Mukti

Political business cycle in Bangladesh

Posted in economics, governance, political economy, politics by jrahman on October 10, 2015

While looking for something else, I recently discovered that in 2013-14 financial year, Bangladesh government’s current expenditure — that is, money spent on salaries, procurement, subsidies and loan repayments — increased by 0.8 per cent of GDP.  On top of that, government investment also increased by 0.7 per cent of GDP.

That is a lot of spending.

Now, I haven’t been following economic and policy developments in as much detail as in the past, so I may well have missed great policy initiatives that underline the apparent spending binge.  But according to the work of IMF’s Christian Ebeke and Dilan Olcer of Riksbankrise in government expenditure of that magnitude is not uncommon in election years in developing countries.  More worryingly, they show that this kind of binge usually ends badly.

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Leaders

Posted in democracy, governance, institutions, politics by jrahman on August 30, 2015

If only we had the right leader….

If only Bangabandhu (or Zia) had lived….  

If only we had a Mahathir….  

I am sure you can finish the sentence with all sorts of claims about how Bangladesh would have been, or could still be, a much better place with better leadership.  Never mind the fact that all things considered, Bangladesh might actually have done more-than-okay.  To many of our chattering classes, we’re doomed because we haven’t been blessed with the right leader.

How much does leadership matter?

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Illiberal development

Posted in democracy, development, economics, governance, institutions, politics by jrahman on June 15, 2015

A few years ago, Vietnam was the rage among the Bangladeshi chatteratis who hobnobbed in the development circle.  Look how they have forged ahead under a strong, patriotic leadership, while we languish behind because of our corrupt, venal political class — that was the refrain.  Of course, anyone who knew anything reasonably detailed about both countries would have their eyebrows raised by that.  I have vague recollection of writing something for Zafar Sobhan on this, but can’t find any link anywhere.

In any case, who cares about facts in Bangladesh?

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Politics in the Star Wars

Posted in action, Drama, governance, movies, politics, sci-fi, TV by jrahman on January 28, 2015

No, not the politics of the Star Wars saga — been there, done that in what seems to be a long time ago….. (oh, the Daily Star archives don’t work! — note to self: must do something about old articles.  No, not the politics of the star wars, but politics in the star wars, to be precise, in the upcoming trilogy.

A few weeks ago, there was a debate about whether the new movies should dabble in politics.  I think I should note my thoughts about this very important matter.

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Surviving the white crow

Posted in Bangladesh, democracy, economics, governance, macro, political economy, politics by jrahman on January 20, 2015

Nassim Nicholas Taleb popularised the term ‘black swan’ in his 2007 book.  It comes from the Latin expression rara avis in terris nigroque simillima cygno, meaning “a rare bird in the lands, very much like a black swan” — they didn’t have any black swan in Europe, and thought swans must be white.  That notion changed when the Europeans came to Australia.  Taleb pithily summarises his thesis as:

What we call here a Black Swan (and capitalize it) is an event with the following three attributes. First, it is an outlier, as it lies outside the realm of regular expectations, because nothing in the past can convincingly point to its possibility. Second, it carries an extreme ‘impact’. Third, in spite of its outlier status, human nature makes us concoct explanations for its occurrence after the fact, making it explainable and predictable.

In Bangladesh, perhaps we could think about ‘white crow’ events — our crows are black, we think crows must be black, but of course there are white crows Down Under.

Taleb’s work gained much popular acclaim after the 2008-09 financial crisis.  The thing about black swans / white crows, however, is that they are hard to predict ex ante.  That’s Taleb’s first attribute.  As such, for analysts and policymakers, it might seem that Taleb has little of practical value to offer.

His subsequent work seeks to address this concern.  In a widely read Foreign Affairs article*, Taleb and a co-author argues:

Thus, instead of trying in vain to predict such “Black Swan” events, it’s much more fruitful to focus on how systems can handle disorder—in other words, to study how fragile they are. Although one cannot predict what events will befall a country, one can predict how events will affect a country. Some political systems can sustain an extraordinary amount of stress, while others fall apart at the onset of the slightest trouble. The good news is that it’s possible to tell which are which by relying on the theory of fragility.

…..

For countries, fragility has five principal sources: a centralized governing system, an undiversified economy, excessive debt and leverage, a lack of political variability, and no history of surviving past shocks.

How does Bangladesh look through the prism of Taleb’s theory?  I’d argue we should be at least concerned about the possibility of things falling apart, though there are also things to be hopeful about.

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On the edge of order and chaos

Posted in democracy, governance, politics by jrahman on January 27, 2014

It seems that every man, woman, child, their pets, even their Apple devices seem to have an opinion on what BNP should have done.  Well, I am not going to add to that volume.  I don’t presume to lecture politicians who have been practising their craft since before I was a twinkling in my parent’s eyes on what they should have done.  I can, however, revisit what I wrote exactly halfway through the Awami League’s last term, and make an educated guess about how things could unfold from here on.

… there are good reasons to expect an AL win in 2013 election.  What happens then?

… AL may well win the 2013 election, but its ability to hold on to power and govern successfully will depend on four key powerbrokers in Bangladesh: the bureaucracy, the army, foreign powers, and the business sector.

That’s what I wrote in July 2011.  To be sure, I got a lot of things wrong.  Follow through the links and you’ll find that I was fearing that a fragmented BNP would hand Awami League a narrow victory in a flawed election.  The reality is that while BNP was more united than at any time in its history — not a single member of any standing left the party to join the 5 January election — and might have won any semi-decent election in a landslide, Mrs Wajed decided to hold an election that surpassed the 1996 or 1988 farces to rival the 1971 ‘by elections’ held under Lt Gen Niazi.

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সাতকাহন

Seven trashes collected by the senses.

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সাতকাহন

Posted in Drama, economics, governance, history, Islamists, macro, micro, movies, politics, South Asia by jrahman on March 8, 2013

Seven trashes collected by the senses.

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সাতকাহন

Seven trashes collected by the senses.

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সাতকাহন

Seven trashes collected by the senses.  Well, bonus holiday edition of 20 trashes.

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