Foreign debt is rising, reaching a record in 2020

[Shorisrip]

Keep on over-dreaming. Now, please tell us how BD would repay the loans?

How is this "over-dreaming". You can literally take a compound-interest calculator, and find out what BD's economy will be like, since growth rates function similar to yearly compound interests. 10-12,000 $, the starting point of "high-income" classification is modest and very likely in 2041. It's been predicted by a lot of economists as well as financial organizations, not just the GoB.

As for the question, Revenue collection obviously.

Bigger economy ---> Bigger Revenue collection ---> More Spending on Infrastructure and human capital ---> Bigger Economy ----> Bigger Revenue Collection ---> .......

Spending foreign loan money on the right projects will ultimately pay off.

 

[UKBengali]

How is this "over-dreaming". You can literally take a compound-interest calculator, and find out what BD's economy will be like, since growth rates function similar to yearly compound interests. 10-12,000 $, the starting point of "high-income" classification is modest and very likely in 2041. It's been predicted by a lot of economists as well as financial organizations, not just the GoB.

As for the question, Revenue collection obviously.

Bigger economy ---> Bigger Revenue collection ---> More Spending on Infrastructure and human capital ---> Bigger Economy ----> Bigger Revenue Collection ---> .......

Spending foreign loan money on the right projects will ultimately pay off.

Good luck trying to explain basic economics to someone who once said that BD was 100 years behind India in industrialisation.

 

[SpaceMan18]

Yep, automation is a serious concern. But, intensive automation being capital-intensive will take likely 3-4 decades to take hold to produce goods such as garments/textiles. By then Bangladesh will have stopped relying on labor-intensive products, and likely manufacture higher-grade products that still need some human-input, as well as have a vibrant large internal consumer market to grow by itself. Automation itself will become a boon for Bangladesh by then. By the 2040s, it will have a first-tier "high-income" advanced economy with income levels similar to China or East-Central Europe (e.g. Hungary) now.

Hopefully your statement is true , the thing is as time goes on the Bangladeshi youth get older and get into higher positions which will hopefully help Bangladesh face it's dilemmas and make it into a developed nation.

I heard Korea bought Boston Dynamics which is interesting lol , Bangladesh can also get into AI as time goes on since who ever controls the AI market will be quite powerful. AI one of the few things Bangladesh needs to start working on and don't get me started on innovation or a space agency lol.

Bangladesh needs to change it's international image of being a poor sad nation to a technologically advanced and innovative nation. Japan used to be innovative back in the 80s but fell , hopefully we can take the innovative one in the future.

Good luck trying to explain basic economics to someone who once said that BD was 100 years behind India in industrialisation.

I mean we're not 100 years behind India in industrialization but we're definitely not as industrialized

 

[EasyNow]

This thread is about the Foreign Debt of Bangladesh. But, many of you are talking here about the domestic Public Debt. Are these two types of debts the same?

If same, why then Pakistan is suffering from the $93 billion debt? it is because this loan is from the foreign loan sharks like WB, ADB, and others which are provided funds by the Jews community.

By the way, within the next few years, BD debt will increase at least to $93 billion when Russia completes the Rooppur atomic power plant. Another $16 billion with interest.

BD loves to borrow foreign dollars to eat Biriyani. Quite a few BAL brats in this forum were celebrating the proposal of a $16 billion foreign loan offer to build a European-style Bullet train. If the GoB accepts this proposal, then the debt will rise to $109 billion. There are many others, too.

The country requires rapid industrialization that will create wealth inside the country. The govt will then be able to collect income and corporate taxes. Even it can borrow more from domestic sources like bank and post office. Real GDP will rise and the proportion of foreign debts will reduce.

Very confusing position you've taken. You want rapid industrialisation but you are against infrastructure projects.

Nuclear plant, Dhaka metro, high speed rail projects are not 'biryani' - they are not unnecessary projects - they directly effect BD industrialisation.

And BD cannot afford these projects without loans - and even if we could - it's better to keep your cash reserves and finance this work with good loans. As others have said, as long as debt is kept at a reasonable level and spent wisely there is nothing wrong in it.

As corruption is rife in BD, it is right to ask for transparency and accountability. But this doesn't mean the entire project is not needed.

 

[That Guy]

Everyone's foreign debt is rising, so nothing surprising here.

 

[Indos]

Everyone's foreign debt is rising, so nothing surprising here.

Yup raising due to stimulus budged intended to cushion the Covid economic impact. Indonesia finance minister has promised to bring back our conservative budget spending deficit at 3 % of GDP starting in 2023.

 

[Destranator]

Good luck trying to explain basic economics to someone who once said that BD was 100 years behind India in industrialisation.

India does make sewing needles. Joke is on you.

 

[bluesky]

Nuclear plant, Dhaka metro, high speed rail projects are not 'biryani' - they are not unnecessary projects - they directly effect BD industrialisation.

You are just putting the cart in front of the horse. Do not you think BD has already built the infrastructure since 1947 that the garments and other industries are already using? It is time we put more money on high-end industries before we spend more on highways and fancy bridges here and there. Metrorail is different. It was not there and it is now built.

Please define the needed infrastructure for industrialization for people to understand. Please read the examples of other countries and compare them with BD. BD is almost void of high and medium-end industries. It is infested with only low-end garments.

 

[SpaceMan18]

You are just putting the cart in front of the horse. Do not you think BD has already built the infrastructure since 1947 that the garments and other industries are already using? It is time we put more money on high-end industries before we spend more on highways and fancy bridges here and there. Metrorail is different. It was not there and it is now built.

Please define the needed infrastructure for industrialization for people to understand. Please read the examples of other countries and compare them with BD. BD is almost void of high and medium-end industries. It is infested with only low-end garments.

