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Electoral reforms: Commission proposes referendum and representative recall system
bdnews24.com
Published :
Feb 08, 2025 23:37
Updated :
Feb 08, 2025 23:37

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The Electoral Reform Commission has proposed introducing a referendum system to gauge public opinion on critical state decisions and a recall system to remove elected representatives from the National Parliament.

These recommendations are included in the commissionโ€™s full report alongside other electoral reform proposals. The report suggests that the referendum provision be introduced in the next parliament and the recall mechanism for MPs be implemented in national elections.

On Saturday, the full report was published on the Cabinet Divisionโ€™s website. Earlier, on Jan 15, the commission submitted the report to Chief Advisor Muhammad Yunus, and a summary was shared with journalists.

KEY RECOMMENDATIONS:

โ€ข Abolishing EVMs - Electronic Voting Machines

โ€ข Cancelling uncontested elections

โ€ข Reintroducing the "No Vote" option in general elections

โ€ข Invalidating elections where "No Vote" receives the majority

โ€ข Re-election if voter turnout is below 40 per cent]

โ€ข Limiting the prime ministerโ€™s tenure to two terms through constitutional amendments

โ€ข Reinstating the caretaker government system

โ€ข Introducing online voting

The latest additions to these recommendations include referendums and MP recall mechanisms.

REFERENDUM: A TOOL FOR PUBLIC OPINION

The report defines a referendum as a method to directly seek public opinion on crucial state decisions, a practice adopted by many countries. Referendums have been held worldwide on matters like constitutional amendments, major legislation, and international treaties.

Bangladesh previously held referendums in 1977, 1985, and 1991, although the 1972 Constitution did not include a referendum provision. It was introduced in 1979 by General Ziaur Rahman through the Fifth Amendment.

However, in 1991, the 12th Amendment repealed the referendum provisions for Articles 58, 80, and 90(A). Later, in 2011, the Awami League governmentโ€™s 15th Amendment fully abolished the referendum mechanism under Article 142.

HIGH COURT RULING & LEGAL IMPLICATIONS

Following the fall of the Awami League government due to mass protests, the High Court reinstated the referendum provision on Dec 17, 2024, by striking down the previous constitutional amendment.

However, legal experts question whether the ruling automatically restores the provision. According to Section 6 of the General Clauses Act, any repealed law must be re-enacted by parliament for it to be legally revived.

REPRESENTATIVE RECALL SYSTEM

The commission has recommended introducing a recall system for members of parliament, or MPs.

However, to avoid unnecessary expenses and political instability, it has proposed that recalls should not be applicable in the first and last year of an MPโ€™s tenure.

How the Recall Process Would Work

The report outlines the recall mechanism as follows:

โ€ข A petition must be submitted to the Election Commission with the signatures of at least one-third of the total voters in the respective constituency.

โ€ข The petition must clearly state the reasons for recall and include voter signatures. The Election Commission will then evaluate the request and make a decision.

โ€ข If a majority (51%) of the voters in the constituency support the recall in a vote, the elected representative will be removed from office.

WHY A RECALL SYSTEM?

The report notes that in Bangladeshโ€™s current electoral system, elected representatives lack direct accountability to voters between elections. If an MP fails to perform, breaks their oath, fails to fulfil promises, or engages in corruption, the public has no effective way to express dissatisfaction before the next election.

A recall system could serve as an interim solution to this issue, allowing citizens to hold their representatives accountable before their full-term ends.

CONCERNS AND RISKS

However, the report warns that a recall system could lead to political instability, with frequent recall attempts disrupting governance, misuse by political opponents to weaken rivals, and increased government expenditure if too many recall elections are triggered.

The report also highlights allegations of electoral fraud under the Awami League government, including vote-rigging, ballot-stuffing, seizing polling stations, and pre-casting votes on election night.

In addition, the Awami League government faced widespread allegations of corruption and money laundering, authoritarian governance, and serious human rights violations.

After the fall of the Awami League government, the interim administration formed six reform commissions in Oct 2024, including the Electoral Reform Commission, to address governance and institutional failures.

OTHER KEY RECOMMENDATIONS BY THE COMMISSION

The Electoral Reform Commission, led by Badiul Alam Majumdar, has recommended amending the Constitution to:

โ€ข Limit the prime ministerโ€™s tenure to a maximum of two terms

โ€ข Establish an Upper House (Senate) with 100 seats

โ€ข Bar a two-term prime minister from running for president

โ€ข Prohibit one individual from simultaneously holding the positions of party chief, prime minister, and leader of parliament

UPPER HOUSE (SENATE) FORMATION

The commission proposes forming the Upper House based on proportional representation, where seats will be allocated according to a partyโ€™s vote share in national elections.

The seat distribution would be:

โ€ข 50 percent from party members

โ€ข 50 percent from non-partisan groups, including civil society, academics, scientists, social workers, labour representatives, womenโ€™s rights activists, cultural figures, and marginalised communities

On top of that, at least 30 percent of both party-affiliated and independent Senate members must be women.

To qualify for Upper House seats, a party must secure at least 3% of the total votes in the national elections.

Lower House Expansion and Womenโ€™s Representation

โ€ข Increase the number of parliamentary seats from 300 to 400

โ€ข Reserve 100 seats for women, to be elected through a rotational system, ensuring they compete directly from designated constituencies

Presidential Election Reform

The commission recommends that the president be elected through an Electoral College composed of:

โ€ข Members of both houses of parliament

โ€ข Elected representatives from local governments

CARETAKER GOVERNMENT SYSTEM

The Awami League government abolished the caretaker government system through the 15th Amendment to the Constitution, leading to three national elections under elected governments.

The commission suggests restoring the caretaker government with a fixed four-month tenure, during which it would:

โ€ข Conduct both national and local elections

โ€ข Oversee legal and administrative reforms to ensure fair, non-partisan, and credible elections

A National Constitutional Council, or NCC, should nominate the caretaker governmentโ€™s chief, who would then appoint 20 advisors.

