Price control, Government intervention andregulations Vs Business environment:An analytical review

Abstract

This has been a vital issue in Bangladesh why and how the prices of essential commodities are sky rocketing every passing day turning life-style very much horrible with basic needs. Some quarters are blaming illicit trading while the others are pointing out to those involved in the channel of distributions. Again some raising the question of business ethics and morality and most of the popular one is ‘syndicate business’. This is very common in every economy to shift the responsibility to any one timid to be an escape goat. Questions come whether price rising is harmful, or who have been affected by it. Indeed, high price also mean higher standard of living, and good business means good profit. No one dare saying who and how the price would be fixed up? Tricky point in this arena is what type of economic system we are following? Most critics who understand the economy would indicate the distribution of wealth that is not done proportionately with the GDP growth in Bangladesh. So, some people are getting more rich and most of the population getting worse economically. Actually solution lies in productivity and employment that is staggering behind for so long. Economic disparity, unemployment and nonproductive expenditure needed to be reviewed and readjusted. For example, Size of Government, Government expenditure, and defense budget are actually consuming the bulk of revenue budget which ultimately waning the government earnings by putting pressure on civilian-income and business return. Consequently we have a non-business Environment, meaning a less prospective business or risks at long term perspective. This is the reason, why business people tend to cover up their future risks with short-term super profit, which is also rather a business culture of our economy. Moreover, why should one invest on a certain business if no prospects are there? Now as a short term measure Government is taking steps to correct the business practice, but how far it is justified will remain be a question. Some experts suggest the controlling mechanism – but law or rules do not clarify it. Hence a confusing business atmosphere is now prevailing in the economy and business. Business psychology & tactics, and economic theories will not go as per concepts and theory rather it is different and based on prediction and confidence on time considering many economic, geographic, social and political factors. Business community would consider just blaming them for price hike unfair. Unsatisfied business community leads an economy to anywhere but prosperity.