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People in Bangladesh spend 70 percent more than the actual price of the basic commodities because of the absence of a fair competition in the market, an economist said yesterday.
They have to spend nearly $14 billion a year due to the higher prices, said Abdur Razzaque, an economist on international trade, labour and development.
He spoke at a seminar on “Growth in competition: the role of competition commission” at the office of the Economic Reporters’ Forum (ERF) in Dhaka.
In his keynote presentation, Razzaque said lower income groups are the victims of anti-competition behaviour.
According to the economist, competition boosts overall growth in the long run, benefiting the lower income households further.
In Bangladesh it is possible to boost the economic growth by at least 2 percent every year if the competition policy is applied properly and the social benefits for the marginalised groups are increased.
In Bangladesh, the competition commission was formed in 2012 and it started functioning in 2016.
“A competition commission is needed for a vibrant economy in the country as it can ensure fair competition among companies and service providers,” said Md Abdur Rouf, chairperson of the Bangladesh Competition Commission.
In fact, the competition commission helps companies to grow fairly, he said. “So, people should not be afraid of the activities of the competition commission.”
Md Shafiqul Islam, acting commerce secretary, said the competition commission plays a vital role in creating a level playing field.
As a result, no company can play monopoly and keep consumers in a tight spot.
He said if Grameenphone and Robi want to merge, the government’s approval is needed. Here, the commission will carry out the job.
Amir Abdullah Md Monjurul Karim, a director of the commission, said his office has already resolved some disputes through hearings.
For example, a few months ago, a plaintiff complained to the commission of a monopoly that had been going on in the process to supply food to the RAOWA Club in Dhaka.
The commission held several hearings and gave a verdict, which compelled the club to make a list of 10 catering companies to take foods from.
It was possible, as the commission broke the monopoly, he added.
Md Khaled Abu Naser, a director of the commission; Md Manzur Ahmed, a former adviser to the Federation of Bangladesh Chambers of Commerce and Industry; Saiful Islam Dilal, president of ERF, and SM Rashidul Islam, general secretary, also spoke.
(TDS)
