The Constitution of Bangladesh guarantees the rights of equality of every citizen irrespective of gender, race, religion etc. The government and its institutions are supposed to be free and impartial. Similarly, the society does not discriminate either against or in favour of individuals based on their race, ethnic background, gender, class, family connections or any other factor unrelated to individual merit. However, throughout history, in least developed and developing countries, governments have imposed a wide array of constraints on the citizens, particularly in matters relating to economic activities. Such constraints, though sometimes imposed in the name of equality or some other noble societal purposes, are in reality imposed most often for the benefit of societal elites or especial interests, and they come with a high cost to society as a whole. As a result, individuals having political, social and blood contacts with ruling party leaders and administrative high-up enjoy privileged status in getting services from government.
Corruption is another obstacle in delivering fair and equitable service from the regulators. The situation is aggravating day by day with the authority in charge of decision making at local levels is gradually diminishing.
Over the past decades, the issue of governance has emerged at the forefront of global agenda for development. Quality of governance is being considered as the principal prerequisite for solving many problems and for the socio-economic development in the developing countries. Good governance is the answer to political and economic freedom, and elimination of corruption.
A comprehensive view of economic freedom should encompass all liberties and rights of production, distribution or consumption of goods and services. Individuals are free to work, produce, consume, and invest in any way they choose under the even-handed application of laws, with their economic freedoms at once protected and respected by the state. In an economically free society, individuals succeed or fail based on their individual effort and ability.
There is no single answer to the challenges of development that we face. One thing, however, is sure: governments that respect and promote economic freedom provide the best environment for experimentation, innovation and progress, and it is through these that mankind grows in prosperity and well-being. The diversity of the world's peoples and cultures implies that there will be many paths to economic development and prosperity. The whole idea of economic freedom is to empower people with more opportunity to choose for themselves how to pursue and fulfil their dreams, subject only to the basic rule of law and honest competition from others. The basic principles of economic and political freedoms are identical.
The government and its administrative bodies are responsible to ensure economic freedom. In a democratic country, government's decision-making is characterised by openness and transparency to prevent discrimination and promotes equal opportunity for all. Economic freedom thus has at its heart reflection of the critical relationship between individuals and the government. In general, state action or government control that interferes with individual autonomy limits economic freedom.
The Heritage Foundation, a US civil society organisation in partnership with The Wall Street Journal, conducts yearly surveys on economic freedom around the world with the influential Index of Economic Freedom. The Index takes a broad and comprehensive view of economic freedom, measuring country performance in 10 separate areas. Some of the aspects of economic freedom that are evaluated are concerned with a country's interactions with the rest of the world-for example, the extent of an economy's openness to global investment or trade. Most, however, focus on policies within a country, assessing the liberty of individuals to use their labour or finances without undue restraint and government interference.
The 10 measured aspects of economic freedom may be grouped into four broad categories:
Rule of law (property rights, freedom from corruption); Government size (fiscal freedom, government spending); Regulatory efficiency (business freedom, labour freedom, monetary freedom); and market openness (trade freedom, investment freedom, financial freedom).
Like all the ratings in the index, these are rated out of 10; 10 is the highest possible rating and zero (0) is the lowest. A higher rating indicates a greater degree of economic freedom.
Nations in the top quartile of economic freedom had an average per-capita GDP of $36,446 in 2011, compared to $4,382 for nations in the bottom quartile in 2011.
The index reveled that Bangladesh Economic Freedom Index is better than other South Asian countries. According the report of 2014, the size of Bangladesh government has been found to be 8.82 (India 6.35, Sri Lanka 7.84, Pakistan 6.01), Legal System -- 8.82 (India 6.37, Sri Lanka 4.67, Pakistan 3.06), Freedom to Trade Internationally-- 6.06 (India 6.55, Sri Lanka 6.43, Pakistan 5.17), Regulation -- 6.72 (India 6.66, Sri Lanka 6.68, Pakistan 6.79).
Bangladesh like other developing countries has been marked by the failure of public sector to meet the demands of its citizens, ineffective public services, and unfavourable environment for the proper growth of private sector, leadership crisis, lack of transparency and accountability in administration, ineffective political institutions and so on.
Against this backdrop, it is essential to examine how far Bangladesh lags behind in the good governance. Despite better regulation, Bangladesh economy is not better than India and Sri lanka, and total GDP is lower than Pakistan. It is due to lack of good governance. Good governance means the manner in which power is exercised in the management of a country's economic and social resources for the development in an efficient and transparent way.
Governance has also become an important focal point of debate, discussion and concern among the donor countries, aid-recipient countries and international development organisations such as the World Bank. Good governance is epitomised by predictable, open, and enlightened policymaking, a bureaucracy imbued with a professional ethos, an executive arm of the government accountable for its actions, and a strong civil society participating in public affairs.
The World Bank has identified a number of parameters of good governance which have assumed significance for both the developed and developing countries. These are:
l Legitimacy of political system which can be best achieved through regular elections and political accountability.
l Freedom of association and participation by various socio-economic, religious, cultural and professional groups.
l An established legal framework based on the rule of law and independence of judiciary to protect human rights and secure social justice.
l Bureaucratic accountability including transparency in administration, freedom of information and expression.
l Sound administrative system leading to efficiency and effectiveness.
l Cooperation between the government and civil society organisations.
In the light of the above, governments may initiate plans towards good governance in order to ensure economic freedom of the masses in an equitable manner.
The writer is a legal Economist.
shah@banglachemical.com
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