Bangladesh provides Taka 650 million to Sudan as a grant.

[F-6 enthusiast]

"Sudanis"

Double entendre le extraordinaire!

read this post again and realised !
@Destranator is a comedy Genius !

 

[VikingRaider]

@Destranator, @SpaceMan18, @F-6 enthusiast, it's not me , but this article suggested that.( I have created a thread based on the article. So actually i got the idea from the article.) .

Helping others is responsibility and not everyone can take the responsibility. Thank you.

https://defence.pk/pdf/threads/a-rising-bangladesh-starts-to-exert-its-regional-power.713943/

A rising Bangladesh starts to exert its regional power | Lowy Institute

Dhaka is increasingly confident in an emerging role. The rest of the world would benefit to pay close attention.

www.lowyinstitute.org

 

[bluesky]

Maybe BD should hire PDF clowns to represent us at the IMF where they would scream "BD SLAVVV!!" , "BD gEoPoLiTiCaLlY iNsIgNiFICaNT!!", etc. in order to dissuade IMF from forcing BD to donate/lend again.

IMF certainly does not force any country. However, with all its own poverty, BD has quite a large pool of foreign exchange overseas. So, a few million dollars will not create a dent.

It is good to see BD using this money to help a country now poorer than us. Actually, BD should try to produce more foods that can be used to help others in a dire situation.

However, with even a bountiful nature, BD remains a food-deficient country.

 

[Destranator]

What happened to Sudan tho ? i thought they have oil money (although oil prices have fallen).

Sudanese economy has always been a mess. Lack of industrialisation has always haunted them.
Oil exports have never been large enough to make them wealthy.

 

[SpaceMan18]

Sudanese economy has always been a mess. Lack of industrialisation has always haunted them.
Oil exports have never been large enough to make them wealthy.

We also have a lack of industrialization , thank Allah we don't have that much oil

 

[Destranator]

We also have a lack of industrialization , thank Allah we don't have that much oil

Sudan is on a different level. Although our exports are dominated by a few products, Bangladesh is nearly self sufficient in many areas (e.g.-food staple, pharma, some white goods, etc..) despite the crazy overpopulation.
Before @bluesky gets angry at me, I am not excusing our lack of industrialisation in any way. Just stating the difference.

 

[Destranator]

IMF certainly does not force any country. However, with all its own poverty, BD has quite a large pool of foreign exchange overseas. So, a few million dollars will not create a dent.

It is good to see BD using this money to help a country now poorer than us. Actually, BD should try to produce more foods that can be used to help others in a dire situation.

However, with even a bountiful nature, BD remains a food-deficient country.

Well then you do not know IMF very well. They are master manipulators. They force aid dependent countries to cut subsidies, float exchange rates, raise utility prices, etc.. I don't know of any other donor other than WB being this invasive.

I am not opposed to helping other countries. My issue is with us being complacent and thinking we are some sort of economic power already riding off the back of jangiya exports.
Our forex reserve of $45b is not that large if you consider the fact that our annual import bill is $51b+, i.e., if we have a major disaster such as a major earthquake, we will run out of foreign currency in no time due to disruption in exports and emergency import of expensive disaster supplies (equipment, food, medicines, etc.).

Food deficiencies can only be solved by mechanising firming at the cost of medium term rise in unemployment.

@Destranator, @SpaceMan18, @F-6 enthusiast, it's not me , but this article suggested that.( I have created a thread based on the article. So actually i got the idea from the article.) .

Helping others is responsibility and not everyone can take the responsibility. Thank you.

https://defence.pk/pdf/threads/a-rising-bangladesh-starts-to-exert-its-regional-power.713943/

A rising Bangladesh starts to exert its regional power | Lowy Institute

Dhaka is increasingly confident in an emerging role. The rest of the world would benefit to pay close attention.

www.lowyinstitute.org

Brother we should apply our judgement instead of getting giddy with such fluff piece articles.

I support helping others but refuse to call ourselves any sort of power.
What have we achieved to become a "power"?

