Marred by global political uncertainty amid recent regime change developments in Bangladesh and an all certain escalation between Iran and Israel ahead of US general elections, the world economic assertion is slowly slipping towards another recession. As per data on unemployment released in the US last week, the unemployment rate is said to have jumped to a nearly three-year high at 4.3% in July.
Even as the data highlights the eroding job scenario in the US, which has spiked significantly from 4.1% in June and is hovering at a five-decade high, the recent fall of the ruling political dynasty in Bangladesh may add to the fury in the south west. The region is already bearing the brunt of high energy prices and supply uncertainty with no near term resolution to the Russia-Ukraine war.
Political observers see the recent political flare up in Bangladesh and between Iran and Israel as an onset of economic crisis staring at the West. The unemployment rate in the US, which was at a five-decade low at 3.4% in April last year may now lead to a cut in interest rates by the Federal Reserve.
The unfolding Bangladesh crisis amid speculations around the new regime taking over in India’s eastern neighbourhood, the delay in granting asylum to the deposed Bangladesh PM, Sheikh Hasina, by the UK government may bring more worries than solutions to counterbalance for India.
The former Bangladesh PM, Hasina, on Monday reached India in an army helicopter following a 45 minute deadline granted to her by the military, which is stated to have taken over the regime, to flee. Hasina is said to have requested the Indian government to allow her stay till she gets asylum in the United Kingdom.
Earlier while sparking speculations around the genuinity around the violent protest in Bangladesh, UN Secretary-General Antonio Guterres said that the Bangladesh government should refrain from targeting those participating in peaceful protests. The UN body also sought restoration of internet services in the south asian nation to ‘create conditions for meaningful dialogue’.
“The Secretary-General deplores the further loss of life during protests in Bangladesh over the weekend. He continues to closely follow developments in the country, including the Chief of Army Staff’s announcement regarding the resignation of Prime Minister Sheikh Hasina and plans for the formation of an interim government,” Farhan Haq, the UN Deputy Spokesperson said.
Haq also maintained that the UN body stood with the people of Bangladesh “and we call for full respect for their democratic and human rights. And ultimately, regarding what’s happened so far, there’s a need for a full, independent and impartial investigation into all acts of violence.”
Meanwhile, former Bangladesh PM Hasina, who is also seen to have close ties with the Indian government is reported to have blamed foreign hand behind the unrest which led to her ouster. The Indian government is meanwhile, closely monitoring the fluid situation and has reported to have ‘halted’ all the trade with Bangladesh on Monday.
According to West Bengal Exporters Coordination Committee secretary Ujjal Saha, the tense situation and lack of clearance from Bangladesh customs the export and import activities are stalled at all the land ports.
While the foreign policy experts believe that the situation in Bangladesh is a massive setback to Indian foreign policy, the security outside the Bangladesh High Commission in Chanakyapuri is beefed up to avoid any protest situation in Delhi where former Bangladesh PM is staying. Shortly after landing at a Hindon airbase in NCR, former PM Sheikh Hasina held a meeting with NSA Ajit Doval. The military airbase, which was turned into a fortress, is said to be kept as it is till Tuesday when Hasina may fly to London.
Earlier on Monday Prime Minister Narendra Modi held a Cabinet Committee on Security (CCS) meeting following former Bangladesh PM Hasina fleeing to India. PM Modi was given details around the current situation in Bangladesh. The CCS meeting was attended by Defence Minister Rajnath Singh, Home Minister Amit Shah, External Affairs Minister S Jaishankar, Finance Minister Nirmala Sitharaman, and senior officials.
