Corruption

Corruption has been around for a very long time and will be around in the future unless governments can figure out effective ways to combat it. This is not going to be easy. Corruption in any form is treated as an incurable disease cause of many social and economic evils in the society and it damages the moral and ethical fibers of the civilization . Linguistically, it is correct that corruption breeds many evils in the society & once corruption start take place slowly and gradually whole country passes wrought its net and it becomes after some time incurable diseases . Room the economic point of view ,there seem to be no clear cut correlation between corruption and the economic growth of a country. There may be some social maladies like inequality of income among the people ,moral degradation of people due to the prevalence of corruption ,the parameter of economic growth which are taken on percentage or an average basis are entirely different To begin with, in the presence of corruption, businessmen are often made aware that n up-front bribe is required before an enterprise can be started and that afterwards corrupt officials may lay claim to part of the proceeds from the investment.

Businessmen therefore interpret corruption as a species of tax–though of a particularly pernicious nature, given the need for secrecy and the uncertainty that the bribe-taker will fulfill his part of the bargain–that diminishes their incentive to invest. Empirical evidence suggests that corruption lowers investment and retards economic growth to a significant extent. Moreover, when it takes the form of tax evasion or claiming improper tax exemptions, corruption may bring about loss of tax revenue.

What is more, the allocation of public procurement contracts through a corrupt system may lead to lower quality of infrastructure and public services. Then, Corruption may distort the composition of government expenditure. Corruption may tempt government officials to choose government expenditures less on the basis of public welfare than on the opportunity they provide for extorting bribes. Large rejects whose exact value is difficult to monitor may present lucrative opportunities for corruption.

A priori, one might expect that it is easier to collect substantial bribes on large infrastructure projects or high-technology defense systems than on textbooks or teachers’ salaries. So far Indian economic is concerned the slow progress is the result of lack of decision making at higher level . Many politician who take money but could not enforce their will because of powerful lobby of bureaucrats at many place and a democracy like India ,voice of media ,voice of opposition could suppress the wish of the leader .

Effects of Corruption on Economic Growth By function because of the stability and the liberalized measure taken by the present gobo. , gradual prevarication of various sector, reducing bureaucratic intervention in routine work & other measure adopted by gobo. In brief it can be concluded that corruption and economic growth has no clear correlation . Strong institution, political stability, fast and restorability in decision taking are some of the requirement for fast economic growth.

In the history of American politics, Agnew Spiro has left a legacy of corruption. Through his illegal acts and transactions with the contractors, he has undeniably earned a lot for his campaign. However, through his own acts, he resigned from his position and has tainted his personality and reputation. He then faced various cases involving bribery and tax evasion. In the case of bribery and tax evasion, Vice President Spiro Agnew should be fined and imprisoned.

The fine and disbarment that was imposed on Agnew should have been coupled with imprisonment because of his position as vice president. Under the bribery law that was controlling during the reign of Agnew, both fine and imprisonment is imposable upon bribery that is severe (Kickback, Law Library-American Law and Legal Information). In the case of Agnew, the bribery he committed was severe. It is because he was holding the second highest position of the land.

In addition, as a public official, he is expected to act righteously and legally. However, by receiving kickbacks he abused his power and acted in fraud in awarding contracts. Additionally, the acts of Agnew are against Foreign Corrupt Practices Act of 1977 and Anti-Kickback Enforcement Act of 1986 (Kickback, Law Library-American Law and Legal Information). Having violated two laws governing public officials, Agnew can be disbarred from public office for life.

Furthermore, his fine should have been higher in the income tax evasion case against him. Furthermore, the decision in the case involving Childs and Matz may be seen as appropriate. Although the vice- president instigated kickbacks, the contractors had relevant participation. However, the fine payable to the state should have been greater by virtue of his political involvement.

References

Law Library-American Law and Legal Information. (2008). Kickback. Retrieved January 13, 2009, from http://law. jrank. org/pages/7990/Kickback. html.

Introduction

Lithuania (along with the other Baltics) is the success story of EIJ structural fund absorption. Bulgaria (along with Romania) is the worst performer. Lithuania has contracted projects for 87%  of available funds as of November 2012 and paid out 54%to beneficiaries. Bulgaria absorbed only ‚2 billion of an available, 9. 5 billion between 2007 and 2011.

Human resources

Knowledge of available funds corruption and transparency. Is It Just a question of TIME (and size)?

Bulgaria: Joined EU in 2007 having spent very little ot its pre-accession aid. Multiple corruption and transparency scandals: funds are withheld and projects are delayed. Change government in July 2009 with the creation of new administrative units to handle structural funds. The quality of human resources is low in regional/municipal administrations: 4% speak English, the same people used for planning as for valuation, 201 1 sees improvements: 27 municipal information centers set up, the number of prosecutions over misappropriation of funds increasing (but the absorption rate slightly lower than 2010).

Lithuania: ELI member since May 2004. Population 3. 2 million compared to Bulgaria’s 7. 5 million. Flexible economy: experienced rapid growth before the 2009 crisis (with help of pre-accession funds and rebounded relatively quickly after huge contraction. In 2004-06 priority was accorded to spending EIJ money according to all rules and procedures. The start of the 007-2013 programming period absorption rate was similar to the EUIO average (approx. 45%).

In many countries the giving gifts or bribes to secure work is considered acceptable business practice. American business firms are not allowed to give gifts above a certain amount of bribes and complain that they cannot compete with firms from other countries who do bribe. Is the giving gifts and bribes acceptable or should all countries ban their businesses from giving gifts and bribes?

Business ethics, one of the most topical issues all over the world nowadays, is the study of business situations, activities and decisions addressing whether an issue is right or wrong (Crane, A. and Matten, D. , 2007, p5). Therefore, concerned with the morality, giving gifts or bribes is one of popularly business ethical issues that have raised a lot of debates and disagreements in perspective of not only domestic companies but also firms associated with different cultures.

