[🇧🇩] Reforms carried out by the interim/future Govts.

[Saif]

UN has started extending support to reform commissions: resident coordinator

The UN has started extending different types of support to the different reform commissions constituted by the interim government to finalise reform proposals in different sectors of governance

www.thedailystar.net

UN has started extending support to reform commissions: resident coordinator

Gwyn Lewis. Photo: UN News

The UN has started extending different types of support to the different reform commissions constituted by the interim government to finalise reform proposals in different sectors of governance.

UN Resident Coordinator (UNRC) in Bangladesh Gwyn Lewis apprised Foreign Secretary Md Jashim Uddin as she called on him at the foreign ministry yesterday.

She stated that the UN was willing to share their expertise and best practices of other countries with the reform commissions.

Lewis requested for conducting stakeholder consultations across the country to finalize the reform proposals.

She emphasized holding a Bangladesh Development Forum meeting involving the development partners of Bangladesh and relevant government agencies for better understanding of the development partners about the priorities of the interim government.

At the meeting, issues concerning the cooperation of the UN agencies in Bangladesh, support of the UN towards the ongoing reform initiatives of the government including for the electoral process reform, and technical support of the Office of the UN High Commissioner for Human Rights for capacity building of the relevant government authorities were discussed.

Foreign secretary appreciated the UN for their support to the government's reform initiatives.

He reiterated the request of the chief adviser to the UN secretary general for organising an all-stakeholders' conference on Rohingya crisis with a view to finding innovative solution and showing resolve of the international community to a sustainable solution of the protracted Rohingya crisis.​

 

[Saif]

Key questions for designing and implementing reforms

What is the process through which reforms will be enacted and who will execute the reforms?

www.thedailystar.net

Key questions for designing and implementing reforms

FILE VISUAL: REHNUMA PROSHOON

The interim government (IG) has commendably initiated a process of reforms designed to address the malgovernance associated with the outgoing regime. Commissions have been established to prepare an agenda for reforms in six areas: the constitution, public administration, judiciary, law enforcement, corruption, the electoral process. Two separate commissions/committees have been set up to: (a) define the key economic challenges immediately facing the country and (b) identify economic reforms needed to immediately address specific problems and to recommend longer term reforms. Recently, four other commissions have been set up covering health, women, media and labour. This is a heavy load to carry particularly for purposes of implementation. In each of these areas, we have in the past witnessed implementation failure of public policies as well as the progressive degradation of institutions of governance. It is presumed that the commissions and committees will come up with a body of worthy ideas on what needs to be done in their respective spheres of responsibility to reverse this process of malgovernance.

What is less clear to the public at this stage is the process through which the reforms will be enacted and who exactly will be expected to execute the reforms. All of us need to be reminded that the malaise in each sector in need of reforms did not exclusively originate during the tenure of the last regime. In many cases, the problems date back over several decades. Over each regime, failure to address and correct problems aggravated the malaise. The 16 years under the Awami League deepened the malaise to cancerous proportions where severe surgical intervention is needed to save our body politic from irreversible damage.

Given the long-term durability of the problems to be addressed by the respective commissions, we should note that various proposals for reforms, whether through innumerable commissions/committees or from civil society as well as the academic/research community, have already been presented over the years. I myself was involved, during my tenure as a member of the advisory council, in the first caretaker government headed by Chief Justice Shahabuddin Ahmed (December 1990-March 1991), in setting up 29 task forces (TF) to address the numerous problems related to the economy and governance process, which had accumulated during the Ershad era over the 1980s. The TFs were headed and populated by 255 of the best professional talents then available in the country, representing a diversity of policy perspectives who worked exclusively on a voluntary basis to prepare these reports within two months. Professor Muhammad Yunus headed the TF on self-reliance policies, and Professor Wahiduddin Mahmud, currently adviser for education, headed the TF on macroeconomic policy. A number of members of various commissions or committees under the present government, such as Abdul Muyeed Chowdhury and Debapriya Bhattacharya, were members of various TFs under the first caretaker government.

