Cost of politicising trade bodies

Business and politics are totally separate entities and should never mix. Unfortunately in Bangladesh, the two have become so mixed up that the line between the two has become almost blurred. This has resulted in a troubling synergy between politicians and businessmen, with the primary objective of moneymaking. Politics is conducted like a business transaction, while business deals often required strong political connections. The contamination of the administration by money and power is so pervasive that it demands a thorough cleansing.
The recent commotion in the Bangladesh Garment Manu-facturers and Exporters Association (BGMEA) building where over two hundred of its members expressed their non-confidence in the current board of directors highlights the critical need to keep trade bodies independent from political influence. Citing the current board's controversial role during the recent quota-reforms movement and their failure to take any decisive actions since the board was formed over six months back, the BGMEA members demanded the dissolution of the current board and the formation of a new non-political leadership as soon as possible.
It underscores the dangers of allowing political agendas to infiltrate trade organisations, which are meant to serve the interests of industries and the economy. When trade organisations are led by individuals with strong political ties, the risk of their decisions being influenced by political agendas rather than the genuine needs of the industry increases. This can lead to actions that harm the industry's reputation, both domestically and internationally, as well as undermine the confidence of key stakeholders, including buyers and investors.
The garment plays a crucial role in Bangladesh's economy, accounting for over 84 per cent of the country's annual exports. Any mismanagement or politically motivated decision-making within the BGMEA can have severe consequences, not just for the garment sector but for the entire economy. The recent turmoil, including the failure to address the industry's needs during a period of significant unrest, has already led to substantial financial losses and a decline in buyer confidence.
Moreover, the politicisation of trade bodies is not limited to the BGMEA. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex trade body of businesses in Bangladesh, has also suffered from political interference. The effectiveness of the FBCCI has been significantly undermined, particularly at a time when businesses are facing unprecedented challenges. The recent unrest has brought many businesses to a standstill, with factories and enterprises struggling to operate due to security risks.
Despite these challenges, the FBCCI has been unable to fulfill its crucial role of supporting and advocating for businesses. One of the key reasons for this failure is the politicisation of its leadership. Over the past decade, the leaders of the FBCCI have often been chosen not through a transparent, participatory election but rather through consensus among hopefuls, many of whom are backed by ruling parties. This process deprives the business community of the opportunity to choose their leaders based on merit and the needs of the industry. As a result, the FBCCI's leadership has often been more aligned with political interests than with the genuine concerns of businesses.
The crises within both the BGMEA and the FBCCI serve as stark reminders of the importance of keeping trade bodies free from political interference. These organisations play a vital role in supporting industries that are essential to Bangladesh's economy. However, when their leadership is compromised by political agendas, their ability to fulfill this role is severely diminished. It is, therefore, imperative that trade bodies like the BGMEA and FBCCI maintain their independence, prioritise transparency, and focus solely on the best interests of the industries they represent. The time has come for a fundamental shift.
[email protected]