Professor Rehman Sobhan, Chairman of the Centre for Policy Dialogue (CPD), has expressed concerns over the rise of crony capitalism in Bangladesh and said it fostered undemocratic tendencies in governance and hindered sustainable development of the country.
Speaking at an annual international research conference on Saturday, he highlighted how the increasing presence of businesspersons in Jatiya Sangsad (National Parliament) under previous governments enabled them to influence policy making.
He also criticised the undemocratic nature of major political parties, stating that power has become excessively centralised at the upper echelons of both government and political organisations.
"This led to the institutionalisation of crony capitalism, which extended from the parliamentary level to local governance structures, including districts, upazilas, and unions, entrenching undemocratic practices," he added.
Prof Sobhan was delivering the keynote address titled "Agenda for Economic and Social Reform" during the second session of the conference, chaired by BIDS Director General Dr Binayak Sen.
Bangladesh Institute of Development Studies (BIDS) organised the four-day event at a city hotel, bringing together policymakers, academics, and development practitioners.
The noted economist expressed concerns over the role of the Members of Parliament (MPs), describing them as de facto landlords who dominate their respective constituencies and render local governments ineffective.
He further observed that recent elections were deeply flawed, with MPs functioning as "rubber stamps" during their terms and subsequently engaging in business and personal activities.
He stressed the need for structural reforms in governance to address these challenges. "Structural issues in governance impede sustainable development, and without urgent institutional reforms, progress will remain limited," he said.
Prof Sobhan emphasised the importance of diversifying Bangladesh's economy beyond its reliance on the garment industry. "Our export sector cannot remain confined to garments. Diversification is critical," he stated, pointing to potential growth areas such as construction and ceramics.
However, he noted that state intervention, while often necessary, has been constrained by inefficiencies within the system.
On the issue of inequality, the CPD chairman expressed disappointment at the lack of significant progress in combating discrimination.
He pointed out the limitations of current inequality standards, where individuals earning as little as Tk 30,000 per month or possessing assets of Tk 1.0 million are categorised as 'top earners'.
"By this standard, even car drivers in areas like Gulshan and Baridhara qualify as top earners, excluding many actual high-income individuals," he added.
Prof Sobhan called for a broader perspective in inequality research, asserting that much of the existing work is superficial and fails to depict the true nature of societal disparities.
He emphasised on the increasing but inaccurately represented inequality in Bangladesh, urging researchers to go beyond ornamental analyses.
He acknowledged the significant progress Bangladesh has made in poverty reduction, citing a decline from 57 per cent to 25 per cent, alongside notable improvements in nutrition, child mortality, education, housing, and access to safe water.
Despite controversies surrounding growth statistics and governance, these achievements were validated in the White Paper Committee's report, which remains unchallenged.
He urged researchers to explore the "Bangladesh Paradox" -- the nation's ability to achieve poverty reduction and human development despite pervasive inequality and poor governance.
"If the areas of inequality are identified, corrective measures could be taken," he said, cautioning that this phenomenon poses a unique challenge to economists.
He drew attention to stark regional disparities, citing Rangpur as an example of severe inequality compared to more developed areas like Dhaka and Chattogram.
Sharing a personal anecdote, Prof Sobhan contrasted the modest operations of the Planning Commission during his tenure with the current culture of luxury.
"In my time, I had to push a broken-down car to attend a function. Today, Planning Commission members travel in air-conditioned, branded cars worth crores," he remarked, underscoring the shift in priorities.
Despite these challenges, Prof Sobhan acknowledged significant advancements in social indicators, such as improved sanitation, reduced maternal mortality, and better child health outcomes.
He urged stakeholders to build on these achievements while addressing the broader issues of inequality and governance.
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