Hopes and despair of the middle class

Shahiduzzaman Khan

THE middle class is generally defined as 'Poorer than the rich, but richer than the poor'. In Bangladesh, this means any one or any household having an income of Taka 10,000 - 40,000 per month falls under this category. Anyone earning less is precariously teetering on the verge of poverty. But if any body can go beyond this, he can have surplus earning for savings, and go for higher consumption.

This means middle class does not only constitute government employees or the private sector employees or the teachers, but also small shopkeepers, budding entrepreneurs or the landed farmers are also included in this category. This means everyone, rural or urban, trying to get a decent education and striving hard to start a family is a member of middle class family.

It has been widely known for quite sometime that current estimate of the Bangladeshi middle class falls somewhere between 9.0 to 10 percent of the population. While in Pakistan this is estimated to be around 18 percent and in India, a whopping 27-29 percent. What is not generally known is the fact that in Bangladesh, unlike in Pakistan or in India, this percentage is slowly creeping down in real terms, meaning although the numbers are rising due to increase in population, the overall size is shrinking.

In fact, the middle class, which is supposed to do some 'miracles' for the country is slowly being pushed down the economic ladder, despite lofty projections by the country's politicians and economists. What the country desperately needs is to create a middle class, which will contain at least 30 percent of the population within 2030. There is no denying that the country's middle class had engineered Bangladesh's independence along with the peasants. The middle class of Bangladesh, like the second-generation independence seekers in Africa in the sixties and seventies and in Eastern Europe in the nineties, was pivotal in enunciating our nationalist dreams.

Obviously, frustration among the middle class families in Bangladesh is rising alarmingly. As such, weakness in economic governance is emerging steadily, which may create a gap between middle class aspirations and lifestyles. The frustrated middle class is set to become a more vociferous political force, increasingly supporting non-government organisations (NGOs) in political life rather than traditional mainstream parties. These views were expressed in a recent study conducted by a British think-tank group -- Oxford Analytica. It signifies that growing numbers of Bangladeshis have been able to achieve a middle class consumer lifestyle, driving the foreign direct investment (FDI) in the consumer goods market.

The Dhaka-based middle class uses or consumes globally branded goods ranging from electronics, cars, motorcycles, fast food and music to DVDs. The study added that clothing and furniture remain the preserve of domestic companies. In the case of specific sectors, growth has been particularly strong in personal care and mobile phones. The lifestyle of Bangladesh middle class has indeed changed dramatically over the past few years. So many items that were never thought of using, eating and buying have become essential elements of the middle class lives.

But the inflation is rising steadily in the country and quickly burning a hole in the pockets of the middle class. Almost everyone feels they are fighting a losing battle against price. Rising prices create mounting stress. In the country's societal segments the tiers of population have long since been divided into the three basic classes of upper, middle and lower classes based on income. The middle class comprises a large portion of the country's population and hence they are the worst sufferers.

The spending pattern of a typical middle class family could look something like this with an average income of about 30 thousand taka. House rent 10000 (including utility bills), groceries 4000 children's education 6000, transportation 5000, health 2000, other costs 3000. At the present rate that the prices are rising this family would find it very difficult to make ends meet. Commodity prices are rising sharply. Besides the utility bills there are many dues left over. Most of the increases are seen affecting the kitchen. Prices of necessary food items such as pulses, oil, meat and green vegetables are becoming costlier every day. One thing is clear that is the increase in grocery prices is also having a subsequent effect on the process of other things. In case of transportation rickshaw pullers and CNG scooter drivers are asking for 5-10 taka extra per trip. Their argument runs the same as everyone else's. They need the extra money to buy the now pricier food items.

Those with limited earnings find it a major obstacle to realise theirs dreams in this market of inflated prices. The rate at which the price of necessities is going up, middle class people fear to even think of buying something out of simple desire. It is becoming increasingly difficult to meet the budget. In fact, often they have to dive into their savings. Sometimes the slightest wishes cannot be fulfilled.

The high prices, stress and the subsequent hardships and time constraints mean these all have to be put off until an undetermined time.

Celebrations and gifts also suffer for this price hike. Gifts of gold and other precious materials have become more precious. A new custom has come up to present married couples with items they can use in their day-to-day lives. But that too is following the same trend, becoming unattainable. The reigning thought is when and how money can be saved. As a result fun is slowly fading from people's lives.

According to what an economist says, the middle-class people want to lead their lives with dignity and that is why they give importance to housing and education first and then go for food, medical treatment and transportation. After spending the lion's share of their income on these, they cannot meet their food and other expenses with the amount left, he said. With the price hike of essentials, the people from limited income and middle-class are forced to have low standard foods. As a result, they are suffering from malnutrition, which is affecting their intellectual development as well. Besides, their health is further threatened, as these people are left with little money to have proper medical treatment.

However, it is worrying that there was a declining trend of this important class in this country. It has been said that 'A higher share of income for the middle class and lower ethnic divisions are associated with higher income and higher growth, as well as with more education, better health, better infrastructure, better economic policies, less political instability, less civil war and ethnic minorities at risk, more social 'modernisation' and more democracy.' The last word, obviously, is the most important point. Without a strong middle class, the democracy can never become sustainable.

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szkhan@thefinancialexpress-bd.com