If an NCC is not formed, the commission proposed that a high-level committee, including political parties, experts, and civil society representatives, and draft a framework for the caretaker government, which should be approved and implemented by parliament.

Local Government Elections

โ€ข Hold local elections before national elections

โ€ข Make local elections non-partisan by amending electoral laws

Political Party Regulations

New political parties must have offices in at least 10 per cent of districts and 5 per cent of Upazilas. They must have a minimum of 5,000 registered members

The commission is in favour of removing the rule that cancels a partyโ€™s registration if it fails to contest two consecutive elections.

It advocates for bringing registered political parties under the Right to Information -RTI- Act.

VOTING RIGHTS FOR OVERSEAS BANGLADESHIS

The commission proposes introducing postal voting for expatriate Bangladeshis, allowing overseas voters registered in the voter list and National ID, or NID, database by Oct 2025 to vote in the next national election

It also recommends developing an online voting system to modernise elections.

The commission held 64 meetings, 22 consultations with stakeholders, and collected feedback from 9,752 individuals until Dec 31, 2024.

On Oct 3, 2024, the interim government formed six reform commissions, including the Electoral Reform Commission, with Badiul Alam Majumdar as chair.

The commission was initially scheduled to submit its report by Dec 31, 2024, but was granted an extension until Jan 15, 2025. The full report was published on Jan 20.​
 

Six reform commissionsโ€™ reports made public Saturday
United News of Bangladesh . Dhaka 08 February, 2025, 20:22

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Representational image. | UNB Photo

The full reports of the Electoral Reform Commission, Police Reform Commission, Judiciary Reform Commission, Anti-Corruption Commission Reform Commission, Public Administration Reform Commission, and Constitutional Reform Commission (Part One) were published on the website of the Cabinet Division (https://cabinet.gov.bd/) on Saturday.

A press conference is being held at the Foreign Service Academy to discuss the urgent issues recommended by these commissions.

Earlier, the reports of the Constitutional Reform Commission, Electoral Reform Commission, Police Administration Reform Commission, and Anti-Corruption Commission Reform Commission were submitted on January 15.

Later, on February 5, the reports of the Public Administration Reform Commission and the Judiciary Reform Commission were submitted to the chief adviser.

Five commissions, except for the Constitutional Reform Commission, were formed on October 3 of last year.

The Constitutional Reform Commission was formed on October 6.

All the commissions were given 90 days to submit their reports, and later, that time was extended several times.​
 

Five reform commissions set to miss deadline
Staff Correspondent 16 February, 2025, 00:31

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Five reform commissions on health, women affairs, mass media, labour and local government are going to ask for more time as they are set to miss the deadline for submitting their reports to the interim government chief Adviser Muhmannad Yunus today.

Formed on November 18 by separate gazette notifications, the five reform commissions were assigned to submit their reports within 90 days or February 16, 2025. Several members of the commissions informed New Age on Saturday that they would seek a deadline extension up to mid-March.

They said that some of the commissions were yet to finalise their draft recommendations until Saturday.

Health sector reform commission chief Professor AK Azad Khan, said, โ€˜We are planning to submit the commission report by mid-March.โ€™ The commission was formed to recommend necessary reforms to make the countryโ€™s healthcare system people-oriented, accessible and universal.

The labour sector reform commission also would request the government to allow at least one month more for finish preparing the full report aiming at ensuring labour rights and welfare, said its chief Syed Sultan Uddin Ahmed.

โ€˜We will prepare the summary of our recommendations and submit it to the interim government by February 28,โ€™ he said.

The local government reform commission was formed to gather recommendations on strengthening the effectiveness of local governance with its chief Professor Tofail Ahmed said on Saturday that the full report would take more time to finish.

He, however, added that the commission was working hard to prepare a summary to give it to interim government by February 21.

โ€˜Discussions with political parties have started. We think our recommendations on local government reforms will be crucial in the discussions,โ€™ he said.

The interim government formed the women affairs reform commission to generate necessary recommendations regarding womenโ€™s participation in all spheres and their empowerment. Meanwhile, the mass media reform commission was formed to recommend necessary steps to make mass media independent, strong and objective.

Mass media reform commission chief Kamal Ahmed and women affairs reform commission member Nirupa Dewan said that the commissions would not be able to complete their reports before the last week of February.

Following the ouster of the Sheikh Hasina-led regime on August 5, the interim government announced full-fledged reform commissions for the judiciary, electoral system, police, public administration and the Anti-Corruption Commission on October 3 last year. A full-fledged constitution reform commission was announced on October 7.

All the commissions of the first round, having their deadlines extended, submitted their full reports on January 15. The reports were made public on February 8.​
 

Reform commission to seek change in laws discriminatory towards women
The reform commission will submit their report to the chief adviser at the end of this current month.

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Naznin Akhter
Dhaka
Updated: 15 Feb 2025, 18: 54

Women and human rights organisations have long been demanding a uniform family law through which women of all religions will have equal rights of inheritance, child custody, marriage and divorce.

Although the constitution talks about equality, inequality still persists in society. Even political parties haven't taken any step to remove this inequality. In order to eliminate these inequalities the womenโ€™s affairs reform commission is going to recommend changes to the constitution and to the laws.

Major recommendations are expected such as permitting women equal rights in property ownership, guardianship and custody of children, marriage and divorce alongside closing the scope for marrying off minor girls (below 18 years) through special provisions in case of child marriage, and extending maternity leave to six months, enjoyed by government official and employees, for the female workers as well.

The Representation of the People Order (RPO) had the goal of ensuring 33 per cent women representation in the committees formed on every level by political parties registered with the Election Commission by 2020. The parties had also promised to fulfill the condition while getting registered in 2008 but, they could not fulfill it within the stipulated time.

Reportedly, the recommendation of the womenโ€™s reforms commission may advise more than 40 per cent or equal representation of women alongside suggesting 100 reserved seats for women in the national parliament in line with the recommendation of the constitution reform commission and holding direct elections in those seats.

