29-04-2021

THURSdAy, APRIL 29, 2021
4
Can the pandemic bring India and Pakistan together?
Acting Editor & Publisher : Jobaer Alam
e-mail: editor@thebangladeshtoday.com
Thursday, April 29, 2021
Banksto look after
longer term interests
The private commercial banks (PCBs) were shown
as earning high operating profits in recent years.
If the banks scored this substantially higher
profits from increasing notably their credit
disbursement or funding a large number of new
borrowers and helping them with entrepreneurship,
then the same would be well earned indeed.
Banks profiting from extending resources to
entrepreneurs or enterprising means their playing a
facilitating role in economic growth. Economic growth
occurring, thus, not only underwrites the security of
the economy, it does the same for the banks.
From acquiring additional customers or expanding
their client base, the banks only add to their
resourcefulness over the long haul. The growing
customer base means expansion of the banks'
business well into the future. But according to
statistics of the Bangladesh Bank (BB), credit growth in
commercial banks has been decreasing in recent
times.
So, the banks have not got their markedly increased
profits in the desired way, i.e. through energizing the
wheels of the economy. The greater part of the
increased profits of the banks came from their
management maintaining their hard squeeze on their
existing customers to repay their debts to the banks at
the high lending rates fixed earlier. Not only the high
rates of interest on borrowing were retained, the rates
were also moved up further.
The high interest rate on borrowing helped the short
term profit hunger of the banks . But this high profit
trend for now will likely be at the cost of their longer
term profitability or viability .Businesses or potential
entrepreneurs never like a high bank borrowing rate.
Existing customers of the banks are, no doubt,
servicing their old debts at the high interest rates which
is helping the banks to show high operating profits.
But what about the future ? Businesses are presently
showing a disinterest in taking bank loans at such high
rates of interest. Specially, this mood is deepening in
the background of the corona pandemic when business
activities have not revived fully or business confidence
has not been restored up to expectations or need. As it
is, Bangladesh Bank (BB) has been admonishing the
banks to supply credits liberally to their customers or
would be customers.
The ones who would like to try their hands at
business through bank finance, they are sitting on the
fence, watching. They will not opt for investment
operations till the banksactually push down their
interest rates on borrowing. Thus, on the whole,
additional investment operations are slowing down as
a result of the high cost of banking funds. In the longer
run, this could have adverse repercussions on the
economy from reduced investments.
Two factors are contributing to the banks'
unwillingness or inability to decrease their lending
rate. One is their unbridled operating costs. The other
is seen as sheer greed on the part of their owners or
management. Both are capable of being cut short from
the management embracing ideas that would be best
for the long term health of their institutions.
Operating costs can certainly be pruned through
conscious policies and their efficient implementation.
As for greed, the owners-management should see the
very sensible point of controlling the same from taking
a hard look at how far they can go with high interest
rate on borrowing without hurting their long term
interests.
The Bangladesh Bank (BB)appears to have become
truly conscious only from 2019 of the imperative to
push down the lending rate. From April of last year, it
issued directive that no PCB ought to charge more than
9 per cent interest while lending while 6 per cent was
fixed as maximum interest to be given for receiving
deposits. However, it remains to be seen how far these
stricter guidelines are being actually followed.
Reportedly, BB's persuasive advices to the banks on
these matters have gone largely unheeded in some
cases. Therefore, it needs to step harder on the pedal.
Most of the PCBs used to maintain a difference of
much over 5 per cent in the spread of interest between
lending and receiving of deposits. Some banks had
spreads ranging in the double digitsfavouring mainly
lending. The international standards for this spread is
between 2 to 3 per cent only.
BB should use its authority and dictate a spread
conforming to the international standard to be
followed by the PCBs. It should at least enforce its
declared guideline of a 9 and 6 per cent spread,
rigorously.
Presently, banking deposits are also taking flight
considerably from the low interests received against
deposits. While this process is not hurting the banks
in their present positions, it could be a worrying
factor over the long run.
But BB's fixing of a reasonable yield against
deposits can solve this problem. Steps taken by BB
for facilitating adjusting upwards interests on
deposits, should help in the meeting targets of
deposit mobilisation by the PCBs. But this has to be
a delicate exercise without 'unduly' widening again
the present aspired spread of interest between
lending and deposits.
Prime Minister Imran Khan,
leading politicians, journalists,
and citizens from all walks of life
in Pakistan have "expressed support
and offered prayers for people in India,"
where a new outbreak of Covid-19 has
collapsed the "country's health
infrastructure."