Some opinions are pointed out that giving gifts above a certain amount or bribery can lead to unfair competitions among companies operating in different countries under their own law, such as the United States with hard legislation. However, others regard gift-giving and bribery as a part of doing business internationally and suppose that companies aiming to expand globally have to know “When in Rome, do as the Romans do”. This essay will deal with the business ethical issue of giving gifts and bribes, the benefits and drawbacks behind this topic in the view of cultural relativism.

Kaikati, J. G. & Label, W. A. (1980, p38) defined the legal essence of bribery as “a payment voluntarily offered for the purpose of inducing a public official to do or omit doing something in violation of his lawful duty, or to exercise his official discretion in favor of the payer’s request for a contract, concession, or privilege on some basis other than merit. “.

On the other hand, the survey about “The share of respondents evaluating certain type of behavior as unethical, wrong behavior (in %)” (Bucar, B.et al, 2003, p273) indicated while accepting gifts is considered highly unethical, giving gifts is more acceptable in doing business in some societies and that the Americans state the highest level of refusal on the issue of gifts and bribes.

The well-known Foreign Corrupt Practice Act (FCPA), passed in 1977, prohibited American companies from making illegal payments, promises, offers or gifts to officials of foreign governments (Tsalikis, J. & Nwachukuru, O., 1991, p85). However, giving gifts, payments or bribes is among the business ethical issues that are too difficult to draw the line between acceptable and unacceptable practice. Controversies, questions and conflicts of interest therefore have been raised. For example, as employees of a firm, purchasers expected to get the best deal for the firm can be swayed to make the decision when he receives personal benefits from the sellers (Crane, A. and Matten, D., 2007, p367).

Donaldson (1989) argued that a number of debates in bribery, which have been conducted, tend to be empirical and perhaps miss out the normative dimension (cited in Wood, G. , 1995, p10). What’s more, some of the arguments for the bribery listed by Laczniak and Murphy (1993, p213) include the accepted practice in different countries;  a form of commission paid to helpful intermediaries; the only way to compete in overseas markets.

By contrast, they also indicated three arguments against this term supposing that the bribery is  inherently wrong;  develop corruptions in government and business practice;  able to deceive the shareholders of the company as to “the true nature of some payments”. One of the most well-known bribery scandals globally is The Lockheed scandal the payments of which spread across the world to Indonesia, Iran, the Philippines, the Middle East, Japan, Italy, Germany and Holland (Leigh, D. & Evans, R. , 2007).

As a typical example, the Lockheed scandal in Japan, the worst political scandal in this country, broke in 1976 . Lockheed Aircraft made illegal payments to a number of airlines in Japan and other countries as well in order to boost airline sales and avoid bankruptcy . Consequently, a prosecution of 17 people was also reported, especially the situation of Tanaka, former Liberal Democratic Party prime minister with 4 year sentence and 500 million yen fine, which he had received.

And the Lockheed case was said to come up with the term of “structural corruption” among politicians, businessmen and bureaucrats which underlined the need for political reform. The bribery issue actually raises a lot of conflicts, questions and confuses in making decision which one to choose between a bribe with corporation prospers and no bribe associated with corporation suffers. For instance, contribution industry is familiar with political payoffs if a company wants to take advantages of contributions, favours, hiring certain people, retaining special consultants .

Retailing industry is another chosen argument by the author that companies operating in this field depend much on food broker distribution channel, then need relationships with buyers or purchasing agents. The action of giving gifts or bribes here is considered as a way to secure business practice, even more popular in international business. Therefore, this term relates to the problem of different cultures with their own legislations which are able to create competitive disadvantages. Moving to the case of American firms will illustrate in more details.

Along with what mentioned above, The Wall Street Journal (1979) indicated that the FCPA made American firms loose sales worth millions of dollars while Japanese and European competitors, who didn’t suffer from this Act, picked up additional abroad market share (cited in Kaikati, J. G. & Label, W. A. , 1980, p39). One of the results is these American firms’ balance-of-payment deficit which made up the temptation for them to avoid and cope with this law (Kaikati, J. G. & Label, W. A. , 1980, pp. 39-40). In some countries, similarly foreign payments are not outlawed, even encouraged.

In Germany, for example, although bribing domestic officials and politicians is illegal, the law allows to make payments which are deducted as business expenses for tax purposes to foreign ones (Wood, G. , 1995, p13). Kaikati (1980, p40) cited Business Week’s example (1977) of Asmara Oil Corp. Ltd. , a Canadian firm specializing in drilling operation outside Canada reporting that it could continue to make facilitating payments and disclose them. In general, the author wanted to conclude that U. S. businesses must be allowed to compete on an equal footing with the majority of other nations.

There have been many cases of corrupt business practices, such as bribing foreign officials and money laundering. The Foreign Corrupt Practices Act (APPC) was created to address these issues. The following discusses risk management and the board of directors, managing compliance risk, anti-corruption trends, and how supplier codes can help handle third-party risks.

Risk management and the Board Cultivating an ethical corporate climate on the Board of Directors is essential to risk management strategies, mitigating corruption, and Implementation of the firm’s “cultural and business operations. ” Legal Issues relative to corruption start with the Boards; an ethical Board can mitigate many issues even though “companies need to incur risk in order to run their businesses” (Lipton, 2010). Risk oversight is a highly anticipated Board responsibility and damage control is an even greater responsibility.

