Bangladesh is staring into the abyss of an economic crisis, a predicament largely self-inflicted by over a decade of democratic deficit.
The recent political turmoil, culminating in the prime minister’s resignation and the formation of an interim government, has only exacerbated an already precarious situation.
Economists unanimously agree that the situation is dire. High inflation, dwindling foreign reserves, a mountain of bad loans, and a banking sector plagued by poor governance and corruption are just the tip of the iceberg.
The foundation of the economy has been eroded by a systemic disregard for transparency, accountability, and good governance.
The interim government to be formed anytime is likely to face a daunting task: to stabilise the economy while laying the groundwork for a sustainable recovery.
Immediate steps must be taken to restore normalcy, including restoring internet connectivity and ensuring the smooth operation of transportation networks.
Addressing supply chain disruptions is crucial to curb inflation, which has disproportionately impacted the poor.
However, these are merely short-term fixes. The root causes of the crisis lie deep within the country’s political and economic systems.
A participatory and democratic political system is essential for economic growth and development.
The government must commit to good governance, transparency, and accountability.
The banking sector requires a thorough overhaul. A forensic audit is necessary to assess the extent of the damage and identify those responsible. Reforms must be implemented to strengthen regulation and supervision.
The tax system, a perennial problem, also needs urgent attention. Increasing tax revenue is crucial for sustainable development, but this can only be achieved through a fair and efficient system.
The international community can play a supportive role by providing technical assistance and financial support.
But the ultimate responsibility lies with the Bangladeshi people and their leaders. It is time for a course correction.
The country cannot afford to squander this opportunity to rebuild its economy and restore its democratic values.
The clock is ticking.
The longer the delay in implementing necessary reforms the greater the risk of a catastrophic economic collapse.
The choices made in the coming months will determine the trajectory of Bangladesh for years to come.
