Dr Wahiduddin Mahmud 
Planning and Education Adviser Dr Wahiduddin Mahmud Saturday expressed optimism about the prospect of a politically elected government in Bangladesh next year while addressing the economic and social challenges, the country faces during its transition from a Least Developed Country (LDC).
Speaking at the Bangladesh Institute of Development Studies (BIDS) Annual Conference, titled "Equality, Opportunity, Freedom, and Dignity" at Hotel Lakeshore in Dhaka, Dr. Mahmud offered a comprehensive assessment of the nation's current and future trajectory.
Replying questions about Bangladesh's long-term goals, Dr. Mahmud shared his personal view, stating, "I think we might see a politically elected government in 2025. This is my opinion, but I am not sure what will happen."
He emphasized that sustained collective efforts needed to achieve status of developed nation, adding, "No country becomes a developed nation overnight."
Dr. Mahmud identified income inequality as one of the most pressing issues for Bangladesh, also stressing the importance of ensuring access to quality education.
He noted that Bangladesh is still far from meeting Sustainable Development Goals (SDGs) related to universal access to quality education and merit-based higher education.
He highlighted the moral dilemmas in resource allocation, such as choosing between investing in public health and expanding medical infrastructure like dialysis machines.
Even economists like Amartya Sen or John Rawls might struggle to resolve these moral questions, he commented.
The adviser expressed concerns over the limited resources available to ensure equity and equality in society, particularly in the aftermath of anti-discrimination movements.
He pointed to structural challenges such as patronage politics, crony capitalism, banking sector exploitation, and large-scale capital flight, all of which undermined economic stability.
Dr. Mahmud criticized financial mismanagement in major industrial entities, citing the example of Beximco, which, despite appearing solvent on paper, lacks actual funds due to capital being siphoned abroad.
"Depositors' money in banks has been looted on a massive scale, and now we need funds to prop up these banks and businesses," he mentioned.
He also questioned the allocation of resources for "prestige projects" initiated by previous governments. While acknowledging the significance of the Padma Bridge, he argued that many projects were motivated more by optics than necessity.
As Bangladesh prepares for its graduation from LDC status, Dr. Mahmud emphasized the need for enhanced economic diplomacy to retain certain privileges and lock in mutual agreements with other nations.
"We no longer have the option of remaining an LDC. Discussions are ongoing to sustain certain benefits, and we have received positive responses from many developed nations," he said.
To achieve progress, he stressed the need for industries to become more competitive, stating, "There is no alternative to strengthening our industrial base."
Dr. Mahmud reiterated the difficulties of building an egalitarian society in the face of resource scarcity, adding that the interim government's constrained budget limits investments in critical areas such as education, health and human resource development.
"In this backdrop, achieving an equitable society remains a formidable challenge," he concluded, underscoring the moral and economic complexities the country must navigate.
In a separate session, Indermit S. Gill, chief economist at the World Bank, along with Somik Lall, senior adviser to the Chief Economist of the World Bank Group, discussed strategies for Bangladesh to avoid falling into the middle-income trap.
The paper presented by Gill and Lall titled 'The Middle-Income Trap' highlighted that middle-income countries, home to approximately six billion people today, face a race against time to sustain growth.
"The external environment is becoming increasingly challenging, not easier," the paper noted.
To escape the middle-income trap, countries must undergo two critical transitions including moving beyond an investment-driven growth model and combining investment with strategies to integrate effectively into the global economy.
The paper emphasized the importance of fostering innovation alongside investment and global economic integration.
"For rapid growth through the middle-income stage, nations must discipline entrenched interests, reward merit, and seize opportunities arising from crises," it stated.
Furthermore, avoiding slower growth requires striking a balance between the economic forces of creation, preservation, and destruction, ensuring sustainable and inclusive development.
The four-day event, inaugurated by BIDS Director General Binayak Sen, brought together leading economists and policymakers to discuss Bangladesh's socio-economic challenges and opportunities.
In his opening speech, Binayak Sen said recent mass uprising of July-August 2024 has brought to the fore the issue of inequality to public discourse.
It never became a central point of departure in our policy thinking.
Mr Sen said those of us who professed that development first and democracy later, the epithet doesn't hold.
"It is nullified by the Bangladesh experience clearly," he said.
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