 

[Mk-313]

Well then you do not know IMF very well. They are master manipulators. They force aid dependent countries to cut subsidies, float exchange rates, raise utility prices, etc.. I don't know of any other donor other than WB being this invasive.

I am not opposed to helping other countries. My issue is with us being complacent and thinking we are some sort of economic power already riding off the back of jangiya exports.
Our forex reserve of $45b is not that large if you consider the fact that our annual import bill is $51b+, i.e., if we have a major disaster such as a major earthquake, we will run out of foreign currency in no time due to disruption in exports and emergency import of expensive disaster supplies (equipment, food, medicines, etc.).

Food deficiencies can only be solved by mechanising firming at the cost of medium term rise in unemployment.

Brother we should apply our judgement instead of getting giddy with such fluff piece articles.

What have we achieved to become a "power"?

IMF is not a donor per se. it’s more as a lender. IMF is still accountable to the members it takes money from and give it to poor nations and most of the the things like cutting subsidies makes sense. How can you give money to other people when You need money yourself

The point of IMF is to lend money install programs that can help a poor nation to get on its feet and have the money paid back so it can help the next person

 

[Destranator]

IMF is not a donor per se. it’s more as a lender. IMF is still accountable to the members it takes money from and give it to poor nations and most of the the things like cutting subsidies makes sense. How can you give money to other people when You need money yourself

The point of IMF is to lend money install programs that can help a poor nation to get on its feet and have the money paid back so it can help the next person

Well it is both. On this occasion, they have facilitated for one member (BD) to donate to another (Sudan).
You cannot make blanket statements like "cutting subsidies make sense" as circumstances vary from country to country.

For example, If Bangladesh govt had followed IMF advice back in the days and removed all subsidies to power and oil, we would have seen hyper inflation resulting in recession and civil war.

This is part of the reason why BD rarely lends from IMF anymore. I can't confirm but we may not have borrowed from IMF for over a decade now.

Such fiscal prescriptions often come from suited up idiots seated in Ivory Towers who believe they know it all just because they have read a couple of books.

 

[Mk-313]

Well it is both. On this occasion, they have facilitated for one member (BD) to donate to another (Sudan).
You cannot make banket statements like "cutting subsidies make sense" as circumstances vary from country to country.

For example, If Bangladesh govt had followed IMF advice back in the days and removed all subsidies to power and oil, we would have seen hyper inflation resulting in recession and civil war.

This is part of the reason why BD rarely lends from IMF anymore. I can't confirm but we may not have borrowed from IMF for over a decade now.

Such fiscal prescriptions often come from suited up idiots seated in Ivory Towers who believe they know it all just because they have read a couple of books.

Subsidies and inflation have no correlation together. Inflation results from overprinting .
Removing Subsidies would have corrected the price. And either prevented your govt from need to take any money. Or reduce the taxation on the people. Subsidies kill competition and need to innovate

And those suited up idiots are the major economies from which your country is currently prospering by

You just got $732 million from IMF last year. So yeah....

IMF Executive Board Approves a US$732 Million Disbursement to Bangladesh to Address the COVID-19 Pandemic

www.imf.org

 

[Destranator]

Subsidies and inflation have no correlation together.

Well, I can't argue with someone who sees no link between subsidisation of utility and fuel prices and inflation.

I stand corrected on IMF borrowing (I believe BD made an exception last year due to Covid) but it is true that we have diversified our borrowing sources away from IMF so that we borrow from them less often.

 

[Mk-313]

Well, I can't argue with someone who sees no link between subsidisation of utility and fuel prices and inflation.

I stand corrected on IMF borrowing (I believe BD made an exception last year due to Covid) but it is true that we have diversified our borrowing sources away from IMF so that we borrow from them less often.