Now the RPO has been revised to meet that target by 2030. Reportedly, the recommendation of the womenโ€™s reforms commission may advise more than 40 per cent or equal representation of women alongside suggesting 100 reserved seats for women in the national parliament in line with the recommendation of the constitution reform commission and holding direct elections in those seats.

The members who are there on the womenโ€™s affairs reform commission have also carried out movement on this issue at different times. They say that they will try to ensure that the interim government makes at least some changes before leaving.

Chief of the womenโ€™s affairs reform commission Shirin Parveen Haque told Prothom Alo, โ€œWe will seek to eliminate all forms of discrimination against women in the constitution, in the laws and in various programmes of the government. Towards that end, we will submit our recommendations to the chief advisor at the end of this month.โ€

โ€œThere will be some recommendations for the interim government and some recommendations for the future government. This commission is the result of the anti-discrimination movement. So, recommendations will be made to eliminate all forms of discrimination there are in womenโ€™s lives,โ€ she added.

However, she did not want to give details about exactly whatโ€™s in the draft recommendations at the moment before finalising the recommendations. Shirin Parveen Haque said they have held 13 meetings with various stakeholders inside Dhaka and 7 meetings in different districts outside of Dhaka.

Before the formation of the womenโ€™s affairs reform commission, different organisations of women met with chief advisor Dr Muhammad Yunus on 20 August last year and made several recommendations there. Founding member of womenโ€™s organisation โ€˜Naripokkhoโ€™, Shirin Parveen Haque was at the leadership level in the discussion at that time.

It was recommended there to establish a womenโ€™s rights commission instead of working on various issues involving women in a scattered way. The women organisations proposed to set up the womenโ€™s rights commission, mentioning that commissions like the Right to Information Commission and the National Human Rights Commission failed to fulfill the responsibilities they were supposed to fulfill falling under pressure during the party government.

There will be some recommendations for the interim government and some recommendations for the future government. This commission is the result of the anti-discrimination movement. So, recommendations will be made to eliminate all forms of discrimination there are in womenโ€™s lives---Shirin Parveen Haque, Chief of the womenโ€™s affairs reform commission

When asked whether those recommendations made earlier would be included in the upcoming recommendation of the womenโ€™s affairs reform commission, Shirin Haque said, โ€œThey might be there.โ€

Reportedly, the heads of six reform commissions out of the ten formed by the interim government have already submitted their reports to the chief adviser. The womenโ€™s affairs reform commission is also looking into how womenโ€™s affairs have been placed in those reports.

Legal obstructions towards equality

Various articles of the 1972 constitution of Bangladesh, such as 19(1), 19(3), 28(1), and 28(2), protect equality and equal participation of women in all spheres under universal principles. While the constitution speaks of equal participation in state and public spheres, it recognises religious laws as well when it comes to family law. Matters like marriage, divorce, guardianship and custody of children as well as inheritance are controlled by the family laws.

Although Bangladesh approved the international โ€˜Convention on the Elimination of All Forms of Discrimination against Women (CEDAW)โ€™ in 1984, it retained reservations on articles 2 and 16.1(C).

Article 2 of the convention states that parties shall take legislative and administrative measures and reform their laws to eliminate all forms of discrimination against women. And, article 16.1(C) states that men and women have the same rights and responsibilities during marriage and at its dissolution. No government has withdrawn reservation on these two articles.

Bangladesh Mahila Parishad president Fauzia Moslem told Prothom Alo that after the Awami League government came to power in 1996, it adopted the national womenโ€™s development policy in 1997. That policy had talked about equal rights for women in all sectors, including property ownership. But, when the BNP-Jamaat-led four-party alliance came to power in 2001, it canceled that policy. The womenโ€™s policy formulated by the four-party alliance government did not include equal rights to property.

After the Awami League government came to power again in 2009, it adopted a new womanโ€™s policy retaining equal rights from the previous one through discussions with the women organisations. However, they backed down from that stance later. Since then, until its deposition in the face student-public uprising in August 2024, the Awami League government did not show any interest of making any changes to the issues of inequality in the family laws, she added.

Fauzia Moslem reinstated that the Mahila Parishad supports the initiative to change all the laws and programmes that discriminate against women. The Mahila Parishad has long been demanding to ensure a uniform family law for citizens of all religions in the country. Even this time, in a meeting with the womenโ€™s affairs reform commission, the organisation sought equal rights in property, divorce, and guardianship of children. It also demanded the formation of adoption law and equal rights for women in that.

Fauzia Moslem believes that women as citizens should have equal rights in their personal lives. Otherwise, no matter how high a woman climbs she still does not have any dignity. Due to this lack of dignity, men consider women subordinate to them and there are various incidents of violence. If this women right is ensured in their personal lives, violence against women will decrease as well.

They have demanded the number of seats in the national parliament to be increased to 400 with 150 seats reserved for women and direct elections in those seats to ensure womenโ€™s political rights, said Fauzia Moslem.

The cabinet division issued a notification regarding the formation of a 10-member womenโ€™s affairs reform commission on 18 November last year. Other members of the commission headed by Shirin Parveen Haque are- senior fellow at BRAC Institute of Governance and Development Maheen Sultan, Bangladesh National Women Lawyersโ€™ Association president Fawzia Karim Firoze, Bangladesh Garment and Industrial Workers Federation president Kalpona Akter, womenโ€™s health expert Halida Hanum Akhter, Bangladesh Nari Sramik Kendra executive director Sumaiya Islam, former member of the National Human Rights Commission Nirupa Dewan, Naripokkho director Kamrun Nahar, senior social development adviser at Asian Development Bank Ferdousi Sultana, and student representative Nishita Zaman Niha.​
 

Can we bridge the generational gap and reform our democracy?

