THE austerity measures aimed at managing the looming crisis caused by the US-Israel war on Iran appear short-sighted and they risk slowing the economy. The war has disrupted fuel flows through the Strait of Hormuz, responsible for about 20 per cent of global oil transit, triggering what analysts describe as a historic supply shock. In this context, the government has adopted a series of measures, including a regulated use of electricity in public offices, reduced office and shopping mall hours and the partial shift of weekly classes to online platforms. While most of these directives are already in effect, shopping malls and markets in the capital did not comply with the evening closing time. On April 3, the Bangladesh Shop Owners’ Association said that it fully supported the austerity measure but urged the prime minister to allow shopping malls and shops to stay open from 11:00am to 8:00pm, instead of 9:00am to 6:00pm. They said that the decision would affect the livelihood of about seven million shop owners and 25 million staff. Some shoppers also spoke of the inconvenience, noting that they rely on post-office hour sales. The government appears to be making decisions without consulting the stakeholders most affected by the austerity measures.
The decision to shift part of weekly classes to online for all students was also taken without consulting with teachers or students. Teachers have warned that reducing learning hours or shifting to digital platforms without adequate preparation and transition could be as disastrous as it was during the Covid outbreak. In rural areas, unequal access to the internet may lead to a greater learning loss and higher dropout rates. The University Grants Commission reported that 249,000 students dropped out of universities between 2020 and 2021. Data of the Bangladesh Bureau of Educational Information and Statistics and the Directorate of Primary Education for the period show that 62,104 students dropped out of secondary schooling while a staggering 1.45 million left primary schooling. A joint government and UNICEF study has found that around 81 per cent of primary and secondary students were excluded from remote learning initiatives during the Covid-time school closure. Instead of making unilateral decisions, the education ministry needs to consult all stakeholders and revisit surveys on the learning loss to avoid repeating past mistakes. The energy crisis also exposes other structural concerns. The government has asked public offices to use daylight and minimise the use of air conditioning, but most offices are inherently dependent on energy-intensive systems.
The government should, therefore, avoid making hasty and unilateral decisions without any consultation with stakeholders. Austerity measures in the energy sector must address the concerns of small businesses. They, otherwise, risk resulting in an economic slowdown, worsening poverty and increasing learning loss.
