• Latest
  • Most Read
Economic Collapse, Single Sector Economy

Single sector dependence- The reason behind economic collapse Bangladesh, Malaysia and Arab world

3 years ago
Ranbir Kapoor as Ram and Alia Bhatt as Sita. Another Ramayana is coming

Ranbir Kapoor as Ram and Alia Bhatt as Sita. Another Ramayana is coming

1 day ago
The vegetarian delicacies of Kerala the World Needs to Discover

The vegetarian delicacies of Kerala the World Needs to Discover

1 day ago
A bigger scammer than Hera Pheri’s Raju: BYJUs

A bigger scammer than Hera Pheri’s Raju: BYJUs

1 day ago
Indian Railways takes the rumor mongers head on

Indian Railways takes the rumor mongers head on

1 day ago
Critics’ Choices: Overrated Indian Films that did not match up to the hype

United we Stand: Uttarakhand has a message for India’s Hindus

1 day ago
Critics’ Choices: Overrated Indian Films that did not match up to the hype

India beats Japan to become 2nd biggest steel manufacturer globally

1 day ago
Rahul Gandhi’s ‘secret visit’ to White House: What’s cooking?

Rahul Gandhi’s ‘secret visit’ to White House: What’s cooking?

1 day ago
Dear Sanjiv Bajaj, your act of justifying Bajaj Finance spam calls is both amusing and reeks of fake pride

Dear Sanjiv Bajaj, your act of justifying Bajaj Finance spam calls is both amusing and reeks of fake pride

1 day ago
Critics’ Choices: Overrated Indian Films that did not match up to the hype

Critics’ Choices: Overrated Indian Films that did not match up to the hype

2 days ago
Indian actors you won’t believe weren’t the first choice for the classics

Indian actors you won’t believe weren’t the first choice for the classics

2 days ago
“7 Indian Movies That Found an Audience, Despite Critic Rejections”

“7 Indian Movies That Found an Audience, Despite Critic Rejections”

2 days ago
The Adipurush Controversy: Is it Time to Let the Audience Decide?

The Adipurush Controversy: Is it Time to Let the Audience Decide?

2 days ago
Indian democracy

“Go and check out for yourselves”: White House’s stern message to rabble rousers on Indian democracy

2 days ago
Indira Gandhi's assassination celebration

Ex Indian PM Indira Gandhi’s assassination is a matter of celebration in Canada

2 days ago
The Damoh School Controversy: Madhya Pradesh CM Shivraj Singh Chauhan in Firm Action Mode

The Damoh School Controversy: Madhya Pradesh CM Shivraj Singh Chauhan in Firm Action Mode

3 days ago
  • About us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI हिन्दी
TFI Global
Saturday, June 10, 2023
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Indian Railways takes the rumor mongers head on

    Indian Railways takes the rumor mongers head on

    Rahul Gandhi’s ‘secret visit’ to White House: What’s cooking?

    Rahul Gandhi’s ‘secret visit’ to White House: What’s cooking?

    The Damoh School Controversy: Madhya Pradesh CM Shivraj Singh Chauhan in Firm Action Mode

    The Damoh School Controversy: Madhya Pradesh CM Shivraj Singh Chauhan in Firm Action Mode

    Sam Pitroda issues Rahul Gandhi’s Report Card: FAIL

    Sam Pitroda issues Rahul Gandhi’s Report Card: FAIL

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    A bigger scammer than Hera Pheri’s Raju: BYJUs

    A bigger scammer than Hera Pheri’s Raju: BYJUs

    Critics’ Choices: Overrated Indian Films that did not match up to the hype

    India beats Japan to become 2nd biggest steel manufacturer globally

    Dear Sanjiv Bajaj, your act of justifying Bajaj Finance spam calls is both amusing and reeks of fake pride

    Dear Sanjiv Bajaj, your act of justifying Bajaj Finance spam calls is both amusing and reeks of fake pride

    Mobile Trading: Why Security and Privacy Should Be Your Top Priority

    Mobile Trading: Why Security and Privacy Should Be Your Top Priority

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    new CBI director Praveen sood biography

    Who is Praveen Sood the New CBI Director: Professional Background, Achievements and Significance of the Appointment

    Paramjit Singh Panjwar shot dead

    Paramjit Singh Panjwar shot dead: Keep calm and trust the Indian Armed Forces

    Swarm satellites

    India’s Bold Step towards Satellite Swarm Intelligence: A New Era in Space Technology

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Indian democracy

    “Go and check out for yourselves”: White House’s stern message to rabble rousers on Indian democracy

