Unfettered corruption and bank plundering has brought the economy to its knees
A US Department of State report that was featured in Bangladesh’s newspapers yesterday has pointed out that corruption is a major obstacle for obtaining foreign direct investments in Bangladesh. The targeted FDI could have boosted the manufacturing and services sectors, thus bringing in the creation of jobs and reducing unemployment rates in the country.
For the discouraging atmosphere of foreign investment, the report said, slow adoption of alternative dispute resolution mechanisms, sluggish judicial processes that impede the enforcement of contracts and the resolution of business disputes are also responsible. Not to mention the paucity of resources such as scarcity of land, depleting natural gas reserves, and inadequate power distribution. Limited financing instruments, bureaucratic delays, lax enforcement of labour laws are also to blame for the desperate scenario for which foreign investment is not coming.
It is a shame that we have relied on foreign sources for development and the present disaster is caused by the thorough recklessness and corruption while our greedy experts have been used by the government to eulogise its visibly incompetent performance as a role model of success. Now that the government is in trouble, we shall find they will change their views too fast. Now the government is near bankruptcy. But there is nothing to be ashamed in all this, because the general image of our men and women is that they are very good at betraying the interest of the people if that serves them well.
A large amount of corrupt money can be owned easily abroad through money laundering, though it is a grave offence. The judges are unforgiving if any case of money laundering comes their way not knowing that big ones are protected by the government. The huge money got through rampant corruption surely goes abroad.
Currently, Bangladesh government is pursuing the International Monetary Fund (IMF) for a loan grant of $4.5 billion for bailing out its economy devastated by a post Covid-19 situation and an unprecedented worldwide inflation triggered by the Ukraine-Russia war. Dr Reza Kibria, a former chief economist of the IMF, at a discussion in the capital yesterday observed that the Bangladesh government would face difficulties in getting the IMF financial rescue package because of the rampant corruption the government has indulged in. Dr. Reza Kibria’s observation holds water.
Why would the IMF trust a corrupt government in the first place? Mr Reza has rightly pointed out that the IMF had the full knowledge of Bangladesh’s depleting foreign reserves. Still, the debt repayment for the mega projects will start from 2024, that is, Bangladesh’s economy is in for a severe crisis. This will definitely compromise Bangladesh’s ability to return the IMF loan also. Therefore, the government might not be able to get the amount of loan that it has asked for from the IMF.
Earlier the government borrowed money from Russia, China and India in exorbitant terms. This was possible only by an unscrupulous government not accountable to the people. The burden will be double the amount borrowed as the dollar has greatly appreciated against the taka for example.
The massive corruption that the government has indulged in over the decades, squandering of money from the public banks and unchecked capital flight are primary reasons for which Bangladesh has arrived at this hopeless state of economic affairs. As a result of all these nefarious activities, the sufferings of people are on the edge. Still some in the government think that their power of oppression will save them. We do not blame them, taking into consideration so many wrongs of the government cravenly tolerated. It is possible that the government will bring their own downfall.