Don’t see progress on white paper, task force recommendations: Prof Raihan

Professor Selim Raihan, the economist involved in both the task force and white paper committees, has said he has not heard or been made aware of any discussion at the government level regarding the recommendations on economic reforms and necessary actions.

"There were 23 leading economists in the two committees who prepared documents and submitted those to the government. The government had the opportunity to act on those, and ministries could work on reforms individually, but we don't see that happening," he said.

"I don't see much discussion in the government about the issues raised by the white paper committee or the task force. The government could have reached out to us and said they don't understand or that our recommendations are useless."

The economist made these comments at a seminar, "Unveiling the Truth: The State of Bangladesh's Economy & Governance," organised by the Economic Study Centre of Dhaka University. The seminar, mostly attended by students of the Department of Economics,  focused on the issues addressed in the white paper and task force committees.

The two committees were formed by the post-August uprising interim government to suggest reforms to the economy, and outline actions to tame corruption and rebuild public institutions. The White Paper Committee submitted its report to the chief adviser on 1 December, after starting work in September, and the government's task force also submitted a separate report.

'I see possibility of deferring LDC graduation'

Regarding LDC graduation, Professor Raihan said, "It's an important issue. Some may argue it shouldn't happen now, while others may say it should. Even with adjusted GDP growth, the per capita income threshold will still be met." 

The government had the opportunity to act on those, and ministries could work on reforms individually, but we don't see that happening

Professor Selim Raihan 

Bangladesh is set to graduate from the least developed country (LDC) status in November 2026. 

He believes there's no reason to postpone LDC graduation. "We must graduate eventually. Preparations have already been made. Delaying it would only bring us back to square one in three years."

However, he noted it is not unlikely that some issues might arise and there might be calls for a deferment of graduation. 

In response to questions from journalists, he said, "What we wrote in the white paper and the task force was agreed upon by all, but that's not the case now. It's crucial for Bangladesh's economists to unite."

Regarding reform initiatives, he acknowledged that vested interest groups hinder progress. When asked if reform is possible despite such impediments, the economist responded, "Reform is possible. Small initiatives can be taken in some areas, or bigger ones in others. At the very least, an example needs to be set."

He sees risks with IMF money

Quoting the governor of the Bangladesh Bank, Raihan said, "The governor claims IMF money isn't needed now, but I see a big risk. While export and remittance inflows might be the reason for this statement, the real concern is whether the promised reforms are still on track."
He said, "Foreign lending institutions impose conditions during loan negotiations, and the IMF has done the same for Bangladesh. The concern now is that the governor's statement about not needing IMF money may exclude the necessary reforms."

Professor Raihan also discussed Colombo's turnaround, saying, "Sri Lanka's recovery is interesting, but our danger is that we've already fallen into a trap. The bigger fear is that we may not find a way out. It remains to be seen if political leaders and the government are taking any initiative."

He noted that the governor of the Sri Lankan central bank has worked independently, free of political pressure, successfully controlling inflation and managing foreign debt. 

The economist said Sri Lanka's institutions are far more developed than Bangladesh's, and their human capital is stronger due to past investments in education and healthcare. This has meant that such investments are no longer as necessary as before 

Sri Lanka serves as an example of how strong institutions can make a difference during a crisis, while Bangladesh lags behind in this respect, he added.

Professor Raihan commended the current government for forming various commissions to propose reforms. He noted, however, that similar efforts were made during the 1991 caretaker government but went unimplemented. 

He highlighted the fact that recommendations from four decades ago still remain unaddressed, largely due to powerful vested interests and a lack of political will. 

Many political parties also benefit from these groups, and the financial transparency of political parties remains lacking. There should be public disclosure of their expenses, he added.