Although this is not the right time to
criticize the Indian government for its
failure to protect its people from Covid-
19, ordinary people in India should be
reminded how they have offended
Imran Khan's offer of help by
responding, "Mind your own business!"
Sadly, this is not the first time the
Indian government has insulted
Pakistan on this issue. Last June, New
Delhi crowed, "Our Covid package as
large as Pak's GDP," while in one other
instance, India responded, "A
government surviving on China's alms
thinks it can help India. A leader with a
cash-strapped economy wants India to
learn from him."
Undeterred, Khan last week urged
"solidarity with India to fight Covid-19,"
saying, "This must be fought together."
Now that Pakistan "desires peace," it
should be valued and responded to with
matching gestures. Perhaps this is a
good time to consult the recent history
of natural disasters and pandemics and
learn from the experiences of Turkey
and Greece.
It is worth recalling a 2005 report:
"The 1999 earthquake in the Marmara
region of Turkey prompted Greek
expressions of sympathy that improved
relations between the traditional rivals,
and the Indonesian government and
Aceh separatists agreed to a peace deal
after the December 2004 tsunami
ravaged the region."
The latest wave of Covid-19 has
traumatized the social and political
landscape of India. Sadly, today it is
India that is suffering; tomorrow it
could be any nation on this planet. So
what can be done? A resolve to ask for
forgiveness, forget the past and strive
for a peaceful future.
Remember, the law of nature never
changes. "What goes around comes
around," so let's give everyone space to
breathe and live peacefully. Let's move
forward with a resolve to respect
humanity.
Long before the invention of the
Internet and social-media networking,
"Photos from a Century of Epidemics"
were evidence that images of people
affected by diseases have changed
"history's course and reinforced human
perceptions of frailty." So in brief,
"Pandemics that changed history" is not
an illusion but a reality.
A powerful image can bring
significant change in society. It can
move people's opinions, shake the
power corridors and force governments
to take action.
IRfAN RAjA
The popular English proverb "A
picture is worth a thousand words"
seems relevant. Recall, for instance, the
tragic death of Syrian toddler Alan
Kurdi on a Turkish beach that "changed
the world." The world will never forget
the iconic image of Alan, or many other
incidents like the iconic picture of
"Napalm girl" Kim Phuc during in the
Vietnam War.
In 2015, The Guardian columnist
Sean O'Hagan document this
phenomenon under the headline, "The
photographs that moved the world to
tears - and to take action."
Fast-forward to last week, when in
India millions watched on TV screens
and social-media sites desperate people
running for help for their loved ones
dying of Covid-19.
As it turned out, the very next
morning I learned from an article in
The Print that the viral photo was an old
picture of an incident that "took place in
Agra, Uttar Pradesh, in April 2018."
Nevertheless, the image had an
impact on millions of ordinary people in
India and Pakistan, so I don't much care
about its authenticity in these testing
times. Within hours, a Pakistani
charity, the Edhi Foundation offered
OSAmA AL-SHARIf
medical aid to India.
Social media's reach, power, and
impact are undeniable. But
unfortunately, still, not many people in
the underdeveloped world can afford
this technology, or know how to use it.
A research report reveals that of
Pakistan's total population of 223
million, only 46 million use social
media. Hence it is difficult to say how
many active Twitter, Facebook, and
YouTube users there are, as forged
accounts are also a reality.
However, the increasing number of
social-media posts and solidarity
campaigns in favor of people fighting
Covid-19 in India and beyond shows
that any one of us regardless of color,
creed, faith or ethnicity can be moved.
Emotional Pakistani Twitter users
began to implore their prime minister
to offer help to India - even as their own
country is also being hit hard by the
virus. There is hope, then, that the longheld
antipathy between the two sides
could be turned into sympathy by
shared efforts to save lives. It's time for
peace and time to save lives. Will these
sentiments stay alive once the deadly
Covid wave vanishes, or will these
feelings simply evaporate? It is also
time to remind peace lovers in India
that the lives of Kashmiris, Dalits,
Sikhs, Christians and Muslims
equally matter.
