By P.K.Balachandran/Daily Mirror
Colombo, August 13: Dr.Muhammad Yunus, the newly appointed Chief Advisor to the Bangladesh President, enjoys popular acclaim being a Nobel Laureate with a sterling record as the common man’s banker.
But he is also subjected to great expectations from 172 million Bangladeshis. The political and economic mess left by the ousted ruler, Sheikh Hasina, has to be cleaned up if Bangladesh is not to return to being a “basket case” it was in the 1970s.
Restoration of law and order will of course be the most urgent task. Rules and regulations governing politics, the administration and the economy will have to formulated and that to the satisfaction of the very demanding student agitators.
Writing in The Daily Star, Irene Khan, UN Special Rapporteur on Freedom of Opinion and Expression warned that as the “Arab Spring” had shown, failure to meet the expectations of the protestors could put the struggle for democracy in the reverse gear.
“I see a window of opportunity to craft a platform for transformative governance, grounded in democratic values and human rights principles. But that window will not last long,” Khan, a Bangladesh herself, warned.
Listing the priorities, Khan said that firstly, the interim government must make it clear that not only does it have zero tolerance for political vendettas or scapegoating of minorities, but that all political parties must proactively rein in their goons or face political and legal consequences.
Khan noted that student volunteers have taken to guarding violence-hit neighbourhoods with remarkable politeness and diligence. This, she said, could be the beginning of a new “community-based policing system” that the country badly needs.
Second, the interim government should initiate a credible and transparent accountability process in line with internationally recognised standards and with international assistance into the massive human rights violations in recent weeks and past years. The government should take up the offer of assistance from the United Nations High Commissioner for Human Rights and also ask for an international commission of inquiry, Khan advised.
Third, the government must strengthen the right to freedom of expression and the role of independent news media. The government should immediately repeal the Cyber Security Act, the law on criminal libel and the Information and Communication Technology Act, which were used by the previous government to gag the media, prosecute and punish journalists and human rights defenders, and disrupt the internet.
Fourth, the previous government weaponised the judicial system to throttle dissent and silence journalists. Multiple charges were brought against scores of editors and journalists and left hanging over their heads for years, inducing a culture of fear and self-censorship. Criminal charges against all journalists and editors must be dismissed immediately, Khan demanded.
Fifth, root and branch reform of the judiciary is long overdue, and essential to gain the trust and confidence of the public as well as investors. This government should undertake a process of fundamental reforms, especially at the highest echelons of the judiciary, to ensure the independence, impartiality and competence of the judiciary and commitment from its highest echelons to its rank and file to upholding fairness, human rights, and the rule of law.
Sixth, a Caretaker Government must be put in place to conduct elections in the future, Khan said.
“The people of this country, especially the youth, are fed up with self-serving, corrupt and violent politics and politicians. They want a new type of politics that cares about ordinary people, that values equality, opportunity and justice,” Khan said, and called for a broad-based national movement with new ideas, leaders and innovative political structures that are representative of the gender, age, ethnic, religious and socio-economic diversity of Bangladesh.
Economic Challenges
Although Sheikh Hasina put Bangladesh on a high growth path, she had left acute problems such as a surging cost of living, a growing deficit in foreign reserves, a substantial external debt, and an unstable foreign exchange market. Interest rates are high, investment has declined, banks face a liquidity issue.
Given the sudden political changes, the Governor and Deputy Governors of the Central Bank, the Bangladesh Bank, have resigned. The Chief Justice has gone too. So had the chairman of the University Grants Commission (UGC).
The Bangladesh Financial Intelligence Unit (BFIU) instructed all banks in the country to freeze accounts of former Foreign Minister Hasan Mahmud and his family members. Hasan was detained at the airport on August 6, while attempting to flee the country.
Irregularities and corruption in the banking sector routinely swept under the carpet for years, cannot be ignored anymore, says a report in The Business Post.
Price hikes driven by market syndicates rather than by macroeconomic factors, cannot be controlled unless entrenched groups of manipulators are dispersed.
The COVID-19 pandemic had drained foreign reserves leading to a significant devaluation of the Bangladeshi Taka (BDT). In Financial Year 2024, the BDT had depreciated by more than 25% against the US dollar.
Devaluation resulted in a sharp increase in the prices of imported goods. Bangladesh’s current inflation rate of 9.7 % is number two in South Asia after Pakistan. Food inflation is in double digits affecting the poor.
There is a net forex reserve of U$ 16.57 billion but this is not sufficient for even three months of imports. The Hasina government had sought a IMF US$ 4.7 billion of which three instalments have already been received.
As of March 2024, Non-Performing Loans (NPLs) in the banks had exceeded BDT 1.82 lakh crore (BDT 1.82 trillion). There is thus a severe cash crunch, affecting the daily operations of banks across the country.
There being a run on the banks, the Central Bank (Bangladesh Bank) last Wednesday limited cash withdrawals to BDT 1,00,000 per account per day.
Obstacles to Investment
The rising interest rate could pose a significant obstacle to investment and employment generation. The interim government needs to adopt a more investment-friendly approach, says The Business Post.
Even though Bangladesh’s GDP is currently growing at over 5% annually, it has struggled to create enough, decent-paying jobs for its youth. Unemployment among people aged 15 to 24 was a high 15.7% in 2023, according to the ILO.
Fahmida Khatun, head of research at the Centre for Policy Dialogue in Dhaka, told www.dw.com that the banking system is stuck with policies which benefitted only the crony capitalists. She called upon the new government to ensure the independence of the Central Bank.
Bangladesh earns over US$ 46 billion annually by exporting garments mainly to Europe and US. As many as 4 million workers, mostly women, are employed across some 4,000 factories. These factories, closed due to the agitation, will have to be opened.
Will Grameen Bank Show the Way?
The President’s Chief Advisor Dr.Muhammad Yunus is the founder of the world-renowned Grameen Bank which lends to the poor at affordable rates. The Grameen Bank might show the way for the emerging Bangladesh.
A 2012 study of a sample of 100 Bangladeshi women credit receivers from the Grameen Bank revealed that 81% were satisfied. A similar study published in September 2019 with a sample size of 100 in Bangladesh, said: that 64% of Grameen Bank respondents found their family income increasing to some extent. 24% said their family income had improved to a great extent.
The Grameen Bank also provides scholarships to women for school and higher education. Micro credit programs empowered women by raising their social consciousness which was reflected in increased participation in local government elections and social mobilization activities.
Council has Qualified People
The Council of Advisors in Bangladesh has qualified experts in various fields to help Dr.Yunus. Member Dr. Salahuddin Ahmed is a former Governor of the Bangladesh Bank. Hassan Ariff is a Member of the ICC International Court of Arbitration.
Besides, the Council has representatives of well-known human rights organizations, the professions, two student leaders and representatives of the minorities including Buddhists and Hindus.
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