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What appears to have exasperated the old-line political class is that young students succeeded where they had failed. VISUAL: MAHIYA TABASSUM

Are we witnessing a clash between the worldview and values of Gen-Z and the pre-millennial generations in our journey towards democracy? If so, what are the implications as the interim government completes six months of its tenure and begins consultations on the various reform commissions' recommendations? How will the aim of building a broad consensus on reforms and charting the roadmap for the next phase of the journey work out?

Political parties of different stripes, in slightly varying tones, have been impatiently clamouring for a parliamentary election as early as possible after "essential reforms" so that the winners can take control of the government. The mention of "essential reforms" appears to be a nod to public demand for reform in public institutions and services. Noticeably, the political class is not asking for nationwide local government elections that could restore many essential local government services and let citizens engage in a political process. Nor do they ask for the election of a constituent assembly to settle constitutional and governance structure issues.

What appears to have exasperated the old-line political class is that young students succeeded where they had failed. The student-led uprising toppled the authoritarian regime, which had appeared to be invincible and set to continue indefinitely. The political parties' 15-year struggle to unseat it had not brought the masses behind them as the students' movement didโ€”no doubt helped by the unprecedented brutality of the regime in repressing the protesters.

Success has many claimants to paternity, while failure is an orphan. The political parties claim that they had prepared the ground over the years and that the student movement was merely the spark that ignited the fire. There is truth in this narrative, but the fact remains that the students were the vanguard at the critical stage. The political parties are reluctant to admit that their earlier efforts did not bring success. For that matter, they have not shown any contrition for their collective responsibility, beyond that of the Awami League, for the faltering democratic journey of the country since liberation.

Now, the youngsters have embarked on a campaign to reach out to the people in preparation for forming a new political party. They aim to change the political culture of intolerance, division, polarisation, and the absence of accountability that has dominated the political scene since the birth of Bangladesh. This initiative has provoked ambivalent, if not outright negative reactions from some political parties.

Political old-timers say they have no objection to a new party of the young, but many betray their nervousness by denigrating this effort, sometimes offering contradictory reasoning. Three lines of argument are deployed by them: students must remain students, they are too inexperienced to handle politics, and a king's party is not acceptable. How can immature youngsters make policies and run the country? Since three of the "student coordinators" of the movement are in the government, a new party of young people would be a "king's party" that would compromise the interim government's neutrality vis-ร -vis the national election.

The generational divide is evident in the public dialogue on political transition, the performance of the interim government, and what should happen next. The known faces in the talk-show circuit in electronic media and columnists and commentators in print mediaโ€”mostly pre-millennials and millennialsโ€”betray their generational bias.

The talking heads on television are often the protagonists of one or another existing political party, along with some familiar faces from the media and civil society. Largely outnumbered by their older counterparts, the young representatives of the July-August movement, when invited to participate, are usually articulate in their arguments and clear in expressing their goals and plans. Often, the effort in the shows to offer diversity of views ends up being an argument between the young and the rest.

The young speakers generally take the position that the sacrifice of July-August was not just to have an election and hand over the government to the winning political party/parties without at least beginning a process of political and institutional reforms and forging a broadly unified vision for the journey towards democracy. The other side, with minor variations, argues that the reform agenda can and should be handled by a "political" government (meaning themselves). They also assert that the interim government has been inept in addressing immediate day-to-day problems, such as improving law and order and controlling prices. They claim that the people want an early parliamentary election (but presumably not a local government election). They insist that political parties are in touch with the people and speak for them. It is evident that they are not in touch with the Gen-Z population, which makes up at least a third of the country's voters.

The anchors of talk shows are reluctant to challenge the often vacuous and self-serving assertions of political parties and older-generation pundits. The anchors themselves often appear sympathetic to the positions taken by the elders. Columnists, editorial writers in print media, and op-ed article writers, beyond rhetorical words about harnessing the energy and idealism of youth in nation-building, are at best ambivalent about the position presented by the young and the role they may play in shaping the country's future.

Prof Muhammad Yunus has always upheld the role of young people in his vision for development and his expectations for the future of Bangladesh. He described the students as his "employer" because they invited and persuaded him to take on the task of heading the interim government. Introducing Mahfuj Alam, one of the three youth representatives in the advisory council, to former US President Bill Clinton at an event in New York, Yunus described Mahfuj as the "mastermind" of the movement. I doubt that anyone in the audience took it literally to mean that Mahfuj singlehandedly orchestrated the fall of the Hasina regime. Yunus, in his usual effusive and generous way, had used a rhetorical expression. Talk shows and social media in Bangladesh were abuzz with discussions about Yunus being too deferential and submissive to students.

In an interview with The Financial Times at the World Economic Forum in Davos, speaking about events in Bangladesh, Yunus spoke of young participants in the anti-discrimination movement reaching out to the masses, preparing to form a political party of their own. He thought this might help bring about a much-needed change in the political culture of Bangladesh. Old-school politicians pounced on Yunus for being partial to the presumptive new party and questioned the interim government's ability to run a national election impartially. They ignore the work underway to empower the election commission to conduct elections independently, without government interference.

All stakeholdersโ€”Gen-Z and the restโ€”talk about the need for unity to move forward in our democratic journey. All seem to agree that a unified vision of basic goals and the steps to be taken is necessary. But with the divergent views of the young and the old regarding priorities and processes, how can these differences be reconciled? A realistic aim may be to forge a common understanding of the rules of the game regarding dialogue and, as much as possible, to reconcile the diverging visions by agreeing on a minimum common agenda of reforms that the interim government could initiate and that a future elected government could continue.

As discussions on the various reform commissions begin, the focus may be on the rules of engagement for all stakeholdersโ€”political parties, civil society, Gen-Z, and anti-discrimination activistsโ€”and the minimum common agenda for reforms. A part of this process would be the preparation of the July proclamation. The interim government seems eager to be involved, presumably to help minimise the generational divide, in formulating the July proclamation as a testament to the July-August uprising.

