Due to lack of governmental control over toll extortion from transport ferrying goods from one part of the country to another coupled with alleged "tax" paid to law enforcement authorities the price of goods, particularly of the essentials, have sky rocketed. One could argue that increased transport cost is due to increase in the international price in petroleum products. While it is undeniably true the question remains whether the government could have withdrawn/reduced tax on import of petroleum products which in turn would have reduced the burden on the middle income group. Since the rich as a group is generally associated with conspicuous consumption of goods any increase in the price of essentials, which may be substantial relative to the income of a middle income group, they remain unaffected. Similarly the ultra-poor remains unaffected by price increase because price of goods is in any case beyond the purchasing capacity of these people.

The question which can be asked of the authorities is whether price determination, defined as "the method used by a market or administrators to fix a price" could be availed of. Increasingly many economists have noted that some important prices are not determined in the market by demand and supply but by herd instinct, negotiations, domination (by illegal forces in countries like Bangladesh in collusion with political elements), politics, power and speculation. Could our authorities have a body like the British had (1973-80) administering price policy applying rules of a price code enforced most rigorously particularly against cartels which had to gain approval in advance for price increase. The French had similar policies in the 1950s and 1960s. The British also had legalized price ceilings as Rent Act to help the low income households. Our authorities could also take note of price discrimination in the form of charging different prices to different customers for the same product or setting different prices for different quantities of the same product.

Free market advocates would argue against state intervention so that economic activities can follow their natural course without governmental regulations in order to encourage production and give consumers complete freedom. But with increasing complexities in state and international economies the number of adherents of laissez-faire doctrine have shrunk. Perfect competition in the market in the classical sense does not exist(certainly not in Bangladesh) with a large number of buyers and sellers engaged in trading homogeneous products with a perfectly elastic supply of factors of production. Since unfortunately the world is filled with Hobbesian human beings basically self-interested and seeking gain and glory, state intervention in controlling sky rocketing of price has become a moral and political necessity. Both Adam Smith and Karl Marx had agreed that since capitalists naturally do not want competition and have a natural tendency to acquire abnormal profit the state has to ensure an environment of competition.

It is surprising that generally politicians engrossed with the conduct of public affairs for private gains become oblivious of the fact that the people have elected them (assuming through a free and fair election) for certain purposes. Even if Bangladeshis are asked to accept the First Principles of the Scottish philosopher Robert Owen that it is necessary for the large part of humanity to live in poverty and ignorance to secure for the remaining part such degree of happiness which they currently enjoy, the authorities can not evade their responsibility to ensure the basic needs of the people.

It would be unwise to ignore the fate of Chandra Babu Naido of Andhra Pradesh who despite putting Bangalore and Hyderabad on the map of the world was miserably defeated at the state polls because his government had ignored the poor. But then elections in India and Bangladesh are believed to be fought as separate disciplines. While some Indian politicians allegedly try to take recourse to fraudulence in elections a powerful Election Commission, an ever vigilant media, hawk eyed inspection by political parties throughout the election process and inherent moral consciousness of most of the political leaders result in Indian elections having the virtues of a mature democracy.

The same can not be said of Bangladesh. The Chief Election Commissioner is not acceptable to the opposition political parties who are also insistent on reforms in the caretaker government system and in the laws relating to the Election Commission. The recent appointment of more than hundred Upazilla Election Officers having alleged links with the ruling political party has cast doubt as to how much neutral next election will be. Added to these difficulties Bangladesh authorities have to deal with the aftermath of the August 17th country wide bombing carnage. The daily reports emanating from investigations by our intelligence and law enforcement authorities unmistakably point to a link between the bombers and the Islamic extremists in the country. Dr. Sudha Ramchandaran (The Threat of Islamic Extremism in Bangladesh- PINR- 27.07.05) alleges that Bangladesh government's relaxed approach to the issue of Islamic extremism "could enhance Bangladesh's attractiveness as a haven for terrorists fleeing counter terrorism operations elsewhere". She finds faults with the open courting of Islamic fundamentalist Jamat-e-Islami by successive Bangladeshi governments, its inclusion in the coalition government which has given encouragement to radical Islamic groups, insurgents from north east Indian states finding sanctuary in Bangladesh, and alleged cooperation between Pakistani ISI and Bangladeshi intelligence as contributing factors to the rise of Islamic extremism in Bangladesh.

