The white paper: Can the political parties hear the call?

The interim government set up a 12-member committee to whip up a "white paper" that digs into the current state of the economy and suggests ways to improve it. They put together a detailed report on Bangladesh's economy, focusing on things like microeconomic issues, structural challenges, social aspects, and needed policy changes. 

 

 

The report also takes shots at the previous Awami League (AL) government for exaggerating GDP growth and using inflated stats as part of a misleading development story. Even though they claim to take an evidence-based approach, the analysis looks like it's coloured by political critiques and existing narratives about governance problems, which might skew their views on economic performance. 

 

There are also inconsistencies between survey data and secondary data that raise red flags about how carefully they’ve reconciled these conflicting figures. These criticisms indicate that the report's findings should be taken with a grain of salt because of possible methodological flaws and outside influences.

 

The "State of the Bangladesh Economy" report points out some serious issues while admitting its own flaws. It shows how the Awami League (AL) government had been inflating statistics to create a false sense of progress for the public. 

 

The report explains the drop in foreign exchange reserves and highlights import restrictions as signs of trouble in the external sector. Public debt is climbing, raising red flags about fiscal sustainability and concerns about inefficient spending and corruption in public projects. From a structural standpoint, the white paper illustrates how systemic corruption is wrecking public institutions and scaring off private investment. It talks about how crony capitalism and poor governance are making it hard for the private sector to thrive. 

 

 

The paper also reveals that the AL government has been manipulating bank boards, causing liquidity issues with non-performing loans, which has led to a crisis in the banking sector. On the institutional side, the report flags several issues. Governance failures and the rise of an authoritarian regime have really chipped away at accountability and transparency, casting doubt on democratic processes and election integrity. 

 

 

People don’t need fancy data to remember the experience under this regime, as all elections have been tainted by rigging. When it comes to mega-projects, there are complaints about projects that are overpriced and take way too long to complete, alongside a ton of illicit financial outflows that have drained the nation’s resources. 

 

 

Take the Karnaphuli River Tunnel in Chittagong, which costs nearly Tk37 lakh per day -- money that could have been saved. Plus, in Natore Town, there's an ICT incubation centre sitting underused while plans for another IT park were pushed by former MP and ICT minister Zunaid Ahmed Palak. 

 

The white paper wraps up by showing how the partnership between political elites, bureaucrats, and business folks has created a web of corruption and syndicates. But this trio often makes conflicting and short-term policy decisions, especially in areas like monetary, fiscal, and trade policies, which only makes the economic situation worse.

 

The interim government should step up and make accountability and transparency a priority

 

A country on the brink

The situation is pretty dire. Even after four months in charge, the interim government is having a tough time getting the economy back on track. Some banks are close to failing, inflation is climbing, and a lot of people are struggling to get by. There remains a lot of corruption and mismanagement, which has made inequality worse and left many more vulnerable. The growing gap between the rich and the poor is starting to worry folks about how united society will stay. 

 

 

It's especially frustrating to see funds meant to help the poor, like social safety net programs, getting siphoned off, which has sparked a lot of anger. Plus, spending on education and healthcare has shot up, creating further divides among different groups.

 

Issues in agriculture, like poorly managed supply chains and corruption around subsidies, are putting food security at risk for those who need it most. On top of that, corruption in climate funds is increasing the risks related to climate change and jeopardizing long-term environmental health. 

 

 

Not to mention, haphazard development, financial burdens, and state capture have led to a feeling of discrimination, causing many young people to feel frustrated and even leave in search of better opportunities.

 

 

Government reforms and initiatives for recovery

There has long been mistrust and a blame game going on among politicians in Bangladesh. For a long time, civil society groups like Transparency International Bangladesh (TIB) have pointed out corruption problems with both the BNP and AL governments. 

But instead of taking these issues seriously when they were in power, both parties just shrugged them off and claimed TIB was being politically biased, trying to discredit their findings. Even with such serious concerns being raised, they weren’t really addressed back then.

 

 

The interim government should step up and make accountability and transparency a priority and tackle corruption head-on by following the reform ideas from different committees. 

 

 

It’s key to strengthening institutions like the Election Commission, the Anti-Corruption Commission, the Public Service Commission, and local governments. We also need a united social movement against corruption to drive change. Gaining public trust is a must for these reforms to work, and punishing corrupt individuals could set a strong example.

 

 

With the current economic struggles and rising inflation, the government should also focus on creating social safety nets and consider launching a universal basic income (UBI) program to help those in need. This could encourage harmony and build trust within struggling communities.

 

 

It’s also important to tackle rumours and misinformation. The government should work on creating job opportunities for the youth and listen to them as we aim for a better future for Bangladesh. All these initiatives could benefit from setting up a national digital database for citizens.

 

 

Dr Nurul Huda Sakib is a professor at the Department of Government and Politics and senior research fellow at the Bangladesh Center for Indo-Pacific Affairs (BCIPA).