A framework for assessing risk management was developed in the Delaware court system, which determined limited liability “for a failure of board oversight” (In re Caretaker International Inc. Derivative Litigant- tool, 698 A. Ad 959, 971 (Del. Chi. 1996)) under conditions of failure to communicate ethical responsibility. The board must demonstrate the capacity to design policy and procedures that are in line with best practice strategic planning. The board monitors that a risk-awareness climate is adhered to and that every stakeholder is “engaged in risk management. Board operations establish the tone of the corporate culture and there should be no space between the company and the board on issues of ethics, transparency, inconsistency and communication, and the anticipation of risk. Managing Compliance Risk For over a decade, the federal government has taken a stance against the corruption in the corporate landscape. Many federally enforced laws are addressing corporate improvement of regulatory compliance, risk assessments, and the protection of weightlessness. Companies are looking for cost effective means of assuring compliance with these federal regulations.

The typical manpower Is lessening and automated systems are being Implemented. Noted In an article by Ted Nuke, early detection is the key to success. Automating the process of identifying risks improves early detection by utilizing such tools as web-based programs at the employee level. Assessing these risks in real-time fashion and assigning retraining as a remedy, assures early detection, accountability, and reconciliation. Interruptions Trends In 2010, 8 of the 10 largest APPC penalties ever were handed down. There were 22 arrests resulting from sung operations in 2010.

Once officials of the APPC crack an Investigation, they quickly expand It to other companies. Also, Increasingly there Is inter-agency cooperation. One example is when the Justice Department brings an investigation, often the SEC will follow-up with their own investigation. Even countries such as the I-J and US are starting to team up on these investigations. In the past, countries with limited ties to the US have not been as concerned about complying with the APPC. This Is no longer sound strategy as most of the largest In the USA there are cases up to $500 million in fines involving third party companies.

The fines were a result of the lack of ethics and compliance programs. In efforts to reduce the risks and fines, a report was developed by ERIC standards giving recommendations advising companies how to develop a supplier code. The supplier code needs to discuss the risks in details that are understandable to third-party companies. The users need to know why the code is necessary and how to use it properly. Practical aids, supplements, proper structure, design, and tone assist in bringing clarity to the codes.

The design needs to ensure that users know how to port the information and distribute the information properly in order for the codes system to be effective. Conclusion All companies need to have an understanding of the compliance issues associated with the APPC. – The company and applicable boards should be in agreement of all issues concerning the company and should also use automated systems to improve early detection of risks. In light of recent arrests, it is becoming increasingly important to have systems in place to assist your company with being in compliance with the APPC.

KEA Is the world’s largest retailer of home furnishings. It strives to provide simple, functional, modern, and useful products at affordable prices to as many people as possible in as many places regardless of their geographical location. KEA concept is implemented from the start of idea, implemented into the design, manufacture, logistics, sales and final assembly of each product. KEA was developed by Angina Kampala from southern Sweden, where people are known for surviving and making the most from limited resources.

KEA has aggressively pursued expansion Into emerging markets as well as developed economies to make it possible for all consumers to take advantage of its products and enjoy life through Its furnishings. It Is In constant search of new Ideas, designs, functionality, testing and enabling people to assemble its products on their own and to keep shopping at KEA retail outlets around the world. Stitching ANGINA Foundation became the owner of the new “The KEA Group” to expand the market and concept of KEA to as many places as possible.

Through aggressive expansion plan KEA now has nearly 330 stores in 40 countries and as any as 1 50,000 co-workers. It is on track to open additional through expansion in new and existing markets to have 500 stores by year 2020. KEA likes to present itself as principled, environmentally conscious, and socially responsible company. Its products that are sourced from others must follow the ‘KEA WAY, which is set of regulations for its suppliers around the world. These rules require that manufacturers provide annual report on origin, type of wood used and sourcing of the wood in making the products.

In addition, it makes sure labor used in making the products meet the fair trade guidelines set by International regulations. KEA also follows the UN Convention and guidelines on child labor and if any manufacturer Is found to be using child labor is asked to suspend the practice immediately otherwise the contract with that producer is terminated. II – Ethical Models KEA in becoming a behemoth retailer of low cost, stylish furniture to all does it follow or have the capacity to insure its business practice meets KEA or UN guidelines on ethical business practices and social responsibility.

The first major area of concern from an environmentalist’s point is excessive marketing and encouragement of mass-consumption of furniture Items that are not long lasting and deed replacement in just few short years. Selling products that need replacement in lust a few years puts significant strain on world’s wood resources. Additionally, It Is a cause of concern when it enters new emerging markets, what steps it takes to make sure it’s employees utilize both environmentally and socially responsible business practices.

In the case of KEA operating in Russia, it failed to follow its own business practices and fell victim to bribery practice that Is common In former Soviet Republic. Sure it protects, respects and supports human rights. 2) That they are not complicit ND ignorant in human rights abuses. 3) Upholding the freedom of association and recognition of the rights of collective bargaining. 4) Elimination of all practices of forced and mandated labor. 5) Effectively checking to make sure child labor was not used. 6) No discrimination is allowed at any of its suppliers or manufacturers. ) Practicing environmental consciousness 8) Initiatives to become more environmentally responsible. 9) Continues to develop and utilize environmentally responsible business practices 10) Work against corruption, bribery and extortion in all their forms. KEA needs to effectively remote these principles in the stores it operates, but also needs to make sure all of its suppliers, manufacturers, and vendors regardless of their origin follow the UN principles. However, KEA has failed in some respect in its ability to control and make sure itself abides by these principles.

KEA in business to generate profit is expanding rapidly in both developing and emerging markets. In an attempt to generate more and more profit it markets, inexpensive products that may originate from sustainable resources but at the same time it encourages excessive consumption, it is often located in remote areas with very large footprint. Products with limited life cycle need replacement more frequently and consumers more often than not end up purchasing far more than they needed when they come to ‘KEA.

It is designed to be consumer friendly, stylish rooms set up for one to visualize placement of furniture at home and if needed available staff to help you in planning and placement of your furniture. Most recently in February 2013, case of embarrassment came from its food service where it was found the “Swedish Meatballs” it served contained horseman. Corruption and bribery case in Russia was an awakening experience for ‘KEA. In 010, its top two managers were fired due to bribery of contractors to provide electricity power supply generators to its stores to avoid power shortage.