On the other hand Sree Radha Dutta makes the point that after seceding from West Pakistan Bengali nationalism lost its relevance and the dividing line once again has moved back to religion. Now Bangladesh must differentiate itself not from Pakistan but from West Bengal. Therefore successive Bangladesh governments have been embracing Islamic symbolism "and once again Islam emerged as the national identity". Quoting Rohan Gunaratna (Inside al-Qaeda: Global Network of Terror) Sreeradha Dutta alleges that the February 23, 1988 "Declaration of Jehad against Jews and Crusaders" by Osama bin Laden was also signed by Fazlur Rahman, the head of the Harkat-ul-Jehad- e- Islami(HUJI) of Bangladesh which has emerged as collaborator of al-Qaeda operations in Bangladesh.

While comments by Indian scholars are sometimes taken with a grain of salt in some quarters in Bangladesh the demarche to Condoleeza Rice by Senators Ted Kennedy and John Kerry among others urging her to advise President Bush to raise in the recently held UN Summit the issue of political violence in Bangladesh is a serious matter, the reaction of Bangladesh authorities to treat this as an internal communication between the US Congress and the US administration notwithstanding. Kennedys and Kerrys are heavyweights and are unlikely to sign on a petition just to humor a few constituents as has been argued by some apologists of the ruling party. With reduced significance of the Westphalian concept of sovereignty the US legislators' fear of "Bangladesh becoming a failed state and a base of operation for international terrorist organizations" prompted them to make recommendations which are inherently intrusive and under ordinary circumstances (re August 17th bombings) would have been rejected out of hand. But the terrorists attacks of 9/11 have taught the Americans the necessity of looking closely into the affairs of geographically distant lands. The West is particularly worried about the instructions given to students in religious schools (the number of such schools is said to be sixty four thousand in Bangladesh) at the expense of secular education.

The West's worry stems from the fact that the dreaded Talibans were products of madrashas in Pakistan and Afghanistan. These schools, observes Joseph Schatz, "sometimes teach extremists. anti-Western curriculums and have been identified as recruiting bases for Taliban type movements". Funded by Middle Eastern sources for decades many of these religious schools are now financially independent which perhaps has caused Pakistan government's efforts to register these schools to falter.

Pakistani example has a relevance for Bangladesh for the following reasons:- (a) after Pakistan Bangladesh is the third largest Muslim country in the world, (b) if the number of madrashas in Pakistan is more than one hundred thousand it is sixty four thousand in Bangladesh and the character of these madrashas are not significantly different, (c)in both countries the pupils(talibans) are easily indoctrinated and turned into fanatics, (d) the students are given military training for Jihad initially ostensibly to fight the Soviets in Afghanistan and later for the "freedom" of the Kashmiris while in Bangladesh as the August 17th investigations continue to reveal the Islamic extremists' aim was to establish an Islamic theocratic state in Bangladesh. Bangladeshi authorities would be well advised to monitor cooperation between religious parties and Islamic extremists of Bangladesh and Pakistan.

Public outcry about religious extremism in Bangladesh notwithstanding it is believed that the US views Bangladesh as a key partner in the Islamic world. Bangladesh's moderate foreign policy coincides with the US interest in the Islamic world. Bangladesh is party to most anti-terrorism conventions as well as SAARC Regional Convention on Suppression of Terrorism.

Bangladesh's cultural trend is still believed to be secured in secularism and the contagion of Islam pasand political parties has yet to affect the people at large. The US and the West are acutely aware of poverty, corruption, political violence and communal divide threatening peace and stability in Bangladesh. Bangladesh authorities would be doing themselves a service and the country a favour in helping to avoid a disaster in the making by taking resolute political action against Islamic extremism and reinstate good governance in its most expansive definition enabling the poverty ridden people a chance to live a life they are entitled to.

Kazi Anwarul Masud is a former secretary and ambassador.