    Indira Gandhi's assassination celebration

    Ex Indian PM Indira Gandhi’s assassination is a matter of celebration in Canada

    Modi is the boss

    Modi is the boss: “Vedic Mantras” and an ocean of crowd: PM Modi’s Australia tour will echo till eternity

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    A bigger scammer than Hera Pheri’s Raju: BYJUs

    A bigger scammer than Hera Pheri’s Raju: BYJUs

    Critics’ Choices: Overrated Indian Films that did not match up to the hype

    United we Stand: Uttarakhand has a message for India’s Hindus

    5 failed Inventions

    5 Inventions that failed to serve their purpose

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Ranbir Kapoor as Ram and Alia Bhatt as Sita. Another Ramayana is coming

    Ranbir Kapoor as Ram and Alia Bhatt as Sita. Another Ramayana is coming

    The vegetarian delicacies of Kerala the World Needs to Discover

    The vegetarian delicacies of Kerala the World Needs to Discover

    Critics’ Choices: Overrated Indian Films that did not match up to the hype

    Critics’ Choices: Overrated Indian Films that did not match up to the hype

    Indian actors you won’t believe weren’t the first choice for the classics

    Indian actors you won’t believe weren’t the first choice for the classics

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Indian Railways takes the rumor mongers head on

    Indian Railways takes the rumor mongers head on

    Rahul Gandhi’s ‘secret visit’ to White House: What’s cooking?

    Rahul Gandhi’s ‘secret visit’ to White House: What’s cooking?

    The Damoh School Controversy: Madhya Pradesh CM Shivraj Singh Chauhan in Firm Action Mode

    The Damoh School Controversy: Madhya Pradesh CM Shivraj Singh Chauhan in Firm Action Mode

    Sam Pitroda issues Rahul Gandhi’s Report Card: FAIL

    Sam Pitroda issues Rahul Gandhi’s Report Card: FAIL

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    A bigger scammer than Hera Pheri’s Raju: BYJUs

    A bigger scammer than Hera Pheri’s Raju: BYJUs

    Critics’ Choices: Overrated Indian Films that did not match up to the hype

    India beats Japan to become 2nd biggest steel manufacturer globally

    Dear Sanjiv Bajaj, your act of justifying Bajaj Finance spam calls is both amusing and reeks of fake pride

    Dear Sanjiv Bajaj, your act of justifying Bajaj Finance spam calls is both amusing and reeks of fake pride

    Mobile Trading: Why Security and Privacy Should Be Your Top Priority

    Mobile Trading: Why Security and Privacy Should Be Your Top Priority

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    new CBI director Praveen sood biography

    Who is Praveen Sood the New CBI Director: Professional Background, Achievements and Significance of the Appointment

    Paramjit Singh Panjwar shot dead

    Paramjit Singh Panjwar shot dead: Keep calm and trust the Indian Armed Forces

    Swarm satellites

    India’s Bold Step towards Satellite Swarm Intelligence: A New Era in Space Technology

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Indian democracy

    “Go and check out for yourselves”: White House’s stern message to rabble rousers on Indian democracy

    Indira Gandhi's assassination celebration

    Ex Indian PM Indira Gandhi’s assassination is a matter of celebration in Canada

    Modi is the boss

    Modi is the boss: “Vedic Mantras” and an ocean of crowd: PM Modi’s Australia tour will echo till eternity

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    A bigger scammer than Hera Pheri’s Raju: BYJUs

    A bigger scammer than Hera Pheri’s Raju: BYJUs

    Critics’ Choices: Overrated Indian Films that did not match up to the hype

    United we Stand: Uttarakhand has a message for India’s Hindus

    5 failed Inventions

    5 Inventions that failed to serve their purpose

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Ranbir Kapoor as Ram and Alia Bhatt as Sita. Another Ramayana is coming

    Ranbir Kapoor as Ram and Alia Bhatt as Sita. Another Ramayana is coming

    The vegetarian delicacies of Kerala the World Needs to Discover

    The vegetarian delicacies of Kerala the World Needs to Discover

    Critics’ Choices: Overrated Indian Films that did not match up to the hype

    Critics’ Choices: Overrated Indian Films that did not match up to the hype

    Indian actors you won’t believe weren’t the first choice for the classics

    Indian actors you won’t believe weren’t the first choice for the classics

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
No Result
View All Result

HOME » Economy » Economy1 » Single sector dependence- The reason behind economic collapse Bangladesh, Malaysia and Arab world

Single sector dependence- The reason behind economic collapse Bangladesh, Malaysia and Arab world

Tough times

Akshay Narang
by Akshay Narang
13 May 2020
in Economy1
0
Economic Collapse, Single Sector Economy
4.4k
VIEWS
Share on FacebookShare on Twitter

Analysts across the world are still struggling to gauge the real consequences of the COVID-19 Pandemic and the related travel restrictions/ lockdowns, as it is gradually turning out to be one of the biggest shake-ups in the present world order in a long time. 