Knowingly it allowed payments of bribery to secure electricity supply, which was a blow to its reputation as ethical business practice around the world. However, it is often understood bribery and corruption is pervasive in Russia and cannot be avoided. Second instance of corruption for KEA in Russia happened when in July 2012, when a Turkish national Mr.. Joan Yuan, was sentenced to 5 years in prison for bribery with KEA MOSS Russian subsidiary Head of the Leasing Department Mr.. Carl Olla Installations. Mr..

Installations fled the country prior to capture. In addition, same year global environmental agencies became aware of Kike’s use of poorly written Russian logging rules where old growth trees were being cut down. This caused people to question Kike’s environmental conscious and socially responsible policies. Ill – Solutions KEA must institute effective immediately, employment policies where each co- worker signs on to adhere to its policies in respect to being environmentally and socially responsible to avoid any further embarrassment to its image.

In addition, it would create an Internal Audit Department hereby referred to as ‘AD, MUST annually review and pay surprise visits to inspect, check and confirm each division for possible corruption and practices that is against its policies. Similarly, it needs to further profits. It is immoral for KEA on all grounds to project an image of environmentally and socially responsible company when in fact it is failing to control its employees’ behavior. Corruption and bribery as well as practices for its suppliers must be kept in check and punished equally across the board to avoid any further damage.

IV – Optimal Solution Optimal solution, I believe to be implementing ‘AD where co-workers visit each subsidiary along with outside party inspectors annually and review top management and check for possible abuse of its practices. ‘AD co-workers must not remain in same position for more than three years and during their tenure should not visit or given the opportunity to inspect same KEA subsidiary more than once. Outside inspectors when used in conjunction with its own ‘AD co-workers will be able to inspect and assure top management at each subsidiary accounts for its actions and business practices.

More importantly it should display in large print within its corporate, subsidiaries and local retail outlets a sign promoting anti corruption and bribery will not be tolerated and prosecuted if anyone is found to be guilty. According to Transparency International 2012 report Russia is still among the top five developed countries in the world for corruption and pervasive bribery. In fact it is accepted to be the norm in all of the CICS countries or former Soviet Republics and is understood to be acceptable if you want to get things accomplished through the highly bureaucratic systems.

KEA must be patient in its expansion plans in Russia as ell as CICS countries and be willing to reap the benefits systematically via long-term investments. KEA with its set of principles must continue to promote environmental and social responsibility to community and countries it operates in. It must serve as a role model to all companies coming into Russia and wanting to take advantage of market opportunities for the goods or services it sells. V- Conclusion In summary, KEA is an environmentally and socially responsible company.

However, it must not forget the problems and issues of both sustainability and social responsibility in pursuit of profit at all cost. Its problems in Russia, may very well happen in other places as well and it must be persistent to promote its environmental and social culture to everywhere it operates in. In addition, the concept of low-price, functional, stylish and modern furniture pieces should be pursued in products that are long lasting, rather than have a several year life cycle as it does now.

ABOUT RECENT PRICE HIKE IN Bangladesh| March 4 2010 | Prepared For-Kaikobad Rana Sir| Submitted By-Overcome Group| Group Members Of Overcome- * Group Leader- MD Sazzadur Rahman Chowdhury ID-082011013, Sec-A, 3rd Semester * Administrator- Riad Morshed Chowdhury ID-082011012, Sec-A, 3rd Semester * Researcher- A. F. M Maruf Rahman ID-082011035, Sec-A, 3rd Semester * Members- MD Rafiqul Islam ID-082011022, Sec-A, 3rd Semester Atiqur Rahman ID-082011017, Sec-A, 3rd Semester Mostafizur Rahman ID-082011282, Sec-A, 3rd Semester Rashedul Hasan ID-082011008, Sec-A, 3rd Semester

Nishat Ahmed ID-082011009, Sec-A, 3rd Semester Lubna Ahmed Luna ID-082011040, Sec-A, 3rd Semester 4th March, 2010 Kaikobad Rana Lecturer Department of Fashion Design Shanto-Mariam University of Creative Technology Lalmatia, Dhaka. Subject: Submission of Term Paper. Sir, As the course requirement of DES-102, we were assigned to do a job regarding the topic of Price Hike. We have provided our best effort to complete our tasks according to the requirements. We tried to complete our tasks by doing different research works and from our limited knowledge.

It is a matter of great pleasure for us to present the report on time. We will very glad if the report can fulfill its purpose. Thank you, Sincerely yours MD Sazzadur Rahman Chowdhury Riad Morshed Chowdhury A. F. M Maruf Rahman MD Rafiqul Islam Atiqur Rahman Mostafizur Rahman Rashedul Hasan Nishat Ahmed Lubna Ahmed Luna ACKNOWLEDGEMENT First we want to thanks our faculty who give me this opportunity to do this research. Who helped and guided me to do this research accurately. Secondly we want to thanks Kaikobad Rana Sir for his uncondetional support.

I also want to thanks all the people who participate in our survey. And my entire friend circle. And last but not lest my God. Thank you. ABSTRACT THE MAIN REASONS AND PUBLIC’S REACTION ABOUT RECENT PRICE HIKE IN Bangladesh We choose this topic “THE MAIN REASONS AND PUBLIC’S REACTION ABOUT RECENT PRICE HIKE IN Bangladesh” because recently the price hiking problem has become the main social problem in Bangladesh. People are suffering most in this problem now specially the poor people. There are many reasons behind this problem. But we think formation of syndicate and corruption is the main reason behind this. But international market price, fuel cost, power crisis, natural disaster, transportation problem, illegal toll collection, action against corruption by the caretaker Government, street vendors and illegal construction drive by the joint forces, lack of communication and co-ordination in between different Government officers etc are also responsible for recent price hike in Bangladesh. And the rate of this price hike is very fast.

