in those countries.

Many developed countries in fact are on the verge of changing the rules to make business economically viable and to better use of resources. For instance, France is making a law that requires unsold nonfood goods closer to the end of their shelf life be banned from destruction and be recycled , reused and remade. Not all parts or ingredients become redundant after a certain period. Some of them could be reintegrated into the production process. This is called smart policy making. Bangladesh should take cue from France.

Before securing consumers' rights, we need to rank our businesses, to rationalize quality standards of goods and services.We need to introduce Corporate Governance Index.For that a dialogue is needed between government and guilds and between consumers and guilds.

Comeuppance and severe chastisement cannot often achieve the desired goals.Failure of two-year-long caretaker government is the stark reminder. It tried to cleanse corruption from politics and business through heavy handed methods. The ensuing result is shocking: old habit did not die , in fact, turned worse and our banks and share market were literally plundered.Innovative ways can be explored eschewing harsh methods. At the end of the day, it is the objective that matters most and if it is achieved by employing mean that inflicts no collateral damage then that is the best alternative mean.