英语论文网

in general suffer from endemic health problems. Approximately 53 percent of the population is illiterate. The major economic problems which faced by the Bangladesh are inflation, price stability, stability of democratic institution, level of socioeconomic development, low unemployment of resources, economic performance and so on. There is an economic indicator in (Appendix 2)

2.1 TROUBLE FACING BY BANGLADESH

Inflation

Higher price of products in international market happens from previous two or three years. The following are the explanations for higher price of products as well as decreasing the purchasing power of general people. Destructive activities of dishonest syndicates of the period of union (BNP-Jamat) government. Other than that, the investors are not financing in the country and showing signal that production will decrease in near future. For this reason, businessmen are not selling their products, storing products and creating scarcity of products to earn more money. For example, Production of rice is not as much as their expectation. Furthermore, Businessmen are not interested to import rice from abroad by investing a huge amount of money for the luck of confidence on caretaker government. Foundations are following the primitive institutional structure because care taker government has not taken any positive initiative to restructure institutional structures. Price of products has enlarged for the hindrance of supply. So, people are facing the problem of inflation.

Currency and Price Stability

The government has endeavored to control inflation. Since the 1990s the average inflation rate has been about 5.6%, remarkably low related to the second half of the 1980s, when the rate was about 8%. Inflation averaged 7.2% in fiscal year 2007, primarily due to rises in both food and nonfood prices. Among the main sources were domestic demand pressures, fed by higher incomes and strong monetary and credit evolution. However, after June of the same year, escalating international commodity prices, especially for food, were dominant, driving inflation to 11.4% (year on year) in January 2008. Near the end of fiscal year 2008 food prices diluted, thus allowing point-to-point inflation to drop to 7.5% percent in May.

The exchange rate remained stable, but progression in monetary aggregates has started to increase. Available reports show that money growth fell in mid-fiscal year 2008, but subsequently picked up again, with broad and replacement money growth exceeding 17% in May 2008. The government has developed a culture of stability that is intensely supported by the international donor community. But because of the volatility of the political process, there are hardly any institutional safeguards that would strengthen a free culture of stability.

Stability of Democratic Institutions

In principle, democratic institutions perform their functions. But the absence of a governmental culture of tolerance and compromise has prevented the proper functioning of democratic institutions. A key essential impediment to the institutionalization of democracy is the concentration of power, whether in the hands of one or two party leaders, in the case of parties, or one or two offices such as the prime ministers office for the state apparatus. In addition, political interference, patronage networks and widespread exploitation have weaken