Even the military back Government was failed to solve this problem. They were not able to find the root behind this problem due to lack of appropriate monitoring system. But just the Government can solve this problem by using his intelligence agency, by introducing effective monitoring system, by improving law & order and by identifying the evil syndicate groups. But it is not a very easy job. The support of general public is also needed to solve this problem. FINDING The main reasons behind this problem: The prices of commodities are almost uniform across the capital, which only implies that a group of people are fixing the prices and that they have enough clout in the market to be able to decide what the prices should be. * Corruption of so called political leaders, corruption of different Government officials and law enforcing agency is the main reason behind this problem. We can solve this problem by taking the following measures. * Identify the syndicate groups. * By improving law and order. * By framing appropriate laws by the Government to eliminate middle classes in trading. By introducing effective monitoring system. TABLE OF CONTENT TITLE| PAGE NUMBER| | | INTRODUCTION| 6| RESEARCH AREA| 7| HYPOTHESIS| 13| METHODOLOGY| 14| DATA PRESENTATION| 15| DATA ANALYSIS| 16| LIMITATION| 28| CONCLUSION| 29| RECOMMENDATION| 30| PUBLIC’S RECOMMENDATION| 31| REFERENCE LIST| 32| INTRODUCTION With the price increase of essentials capturing headlines of our national newspapers and TVs almost everyday. Because this price hiking problem has become the main social problem in Bangladesh.

People are suffering most in this problem specially the poor peoples. There are many reasons behind this problem. According to The finance Minister Abul Mal Abdul Al-Muhit, “international price hike of essential necessities as being responsible for high domestic prices. ” Of course, international market price is also responsible for domestic inflation, but only partially. The ministers’s statement simply ignored other domestic factors, many of which created by the action by the Government, and also some of which created by the previous government.

According to our study we identify some supply-side factors as being responsible, such as hoarding, and loss of business confidence, administered energy price hike, international price hike of essential commodities, bribe and illegal toll collection, structural and institutional constraints etc. corruption of so called political leaders and different government officials etc are also responsible for this problem. And if the food price is not controlled, the inflation rate may reach double-digit level very soon which is currently 7. 5%. In our research paper we tried to figure out these reasons.

And we tried to find some solution about this problem. we also tried to figure out the bad effects of this problem. we hope by reading this paper the readers will able to figure out the main reasons behind this problem and also able to reduce or solve this problem. RESEARCH AREA In our proposal paper our had mentioned some question at which point we did like to investigate to prove our hypothesis. Our question were > What is the main reason behind this recent price hike in Bangladesh? > Is corruption and local syndicate only responsible about this price hike? gt; What should be the role of government to reduce this price hike? > How can we solve it? Obviously formation of syndicate and hoarding by them, corruption, power failure, traffic fames and load-shading, international price hike of essential commodities, bribe and illegal toll collection, structural and institutional constraints etc. according to Ahmed. T. (2009), the oil crisis of 1973, when oil prices increased in exponential proportions, was not so much due to shortage of oil supply as it was due to the decision of the major oil exporters, Arab states, to increase the prices.

It was not that oil reserves had suddenly sunk through the floor or that its demand had shot through the ceiling. In strictly economic terms, a handful of oil exporters were in collusion, which led to dramatic increases in global oil prices. The entire western world was affected and the sudden price hike resulted in a long-term recession ending decades of economic boom. It was also the first time that the United States faced an oil shortage since the Second World War. The Arab states had succeeded in their intent to use oil as a weapon against those not friendly to their cause. It is perhaps a classic example of collusive oligopoly.

The situation in the current-day Dhaka markets is similar except that the collusion does not concern one item but several ~ mostly such essential food items as rice, wheat, potatoes, lentils, edible oil, onions and milk powder. According to a report in Amar Desh (May 11, 2009), prices of essential food items have increased 25 per cent on an average in the past four months. According to a report in New Age (May 11, 2009), prices rose between five and 50 per cent during the same period ~ most of it under the military-backed interim government of Fakhruddin Ahmed that assumed office after the proclamation of a state of emergency on January 11.

According to the government’s own statistics, inflation increased from just fewer than six per cent in January this year to almost 7. 5 per cent by March. While the government appears to be in denial suggesting that inflation is not really out of control and quite below the danger level, experts fear that it might, in fact, have crossed the double-digit mark driven by the soaring food prices. According to SLATE magazine (2009), about our very own mafia groups that group has come to be known, and often referred to in the media, as the syndicate.

Despite the fact that academics, researchers and even politicians have acknowledged such collusion, its existence is denied upfront, both by government officials and businesspeople, in a manner that can be likened to that regarding the mafia. For the longest time, the existence of the mafia, or rather Cosa Nostra, was denied by insiders as well as government officials till misconceptions and myths were laid to rest by, what came to be known as, the Maxi Trial in a court in Sicily over a hundred years after its existence was officially reported.

As for the syndicate, it has proved to be invincible and even immune to a state of emergency, which has not been able to curb It’s potential for collusion and thereby manipulation of the prices. The tenure of the BNP-Jamaat alliance government saw two changes of commerce ministers, each given the sack for the same reason, while the last one had utterly failed in his pledge to rein in the prices of essentials. The invincibility of the syndicate was perhaps never felt with such force as it was on July 25, 2006 at a monthly luncheon meeting of the American Chamber of Commerce in Bangladesh.

The third commerce minister of the last government, Hafiz Uddin Ahmed, squarely put the responsibility of controlling the prices of essentials on other ministries and went so far as to suggest that the government should set up another ministry for the Task. „The Consumer Protection Act is being scrutinized now and I have urged the food ministry to make anti-hoarding laws for checking unscrupulous trader’s syndicates and hoarders,”he said.