Nationwide local government elections at the union and upazila levels would allow citizens to engage in the political process and improve local services, which have become nonfunctional since the disbanding of local councils.

An agreement to hold an election for a constituent assembly within three months would start the process of settling constitutional and state structure questions with citizen participation. The adoption of a constitution would then pave the way for parliamentary elections, with its structure and character (bicameral, proportional representation, women's representation, etc) determined as prescribed in the newly adopted constitution. This step-by-step process would allow the necessary time and deliberation for the far-reaching reforms envisioned, helping to bridge the generational divide.

Dr Manzoor Ahmed is professor emeritus at Brac University, chair of the Bangladesh ECD Network (BEN), and adviser to Campaign for Popular Education (CAMPE).​
 

Key governance reforms needed for a fairer Bangladesh

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FILE VISUAL: SALMAN SAKIB SHAHRYAR

Bangladesh has gone through several political transitions since its independence in 1971. Caretaker or interim governments in the past have often delivered important institutional reforms. The present team under Professor Mohammad Yunus is no exception. But to meet the expectations of Bangladeshis during this short window, a focused reform agenda is required.

Bangladesh has come far in the past 53 years, but its economic engines were starting to sputter in the aftermath of Covid and Russia's invasion of Ukraine. Recent data revisions suggest growth was considerably lower than previously estimated, while substantial capital flight weakened the financial sector's health. Add to this the continuous loss in international reserves during the 2022-24 period and persistently high inflation, and the economy by mid-2024 was not in the best of health.

With the move to a crawling peg exchange rate, the tightening of monetary policy, the alignment of prudential standards with international norms, the launch of an asset quality review, and the appointment of independent boards for several of the troubled banks, the Bangladesh Bank has already taken important steps to regain macroeconomic and financial stability. These should now be completed with the introduction of a robust bank resolution framework that gives the central bank the tools necessary to intervene in failing banks, enforce capital requirements, and, importantly, protect depositors.

While stabilising the economy is a priority, the roots of Bangladesh's recent turmoil lie in a crisis of governance. The interim government is pursuing a programme that can be described as one of full transparency and wide consultation to help put in place the rules and institutions needed to secure a fairer Bangladesh for the next generation. In the economic sphere, three priorities stand out:

First, today, the government loses a massive seven percent of GDP annually (about 3.5 lakh crore taka) from tax breaks awarded in non-transparent and arbitrary ways. While some tax incentives are justified, they should only be granted after a due process. Bangladesh does not have such a process and unsurprisingly has one of the highest rates of tax exemptions in the world. Transferring the authority to approve tax policy from the National Bureau of Revenues to the parliament, as is the case in almost all other countries globally, and separating tax policy from tax administration, are foundational reforms to ensure everyone pays their fair share.

The governance of public finances can also be strengthened by disclosing the winners and ownership of government contracts and granting independence to the Office of Comptroller and Auditor General. In the area of social assistance, the creation of a dynamic, unified social registry to better target welfare programmes is a positive step in the direction of greater transparency.

Second, lax regulation of banks allowed connected groups to secure loans that greatly increased the risks to banks. The Bangladesh Bank should require all banks to check and disclose their ultimate owners and borrowers and the links between them to manage risks.

In parallel, with the help of the international community, Bangladesh is working to recover some of the assets it believes were illicitly transferred out of the country. With a properly regulated banking system, the foundation would be laid for attracting additional investment into the sector, reducing the large stock of non-performing loans and rebooting private sector credit for growth and job creation.

Third, digital and data revolution offers great opportunities to strengthen public sector governance and service delivery. Reforms to bolster the quality and independence of the statistics system are under preparation. These could be complemented with the creation of a digital public infrastructure to make the public administration more transparent, user-friendly and efficient, following the example of other developing countries from Brazil to Estonia and Indonesia to India. Bangladeshโ€”the country with the second largest population of digital gig workersโ€”should not be far behind. A modern data protection framework, creating an interoperable digital payment system for mobile financial transactions, the creation of a unified digital ID system, and a consent-based data sharing framework could be priorities, as recommended by the task force on re-strategising the economy.

In strengthening the governance of public finances, the financial system and the administration of data and statistics, the interim government would leave a strong economic legacy on which all future elected governments could build.

Martin Raiser is vice president for the South Asia Region of the World Bank.​
 

Next govt should continue financial sector reform, bring back laundered money: Dr. Ahsan H. Mansur
UNB
Published :
Feb 21, 2025 00:12
Updated :
Feb 21, 2025 00:12

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Bangladesh Bank Governor Dr Ahsan H Mansur said the next government should continue the reform process in the banking sector and continue the interim government's initiatives to try and bring back laundered money.

Regarding bringing back the laundered money, the governor said, "No country has been able to bring back the laundered money in less than five years. We are trying. If this government is not able to do so, the next government should take this programme forward consistently."

He said this while speaking as the chief guest at a seminar on 'Macroeconomic Landscape: Challenges in the Banking Sector and the Path Ahead' held at the Economic Reporters Forum (ERF) auditorium in Paltan Tower, Dhaka, on Thursday.

The special guests at the seminar organised by ERF were Professor Dr. Mostafizur Rahman, Honorary Fellow of the Center for Policy Dialogue (CPD), and Mohammad Ali, Managing Director of Pubali Bank.

The governor said there are many challenges in the economy. However, there is no reason to worry about foreign exchange and reserves, he added. The decline in reserves has been stopped to some extent. Not a single penny has come from the IMF. But remittances have increased by 24 per cent. This month, it will cross 30 per cent.

In this fiscal year, remittances will cross $30 billion. The main reason for this is that money laundering has been prevented, he said.

Dr. Mansur also said, no dollars are being sold from Bangladesh Bank now. There is almost no difference in the dollar rate in the bank and the curb market.

Claiming that the remittance rate is not being manipulated, the governor said, a group in Dubai tried to manipulate the dollar. But the central bank was not affected by it.