One of the biggest consequences, however, is the sudden collapse of single-sector economies, that is, those countries which rely on one particular industry for economic growth. 

The Arab economy that relies on oil exports, the Bangladeshi economy that relies on textiles/ apparels and the Malaysian economy that depends highly on Palm oil are all on verge of an imminent, unavoidable collapse. 

Arab Countries:

The Arab world has traditionally thrived on oil exports, so much so that it has allowed the richer Gulf countries like the UAE and Saudi Arabia to prosper without the imposition of taxes. But their prosperity depends on higher oil prices, on which these countries pin their hopes for government spending and social welfare programmes. 

But with Coronavirus-related lockdowns and an oil price war between Saudia Arabia and Russia, the crude oil market has crashed unprecedentedly. And so have the fortunes of the Arab world. Now, even the richer countries like Saudi Arabia, UAE, Oman, and Bahrain are feeling the heat. Saudi Arabia, the de facto leader of the Arab world, has itself felt compelled to take austerity measures- tripling Value-added tax (VAT) and cutting down on welfare expenditure. 

The richer of Gulf countries that generally ran a budget surplus are now staring at double-digit fiscal deficits. For the Arab world, higher oil prices and an economic collapse also mean social unrest for countries like Iran and Iraq. 

It can also lead to Arab Spring 2.0, similar to the large-scale protests for democratic rights in the early 2010s. At that time, rich countries like Saudi Arabia had escaped lightly because they were riding on economic prosperity. But as the slump in oil prices drags down the richer Gulf countries even Saudi Arabia, UAE, Oman, and Bahrain are likely to face the heat of popular protests. 

Bangladesh: 

Bangladesh is turning out to be another case of a rising economy getting irreparably battered due to the COVID-19 Pandemic. Not too long ago, the economy of the overcrowded country with 162 million people was growing at a staggering rate of 8 per cent not too long ago. 

Its manufacturing sector was, in particular, growing strongly at a time when manufacturing failed to pick up in countries across the world. 

But suddenly India’s neighbour has collapsed dramatically, as the COVID-19 Pandemic has turned out to be quite a catastrophe for the Bangladeshi economy. The country’s apparels industry has been crippled, and therefore its economy has come crashing down. 

Bangladesh’s growth story was short-lived because of its over-dependence on apparel exports and lack of intent to diversify. 

The garment industry alone contributes close to 80% of the country’s total exports. The textile industry of Bangladesh alone contributes about 16% to the densely populated country’s GDP.

However, with the Pandemic bringing the world economy to a grinding halt, the apparel brands and retailers have cancelled orders worth approximately $3.17 billion, pushing the textile industry of Bangladesh towards a hurtful collapse.

The lifeline of Bangladesh is its textile industry. And it is dying a slow and excruciating death

Orders getting cancelled, textile units getting shut and mass lay-offs characterise the near apocalypse that the garments industry in the country is currently grappling with.  

The problem was not only the demand-side but also on the supply-side, as the textile industries had to shut down following a nationwide lockdown. Now, Dhaka is putting its economy before the lives of citizens, as the textiles industry is going to be reopened amidst the ongoing lockdown, even though the number of cases continues to rise in the country.  

For a country as densely populated as Bangladesh, the decision to end the lockdown for millions of workers could trigger a fresh wave of the epidemic further compounding its troubles. Textile units, the drivers of Bangladeshi economy yesterday, could become the Coronavirus clusters of today. 

By the end of the Pandemic, the apparels industry of Bangladesh would have most probably collapsed bringing an unfortunate end to the country’s growth story. 

Malaysia: 

Also collapsing under the weight of Coronavirus induced economic downturn is the Palm Oil-dependent Malaysian economy. 

Palm oil is crucial for the Malaysian economy as it accounts for 2.8% of Malaysia’s Gross Domestic Product and 4.5% of total exports. The country also happens to be the second-largest producer of Palm Oil. 

Since April, there have been ominous signs when it comes to the Palm oil imports. In fact, New Delhi had already imposed curbs on Palm Oil imports following former Malaysian Prime Minister Mahathir’s anti-India remarks. And the Pandemic has only worsened the crisis for Malaysia. 