He also suggested that the finance and food Ministries were better equipped to tackle the matter. It was just three months after Hafiz had taken up his new portfolio on April 26 with the pledge to reduce prices of essentials within a month. Barely a week earlier, at a meeting with businesspeople at his office, he assumed a dramatically different tone and harped on a different note, although, even then, it was obvious that his success in bringing down the prices of essentials was at the mercy of the businesspeople.

On July 19, Hafiz announced to the press ~ following the meeting ~ that the intelligence agencies had identified the members of the syndicate „who were involved in manipulating prices through hoarding and other means. But he only “hoped that the relevant ministry would take Necessary action. His comments about the meeting betrayed his helplessness and utter Inability to hold sway over the businessmen. „They have given us assurance that they will not make any windfall profit by making the people hostage, said Hafiz about the traders present at the meeting.

With hindsight it appears that the minister did his best to divert attention from the syndicates citing a marked difference of prices between wholesalers and retailers, and the producers and wholesalers that he suggested added to the woes of the people. M Saifur Rahman, then the minister for finance and planning, and perhaps the most influential cabinet member of the BNP-led government, when approached with the possibility of reducing import tariffs on essential food items, told the press, it never paid off. He said the prices would decrease for a short while but resume their rising trend soon after.

Instead, he suggested, the syndicates that manipulated the prices were the main reason behind the price hike and had to be dealt with decisively. But government officials deny their existence quite categorically despite overwhelming circumstantial facts that testify exactly the opposite. The commerce secretary was quoted in January as saying they are „yet to receive any conclusive evidence on the existence of syndicates?. He went further to substantiate his claim asking, „When the prices went up everyone was blaming syndicates.

But now that they are going down how come everybody is quiet? If there was a syndicate why are the prices coming down? He did partially admit to their existence since former ministers had claimed that syndicates exist. But the rebuff of a prominent businessman, quoted in New Age’s weekend supplement Xtra on January 12, smacks of the classic mafia disclaimer. “I read about this regularly in newspapers but I have never seen one or been a part of it,” says Mostafa Kamal, chairman of the Meghna Group, one of the leading importers of edible oil, powdered

Milk and sugar. “How, where and when are questions people who accuse us of syndication should answer,” he said. It is alleged that the Meghna Group is among the leading syndicate members in the country. Hossain. E. (2009), programmed officer of the Consumers Association of Bangladesh, echoed the general apprehension. “I have attended meetings at the commerce ministry where powerful and well-known businessmen have directly threatened government officials with cutting out supply if they did not accept their chosen prices,” he told Xtra.

According to the Daily Star (May 18 2009), a report of the Centre for Policy Dialogue, a research organization, based on records of the National Board of Revenue, found that a strong cartel accounted for a substantial share of the imports. The report says the top five importers have accounted for importing 96 per cent raw sugar, 46 per cent refined sugar, 67 per cent crude soybean oil, 60 per cent crude palm oil, 49 per cent wheat, 37 per cent rice, 31 per cent lentil, and 31 per cent onion of national imports till March of this fiscal year.

While the report did not mention any names, a number of reports in other newspapers have done so. For instance, according to a report of Amar Desh (May 11, 2009) the TK Group, the Meghna Group and the City Group account for 65 per cent of edible oil imports. The next three ~ the SA Group, the MEB Group and the Marine Group ~ account for another 25 per cent of the imports. Quoting sources, the report says traders of Dhaka and Chittagong are the major importers of lentils, ginger, garlic and other essentials that come from India.

It goes on to mention the names of Shathi Enterprise, Seven Star and Banijjya Bhandar from Dhaka, Rumpa Enterprise of Bogura, Pahari Enterprise, AB Trading and Akhter Impex of Chittagong as significant market players. When the country is badly shaken by the unprecedented floods there is another alarming factor—the price hike of essentials that is slowly but very steadily engulfing the rural life of the common people. It is appalling that one kg of green chili costs you TK 200! There are no vegetables that cost you less than TK 30 per kg! It also creates shortage of foods. That also increases the price of essentials.

Similarly other factors such as power failure, international market price, fuel cost, power crisis, natural disaster, transportation problem, illegal toll collection, action against corruption by the caretaker Government, street vendors and illegal construction drive by the joint forces, lack of communication and co-ordination in between different Government officers etc factors are also responsible for recent price hike in Bangladesh. By taking serious action and frame effective laws for the elimination of the middle men groups existing various trading circles and to control bribery in between law enforcing agencies and traders.

By minimize the traffic jams and load shadings. By forming a strong co-ordination efforts and monitoring system, established for the cooperation, co-ordination and exchange of information in between different Government officials entrusted to check price level. By identifying syndicate groups and taking appropriate action against them. The Government can control the price. By creating awareness against corruption and establish a price list for all kinds of goods to control price hike. And by electing an honest and stable Government, the general people can solve this problem.

HYPOTHESIS There are many reasons behind this recent price hike in Bangladesh. But we think formation of syndicate and corruption is the main reason behind this. But international market price, fuel cost, power crisis, natural disaster, transportation problem, illegal toll collection, action against corruption by the caretaker Government, street vendors and illegal construction drive by the joint forces, lack of communication and co-ordination in between different Government officers etc are also responsible for recent price hike in Bangladesh.

And the rate of this price hike is very fast. Even the military back Government was failed to solve this problem. They were not able to find the root behind this problem due to lack of appropriate monitoring system. But just the Government can solve this problem by using his intelligence agency, by introducing effective monitoring system, by improving law & order and by identifying the evil syndicate groups. But it is not a very easy job. The support of general public is also needed to solve this problem. METHODOLOGY There are two types of data in my research paper. . Primary Data. & 2. Secondary Data Primary Data:- We have collected my primary data to figure out the mail reasons and public’s reaction about recent price hike in Bangladesh by conducting a survey on 30 general people. To do that survey first we had prepared some questions and some suitable answer against each question. After that we went out for general people to conduct our survey. The shopkeepers, doctors, teachers, tailors, chemists, retired peoples, servants, housewives and students were the people who were participate in our survey.

