Essay Writing: The impact of Russia-Ukraine conflict on the economy of Bangladesh.

Created: 1 year ago | Updated: 11 months ago

The impact of Russia-Ukraine conflict on the economy of Bangladesh

Since the war between Russia and Ukraine began on February 24, 2022, the global economy has entered a new terrain of uncertainty. The war-induced challenges have surfaced on various fronts. With global economic integration, a crisis of such nature, which involves a country like Russia, is bound to impact other economies. Major countries including the US, the UK, Japan and the European Union (EU) have all suspended economic ties with Russia. Sanctions have been enforced on the Russian financial institutions with the objective to disrupt transactions with the country. As Russia is the third largest oil-producing country in the world, the global economy is suffering as a result of high oil prices. Though developed countries are sourcing their requirements from other oil-producing countries, small and poor countries are finding it difficult with their limited financial abilities to meet their energy requirement. In addition, high oil prices have a knock-on effect on other prices, leading to further inflationary pressure.

Bangladesh is already feeling the heat of the Russia-Ukraine war in many ways. If the war continues for a longer period, the impact will intensify. We are feeling the impact through reduction in exports and rise in import bills. Being an oil-importing country, Bangladesh is already feeling the pressure through high import payments. It was reported earlier by the Bangladesh Petroleum Corporation (BPC) that it was losing about Tk 19 crore per day. With high oil prices, the chain effect is felt through a hike in the prices of gas, fertiliser, and other essentials. The government raised diesel prices in November 2021 by about 23 percent, which has already been reflected in the market through the high transport costs and prices of other essential items.

In addition to fuel prices, costs of other imported products have also gone up significantly. This will push the production costs up, resulting in higher prices for the consumers. Global sanctions on Russia implies that Bangladesh's trade with Russia is going to be affected. Russia is a market for Bangladesh's ready-made garment (RMG) products. In FY2021, Bangladesh's export to Russia was to the tune of USD 550 million, and import from Russia was USD 480 million. Bangladesh imports wheat and maize from Russia. Sanctions mean Bangladesh will have to import these items from somewhere else.

Russia is also implementing several projects in Bangladesh. The Rooppur Nuclear Power Plant (RNPP) is a large project being implemented by Russia that involves USD 12.65 billion and is scheduled to be completed by 2025. The ongoing war and economic sanctions against Russia could delay this expensive project, which means cost escalation in Bangladesh. This implies higher loans and burden on the country.

The balance of payment will be under pressure due to high prices and trade sanctions. At the end of January of FY2021-22, the current account deficit reached USD 10 billion as there was an increase in import payments and reduction in remittances. If high current account deficit persists for a longer period, the exchange rate will also fall under pressure.

It should be kept in mind that the impact of the war will continue for some time, even after it is over, since it will take time for the economy to recover from the damages. Therefore, countries will still be feeling the impact of the crisis for a longer period, and thus should be prepared for that.

The policymakers in Bangladesh will have to monitor the market closely. The country should quickly source commodities from the global market at competitive prices and distribute essential commodities at reduced prices through open market sales. Prudent macroeconomic management should be followed to create fiscal space. As the government is in the process of formulating the budget for FY2022-23, it should allocate adequate resources for social safety net programmes at a larger scale for the poor and low-income families. In this respect, subsidies for critical commodities, such as fuel, power and agriculture, need to be continued for a few months. The economic recovery will depend on the extent of public expenditure. However, waste of public resources and unnecessary public expenditures should be curtailed. Efforts should be given to expedite projects that are near completion, rather than initiate new ones. The government should carefully use its foreign currency as the import payments continue to rise in the uncertain period of war and beyond.

9 months ago

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“Health for all” implies the removal of the obstacles to health that is to say, the elimination of malnutrition, ignorance, contaminated drinking-water, and unhygienic housing quite as much as it does the solution of purely medical problems such as a lack of doctors, hospital beds, drugs and vaccines. Health for All in Bangladesh contains the most comprehensive information available about primary health care services in Bangladesh, including activities in maternal and child health care, Family planning, reproductive health care, nutrition, quality of care, and health care financing.

7 months ago

Cluster Villages

 

A majority of the Bangladesh population are farmers who are settled in villages. They toil to make both ends meet and produce crops for the entire nation. Bangladesh has about 68,000 villages, which are scattered throughout the country.  A village is called the rural part of the country. It is called rural because it does not have modern facilities like cities. The main occupation of the villagers is farming. They are the primary source of the nation's agricultural production.

 

Description of Villages

Villages have either tiny hamlets of thatched huts or large settlements of tiled roofs, stones, and brick homes. An impression has been created by artists and filmmakers that an Indian village is a simple cluster of mud-plastered walls, shaded by trees, overlooking the large expanses of green fields with a few people moving slowly and of course, bullock carts. They portray a village woman with a pot on her head and walking gracefully, her skirt swaying gently. The reality is that a village is the hub of nonstop activity, with their stronger work ethics. Agriculture is tough and requires hard work. The villagers work very hard and are always trying to find innovative methods of growing wheat, rice, and lentils. 

