Populism or pragmatism? What Bangladesh’s 2026 election means for the economy

Next year, Bangladeshi voters will head to the polls to not only elect a new government but a chance to build a new path in its economy. This election cycle is shaping up to be policy-heavy with issues such as youth employment, inequality, and development on the table. 

This election is occurring in the context of an international push back against austerity, free trade, or globalisation in the last decade. In the United States, President Donald Trump has thrown global markets into a frenzy with his tariffs, and in Mexico, President Claudia Sheinbaum has declared the "end of neo-liberalism" by rolling out monumental public works projects. With governments taking back control against what they see as an unfair global economic system, is Bangladesh next to follow suit on this trend? 

Economic populism, or its invocation, is interestingly not as novel in Bangladesh's political history. Nearly every leader and government since independence has professed to be 'populist' to some extent, boasting state-led policies that helped the poor and vulnerable. Of course, this has been far from reality as Bangladesh's economic model has been virtually unchanged since the liberalisation reforms of the late '70s and early '80s. 

However, contesting parties have now capitalised on this new historical moment by challenging the decades-long status quo with their anti-establishment, environmentalist, and progressive messaging. Candidates have been vocal about the damage of rampant industrialisation on the climate, lack of public spending on education and health, and the unchecked monopoly of the garment industry. In what is a rarity for Bangladeshi elections, the concerns of civil society are translating into mainstream discussions on social and economic policy across the political spectrum.  

The National Citizens Party (NCP) charter highlights universal healthcare as one of the cornerstones of their campaign, a new and ambitious plan. In a recent post on X, Bangladesh Nationalist Party (BNP) acting chairman, Tarique Rahman, stressed the importance of 'green financing' and pulling Bangladesh out of the foreign debt trap via 'strengthening public institutions'. Even Jamaat-e-Islami are marketing themselves as the choice against the excesses of modern capitalism through their support for social welfare and ethical finance.

Yet with their sensationalist talk about protecting the climate, public services, domestic industry, or the common worker, their campaign memos fail to detail a fiscal pathway to fund their bold proposals. If anything, they provide a contradictory narrative to their anti-austerity banner. The BNP and NCP for example have conveyed a more private sector-friendly agenda in the form of massive tax holidays, foreign investment incentives, and deregulation which relegates much responsibility to wealthy corporations. 

Though their plans encourage fair market competition and prioritise businesses to promote 'Environmental, Social, and Governance' (ESG) goals, such pledges are generally shallow Companies around the world often throw away their ESGs, diversity initiatives, and net-zero emission commitments just as anti-pollution regulations, taxes, and employment protections are rolled back. In the end, big business cannot be relied on to regulate itself; it is a strong government with public backing that can be the true change agent. 

A true populist campaign also scrutinises the dependency on powerful institutions whose trust from the public is eroding; be it developmental aid agencies, lobbyists, multinational conglomerates, or bureaucratic elites. A call to action to fight or reform these elements is missing in this national campaign, this is why their revolutionary appeal feels superficial.

Perhaps radical change is not on the way but instead a moderate consensus agreed on by all parties regardless of who takes power — similar to the cross-party postwar consensus in the United Kingdom which emphasised investments in the welfare state and social programs alongside a market economy. 

But consensus-building still requires putting out your demands first before compromising. The BNP, the NCP, Jamaat, and the rest are pivoting between being against the machine while also relying on it when convenient. Instead of seeking patronage from the top, they must build from the ground up an economic manifesto 'wishlist' that reflects their constituents' needs. 

Unfortunately no party leader at the moment possesses the fierceness of Trump nor the ideological prowess of Sheinbaum. It is difficult to say if the skills for bipartisanship or popular revolution will be on display when a new government swears next year. 

Regardless of how the rhetoric in the campaigns of the 2026 election pans out in the coming months, a new outlook is surely on the horizon. Candidates and the general electorate are finally taking into account the much-needed conversation of elevating equity and sustainability in public policy. At the same time, voters should be wary of falling into the usual traps of populism coated with grand promises and lacklustre results. 

Aamer Tahseen is a New York-based writer and columnist. He holds a BA from Fordham University. 

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.