Subsidized pricing and inflation are not the same thing. Inflation causes your money to be worth less. Subsidy is providing money to decrease the price. removing subsidy causes a price correction not inflation

Inflation will cause all the prices to go up like iPhone, wheat etc. whereas removing subsidy on wheat for farmer will raise the price of wheat but won’t raise for iPhone

You need learn what they mean first before you can even began to argue withabout them

 

[Destranator]

Subsidized pricing and inflation are not the same thing. Inflation causes your money to be worth less. Subsidy is providing money to decrease the price. removing subsidy causes a price correction not inflation

Inflation will cause all the prices to go up like iPhone, wheat etc. whereas removing subsidy on wheat for farmer will raise the price of wheat but won’t raise for iPhone

You need learn what they mean first before you can even began to argue withabout them

Oh for God's sake, I didn't realise I had to break it down even further.
The govt of BD often subsidises fuel and electricity prices to protect the consumers against fuel price shocks in the international market. When the import costs of fuel go up (the govt imports most of the fuel in BD), the government does NOT adjust local fuel and electricity prices up at the same rate and instead absords some or all of the "shock" through increased subsidies.
You are right in that the demand for a staple like wheat is less price elastic (applying the concept of Price Elasticity of Demand) compared to that of an iphone, meaning people would be more inclined to continue buying wheat at the same quantity for survival despite the rise in price while they might put off buying non-essential goods such as iphones.

Just like wheat, fuel and electricity are also essential items with price inelastic demand, meaning people would continue buying them despite rise in prices.

If the govt of BD had followed IMF prescription of withdrawing fuel and electricity subsidies, their prices would have shot up resulting in people being forced to buy them at higher prices (i.e., inflation) leading to a drop in their standards of living as they would have less money to spare for other goods and services.
Is it clear now?

 

[Mk-313]

Oh for God's sake, I didn't realise I had to break it down even further.
The govt of BD often subsidises fuel and electricity prices to protect the consumers against fuel price shocks in the international market. When the import costs of fuel go up (the govt imports most of the fuel in BD), the government does NOT adjust local fuel and electricity prices up at the same rate and instead absords some or all of the "shock" through increased subsidies.
You are right in that the demand for a staple like wheat is less price elastic (applying the concept of Price Elasticity of Demand) compared to that of an iphone, meaning people would be more inclined to continue buying wheat at the same quantity for survival despite the rise in price while they might put off buying non-essential goods such as iphones.

Just like wheat, fuel and electricity are also essential items with price inelastic demand, meaning people would continue buying them despite rise in prices.

If the govt of BD had followed IMF prescription of withdrawing fuel and electricity subsidies, their prices would have shot up resulting in people being forced to buy them at higher prices (i.e., inflation) leading to a drop in their standards of living as they would have less money to spare for other goods and services.
Is it clear now?

That’s not inflation dumbass. That’s price correction. And where do you think your govt is getting the money to pay for those subsidies? They’re taxing those same people which reduces the money the population has to spend for “spare goods”. Or if they choose not to increase tax then they need IMF to provide that extra money for the given subsidies and then the population is on the hook for the loan and the interest. And the next years taxes goes to pay the interest on the loan and now govt has even less money and the cycle continues


and the elastic/I elastic concept wasn’t the essence of the point because you don’t even know what inflation actually means. Not giving subsidies does not being the value of the taka down hence there is no inflation .

youre experiencing price correction where the price of the commodity X goes back to its orignal price once the subsidy is taken away, the price does not rise. It goes to its actual current price

Is that clear to you?

 

[Destranator]

That’s not inflation dumbass. That’s price correction. And where do you think your govt is getting the money to pay for those subsidies? They’re taxing those same people which reduces the money the population has to spend for “spare goods”. Or if they choose not to increase tax then they need IMF to provide that extra money for the given subsidies and then the population is on the hook for the loan and the interest. And the next years taxes goes to pay the interest on the loan and now govt has even less money and the cycle continues

and the elastic/I elastic concept wasn’t the essence of the point because you don’t even know what inflation actually means. Not giving subsidies does not being the value of the taka down hence there is no inflation .

youre experiencing price correction where the price of the commodity X goes back to its orignal price once the subsidy is taken away, the price does not rise. It goes to its actual current price

Is that clear to you?

Hey moron, what does rise in price of essentials lead to for the overall price index of the commodity basket? Do central banks call it price correction?
Better to argue with a paper bag than wasting time talking to you.