inflation


From Washington Post report:
1. Bangladesh is among at least 33 countries, many with shaky governments and destitute populations, that are at risk of serious political unrest if food prices keep rising, according to a recent World Bank study.
2. 20,000 garment workers defied a government ban…workers, mostly women, hurled rocks and bricks at police and vandalized factories in what the local media dubbed the start of the “Rice Revolution.”
3. Bangladeshis are suffering from what is called monga, a near faminelike condition whereby villagers often skip meals and eat only tiny amounts of food.
4. Some see use of the military to guard rice shops as an ominous sign. Sajjad Zohir: “There’s a real danger, particularly if political stability doesn’t return and prices for food keep going up.” (more…)

UNDP hits the panic button on Bangladesh.

Skyrocketing oil prices have driven up the cost of food worldwide, but their impact has been particularly dire in Bangladesh, where almost half of the 145 million people live on less than one dollar a day, Dervis said in a statement Wednesday.

“The real issue is protecting the vulnerable from these shocks,” Dervis said as he ended a three-day visit to Bangladesh.

He said petroleum-producing countries that are benefiting from the high price of oil can use the gains to help people unable to afford adequate food.

“Support from oil-rich countries, as well as other donors, could have positive benefits for Bangladesh,” Dervis said.

He said annual food inflation in Bangladesh reached 16 percent in December. Many poor households spend nearly 70 percent of their income on food, according to government statistics.

For more succinct look on what’s going on with the price hike, check this excellent piece by Mustofi here.

Whoever is to govern Bangladesh for the next 2/3 years has their work cut out for them. Have we passed through such a crisis in Bangladesh before? Is there a silent famine in Bangladesh today when the majority of the country is spending 80 percent of their income in buying food? From tomorrow we will start a new series on this. One of our own visited some of the remotest areas to check on this and she filed a report that we will start publishing. The results are fascinating. Don’t forget to check the Mustofi piece.