So basically spend less on normal infrastructure and spend more on home grown industries ?


Eh I would 50/50 , spend 50% on proper infrastructure and get it done on time with quality and also try to build it on your own. While spending the other 50% on funding small tech start ups and funding home grown companies to build EV Vehicles, Smartphones, Bikes, Trains,Tvs etc

Also better if we can make our own construction vehicles or equipment

 

[bluesky]

How is this "over-dreaming". You can literally take a compound-interest calculator, and find out what BD's economy will be like, since growth rates function similar to yearly compound interests. 10-12,000 $, the starting point of "high-income" classification is modest and very likely in 2041. It's been predicted by a lot of economists as well as financial organizations, not just the GoB.

Very good, you expect high income economy. So, how it is possible without heavy industrialization?

 

[Shorisrip]

Very good, you expect high income economy. So, how it is possible without heavy industrialization?

Don't quote or reply to me if you're gonna be senile, old man. I'm not going to explain it a hundred times.

As I have said before, the government is currently building or have built 100 medium-large economic zones (for diverse industries) around the country that will employ 10 million+ workers directly, and millions more indirectly. Intensive agriculture is also taking hold, with Bangladesh already self sufficient in a lot of food likely to become the top farmed aquaculture producer as well as self sufficient in bovine meat, milk etc in less than a decade. Bangladesh isn't a state-controlled planned socialist regime so private enterprise is encouraged. I really don't see what else the government can do to increase industrialization other than what its already doing right now. We cannot go from RMG/textile manufacturing to industrial robots in a day but steps to produce value added goods and increase productivity are already being done.

Read the 8th 5 year plan released last month for detailed statistics and goals.

You are just putting the cart in front of the horse. Do not you think BD has already built the infrastructure since 1947 that the garments and other industries are already using? It is time we put more money on high-end industries before we spend more on highways and fancy bridges here and there. Metrorail is different. It was not there and it is now built.

Please define the needed infrastructure for industrialization for people to understand. Please read the examples of other countries and compare them with BD. BD is almost void of high and medium-end industries. It is infested with only low-end garments.

Are we North Korea? Bangladesh is not a planned-socialist economy. The government doesn't invest in most industries, aside from a few that every other country does like railways, defence, aviation etc. Everything is up to the private sector to do. States are by virtue inefficient managers of industries, and nationalization of any industry has seldom proved to be beneficial ever. All the government can do is provide facilities like roads, railways, highways, bridges, ports etc, as well as utilities like water and electricity and create high-skilled workers in schools and universities. They can also encourage local and foreign companies to set up desirable industries in those economic zones, a strategy that has been working.

 

[bluesky]

Don't quote or reply to me if you're gonna be senile, old man. I'm not going to explain it a hundred times.

It was you who suddenly started to respond to my opinion. It seems you have now understood that your points are baseless and that is why you are showing displeasure towards me. Let me not respond to your utmost insult. But, please tell how a country can be industrialized,

1) if most of its own foreign currency through export and remittance is used to import finished goods mostly from India and China instead of building industries?
2) if it asks donor organizations and industrially developed govts to extend credits/loans to do a few fancy projects that you love to call infrastructure? The loan stands today more than $70 billion and tomorrow it will exceed $100 billion.

 

[Shorisrip]

It was you who suddenly started to respond to my opinion. It seems you have now understood that your points are baseless and that is why you are showing displeasure towards me. Let me not respond to your utmost insult. But, please tell how a country can be industrialized,

1) if most of its own foreign currency through export and remittance is used to import finished goods mostly from India and China instead of building industries?
2) if it asks donor organizations and industrially developed govts to extend credits/loans to do a few fancy projects that you love to call infrastructure? The loan stands today more than $70 billion and tomorrow it will exceed $100 billion.

I don't have anything to say. You don't understand basic macro-economics and how market-economies work. Myself and others have already addressed those points several times. Also, its not an insult if its the truth, you according to your own words have met Sheikh Mujib, unless that was another lie.

 

[bluesky]

Are we North Korea? Bangladesh is not a planned-socialist economy. The government doesn't invest in most industries, aside from a few that every other country does like railways, defence, aviation etc. Everything is up to the private sector to do. States are by virtue inefficient managers of industries, and nationalization of any industry has seldom proved to be beneficial ever. All the government can do is provide facilities like roads, railways, highways, bridges, ports etc, as well as utilities like water and electricity and create high-skilled workers in schools and universities. They can also encourage local and foreign companies to set up desirable industries in those economic zones, a strategy that has been working.

You are right that private companies should do industrialization. But, they need govt patronizing to get DOLLARS to import machinery and bank loans. However, the govt borrows heavily from the banks and post offices instead of lending money to the private companies to build industries.

This is what is called putting the cart before the horse. The govt then borrows in two hands from the donor agencies as if there is no tomorrow. Now, the foreign borrowing itself is above $70 billion.

You guys call these projects infrastructure for industrialization. But, not even a $7,000 billion foreign loan will suffice to expand infrastructure. The country needs its own money to build them that may come only if industries are built continuously for the next few decades.

 

[SpaceMan18]

You are right that private companies should do industrialization. But, they need govt patronizing to get DOLLARS to import machinery and bank loans. However, the govt borrows heavily from the banks and post offices instead of lending money to the private companies to build industries.

This is what is called putting the cart before the horse. The govt then borrows in two hands from the donor agencies as if there is no tomorrow. Now, the foreign borrowing itself is above $70 billion.

You guys call these projects infrastructure for industrialization. But, not even a $7,000 billion foreign loan will suffice to expand infrastructure. The country needs its own money to build them that may come only if industries are built continuously for the next few decades.

I mean the American government supports it's private companies with money , and that's good and that's why you see so many successful American private companies.