 

Importance of Village

The village is important because it is the primary sector of agricultural production for our country. The village is the backbone of Bangladesh economy. It also plays a major role in maintaining the ecological balance of the environment. Villages are mostly covered with trees and plants. They are covered with green grasslands. One can see acres of green fields as far as the eyes could see. They provide shelter to many animals. 

Life in Village

The village life is full of contentment and happiness, as people are not in a hurry like in city life. Village people live a very simple life. Villages are mostly situated far from the hustle and bustle of urban civilization. The beauty of nature can be experienced in a village as it is surrounded by trees, flowers, mountains, streams, and farmlands. There is no pollution in the village and one can feel the freshness in the breeze. The demands of the villagers are not too high but they are still deprived of basic facilities. Clean drinking water, electricity, health center, schools, proper sanitation are a few facilities that are lacking in the villages. Their poverty is always visible in the atmosphere. 

Conclusion

My village is a small abode for happy people.  Here they live in harmony and peace. The village people are very hardworking and thus they must have a good source of upliftment. Like the village’s schools and clinics should be maintained and increased in number. The farmers should be facilitated by helping them to leverage their sales, make them notified about the modern techniques used in farming, and give them compensation and knowledge of the true market price of their crops. Thus, I would request governmental authorities to come forward and uplift the medical, educational, and farming facilities in the village.

7 months ago

Problems of urban living in Bangladesh

Cities in Bangladesh are faced with the challenges of rapid population increase characterized by crises such as lack of economic dynamism, governance failure, severe infrastructure and service deficiencies, inadequate land administration, massive slums and social breakdown. However, urban centers continue to grow, despite the severity of these obstacles. As a result, urban areas in Bangladesh have exceptionally high population density, but relatively low economic density. High population density, combined with rapid urbanization, implies a large and fast-growing urban population to manage. Dhaka city, the largest urban conurbation in Bangladesh, is one of the most densely populated urban areas in the world. However, the economic density of Bangladesh’s urban areas (GDP or value-added per square km) is relatively low from an international perspective. Economic activity is concentrated in Dhaka and Chittagong. About 9% of the Bangladesh population lives in the Dhaka metropolitan area, which contributes to 36% of the country’s GDP. An additional 11% of the Bangladesh GDP is generated by Chittagong, the second-largest city and home to 3% of the population. The economic gap between Dhaka and Chittagong compared to other medium  and small-size cities is large and widening.

 

Bangladesh needs to build an urban space that is capable of innovating, is better connected and more livable in order to make cities competitive. Bangladesh’s urban space is falling behind in all three of these drivers of competitiveness. The Dhaka metro area needs to evolve into a diversified economy with skilled human resources and an innovation capacity fueled by the cross-fertilization of ideas typical of large metropolitan areas. Dhaka metro area also needs to be better connected internally and with its peri-urban areas, and both Dhaka and Chittagong have to strengthen their connection to the global economy. Improved connectivity within Bangladesh’s system of cities is also important for productivity and export competitiveness. The development of an economically dynamic urban space, in particular in the Dhaka metro region, has occurred at the expense of livability. The livability of the urban space will become an even more binding constraint to sustained growth as Bangladesh transitions to a new business model based on higher-value industries and services, which need a highly skilled and internationally mobile workforce. This  is a tall order for Bangladesh, but planning needs to start today for Bangladesh’s cities to become more competitive in future.

 

Urbanization have crucial role to play in the economic development of Bangladesh. The circumstances under which population in Dhaka and Chittagong are growing without proportionate infrastructural development will begin to wipe out most of the gains associated with urbanization. That is, relative high levels of urbanization may not be sufficient to ensure higher levels of economic welfare in Bangladesh. This has happened in Latin America with levels of urbanization, above 80%, yet with real per capita incomes about a third that of developed nations. It could happen in Bangladesh as well unless the urban managers rise from their prolonged slumber.

7 months ago

My school days

School is said to be a temple of knowledge, the very first place that introduced you to the world and more so your own self. My school life is all about the memories I deeply cherish. The memories of not only the fun, friendship and all the sport and extracurricular but also the way it helped me find my interests. I owe it all to my school life. It has made me who I am today.

My school life has been full of different experiences over the years. It gave various opportunities to develop not only my scholastic abilities but also the art and sport side. It supported me in my sports as well as exposed me to numerous types of people. All of this accounted to make me understand how to behave socially and in building a personality which I have today.

There are numerous things that make school life the best phase in one’s life. All of this eventually is because we are young to do mistakes again and again till we realize, dumb enough to not think about people and do what we feel like doing, curious to know everything we can and most importantly still not exposed and contaminated with the evil feelings of this world. And all of this makes us build a personality of our own.

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