AL's dev projects loan-dependent, its burdens to harm future generations: Mustafizur Rahman

The ousted Awami League government's development projects were largely loan-dependent, Distinguished Fellow of CPD Professor Mustafizur Rahman said today (17 April).

"As a result, the burden of these loans won't just affect the current generation — it will extend to future generations as well," he said during the closing and prize giving ceremony of the 6th Bangladesh Economics Summit.

He further said although the Anti-discrimination Student Movement had political undertones, its primary cause was economic. 

In the White Paper on the state of the Bangladesh economy, Mustafizur said they attempted to identify the economic reasons behind the 2024 July uprising.

Highlighting the importance of megaprojects, he said, "We definitely need megaprojects. But when their financial and economic rates of return are not properly evaluated, they could become a burden on future generations. 

"We have seen that during the previous government's tenure, costs of several projects were unnecessarily inflated. There was a lack of transparency in these projects. For example, in the Padma Bridge project, a component estimated at Tk60 crore was revised to Tk2,600 crore. When we questioned these issues, we were treated as though we were traitors."

"Though we couldn't foresee the fall of the government on 5 August, those in power certainly did. Initially, they were investing stolen money within the country, but towards the end, they began laundering money abroad. Most of this laundering was done through hundi and trade-based money laundering."

Regarding US President Donald Trump's imposition of tariffs, Mustafizur said the global economy has been in turmoil. 

"That's why just studying economics isn't enough anymore — you must also study political economy seriously."

Referring to imports, he said, "India and China are massive importers, yet our exports to these countries are very low. We must approach these markets with greater seriousness."

In response to questions, Mustafizur Rahman said although several commissions have been formed for various reforms after the new government took office, no commission has been formed for education reform. A proper education system is essential to producing skilled labor.

Speaking about the working-class population, he said the wage contribution to GDP has been decreasing steadily. 

"The gap between the highest and lowest income groups is widening day by day. At the end of the day, fixing these issues requires political decisions."