Economic stability essential for institutional, electoral reforms: Debapriya

The speed of both institutional and electoral reforms will be impacted one way or another if the economy does not achieve stability, Debapriya Bhattacharya, head of the White Paper Committee, said today.

"If we proceed with institutional and electoral reforms without stabilising the economy, we are only misleading ourselves,' he warned at a dialogue, titled "Dialogue for Democratic Reconstruction", organised by the Centre for Governance Studies (CGS) at the BIISS in Dhaka.

Bangladesh's economy will ultimately determine the pace and extent to which the country can implement the reforms, said Debapriya, who is a distinguished fellow at the Centre for Policy Dialogue (CPD).

Debapriya said the government must understand where it needs to focus its attention. "We must protect real wages, ensure fair prices for agricultural products, and safeguard social security measures."

We often hear now about the need to impose bans, remove products from the market, and place various controls. If control is exerted over an individual for political reasons, it has economic implications.

He said students need to be brought back to educational institutions, healthcare services must be properly managed, and everyone must be protected through law enforcement.

Stressing that a sense of certainty must be created within the country, Debapriya said those responsible for the economy need to clarify their policies and their plans in this regard. 

"This can be done through the revision of the budget or the formulation of the upcoming budget. It is not enough to just clarify; it must be implemented efficiently, quickly, and with accountability," he added.

"We often hear now about the need to impose bans, remove products from the market, and place various controls. If control is exerted over an individual for political reasons, it has economic implications," he said.

Debapriya explained, "If an individual's political rights are infringed, then his or her right to participate in the economy is also impaired. Therefore, when we talk about political control over individuals, groups, or parties, it has economic significance. We are imposing control on their future savings, investments, and job creation."

The event, moderated by CGS Executive Director Zillur Rahman, was attended by economists, business leaders, political figures, and students.

Link between politics and economy

Abdul Awal Mintoo, former president of the Federation of Bangladesh Chambers of Commerce, said politics and economics operate hand in hand.

"If politicians are thieves, economic stability will naturally falter," he said, noting that reform is essentially a political issue closely tied to investment. 

Historically, he explained, there have been two types of wealth creators: those who generated employment and contributed to asset creation through investment, and those who accumulated wealth without any productive input.

He noted that due to high inflation, people have been unable to save, leading to limited funds for investment. "Without investment, the 22 lakh students entering the job market each year face limited opportunities, with only about 5% securing government jobs."

Mintoo stressed the need to pave a path toward swift institutional reform, allowing the next government to build on these efforts effectively.

Concerns over data reliability

Former Dhaka Chamber president Sabur Khan, raised concerns over the credibility of government statistics. 

"Our main issue lies in statistical accuracy. Without reliable data, nothing can function properly," Khan said. 

He pointed to a discrepancy in population figures, stating that while the actual population is over 20 crore, official reports claim it is below 18 crore. 

Addressing the issue, Debapriya said the White Paper's first chapter will focus on instances of data manipulation, with specific reference to inflation rates, growth statistics, national income, household surveys, and balance of payments figures.

Mohammad Abdul Majid, former chairman of NBR, said without transparency in business, the cost of doing business will rise, impacting commodity prices. 

He also said, "When politicians act like bureaucrats and vice versa, little progress is made." 

Majid added that past reform efforts failed due to a lack of alignment between policy and implementation. He pointed out that although the Tariff Commission has authority over tariff policy, it remains largely ineffective.

The dialogue also addressed various reform needs, including formalising small businesses, increasing loan distribution support, repatriating smuggled funds, curbing bribery in all dealings, ending extortion in the supply chain, and holding willful defaulters accountable.