He also said, private sector credit growth has decreased due to the decline in deposit growth. It is not because of the increase in policy rates. Government debt has decreased from 12 per cent to 9.0 per cent. Now banks will have to lend to the private sector.

"The days of lending to government and making profits are coming to an end. Banks have to make profits by lending," he pointed out.

The governor talked about reforming the banking sector, especially Bangladesh Bank.

He said, if a single family takes 87 per cent of a bank's money, it takes time for that bank to stand. Despite all this, Islamic banks have turned around. They have started giving loans. This happened mainly due to gaining the trust of depositors.

Regarding inflation, the governor said, inflation did not happen in a day. It takes at least 18 months to implement it after tightening the policy. In our case, it has been six to seven months. It will take at least another five months to see a good effect. We have still kept the monetary policy in a contractionary position.

The governor said that the central bank has taken many steps to reform the banking sector in Bangladesh after August 5. He said the exchange rate of foreign currencies is now much more stable. The real effective exchange rate is also good. The remittance flow is also good.

Regarding the changing the narrative of LDC graduation, the governor said, "No country in our group is now in the LDC category. Bangladesh has achieved the capacity to go to LDC in 2021. But under the pressure of our country's industrial sector, we extended the LDC transition time to 2026."

"There are many good aspects of graduation. There is no honour in being poor. Why can't we become a middle-income country? We are a middle-income country. Why should we remain a low-income country for tariff benefits?" he kept questioning.

ERF President Daulat Akhtar Mala delivered the welcome speech at the seminar. The programme was moderated by ERF's Joint Secretary Manik Muntasir.​
 

LOCAL GOVT REFORM: 2 uniform laws suggested
Staff Correspondent 23 February, 2025, 00:38

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- Local body polls possible in June: commission

- 84pc people want independent local govt commission: BBS

The Local Government Reform Commission has submitted a primary report to the government, recommending a comprehensive overhaul of the countryโ€™s local government system.

The reform commissions in its preliminary report also suggested two uniform laws for local government bodies and said that holding elections to all local government bodies simultaneously in June was possible.

The preliminary report along with a household survey report was published by the chief adviserโ€™s press wing on Saturday.

The proposals aim to streamline governance, address legal complexities, and enhance the effectiveness of local governance in Bangladesh.

The preliminary report highlighted the current state of local government institutions in Bangladesh, which operate under a three-tier structure โ€“ the Union Parishads, the Upazila Parishads and Zila Parishads, as well as the municipalities and city corporations.

The report noted that, after the July mass uprising, local government institutions had been effectively non-operational, leaving a significant governance gap.

In this context, the commission said that simultaneous elections for all local government institutions by June 2025 were possible.

The commission recommended to merge the five laws for local government elections into two uniform laws-- one for Union Parishad, Upazila Parisahd and Zila Parishad and the other for municipalities and city corporations.

It said that the two unified laws can be introduced through an ordinance between March and April this year.

The elections for local government bodies in both plain lands and hilly areas may be conducted by June 2025, the commission said.

However, this will be possible only if a consensus is reached between the government, political parties, and the Election Commission, it said.

The commission led by retired professor Tofail Ahmed suggested simplifying the administrative procedures through these unified laws to reduce redundancy, improve coordination, and ease the election process.

The proposed reforms also advocated for a shift toward a parliamentary-style system within local government institutions.

This approach is intended to decentralise power further and ensure that local governance structures are more responsive to community needs, the commission said.

It suggested that local government bodies should operate similarly to the national parliamentary system,

with clear distinctions between legislative and executive roles.

The legislative aspect would be led by a โ€˜Sabhadhyakha,โ€™ akin to the Speaker of the National Parliament, while the executive arm would be headed by a chairman or a mayor.

A key element of the proposed reforms is the establishment of a five-member permanent Local Government Commission by giving constitutional recognition.

This commission would oversee the implementation of the reform measures and ensure that local government structures are strengthened.

The report also proposed the creation of a โ€˜Local Government Service,โ€™ providing career pathways and professional opportunities for local government employees and addressing manpower issues within these institutions.

A household survey conducted in January 2025 by the Bangladesh Bureau of Statistics revealed that approximately 84 per cent of people support the formation of an independent and powerful Local Government Commission through new legislation.

This survey, which covered over 46,000 households in rural and urban areas across 64 districts of the country, also highlighted that 77 per cent of respondents favour the introduction of a single, unified law for local government bodies to replace the existing complex framework of five laws and over 100 notifications and orders.

In terms of electoral preferences, 71 per cent of the survey participants believe that local government elections should not involve political party symbols, while 24 per cent support their inclusion.

The survey also found strong support for ensuring minimum educational qualifications for candidates of local government candidates.

Among respondents, 38 per cent favoured a Secondary School Certificate as the minimum qualification, while 30 per cent suggested the requirement of an HSC, and 25 per cent advocated for a university degree.

The survey also revealed that the public is increasingly concerned about the growing urbanisation in Bangladesh.

Approximately 85 per cent of the respondents expressed support for establishing urban planner offices at the upazila level to manage urban growth effectively.

Besides, 80 of those surveyed recommended the establishment of full civil and magistrate courts at the upazila level to serve local communities in a better way.​
 

Vested political interests may hinder reforms: law adviser
Staff Correspondent 25 February, 2025, 00:41

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Law adviser Asif Nazrul. | File photo

Law adviser Asif Nazrul on Monday said that political parties driven by vested interests always neglected reform initiatives.

Addressing a seminar at Dhaka University on โ€˜Studentsโ€™ perspective and expectations on reforms in state institutionsโ€™, he said that political parties, in general, did not accept the reforms that would make them accountable to the people.

Vested political interests may hinder the refoarm initiatives taken by the interim government, he said.

He referred to the failures of previous political reform initiatives including the three-alliance political roadmap after the fall of the military ruler HM Ershad in the late 1990.

Supported by UNDP, the Centre on Budget and Policy organised the seminar at Professor Muzaffar Ahmed Chowdhury Auditorium at Dhaka University.

