“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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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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Under the product, the LankaBangla is offering a huge amount of loan to the clients to build their home than that of the commercial banks.

The NBFI will give home loan maximum amount of BDT 10 crore to a client while the banks usually offer highest loan amount of BDT 1.20 crore, Nure Mahbubul Alam, a deputy team leader for auto loan of the LankaBangla Finance, told the BBN during the ongoing fair.

Under the product, the clients will have to pay interest rate between 12.5 per cent and 13 per cent with repayment tenure of 25 years.

At the fair, the NBFI is also trying to popular its auto loan as it offers a loan amount of 70 per cent to 80 per cent against the purchased value of the clients’ vehicles.

The rate of interest of the auto loan is between 12.5 per cent and 13.5 per cent with a repayment tenure of 5-years.

The NBFI is also offer personal loan amounting to BDT 20 lakh to its clients while the commercial banks usually disburse the loan maximum BDT 10 lakh.

The clients will not require collateral securities to enjoy the personal loan with an interest rate of 14.50 per cent.

Bangladesh Bank Governor Dr Atiur Rahman inaugurated the 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-day long fair will come to an end with a closing ceremony this evening.

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The company is now operating the mobile banking with taking assistance from six commercial banks, SM Salah Uddin, head of sales of SureCash, told the BBN during the ongoing fair.

The six partner banks of the company are First Security Islami Bank Ltd, Bangladesh Commerce Bank Ltd, National Bank Ltd, NCC Bank Ltd, Ansar VDP Unnayan Bank and Rupali Bank Ltd.

The banks has taken approval to operate mobile banking from the central bank, but SureCash is now providing all types of MFS related service to the clients.

Under the SureCash operation, more than 30,000 retail agents are ready to settle the clients’ transaction and it has more than 70 payment affiliates including bill payments, school fee and purchases.

The clients will be able to send money, save money, pay bills, make purchase, foreign remittance disbursement under the SureCash channel.

The company has introduced bio-metric authentication to identify the clients who has no literacy knowledge.

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 fair will be wrapped up through a closing ceremony this evening.

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The FDR product namely “Annual Deposit Scheme” is offering increased interest rate which is 9.50 per cent against the earlier rate of 9.25 per cent, Sajib Roy, a principle officer of Uttara Financing Ltd, told the BBN during the ongoing fair.

The initiative will attract the clients to the NBFI to deposit their hard-earned money, Mr Roy said.

The NBFI has also reduced the rate of interest on its SME loan product on occasion of the ongoing fair.

The NBFI offers 15 per cent rate of interest on its SME loan against the earlier rate of 18 per cent.

The clients will be allowed to receive SME loan of maximum BDT 50 lakh from the NBFI when the women entrepreneurs will be able to get loan amounting to BDT 10 lakh without giving any collateral securities.

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 fair will come to an end this evening with a closing ceremony.

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The NBFI will provide donation to the units which will be able to reduce the release of carbon by taking fund from the World Bank and Asian Development Bank.

The initiative will help to build an environment-friendly industrial sector in the country, Md Razzakul Haque, a senior officer of IIDFC, told the BBN during the ongoing fair.

The Industrial and Infrastructure Development Finance Co (IIDFC) Ltd is working to highlight a credit product namely “Project Financing” where it will disburse term loan for the new projects in a bid to make vibrant the country’s industrial sector.

The NBFI will disburse a large amount of loan to the clients considering their volume of the projects with an interest rate of 12 per cent to 14 per cent.

The repayment tenure of the loan is 5-years.

The NBFI is also working to disburse large loan to the industrial sector under the syndicate financing.

Under the financing, the IIDFC attaches other banks and NBFIs to disburse loan at a single project if the amount of loan is highly large.

Bangladesh Bank Governor Dr Atiur Rahman inaugurated the 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-day long banking fair will be wrapped up this evening with a closing ceremony.

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“You (CEOs) have to protect your customers’ interest with a top priority,” BB Governor Dr Rahman said on Friday.

He was addressing a programme on “Bankers Meet Customers” at the Abdul Karim Sahitya Bisharad Hall in Bangla Academy of the capital Dhaka as part of the ongoing banking fair.

The central bank chief also advised the top bankers to be entrepreneur-friendly for ensuing sustainable development of the country.

The programme was moderated by Dr Biru Paksha Paul, chief economist of the BB and chief coordinator of the Banking Fair Bangladesh-2015, while 14 CEOs of different banks attended the event.

The CEOs are Ali Reza Iftekhar, Managing Director and CEO of Eastern Bank Limited and Chairman of the Association of Bankers, Bangladesh (ABB), Mohammad Nurul Amin, Managing Director and CEO of Meghna Bank Limited and Chairman of the Bangladesh Foreign Exchange Dealers' Association (BAFEDA), M. Shah Alam Sarwar, Managing Director and CEO of IFIC Bank Limited, Abdus Salam, Managing Direct and CEO of Janata Bank Limited, Syed Abdul Hamid, Managing Directir and CEO of Agrani Bank Limted, Sohail R K Hossain, Managing Director and CEO of the City Bank Limited, Khondhker Fazle Rashid, Managing Director and CEO of the Premier Bank Limited, Golam Hafiz Ahmed, Managing Director and CEO of NCC Bank Limited, Shamim Ahmed Chaudhury, President and Managing Director of AB Bank Limited, Dr. Mohammed Haider Ali Miah, Managing Director and CEO of EXIM Bank Limited, Selim RF Hussain, Managing Director and CEO of BRAC Bank Limited, Dider Md. Abdur Rob, Deputy Managing Director of Sonali Bank Limited, Enamul Huque, Managing Director, Head of Commercial Banking of Standard Chartered Bank and Sabbir Ahmed, Head of Retail Banking of HSBC.

At the programme, the CEOs replied different queries relating to interest rates on both lending and deposits and foreign trade directly to their clients.

Among others, Deputy Governors of the BB Abul Quasem and Abu Hena Mohammed Razee Hassan also spoke at the programme.

The BB governor 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 across the country.

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