Irfan Raja has studied international
journalism at the University of Leeds. Also,
he has received a PhD from the University
of Huddersfield. He is a campaigner,
volunteer, activist and freelance journalist
Biden's recognition of Armenian genocide a message to Erdogan
For decades, US presidents have
failed to recognize the 1915
massacres committed by the
Ottoman Empire against Armenians as
"genocide." The main reason was
geopolitical. Turkey was a key Western
ally on the forefront of confronting the
Soviet Union at the height of the Cold
War. As a member of NATO, it hosted
strategic military bases and presented
itself as a bridge between Europe and
Asia. In addition, it had made a slow
transition from a military dictatorship to a
civilian democracy and was quickly
emerging as an economic powerhouse.
And, for decades, Turkey and its
lobbyists threatened the West that it
would not tolerate any attempt to
recognize the Armenian massacres as
genocide. That would lead to closing down
military bases, quitting NATO and
shifting toward Russia and China.
But, on Saturday, US President Joe
Biden said in a statement marking the
annual Armenian Genocide
Remembrance Day that, "each year on
this day, we remember the lives of all
those who died in the Ottoman-era
Armenian genocide and recommit
ourselves to preventing such an atrocity
from ever again occurring."
Turkey's reaction was furious. Officials
denounced Biden's statement and the
Foreign Ministry summoned the US
ambassador to Ankara. In a statement,
the ministry said that Biden's remarks
caused "wounds in ties that will be hard to
repair," and that Turkey "rejected it, found
it unacceptable and condemned (it) in the
However, the increasing number of social-media posts and solidarity campaigns
in favor of people fighting Covid-19 in India and beyond shows that any
one of us regardless of color, creed, faith or ethnicity can be moved. Emotional
Pakistani Twitter users began to implore their prime minister to offer help
to India - even as their own country is also being hit hard by the virus.
strongest terms."
Turkey has acknowledged that many
Armenians died between 1910 and 1915,
but rejected reports that the massacres
had cost the lives of 1.5 million and that
they amounted to ethnic cleansing. In
response to Biden's announcement,
President Recep Tayyip Erdogan said that
"we have lived together in peace in this
land for centuries; we find peace under
the shadow of our crescent and star flag."
Reports say that Biden called Erdogan
on Friday and told him about his
imminent decision. It was the first call
between the two leaders since Biden
entered the White House. It was described
by CNN as "tense."
The question is why did Biden take this
decision? The US did little to support
Armenia during last year's military
conflict with Azerbaijan over the disputed
Nagorno-Karabakh region. A ceasefire
was negotiated by Moscow. Turkey
supported Azerbaijan.
Biden's move is a clear message that his
view of Turkey and its president is
different from that of his predecessors.
Biden's main foreign policy mantra rests
on upholding human rights and
furthering democracy - two issues that
Erdogan is accused of undermining. More
critically, it now appears that the US is
downplaying Turkey's regional role and
Erdogan only has himself to blame.
One key issue is Erdogan's controversial
2017 decision to acquire Russia's strategic
S-400 air defense system despite US and
NATO protests. The decision resulted in
the halting and later canceling of a deal to
supply Turkey with advanced F-35 fighter
jets. The purchase of the S-400 by a main
NATO ally is said to undermine the
alliance's security and expose its military
The US is not happy with Erdogan's regional adventures in northern Syria
and in Libya, where he has sent mercenaries and weapons to help the
Tripoli government. It is certainly worried about Erdogan getting close to
Russia's Vladimir Putin and the regime in Tehran. Turkey's tensions with
Greece, a close US ally, have also added to the growing problems.
technology to the Russians.
Erdogan defied then-President Donald
Trump and pushed for the delivery of the
Russian air defense system even as the US
imposed sanctions on Turkey. In March, it
was reported that Ankara was considering
buying a second regiment of S-400 antiaircraft
missile systems from Russia,
despite US objections. The S-400 - a
mobile surface-to-air missile system - is
said to pose a risk to the NATO alliance as
well as the F-35, America's most
expensive weapons platform. Doubling
down, Turkish Foreign Minister Mevlut
Cavusoglu told US Secretary of State
Covid-19 exacerbates North Korea's bad choices
Covid-19 has been a disaster for
North Korea. Last week Kim Jong
Un was quoted as warning that "his
country faces the 'worst-ever' situation."
He said this situation was creating
conditions like the "arduous march"
North Korea faced with the famine of the
late 1990s, this time because of the
coronavirus, United Nations and US
sanctions, and bad weather.
In the late 1990s, "millions of North
Koreans reportedly died from widespread
hunger."
