Addressing top-down corruption in the ICT sector in Bangladesh

The consequences of top-down corruption in Bangladesh’s ICT sector are far-reaching. Photo: Collected

The rapid growth of Information and Communication Technology (ICT) has the potential to revolutionize economies, foster inclusive growth, and address longstanding societal challenges. 

For Bangladesh, a country where technological advancement has the ability to transform livelihoods, this potential remains somewhat unfulfilled due to systemic corruption, especially within the ICT sector. The top-down corruption prevalent in this sector has created barriers to equitable access and limited the full potential of digital technologies to drive economic and social inclusion. 

The political economy of corruption in Bangladesh's ICT sector

Corruption in Bangladesh's ICT sector can be characterized by the intersection of political influence, patronage networks, and inefficiencies in regulatory frameworks. Political economy theory suggests that corruption, particularly in developing countries, often stems from the interaction between political elites and economic interests, where state resources are manipulated for personal or group gains. In Bangladesh, this is evident in the manipulation of public procurement processes, the lack of transparency in government initiatives, and favouritism in awarding contracts to politically connected firms. 

The ICT sector, like many others in Bangladesh, has been vulnerable to this form of corruption due to its rapid growth, the influx of foreign investment, and the importance of technology in both governance and business.

An example of this is the procurement of software, hardware, and telecommunications services, where firms with political connections often receive lucrative contracts regardless of their efficiency or the quality of their offerings. For instance, the National ID card project, which relies heavily on ICT infrastructure, has been marred by allegations of overpricing, delays, and involvement of politically influential contractors. Similarly, the allocation of spectrum licenses for mobile networks and broadband services has raised concerns about the lack of competitive bidding, as well as the influence of political elites in decision-making.

Moreover, Bangladesh's regulatory environment exacerbates this corruption by failing to create an accountable and transparent framework. The Bangladesh Telecommunication Regulatory Commission (BTRC) has faced criticism for its opaque decision-making processes and inability to enforce regulations that ensure fair competition and market entry. This has led to a concentration of market power in the hands of a few large players, stifling innovation and hindering small and medium-sized enterprises (SMEs) from participating in the digital economy.

Top-down corruption: Implications for the digital divide

The consequences of top-down corruption in Bangladesh's ICT sector are far-reaching. Firstly, it has perpetuated the digital divide by limiting access to ICT resources for underserved communities. As corruption channels resources away from public initiatives aimed at expanding internet access and digital infrastructure, rural and marginalized populations continue to face significant barriers to digital inclusion. 

In a country where 60% of the population resides in rural areas, the failure to prioritize equitable ICT distribution is a critical issue. For example, the rollout of high-speed internet in rural areas has been sluggish due to corrupt practices that prioritize urban-centric projects, often benefiting the wealthier segments of society. In addition, public-private partnerships (PPPs) that could potentially bridge this gap often fail to materialize or are mismanaged due to lack of proper oversight and accountability. The limited access to digital technologies in these areas hampers economic growth, educational opportunities, and access to health services, all of which increasingly rely on digital platforms.

Furthermore, the concentration of market power within the hands of a few large ICT companies, often linked to political elites, leads to higher prices for digital services, which disproportionately affects lower-income households. This dynamic exacerbates income inequality and limits the broader societal benefits of ICT, such as the opportunity for digital entrepreneurship and e-commerce, which could provide new avenues for economic mobility.

Bridging the digital divide: Policy recommendations for 2025 and beyond

As Bangladesh moves toward 2025 and beyond, addressing the top-down corruption within the ICT sector is crucial to ensuring equitable access to digital technologies. The following policy recommendations aim to address the structural factors contributing to corruption and promote digital inclusion across the country.

Strengthening governance and transparency in ICT procurement

A key step in addressing corruption is improving governance and transparency in public procurement processes. To ensure that contracts for ICT infrastructure are awarded based on merit and efficiency, Bangladesh should implement more stringent auditing and oversight mechanisms. The government could establish independent procurement bodies with the power to review and monitor contracts for transparency. Digital platforms that provide public access to procurement data could further enhance transparency and reduce opportunities for corruption.

Decentralizing ICT policy and infrastructure development

To avoid the concentration of ICT resources in urban areas, Bangladesh should focus on decentralizing its digital infrastructure development. The government could incentivise local governments to spearhead initiatives that expand broadband access in rural and underserved regions. Additionally, the establishment of community-driven digital hubs could empower local communities and facilitate grassroots digital literacy programs, ensuring that the benefits of ICT reach beyond urban centers.

Promoting inclusive public-private partnerships (PPPs)

PPP models that are focused on inclusion and accountability can play a critical role in expanding access to digital technologies. However, these partnerships must be reformed to prioritize public interest and reduce political influence. Transparent, competitive bidding processes should be enforced, and a greater focus should be placed on the social impact of PPP projects, ensuring that initiatives in rural and underserved areas are not neglected.

Enhancing digital literacy and capacity building

Bridging the digital divide in Bangladesh requires not just infrastructure but also human capital. The government should invest in large-scale digital literacy programs that target both rural populations and women, who often face greater barriers to ICT access. Capacity-building programs should focus on equipping citizens with the necessary skills to navigate the digital economy, such as coding, e-commerce, and digital marketing.

Strengthening regulation and competition in the ICT sector

In order to create a more competitive and inclusive digital market, Bangladesh should enhance its regulatory framework. The BTRC and other regulatory bodies should be empowered to enforce fair competition laws and prevent monopolistic practices. Measures to encourage market entry for SMEs, especially those run by women and marginalized groups, should be prioritized to foster a more diverse digital economy. 

The digital divide in Bangladesh remains a pressing challenge, one that is exacerbated by top-down corruption in the ICT sector. However, with the right policies and reforms, Bangladesh has the potential to bridge this divide and ensure that ICT serves as a tool for inclusive development. By addressing corruption, improving governance, decentralizing digital infrastructure, and promoting inclusive public-private partnerships, Bangladesh can create a more equitable digital landscape in 2025 and beyond. In doing so, the country will not only unlock the full potential of its ICT sector but also contribute to the broader goal of sustainable and inclusive economic growth.

Rayyan Hassan is the Executive Director of NGO Forum on ADB. 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.