We have had some difficulties to conduct our survey. We had very little time to conduct this survey. Within this short period of time we had to find 30 peoples of different classes. People of all class were participating in our survey. Some of them did not know hoe to write and read. We had to read and translated my question for them. After knowing there answers we filled the answers for them. Thus we completed our survey to get our primary data. Secondary Data:- We have collected my secondary data mostly from different websites such as “www. vjel. org, www. unnayan. rg” etc, different newspaper such as “The daily star, The New Age” etc, and from different magazines. DATA PRESENTATION CAPTION: A survey has been taken of 30 people for the topic of “The main reasons and public’s reaction about recent price hike in Bangladesh. Question No. | Option A| Option B| Option C| Option D| 1| 63%| 40%| 0%| 6. 67%| 2| 48. 67%| 23. 33%| 20%| *| 3| 83. 33%| 3. 33%| 13. 33%| *| 4| 43. 33%| 43. 33%| 13. 33%| *| 5| 20%| 63. 33%| 16. 67%| *| 6| 30%| 30%| 46. 67%| *| 7| 53%| 16. 67%| 10%| *| 8| 3. 33%| 16. 67%| 46. 67%| 26. 67%| 9| 13. 33%| 26. 67%| 50%| *| 10| 36. 7%| 30%| 26. 67%| *| 11| 53%| 10%| 26. 67%| *| 12| 66. 67%| 20%| 3. 33%| *| 13| 46. 67%| 10%| 33. 33%| 16. 67%| 14| 10%| 53%| 0%| 46. 67%| 15| 36. 67%| 46. 67%| 23. 33%| *| TABLE: THE SURVEY RESULT DATA ANALYSIS Recently we have done a survey for about 30 people to find the main reasons behind this recent price hike in Bangladesh. For this survey we prepared a set of question consisting of 16 questions. According to Our survey here we analysis some of the important questions from my questioner. Question No: 1| A| B| C| D| What do you think aboutthe main reason behindthis recent price hike? Formation of Syndicates| Corruption| Extortion| Taking bribe from traders| Chart 1: The survey result of question no: 1 Question No: 2| A| B| C| Do you thinkthereis any Syndicate groupsinvolved in price hike? | Yes, because the governmentCan’t control the price. | No, there is no syndicate groups exist| May be, not sure| Chart 2: The survey result of question no: 2 According to my survey, in reply of my first question 63% people said formation of Syndicates is the main reason behind this recent price hike. While 40% people said corruption is the main reason behind this.

In reply of my second question 83. 33% people said syndicate groups are involved in price hike because the government can? t control the price. In my survey most of the people think the syndicate groups are mainly responsible for this problem. These syndicate groups controlling the price by hoarding. Hoarding by businesses has been widely blamed by many as being main culprit behind the current crisis. Indeed, if we let aside moral issues, hoarding markets perfect economic sense to businesses and that is why they build up stocks to make larger profits.

For example suppose the current market price of a NOKIA 1202 mobile phone is TK 1800. Now let us assume that for some unknown reasons, the price of the same brand mobile is expected or any mobile phone dealer in the market sell NOKIA 1202 at the lower price now or wait to sell at the higher price a month later? What would happen to the current market price of NOKIA 1202, if most dealers hold off selling? This is exactly how inflationary expectation, expectation about future price hike, leads to hoarding, creates shortage, raises current market price and, finally, brings larger profits for businesses. From the above analysis we conclude that the syndicate groups are nothing but a well-known business farms, run by well-known business man. But the syndicates, for all their collusion, manipulation and public denial, are not entirely responsible for the price hike. There are other related factors some of which are compelling, even more than syndication. To begin with, production costs have risen and So have the prices. But it gives an impression that the farmers are linked to the market and thereby benefit from the price rises at the consumer end. That is hardly the case.

They are paid the bare minimum below which the farmers cannot afford to cultivate crops the next year. And prices at their end have increased only marginally over the years. The real value addition (pun intended) to agricultural produce begins with the middlemen who buy from farmers. Along the supply chain there are warehouses, wholesalers, retailers and micro-retailers often with several more layers of middlemen sandwiched among them. Reports in the media indicate that prices, especially those of vegetables, appreciate by up to 500 per cent between the farmer and the end-consumer.

That is how the middleman also controlling the market price. And the Government is not able to identify them, catch them, and even control them. Even the Government has blamed international market price hike of essential commodities as being responsible for high domestic prices to cover their failure. The Government has failed to solve this problem due to the corrupted Government officers and corrupted law enforcing agencies. They are not willing to monitor the market price. They are just willing to take bribe.

Again lack of communication and co-ordination in between different Government officers and lack of communication system in between different Upozela and districts head quarters with the capital is also responsible for this recent price hike. Question No: 3| A| B| C| Which political factors are responsible for price hike? | Blockade and strike| Corruption of so called political leaders| Conflict between political parties| Chart 3: The survey result of question no: 3 According to my survey, in reply of my third question, 63. 33% of people said corruption of so called political leaders is the main political factor behind this price hike.