It was surprising that the leader of
North Korea would admit such dire
circumstances, circumstances that at face
value suggest major failures on his part.
But Kim is once again refusing to accept
responsibility for his bad choices, and
making the results seem more dire than
they are in reality.
Yes, the situation may be terrible in
North Korea, but there is no evidence to
suggest that the economic situation is
nearly as dire as the Arduous March of the
1990s.
For some time now, Kim has denied
that he has a coronavirus problem. But
there was considerable evidence that this
North Korean claim was not true even a
year ago. And Kim Jong Un could not
afford to have a major spread of the
coronavirus because the decrepit North
Korean health-care system was unable to
handle it.
So Kim closed North Korea's borders,
blocking trade that would normally
provide badly needed food, energy, funds,
and other goods.
While the sanctions on North Korea cut
its exports significantly, it was the border
closure that cut needed imports,
especially from China, and had a greater
overall impact than the sanctions. And
despite the bad weather, the food harvest
was only down 5% in 2020.
In his January Workers' Party Congress,
Kim admitted the failures of the North
Korean economy but turned to his normal
scapegoating of other parties and
situations, blaming them for the country's
problems.
But North Korea's economic problems
rest squarely on Kim. After all, the UN and
BRUCE W. BENNETT
US sanctions have been applied because
North Korea has defied the United
Nations and the United States, continuing
and even expanding its nuclear-weapon
and ballistic-missile programs when the
international community has told
Pyongyang not to continue destabilizing
peace in Northeast Asia.
Kim has spent his country's scarce
But North Korea's economic problems rest squarely on Kim. After all, the UN
and US sanctions have been applied because North Korea has defied the United
Nations and the United States, continuing and even expanding its nuclearweapon
and ballistic-missile programs when the international community
has told Pyongyang not to continue destabilizing peace in Northeast Asia.
resources on nuclear weapons and
ballistic missiles, going well beyond the
military capabilities he needs to deter
outside intervention in North Korea. He
has done this rather than providing food
for his people or improved health care.
He is not even telling his people that
Covid-19 vaccines have been developed,
offering both South Korea and the United
States a powerful information-operation
opportunity.And even though his country
periodically experiences heavy rains, he
has not built the infrastructure required to
Antony Blinken that Ankara's purchase of
the Russian missile defense system was "a
done deal."
The US is not happy with Erdogan's
regional adventures in northern Syria and
in Libya, where he has sent mercenaries
and weapons to help the Tripoli
government. It is certainly worried about
Erdogan getting close to Russia's Vladimir
Putin and the regime in Tehran. Turkey's
tensions with Greece, a close US ally, have
also added to the growing problems.
It now appears that the US is
downplaying Turkey's regional role and
Erdogan only has himself to blame.
Furthermore, Erdogan's ties with the
EU have worsened in recent years, as
Turkey has shifted to the east and Central
Asia. His support of the Muslim
Brotherhood has soured his relations with
Egypt and Saudi Arabia. Meanwhile,
Erdogan lost a great deal of his popularity
at home due to his clamping down on the
free press and political opponents, along
with Turkey's worsening human rights
record, a falling currency and declining
economic conditions.
In the view of experts, Biden's move is
meant to put pressure on Turkey more
than to appease the Armenians. The
geopolitical reality is that Turkey still
needs the US, while America's reliance on
Ankara is waning. The two leaders are
expected to meet at a NATO summit in
May. By then, the future of bilateral ties
could become clearer.
Osama Al-Sharif is a journalist and
political commentator based in Amman.
protect his people against these
predictable events.
Anxious to maximize his control of his
people, he has also experimented with
closing the markets in North Korea, only
to be then forced to back off or face even
more dire economic consequences.
Kim knows that a major problem in
North Korea is official corruption and
mismanagement, and yet he has not
addressed the conditions underlying this
corruption. So why is Kim admitting that
dire circumstances are developing in
North Korea? We do not know for sure.
But it appears that he is hopeful he can
convince the Chinese and the Russians
that North Korea is becoming increasingly
unstable and thus dangerous.
Beijing has historically moderated its
demands on Pyongyang despite providing
it major subsidies, fearing that North
Korean instability could create a major
threat to Chinese security. Kim appears to
be hoping that China will accept his
alarmist declaration and provide North
Korea increased sanctions relief.
Bruce W Bennett is a senior
international/defense researcher at the
nonprofit, nonpartisan RAND Corporation. This
article was originally published by The National
Interest and is republished with permission.