With the economic slowdown, the demand-side for Palm Oil looks really weak. India is the world’s biggest Palm Oil importer, but Malaysian Palm Oil exports to India has hit a record low. 

Malaysia exported just 10,806 tons to India in March- a drop of 97 per cent from last year. Import curbs, nationwide lockdown and shuttering of restaurants that use more oil compared to home-cooked food has triggered the collapse of Palm Oil demand hurting the Malaysian economy. 

There has been demand destruction in China, the second-largest importer of Palm Oil too. China is the country of Coronavirus-origin and maybe far worse affected than what the official numbers show. Demand for Palm Oil prices has thus hit a new low among the two biggest importers. 

Malaysian economy faces the brunt of dropping Palm Oil demand. The prices have already gone down by 25 per cent, and with no signs of exports picking up, the stockpiles of the product will only lead to further slump in prices. 

Thus, while all economies around the world are hit severely, there is a common thread that binds together the economies that have altogether collapsed, viz. over-dependence on a single sector without any stress on diversification. 

Tags: #BangladeshArab countriesMahathir MohamadMalaysiaPalm oil
Share5TweetSend
Previous Post

Arab Spring 2.0: Authoritarian regimes in Arab world face existential threat in post-Corona world

Next Post

Golden days for farmers ahead: Madhya Pradesh, UP and Gujarat amend APMC Act

Akshay Narang

Akshay Narang

Patriot, Political Analyst, Amateur Historian

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Most Read
  • Comments
  • Latest
Xi Jinping, coronavirus, Shinzo Abe, china, Japan, coornavirus, COVID-19, Wuhan Virus

‘Pack up and get out of there,’ Japan to spend $2.2 billion to get Japanese companies to exit China

9 April 2020
ajay devgn karan johar

The man who bullied the Bully – How Ajay Devgn made Karan Johar’s monopoly a joke and forced him to apologize

22 June 2020
Huawei, China, Trump, USA, Xi Jinping

‘Our survival is at stake now,’ Chinese Telecom giant Huawei crumbles after US ban on Semiconductor exports

19 May 2020
T-Series Sonu Nigam Divya Khosla Kumar Bhushan Kumar

T-Series forced to take down Atif Aslam’s video, Divya Khosla trolled. T-Series has a bad day in office

25 June 2020
Meat Ban

A Jain responds to Meat Ban in Mumbai

Public Sector Bank, Government, Bill

Dear bank employees, continue your stride but PSBs will be privatized

anti-Hindi

Anti-Hindi Forever?- In search of a National Language!

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Ranbir Kapoor as Ram and Alia Bhatt as Sita. Another Ramayana is coming

Ranbir Kapoor as Ram and Alia Bhatt as Sita. Another Ramayana is coming

9 June 2023
The vegetarian delicacies of Kerala the World Needs to Discover

The vegetarian delicacies of Kerala the World Needs to Discover

9 June 2023
A bigger scammer than Hera Pheri’s Raju: BYJUs

A bigger scammer than Hera Pheri’s Raju: BYJUs

9 June 2023
Indian Railways takes the rumor mongers head on

Indian Railways takes the rumor mongers head on

9 June 2023

Popular This Week

5 Actors who ruined a Franchise as Replacement
Cinema

5 Actors who ruined a Franchise as Replacement

by TFIPOST News Desk
2 June 2023
MOJO Story hacked
Analysis

Barkha Dutt’s MOJO Story was not hacked. It was a digital victim card

by Atul Kumar Mishra
6 June 2023
Sportspersons careers
Sports

5 Indian Sportspersons Who Destroyed Their Own Careers

by TFIPOST News Desk
2 June 2023
Asur Season 2: Climax explained and the next series’ supervillain exposed!
Cinema

Asur Season 2: Climax explained and the next series’ supervillain exposed!

by Animesh Pandey
7 June 2023
Meet SP Singla, the “mastermind” of Bhagalpur collapse
Politics

Meet SP Singla, the “mastermind” of Bhagalpur collapse

by Animesh Pandey
5 June 2023

©2023 TFI Media Private Limited

  • Terms of use
  • Privacy Policy
  • Sitemap
No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFI Official Merchandise
TFI हिन्दी
TFI Global
  • About us
  • Careers
  • Brand Partnerships

©2023 TFI Media Private Limited

Follow us on Twitter

and never miss an insightful take by the TFIPOST team

Follow @tfipost