Key sectors like the banking should have guardrails against "bad influence of party politics" to ensure run of the state machinery by meritocracy, says Dr Wahiduddin Mahmud as noted economists speak out on what have gone wrong.
He feels that there should be a fine balance between politicization and meritocracy for the system to function.
"I understand there would be politics, everything can't be kept out of political influence, but some key areas must be kept away from politicization," he told his audience at a book-unveiling event Thursday in Dhaka.
Bangladesh Institute of Development Studies (BIDS) organised the launching programme of the book 'Bangladesh er Ogrojatray Agamir Koronio (Future Way-Out Towards Advancement of Bangladesh)' written by economist and former governor of Bangladesh Bank Mohammed Farashuddin.
Citing examples of South Korea, he said South Korea became a developed country by following the strategy of keeping key areas from politicization and allowing people with merit to run those.
He suggests that the governor of the central bank should have a free hand to work in a fair manner without influence of politics.
The economist questioned if there was political influence in what he said looting of the country's banking sector.
"Discriminatory distribution of opportunities in the country deprived real businesses, entrepreneurs and industries that do not have political allegiance," he told the meet.
"Many honest and independent entrepreneurs in the country have been deprived in the system of discriminatory distribution of opportunities," he said, adding that the system also hampers overall ecosystem of business.
He also mentioned 'patronized politics' distributing various facilities and benefits to a certain group legally or illegally which occurs from 'deviation of principle'.
He likened the existing government system to 'a one-party authoritarian government under democratic framework'.
Mr Mahmud observed that whatever the form of government, every government wants development. However, "development can't be traded off with human rights, democracy and freedom of speech".
The economics professor stresses the urgency of reclaiming politics from the clutches of elite classes.
Speaking as chief guest, Economic Adviser to the Prime Minister Mashiur Rahman said Bangladesh Bank has enough autonomy to practice in ensuring regulation. And if needed, the autonomy of the central bank could be strengthened further.
Citing an example of resignation of only one governor in the history of Bangladesh Bank, the adviser said, "It is their right to exercise the power given to them and there is enough autonomy to exercise."
The author of the book, Mohammed Farashuddin, in his speech, presented a set of reform agenda including reform of banking sector by instituting a bank commission.
Proposing institutional reforms, Farashuddin advocated for "constitutionalization" of the Bangladesh Bank governorship, along with a distinct salary structure for the institution.
He argued for longer tenures, suggesting a six-year term for the governor, to ensure stability and continuity in monetary policy.
Mr Farashuddin, a former governor of Bangladesh Bank, said politicians often view economists as mere tools to advance their agenda, rather than as advisors to be heeded for their expertise.
Expressing concern over the leniency offered to major loan defaulters, who seem to "effortlessly reschedule their debts multiple times", Farashuddin lamented the systemic flaws that allow such practices to persist.
Yet, amid these challenges, Farashuddin espoused a vision for a more symbiotic relationship between state leaders and economists.
Farashuddin, humble about his own stature in the field of economics, advocated for a shift in approach to poverty alleviation, favoring industrialization as a potent means to uplift the masses.
Reflecting on Bangladesh's economic journey, Farashuddin penned his insights in a book offering guidance on navigating the pitfalls and potential of development.
Addressing economic anomalies such as stagnant revenue growth despite GDP expansion, he raised pertinent questions about fiscal management and resource allocation.
Concerning the budget deficit, he cautioned against overreliance on foreign borrowing, warning of the risks of currency depreciation and inflationary pressures.
Farashuddin called for greater tax compliance across professions, including the burgeoning commercial agriculture sector, advocating for a fairer distribution of tax burdens.
"Only 0.9 million rich people pay tax of estimated nearly 9 million who are eligible to pay tax," he said.
Emphasizing evidence-based decision-making, he underscored the importance of conducting thorough surveys before initiating investments in any government sector.
Looking ahead, Farashuddin foresees a prolonged recovery from the economic fallout from high interest rates and volatile exchange rates, urging swift action to rectify policy imbalances and combat illicit financial activities.
Dr Binayak Sen, Director-General of BIDS, said the existing economic downtrend would go away very soon.
He blamed recent Taka depreciation for rapid spiraling of prices of essentials.
Dr Zaidi Sattar, Chairman and Chief Executive of the Policy Research Institute of Bangladesh, stressed the need of maintaining integrity of Bangladesh Bureau of Statistics.
He proposed the BBS to be a constitutional autonomous body for ensuring efficient and fair data.
Dr Fahmida Khatun, Executive Director, the Centre for Policy Dialogue (CPD), said Bangladesh has frequently shifted from one policy to another over course of development.
"Those who accumulated wealth during this time abused policy loopholes and weaknesses," she told the function.
Among others, Professor Dr Shams Rahman, Vice-chancellor, East-West University, Professor Dr M M Akash, former Professor of Economics at the University of Dhaka, Dr Kazi Iqbal, Research Director, BIDS, Professor Dr M. A. Sattar Mandal, Professorial Fellow of BIDS, and Dr A.K. Enamul Haque, Professor, Department of Economics and Dean, Faculty of Business and Economics, East West University, also spoke at the event.
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