Volatile politics, security await BD ahead of polls: US report

Staff Reporter  :
The United State said that the adopted legislation and policies taken by the government has diminished space for the political opposition, undermined judicial independence, and threatened freedom of the media and civil society.

It also apprehends that the political and security situation in Bangladesh may become volatile ahead of election, a report by the US State Department published said on Thursday.
“Bangladesh is historically moderate, secular, peaceful, and stable, but as the country nears general elections in late 2023/early 2024, the political and security situation may become volatile,” the report titled ‘2023 Investment Climate statements: Bangladesh’ said.

Stating the irregularities in the last election, it said, “The last election in December 2018 was marred by irregularities, violence, and intimidation. Prime Minister Sheikh Hasina and her ruling party, the Awami League, adopted legislation and policies that diminished space for the political opposition, undermined judicial independence, and threatened freedom of the media and civil society.”
Regarding the reserve, it said, “Bangladesh’s rising commodity prices and a surge in imports in 2022 resulted in a widening balance of payments deficit. Foreign currency reserves declined from USD 48 billion in August 2021 to under USD 32.2 billion in January 2023.”

“The Government responded with measures to delay foreign currency payments. The foreign currency shortage also coincided with a banking scandal in which several major Bangladeshi banks made large, questionable loans to companies that then defaulted on the loans. In September 2022, nonperforming loans (NPL) in the banking system reportedly surged to a record USD 12.8 billion, much of which the Government has been unable to trace,” it read.

About the capital market, the report said, “Capital markets in Bangladesh are still developing and the financial sector is highly dependent on banks, which suffered a major scandal in 2022 in which 11 banks faced a collective shortfall of USD 3.1 billion. A sluggish and reportedly corrupt judicial process and limits on alternative dispute resolution mechanisms impede the enforcement of contracts and the resolution of business disputes.”

Concerning the labour, intellectual property rights, the US report said, “In the areas of labor, intellectual property rights (IPR), and environment, the Government has passed various modern laws but does not effectively enforce many of them.”

“It devotes limited resources to IPR protection. Although Bangladesh has made measurable progress over the past decade to improve fire and building safety standards, workers’ rights to associate freely and bargain collectively are limited. Despite the many environmental conventions Bangladesh joined, Dhaka is among the world’s worst cities for air pollution,” it read.