“Productivity isn’t everything,” Paul Krugman wrote in his 1990 book, The Age of Diminished Expectations, “but in the long run it is almost everything.”

Productivity is a foundation of prosperity. The only way a country can raise its standard of living sustainably is to produce more with existing or fewer resources. You cannot do that without improving productivity. It’s that simple.

Everything else about productivity is surprisingly complex, however. It is difficult to explain, difficult to measure, and, as the past couple decades show, difficult to improve, according to an IMF blog post.

We know that productivity must play a more important role in driving sustained growth as our societies age. But there’s no consensus on how to reverse the broad slowdown in productivity growth seen across almost all countries over the past 20 years.

Especially vexing is the sluggish growth of what economists call total factor productivity—a way of measuring how efficiently businesses turn capital and labor into output—the part that basically captures innovation and technology.

Slower gains in total factor productivity account for more than half the deceleration in economic growth since the global financial crisis, IMF analysis shows. Another decade of weak productivity growth could seriously erode living standards and threaten financial and social stability.

Economic dynamism

This issue of F&D brings together leading researchers to help explain the withering of productivity gains, how to counter these trends, and how to spark economic dynamism.

Yale economist Michael Peters sets the stage by delving into the causes of slowing productivity growth in the US. Declining dynamism in the world’s largest economy threatens to reverberate around the globe. Greater immigration to offset a shrinking workforce and stronger competition rules to encourage innovation by smaller, younger, hungrier enterprises could be part of the solution, he concludes.

These small companies can drive productivity gains, writes the University of Chicago’s Ufuk Akcigit, who explores why increased US spending on research and development isn’t necessarily boosting productivity. He shows how small firms are more innovative relative to their size, suggesting that they use R&D resources more efficiently. As companies grow and dominate their markets, they often shift to protecting their market position, rather than fostering innovation.

But while innovation is exactly what’s needed to revive productivity growth, it is not sufficient on its own. New technologies and digital transformation, notably artificial intelligence, have the potential over time to underpin a major surge in productivity, writes Nobel laureate Michael Spence. For AI to achieve its full economic potential, however, it must be accessible to all sectors of the economy, and to companies large and small, he notes.

Policies matter, too. Here our contributors suggest that measures should encourage more effective reallocation of resources away from low-productivity firms and support smaller businesses and start-ups—not just large incumbents. This could include targeted tax credits, grants for early-stage innovation, workforce retraining, and policies that encourage competition and reduce barriers to entry for new players.

Understanding productivity growth more fully is crucial because it plays such an outsize role in economic growth—which, as Daniel Susskind of King’s College London writes, also demands a renewed approach to help improve people’s lives. Ultimately, as Nobel laureate Edmund Phelps writes, a productive society should allow people to enjoy “mass flourishing” from the grassroots up.

There is much more to explore in these pages. I hope these articles stimulate fresh thinking and further the debate.

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The decision was taken at a bankers meeting held at the central bank headquarters in Dhaka on Tuesday with Bangladesh Bank (BB) Governor Dr. Atiur Rahman in the chair.

“We’ve decided that the second banking fair will be held in Chittagong within March this year,” SK Sur Chowdhury, deputy governor of the BB, told reporters after the meeting.

BB Governor Dr. Rahman earlier said that the central bank is thinking to organize the next banking fair in Chittagong.

“We’re planning to organise the second banking fair in Chittagong,” the central bank chief said while addressing at the foundation stone laying ceremony of human resources and management development institute in the port city on December 2 last.

The central bank of Bangladesh organised first Banking Fair Bangladesh -2014 at Bangla Academy in the capital Dhaka from November 24-18.

The fair was organized to build a banking nation with raising public awareness about banking products and services, and expanding financial literacy programs.

All 56 scheduled banks, six non-banking financial institutions (NBFIs) and seven financial services related organisations took part at the five-day long fair to display their products and services.

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On the other hand, a unique part of the fair was financial literacy progamme, bankers meet customers,’ debate and cultural function every evening.

There were several sessions on financial literacy at the fair where people get some basic understanding on different aspects of finance in a simple language.

Country’s top bankers faced customers at a programme titled ‘Bankers Meet Customers’ at the Abdul Karim Sahitya Bisharad Hall in Bangla Academy in Dhaka on Friday.

At least 13 chief executive officers (CEOs) of different banks replied various queries relating to interest rates on both lending and deposits and foreign trade directly to their clients at the prigramme.

Bangladesh Bank (BB) Dr. Atiur Rahman and Deputy Governors of the BB Abul Quasem and Abu Hena Mohammed Razee Hassan also spoke at the programme.

At the programme, the central bank chief asked the CEOs of all the commercial banks to protect their customers’ interests without any negligence.

“The fair has offered an excellent opportunity for all, including the potential banking customers, students, and the working people of the society to learn about available banking products and services in a single platform,” an economist explained.

BB Governor Dr. Rahman inaugurated the fair on Tuesday last aiming to build a banking nation through boosting the ongoing financial inclusion campaign across the country.

All 56 scheduled banks, six non-banking financial institutions (NBFIs) and seven financial services related organisations took part at the fair to display their products and services.

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The clients of the MobiCash now do not have to pay charges for paying utility bills.

MobiCash introduced the offer from October 15 and it will continue till December 15, this, Abid Al Sijan, a marketing officer of the company, told the BBN during the ongoing fair.

The clients are now able to pay the utility bills for electricity, gas, water and internet by using the MobiCash channel.

The clients will not have to pay registration fee to open wallet with MobiCash.

After opening the wallet, the clients can refill their wallet from any outlet of the MobiCash.

The clients will enjoy five per cent bonus talk-time if they make flexiload from their wallet of MobiCash.

The clients will have to use the bonus talk-time by three days and the offer will continue till December 15, 2015.

Bangladesh Bank Governor Dr Atiur Rahman inaugurated the five-day long banking fair on Bangla Academy premises in Dhaka on Tuesday aiming to build a banking nation through boosting the ongoing financial inclusion campaign in Bangladesh.

The five will be wrapped up this evening.

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“We’ve introduced a product namely ‘Corporate Loan’ to speed up the country’s industrialization process,” Hasan Mineuddin, a management trainee officer of the non-banking financial institution (NBFI), told BBN at fair premise in the capital Dhaka on Friday.

Bangladesh Bank Governor Dr Atiur Rahman inaugurated the five-day long banking fair on Bangla Academy premises in Dhaka on Tuesday aiming to build a banking nation through boosting the ongoing financial inclusion campaign in Bangladesh.

Under the scheme, the business people will be allowed to get loan between BDT 50 million and BDT 380 million from the NBFI to boost their business volume. The repayment tenure of the loan is 10 years.

The NBFI is also focusing a product namely ‘Home Loan’ at the fair to help the people to build their dreamt home.

Under the scheme, the client will be allowed to get loan between BDT 12 million and BDT 20 million which is higher than that of the banks’ products for their home loan.

The rate of interest of the product is between 15 per cent and 16 per cent with a repayment tenure of 15-year, according to the official.

The NBFI is also offering a big amount of loan to the SME clients as the maximum ceiling of the loan is BDT 20 million. The interest rate is between 16.50 per cent and 18.50 per cent with repayment tenure of five years.

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