The law adviser said that a maximum of the reforms recommended by the six reform commissions would be possible if the majority of the political parties agreed and signed the โ€˜national charterโ€™, or the โ€˜July charterโ€™.

Citing the ongoing consensus-building approaches and drafting of the โ€˜national charterโ€™ by the interim government, he said, โ€˜Only short-term reforms will take place if most of the political parties disagree with mid-term and long-term recommendations. But the students and mass people didnโ€™t sacrifice their lives only for short-term remedies.โ€™

If the political parties agree, an elected government can continue the reform activities, he said. The seminar began with a presentation of a study where 2024 students from 10 higher educational institutions responded.

Discussing the key findings, Dhaka Universityโ€™s development studies teacher Professor Kazi Maruful Islam said that the majority of respondents wanted a proportional representation electoral system, grassroots opinion-based selection of candidates in the elections, political influence-free administration and anti-corruption drives, accessible judiciary and better services by police.

โ€˜The students also recommended the abolition of all laws infringing their freedom of expression,โ€™ he said.

Electoral reform commission chief and national consensus commission member Badiul Alam Majumder said that the fruits of the student-mass uprising might be snatched if the youths neglected the reform processes.

Another member of the consensus commission, Iftekharuzzaman, said that all the reform initiatives would be futile if there was no reform in the education sector and political parties.

Dhaka Universityโ€™s sociology teacher Samina Lutfa said that the national consensus commission would not bring inclusive results if it excluded women and ethnic minority people from discussions.

Dhaka University vice chancellor Professor Niaz Ahmed Khan, Jatiya Nagarik Committee joint convener Sarwar Tusher, Chhatra Dal leader Mallick Wasi Uddin, Biplobi Chhatra Moitree president Nuzifa Hasin Rasha, Ganatantrik Chhatra Council leader Saidul Haque, social science student Sarbamitra Chakma, and physically challenged student Uzzal Mahmud also spoke.​
 

Reluctant to carry out economic reforms, frustration in the committee
Jahangir Shah
Dhaka
Published: 05 Mar 2025, 08: 49

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Two reports on economic reforms sit idle since there are no strong initiatives from the government to implement the recommendations, thus, confusion arises whether the expectation on the structural reform to the economy would be fulfilled.

The interim government prepared two reports on the corruption and irregularities in the economy during the autocrat Awami League governments, as well as on determining future economic strategies. One of the two reports is the whitepaper formulated by the committee led by Debapriya Bhattacharya, Distinguished Fellow at Centre for Policy Dialogue (CPD) and Convener of the Citizen's Platform for SDGs, while another is the report of the taskforce led by former director general of Bangladesh Institute of Development Studies (BIDS) KAS Murshid.

The whitepaper was submitted to Chief Adviser Professor Muhammad Yunus on 1 December 2024 and the taskforce report on 30 January. Since no significant steps have yet been taken to implement the recommendations of the two reports, frustration grew among the committee members, with several members opining the government is not paying attention to economic reforms.

When asked, Debapriya Bhattacharya, head of the Committee on the preparation for White Paper on the State of Bangladesh Economy, told Prothom Alo, Chief Adviser Professor Muhammad Yunus owns the whitepaper but those who are relevant from his advisory council did not own it. Perhaps, there is a lack of capacity to carry out reforms as per the report, or the atmosphere that the interim government is passing through is not favourable for reforms.

There had been much discussion on corruption, irregularities, money laundering, and whimsical economic management that occurred during the 15-year rule of Awami League governments, which was overthrown by the July mass uprising on 5 August last year.

The interim government took office on 8 August. The new government formed various commissions, committees and taskforces aimed at carrying out reforms in different sectors. So far, 11 commissions have filed full reports so far and another submitted a summary.

A National Conesus Commission led by the chief adviser was formed to review and adopt the recommendations submitted by the six reform commissions. The Conesus Commission held a phase of discussion with the political parties. Discussion will start with the political parties soon to take the latterโ€™s opinions. However, no definite action was seen on the whitepaper and the taskforce report.

A top official of the finance ministry told Prothom Alo, โ€œThe budget of the next fiscal year will reflect the recommendations of the whitepaper and the taskforce report and work has begun accordingly. However, all recommendations of the two reports cannot be implemented overnight, it has to be done in phases. This government will start several recommendations and the next governments will do the remaining ones.โ€

Whitepaper sits idle for three months

Led by Debapriya Bhattacharya, the committee to formulate the whitepaper was formed on 29 August. The 12-member committee included

Professor AK Enamul Haque, Dean of Faculty of Business and Economics, East West University, Ferdaus Ara Begum,Chief Executive Officer, Business Initiative Leading Development (BUILD), Imran Matin, Executive Director 0f BRAC Institute of Governance and Development (BIGD), BRAC University, Dr Kazi Iqbal, Senior Research Fellow of Bangladesh Institute of Development Studies (BIDS), Dr M Tamim, Professor of Bangladesh University of Engineering and Technology (BUET) and former Special Assistant to the Chief Advisor (2008), Dr Mohammad Abu Eusuf, Professor of Department of Development Studies, University of Dhaka, Professor Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD), Dr Selim Raihan, Professor of Department of Economics, University of Dhaka, and Executive Director, South Asian Network on Economic Modeling (SANEM), Dr Sharmind Neelormi, Professor, Department of Economics, Jahangirnagar University, Dr Zahid Hossain, former lead economist, World Bank and eminent columnist attended the meeting while Dr Tasneem Arefa Siddiqui, former professor, Department of Political Science, University of Dhaka, and founding chair, Refugee and Migratory Movements Research Unit (RMMRU).

The whitepaper committee submitted a 397-page report after three months highlighting various irregularities that include lootings, money laundering, irregularities in banking sectors and power sector corruption, as well as placing various recommendations for economic reforms.

According to the White Paper, a total of USD 234 billion or approximately Tk 28 trillion was siphoned off abroad during the tenures of the Awami League governments between 2009 and 2023.