And only A B 20% of people said blockade and strike is responsible for this. Political leaders are not actually political leaders. Actually they are political business man. They invest there money to own the party nomination and also own the election. Actually they bought there place in Parliament. After wining the election they start to gain black money as much as they can. And they gain it by corruption. And that’s why the price of essential commodities is increasing day by day. This political don’t care about the general people, they just care about themselves. Even they don’t know how uch black money they have gained by corruption. The current anti-corruption drive by the Caretaker Government clearly shows the statistic how much black money they have gained through corruption. That’s why the corruption of so called political leaders also responsible for recent price hikes. Question No: 4| A| B| C| D| What| Bribe & illegal| Traffic| Power failures| Lackof| structural&institutional constraints are mainlyresponsible for thisrecent price hike? | toll collection| congestion| | storage capacity| Chart 4: The survey result of question no: 4

According to my survey, in reply of my forth question 46. 67% people said bribe and illegal toll collection is the main structural & institutional constraints that are mainly responsible for this recent price hike. And 33. 33% people said power failure is also responsible for this problem. But I think this both factors are equally responsible for this problem The illegal practices of bribes toll collections and associations greatly influence in raising the price of essential commodities. The traders has to paid toll and bribe at each entering point of a town.

And this increases the transportation cost of goods. As a result the price is increases. And the Government has failed to stop this because of the involvement of corrupted law enforcing officers. While the Scarcity increases the opportunity cost of any service and provides opportunities for corruption. The acute shortage of generation capacity and its consequent effects – frequent load-shedding, low voltage and low frequency – on different economic sectors, as well as on essential services such as water supply, hospitals, and telecommunications, have opened up doors for many types of corruption.

That is also responsible for this recent price hike. Why that is happening? Because of the corruption of the employee of DESA and PDB. According to the Transparency International Bangladesh (2006), ? A Ledger Keeper in DESA, a very low level employee, became the envy of many when he purchased a house in a middle-income residential area of Dhaka for Tk 3. 8 million and an allotment in a shopping arcade. ? Many Assistant Engineers of BPDB own private cars, which they cannot afford to buy and maintain on their official salary. A particular Assistant Engineer, with close links with the Collective Bargaining Agent, comes to office in a luxury four-wheeler, while another mints money by making various interventions in the name of a minister. ? A meter reader who was placed under suspension joined the ruling political party, got his job bank, became a CBA leader, and is now the happy owner of two houses and a shop. ? A corrupt and overweight meter reader, who employed agents to do his job and concentrated on eating instead, was transferred from Dhaka to an outstation by an over-zealous DESA officer.

Fretting and fuming, the reader came to see a very senior DESA official and told him in no uncertain terms, “Sir, I have been working for 25 years in one place and nobody dared to touch me. You have not done well by transferring me. I will see how you can move me. ” Sure enough, he stayed where he was, with the help of his co-operative union leaders. And due to this corruption load shading occurs frequently, as a result the price of essential goods is increasing rapidly. Question No: 5| A| B| C| Do you think natural disaster, street vendors and illegal construction drive by the joint forces are also responsible for recent price hike? Yes| No| Partly responsible| | | | | | | 4 0 | | | | | | | | | | | | | 30 30| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Chart 5: The survey result of question no: 5 According to our survey, in reply of our fifth question 46. 67% people said natural disaster; street vendors and illegal construction drive by the joint forces are partly responsible for recent price hike. And equal number of people said yes and no. But we think it is responsible and why? You will find your answer right now.

When the country is badly shaken by the unprecedented floods there is another alarming factor the price hike of essentials that is slowly but very steadily engulfing the rural life of the common people. It is appalling that one kg of green chili costs you TK 200! There are no vegetables that cost you less than TK 30 per kg! It also creates shortage of foods. That also increases the price of essentials. And that’s why we think natural disaster is directly responsible for price hike, but the others are partly responsible. Question No: 6| A| B| C| D|

How can the| By taking| Identifying the| By improving| By improving| Government| necessary steps| syndicate| traffic| law & order| control the price hike? | to stop cross border smuggling of fuel and fertilizer| groups| congestion| | Chart 6: The survey result of question no: 6 According to our survey, most of the people said we can able to control the price by identifying the syndicate groups and by improving law & order. If the government framed strong laws to improve the law and order we can able to identify the syndicate groups and also able to control the price of essential goods.

To 4. 67 Improve this situation the personals of different law enforcing agencies should immediately be deployed in different trading centers, sea port, river ports, and land ports to check up and down of price level due to hoarding black marketing of essential food grains and other food items. Thus we can improve the current situation. Question No: 7| A| B| C| Which methods can be most applicable toreduce or improve this problem? | By framing appropriate law by the Government to eliminate middle classes in trading. | By introducing effectivemonitoring system. By re-introducing old rationingsystem by the Government to stable the prices| Chart 7: The survey result of question no: 7 According to our survey, in reply of my seventh question 46. 67% people said by introducing effective monitoring system we can able to reduce this problem. And 36. 67% people said we can solve this problem by framing appropriate law to eliminate middle classes in trading. We are passing through a revolutionary communication and contract system due to the introduction of most modern computer and mobile communication system in our country.

It is now very easy for the Government to established scientific monitoring systems and cells to keep constant observation data collection and exchange of information? s about the causes up and down, price level of important food items and essential commodities. According to our survey most of the people said the rate of price hike is quite fast. And the general public’s can help the Government to remove this problem. Most of the people in Bangladesh can afford to meet their family essential commodities, but they said it was very tough.

Surprisingly the upper class people are also by price hike. Most of the people agree to that if laws and regulation enforced properly, it is practically possible to reduce this price hike. And the general peoples can also play a big role to solve this problem. LIMITATION We had very little time to do that survey. If we had enough time we may go out of Dhaka to find the poorest people. We want to take the interview of the poorest people. We had also faced lots of obstacles, but after all of these obstacles finally We finished our research paper and we are quite satisfied about it.

CONCLUSION Given the scenario in Bangladesh, any measure to control prices, barring one that addresses the syndicates, is bound to be band-aid-like ~ a bit of eyewash. That is perhaps the first area where the government should focus in its bid to reduce the prices of essential items. But it is not possible for the Government to reduce this problem alone. The general people, the mass media everybody should came forward to help the Government to reduce this problem. Other wise the price of essential commodities will increase day by day. And nobody will able to control this problem.