5,000 small and medium local boutiques might eventually have to take the bitter decision to shutter their stores. Fashion Entrepreneurs Association of Bangladesh (FEAB) earlier estimated loss of Tk 2,000 crore in Boishakhi sales due to the coronavirus outbreak. At the same time, payment of wages and salaries of employees and artisans for three months has become uncertain. The amount is nearly Tk 1,500 crore. The Eid festival, which is due in the latter part of May this year, generates Tk 4,000 crore -Tk 5,000 crore in sales for local fashion houses–sales which they are likely to lose as there would be also a reduced demand due to people having lesser purchasing power. The Tk 20,000 crore stimulus package launched by the government to provide working capital to finance small and medium enterprises, including cottage-based businesses, to ride out the troubled waters is fine –but there remain no guidelines on who can apply.
Ideally only those small businesses who are genuinely affected should get the fund. The fund should not be used as a pork barrel to garner support for the administration by supporting firms who are owned by individuals supportive of the ruling party or politically connected to them. Whether such a situation can be prevented remains unknown–misappropriation remains a part of our lives–there are reports of relief intended for the poor being abused to help those who don’t need it. Setting up stringent criteria and then following up with them may be difficult, if not impossible, as the administration officials in charge of distribution may not be disciplined enough. So a good option would be transparency. If anyone could look up the firms who need the most capital people could easily find out whether the firms who get funds are genuine or not through the internet.
The money comes from our taxes–so we should know whether the corrupt are getting the money.