It is estimated that between Tk 1.61 trillion and Tk 2.80 trillion have been used as bribes and extortion at various levels, solely derived from public expenditure on development projects.

Between Tk 770 billion and Tk 980 billion of these were simply bribes paid to government officials while between Tk 700 billion and Tk 1.40 trillion were extortions by politicians and their accomplices and the rest are spent on collusive payments. Most of them live aboard.

About USD 60 billion or Tk 7.20 trillion has been spent through the annual development programme (ADP) over the past 15 years, but USD 14 billion (23 per cent) or approximately Tk 1.61 trillion to USD 24 billion (40 per cent) or approximately Tk 2.80 trillion of it was wasted and looted in the name of development projects during this period.

According to the White Paper, trillions of takas were embezzled from the stock market through fraud, manipulation, placement shares, and deceit in the IPO process. Banks were taken over in collusion with the state agencies over the course of one and a half decades. The default loans of the banking sector amounted to Tk 6.75 trillion in the country, which is equivalent to the cost of constructing 14 metro rails or 24 Padma bridges.

The committee to formulate the whitepaper recommended structural reforms to remove these irregularities and corruption from the economy, and drew immediate focus on seven aspects. These are; (1) rolling out an economic stabilisation programme, (2) delineating a framework for the national budget for 2025-26 fiscal, (3) proposing a mid-term planning format, (4) identifying priority reform domains, (5) operationalising a robust transition strategy for LDC graduation, (6) accelerating substantive delivery of the SDGs and (7) hosting a forum for inclusive and sustainable development.

There is no visible progress on the seven recommendations, although several initiatives have been taken to control inflation and prevent the foreign currency reserve fall to bring economic stability.

The white paper committee held a discussion on the white paper in a hotel in the capital on 18 January. It was attended by adviser Sheikh Bashiruddin Ahmed. Sources say the committee wanted finance adviser Salehuddin Ahmed and Bangladesh Bank governor Ahsan H Mansur to attend the event. But they did not attend the programme.

Debapriya Bhattacharya explained the interim governmentโ€™s activities over the economy of the country from three perspectives.

He said first the white paper has revealed the economic characteristics of the previous government. Second, the government has taken several initiatives to strengthen the economy, including controlling inflation rate. The interim government deserves half the marks for that. Third, the government has failed to achieve any notable progress in terms of infrastructural reform of the economy.

In his opinion, the discussion of the election has come to the fore now. The countdown of the interim government has started. The time to make the most of the opportunity to reform the nation is flying fast. He stressed on prioritising economic reform in the election manifesto of the political parties for the upcoming elections, he said.

Recommendation of the taskforce

The other members of the taskforce, named โ€œRe-strategising the economy and mobilising resources for equitable and sustainable developmentโ€ apart from KAS Murshid are - former World Bank official Akhtar Mahmood, Dhaka Universityโ€™s economics department professor Selim Raihan, former head of the research department of Commonwealth secretariat Abdur Razzak, Yale Universityโ€™s economics department professor Mushfiq Mobarak, BUET professor Shamsul Haque, Dhaka Universityโ€™s economics department professor Rumana Huque, former president of MCCI Nasim Manzoor, BIDS research director Monzur Ahmed, CPD executive director of Fahmida Khatun, BDjobs chief executive officer AKM Fahim Mashroor and GED member Md. Kawser Ahmed.

The taskforce was formed on 11 September. On 30 January, they submitted their 526-page report to the chief adviser which contained several recommendations regarding a number of socioeconomic issues. One of the most notable recommendations was โ€“ introduction of a progressive revenue system which will allow collecting more revenue from the rich. The taskforce also asked to stress on increasing allocation for education and health and making relevant services more available and affordable. The taskforce also has specific proposals.

The advisory council discussed the report during a meeting held in February. A decision was taken that the council will scrutinise those recommendations and all ministries will implement those during the tenure of this government. Council also asked to submit a list of the recommendations that should be implemented in the next advisory council meeting. However, there has not been much progress in this regard since then.

For instance, there was a recommendation of dividing the Bangladesh Biman to two sections to privatise it. It has been learnt that there has been no discussion in the Civil Aviation Authority or in the Ministry of Tourism as yet. Apart from this, it has been recommended to increase exports by serving 1500 companies that export more than 1 million dollars a year. However, the ministry of commerce is yet to take any action regarding this.

SANEM (South Asian Network on Economic Modelling) executive director Selim Raihan was a member of both white paper committee and the taskforce. He expressed frustration for not taking any initiative to implement the recommendations made by these two bodies.

Speaking to Prothom Alo, Selim Raihan said, โ€œA partisan government is never interested in reforms. People inside and outside the party obstruct in case the party takes any reform initiatives. However, the interim government has no such obstruction. Despite that, there has been no initiative so far.โ€

Asked why the government is not being able to implement the recommendations, Selim Raihan said, โ€œThis government does not have the support of the bureaucrats. The time for these reforms is flying fast. People now are talking more about the elections rather than the reform.โ€

The commerce adviser said while addressing a CPD event on 24 February that he did not get the taskforce report. Taskforce chief KAS Murshid was surprised to hear that. However, the report was published on the website of the planning ministry right after it was handed over to the chief adviser.

The taskforce has prepared the report under the planning ministry. However, the planning adviser was not present in the two-day conference that started 24 February.

โ€˜Good policy without implementationโ€™

Dhaka chamber former president Abul Kashem Khan told Prothom Alo, โ€œThe country adopts good policies. But they have never been implemented. We expect a lot from the interim government. So the government must implement the recommendations made by the white paper committee and the taskforce. The entire process would be easier if the businesspersons could be involved. The businesspersons will find some confidence in the government, if it can implement at least two to four of these recommendations.โ€

This report appeared in the print and online editions of Prothom Alo and has been rewritten in English by Hasanul Banna and Ashis Basu​
 

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