Economic solidity key to reforms: Dr Debapriya

Economic stability is crucial for institutional and electoral reforms, cautioning that the pace of these reforms will be constrained without it, according to noted economist Dr Debapriya Bhattacharya.

"If anyone thinks we can move forward with institutional and electoral reforms while our economic issues remain in their current fragile state, we are mistaken," he remarked.

Dr Debapriya, also distinguished fellow of the Centre for Policy Dialogue (CPD), made the observations at the 'Dialogue for Democratic Reconstruction' event hosted by the Centre for Governance Studies (CGS) at the Bangladesh Institute of International and Strategic Studies on Saturday.

Emphasising the unique nature of the incumbent government, which emerged from a mass movement months ago, he pointed out that while many criticised the government and proposed solutions, few questioned why these same reforms were not pursued by previous administrations.

Dr Debapriya argued that it was imperative to address why job creation and economic growth initiatives had not succeeded over the past 15 years.

He said the so-called elite destroyed every institution during the previous regime.

Dr Debapriya, head of the White Paper Commission, said institutional dysfunction, data manipulation and legal interference for political ends-all demanded critical examination.

He highlighted the need to distinguish between reforms unfinished by prior governments and reforms needed to advance Bangladesh beyond its status as a least-developed country.

Dr Debapriya called for a clear roadmap of discussions on reforms extending beyond state structures to address grass-roots economic issues.

CGS executive director Zillur Rahman moderated the event that discussed economic policy reforms and democratic restructuring, saying that "reformation" has long been a part of Bangladesh's national discourse.

"Once regarded with skepticism, the term has regained significance following recent mass movements, reflecting a public desire for meaningful change as many institutions struggle to function effectively."

CGS chair Munira Khan highlighted corruption as a key obstacle, noting that while some illicit funds remained in Bangladesh, a substantial portion was laundered abroad, a trend that must be curbed.

Dhaka University's economics professor Dr Rashed Al Mahmud Titumir discussed inflation, pointing out the country's heavy reliance on food imports.

"Why importers have not sat in dialogue with the government and why a social welfare system leveraging the National ID system remains unimplemented?" he questioned.

Asst Prof Parvez Karim Abbasi of economics department at East West University cautioned that Bangladesh's economic recovery remained uncertain.

Although US imports of Bangladeshi ready-made garments (RMG) have increased, competition from India and its portrayal of Bangladesh as unstable have affected exports, according to him.

DU pro-VC (admin) Dr Sayema Haque Bidisha stressed the importance of reducing commodity prices and supporting small-and-medium enterprises (SMEs), which are crucial for poverty alleviation, particularly in rural areas.

She highlighted the need for a tailored policy approach to facilitate SMEs, noting the challenges they face in competing with larger corporations.

Dr Bidisha called for a government-led employment roadmap for graduates and a decentralised job creation plan for medium- and low-skill workers.

Prof Shahidul Islam Zahid of banking and insurance department at DU voiced worries about poverty and environmental degradation linked to infrastructure development, which often disregards social and environmental impacts.

Abdul Awal Mintoo, former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said the private sector employed the majority of workforce, as only 5.0 per cent enter government jobs.

He cited stable socio-political conditions as crucial for attracting investment, thereby driving job creation.

Bangladesh Chamber of Industries (BCI) president Anwar-ul Alam Chowdhury questioned why development during the previous government had not translated into job creation, emphasising the need for industrial growth.

He noted that industries faced high energy costs and unreliable supplies, resulting in declining confidence in the country's legal system.

Mr Chowdhury called for protection against politically motivated dismissals of mid-level managers.

Social Development Foundation chairman Muhammad Abdul Mazid, also former chairman of the National Board of Revenue, laid stress on consensus-driven reforms, particularly in taxation.

He argued that reducing the cost of doing business was the key to economic recovery, noting that bureaucratic and political roles had become increasingly intertwined.

Former FBCCI president Md Jashim Uddin prioritised reforms in the banking and energy sectors, which imposed significant costs on businesses.

He stressed the importance of strengthening infrastructure and supply chains, minimising market intermediaries and working with business associations to ensure effective SME lending.

Former BCI president Shahedul Islam Helal observed that corruption was pervasive, making it nearly impossible to do business without paying bribes.

FBCCI committee chair Asif Ibrahim emphasised that young Bangladeshis often felt excluded from the political process, as many had never voted.

"Survey data shows the youth are concerned about transparency, accountability and vested interests harming the economy."

He recommended a commission to monitor essential commodity prices and long-term financing mechanisms for the private sector.

Bangladesh Reconditioned Vehicles Importers and Dealers Association president Abdul Haque highlighted the cooperative model's potential, which had prominence before independence but has since faded.

He suggested policies similar to Japan's government-subsidized housing for low-wage workers, calling for clearer definitions and policies for SMEs.

Daffodil International University chairman and former Dhaka Chamber of Commerce and Industries president Sabur Khan emphasised the importance of accurate data, criticising current population estimates and calling for a reliable credit-scoring system in the banking sector.

Former UNDP assistant resident representative Prasenjit Chakma suggested that digital platforms could help disrupt monopolistic market practices by directly linking producers with consumers.

He also advocated for affirmative action and tax incentives to support Indigenous communities and SMEs.

Former FBCCI president Mir Nasir Hossain argued that development must include broader segments of society to be sustainable.

He observed that Bangladesh had not leveraged its demographic dividend yet, calling for education policies that fostered productivity beyond Dhaka.

Centre for Non-Resident Bangladeshis chairman MS Shekil Chowdhury attributed dollar crisis primarily to state-supported overinvoicing, suggesting that foreign missions be utilised to recover laundered funds.

He criticised the use of banks as political instruments, calling for effective policy implementation and governance.

DU economics professor Dr M Abu Eusuf advocated stabilising macro-economy, noting a significant gap between macro- and micro-economic realities.

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