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Bangladesh

The Laffer Curve Befriends Bangladesh’s Financial Corporates

Zahid Hussain's picture



Tax revenue growth in Bangladesh this year has been one of the lowest in recent years.  There is now demand for a cut in corporate income tax rate with the forthcoming FY15 budget.[1]  Is this a good idea from a fiscal point of view?
 
Whether or not a tax-cut will increase or lower tax revenues depend on the tax rates and the tax system in place. If tax rates are in the prohibitive range, a tax cut will result in increased tax revenues. Arthur Laffer distinguished between the arithmetic effect and the economic effect of tax cuts. The arithmetic effect means that a lowering of the tax rate will result in lower tax revenues by the amount of the decrease in the rate. The economic effect identifies a positive impact of lower tax rates on work, output and employment which expand the tax base. If tax rates that are currently in the prohibitive range are lowered, the economic effect of a tax cut will outweigh the arithmetic effect and revenue collection will increase with tax cut.[2] 

Mar 28, 2014: This Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 27 tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Afghanistan, Bangladesh ,India, NepalPakistan, and Sri Lanka. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

To Lead Tomorrow, Future Leaders Must Learn to Read Today

Mabruk Kabir's picture


When it comes to primary education, there are many reasons to be optimistic. Enrollment has jumped across the world, and more children are in school than ever before. In the last decade, the number of out-of-school children has fallen by half, from 102 million in 2000 to 57 million in 2011.
 
But is showing up to school enough?
 
According to UNESCO’s Education for All Global Monitoring Report, almost one quarter of the youth in the developing world cannot read a sentence. In countries with large youth populations, this can leave behind a crippling ‘legacy of illiteracy’. Despite almost universal primary enrollment in India – 97 percent – half of second grade students cannot read a full sentence, and almost a quarter cannot even recognize letters.

Reading is a foundational skill. Children who do not learn to read in the primary grades are less likely to benefit from further schooling. Poor readers struggle to develop writing skills and absorb content in other areas. More worryingly, learning gaps hit disadvantaged populations the hardest, limiting their economic opportunities. In Bangladesh, only one in three of the poorest quartile is literate, compared to almost nine out of ten in the richest.

Mar 21, 2014: This Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 30 tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Afghanistan, Bangladesh ,India, Nepal, and Pakistan. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

Mar 14, 2014: This Week in #SouthAsiaDev

Joe Qian's picture
We've rounded up 20 tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Afghanistan, Bangladesh, BhutanIndia, The Maldives, Nepal, and Pakistan. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

Mar 7, 2014: This Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 20 tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Afghanistan, Bangladesh, India, Nepal, Pakistan, Sri Lanka. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

Feb 28, 2014: This Week in #SouthAsiaDev

Liana Pistell's picture
We've rounded up 24 Tweets, posts, links, and +1's on South Asia-related development news, innovation, and social good that caught our eye this week. Countries included: Bhutan, Bangladesh, India, Nepal, Pakistan, Sri Lanka. For regular #SouthAsiaDev updates, follow us on Facebook and Twitter

Can International Remittances Be Unproductive in Recipient Countries? Not Really!

Zahid Hussain's picture
A recent Bangladesh Bank study reports that remittance sent by expatriates is mostly used for consumption and in the “non-productive” sectors in the country. The survey conducted in 2011 found 90% of remittances were used for meeting basic needs. Seventy-five percent of households receiving remittance spent those on food, 42% on loan repayment, 65% on education, 57% on treatment, 49% on marriage and 4% on running legal battles (multiple responses allowed).

The Tale of Minara Begum

Jahirul Islam's picture

Minara Begum is a very special lady in Amtoli Upazila of Barguna district, well known for her courage and hard work. Her determination to lift herself out of extreme poverty to a stable financial position has drawn the attention of many people in the locality. Her strength and resilience is evident in how she survived the devastating cyclone ‘Sidr’, which hit the coast of Bangladesh in 2007, and rebuilt her life afterwards.

Minara’s life had never been easy. Her first husband divorced her for not being able to bear children and her second husband was too ill to earn much. So she had to take up most of the burden of the family. With money she had received from her first husband, Minara bought a cow and slowly she was able to increase her livestock up to nine, which she sold in order to buy land. But misfortune struck her when cyclone Sidr destroyed her standing crops and smashed the roof of her house, which fell on her husband. Since then her husband has been suffering from back pain, unable to work as a day laborer in the field and has become totally dependent on Minara’s income.

Cyclone Sidr left Minara in a hopeless state - she had lost everything she had worked so hard for. She had no clothes; she could afford only one meal a day. Fortunately, she was selected as a beneficiary of the Livestock subcomponent of the Emergency Cyclone Recovery and Restoration Project (ECRRP) in 2010 and given training in the Livestock Farmers’ Field School (L-FFS). She received a livestock package of ten ducks, poultry feed and an improved poultry shed. At the time of delivery of the package, she had no livestock and the yearly income of her family was only Tk. 12,000 ($150) mostly from her wages as a day laborer. She had only 40 decimals of land, including her homestead.

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