The TF reports were designed to serve both the incoming government elected to office in the March 1991 elections and the opposition in parliament. Sadly, the elected incoming BNP government made little use of the reports. A similar effort, this time by CPD, just prior to the 2001 elections, commissioned 16 TFs, drawing on 160 of our top professionals, to propose policies and reforms necessary at that period. These TF reports were also unaddressed by the then elected government. Other such policy reforms commissioned by particular governments have similarly remained largely unattended by the very government which commissioned the reports. Two such reports which come to mind include a report on Reform of Public Administration commissioned by the first government of Sheikh Hasina (1996-2001) and the report of the Education Commission set up by the AL regime in 2010.

The relevant point at issue remains the commitment of particular regimes to implement any process of reforms. There can be little doubt about the sincerity of any government headed by Professor Yunus to carry out reforms, particularly since it has come into office in the wake of a revolution headed by the youth of Bangladesh who as yet remain uncontaminated by the diseases which have infected the national polity over so many years. On the assumption that the IG remains bound to its commitment to pursue such reforms I present below, in synoptic form, some of the practical questions that need to be addressed by the IG in order to ensure that the reform process yields a more positive outcome compared to earlier efforts at reform.

1. Process of finalising reforms

i. Consultations of the draft reports of the commissions with whom?
​

• Political parties: what will be the criteria for determining which parties will be consulted?​
• Civil society: who from a big contingent will be privileged for consultation?​
• Youth: will this be restricted to those who led the uprising or include other groups who also participated?​
• Stakeholders in issues covered by particular commissions​

ii. There will be differences of opinion originating from groups within each of the above. Whose views will be prioritised in the final reports?


iii. Whilst all (?) political parties will be consulted in the interests of democracy, not all parties are equal in terms of their representative status and prospective electability. How will the IG take this political reality into account?

iv. The final draft of the reports based on the public consultation process will presumably be discussed and approved by the full Advisory Council (AC) and will be regarded as the definitive position of the IG on the reform agenda in a particular area. Will the reform agenda approved by the AC again be discussed by the IG with the political parties and how will disagreements be accommodated?

2. Implementation of reforms

When, how and by whom will the reforms finalised by the AC be implemented?

i. For reforms to be implemented the recommendations from the commissions will need to be operationalised through either policy proposals, legislative acts or even constitutional amendments. Who will be responsible for undertaking this task, the commission or the concerned ministries?

ii. Does the IG plan to begin implementing any or all of its proposed reforms during its tenure? If it decides to implement only a selection of reforms, what will be the guiding principles for choosing which of the reforms are to be implemented?

iii. Some political parties, particularly the BNP, have indicated that reforms can only be implemented by an elected government.
​

• What is the position of the IG on this particular position?​
• Will it only proceed to implement reforms if the political parties give it the go ahead?​
• Should the IG go ahead and begin implementing particular reforms if it believes such reforms need to be prioritised whatever may be the position of the parties?​

iv. In the final analysis, meaningful reforms which impact the governance and lives of citizens will need to be carried forward on a sustainable basis by a government which expects to be in office for a period of 4/5 years. This would normally be possible only for an elected government. However, it can also be possible for an interim government to expand its tenure in order to implement its mandate for reform. Such a decision may encounter strong political resistance, particularly from the major political parties. Is the IG at all inclined to go down this route?

3. Implementation of reforms in the post-IG phase

If the IG is unwilling and/or unable to implement the reforms it may be appropriate to presume that the fate of any significant reform agenda will have to be dependent on its implementation by a prospective elected government. Keeping this in mind the IG will need to consider the commitment, willingness and capacity of the political party/parties, with any credible expectation of forming a post-election government, of actually implementing the reforms.

The implementation process will need to be sustained over the lifetime of the elected regime. This will not just need a sincere buy-in by the concerned political parties but the political vested interests of the party will also have to be in sync with the reform process and its intended outcomes.

It is this contradiction, both in regard to policies and reforms, between the interests of a prospective ruling party, its principal backers and influential social forces, that have historically frustrated the implementation of reform over the lifetime of successive regimes. Keeping such concerns in mind the following questions merit attention:

(i) If a government, mandated by a large electoral plurality, no longer finds it in its interest to initiate or persevere with the reforms, what can be done to ensure the sustainability of the reforms?

(ii) Will the reforms finalised by the IG be so designed as to ensure that prospective elected governments will remain mandated to carry out the reforms?

(iii) What oversight and accountability mechanisms can be built into the reforms to ensure continuous oversight of the reforms by:
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• Parliament​
• The judiciary​
• Civil society​
• Media​
• The young people who are today demanding reforms​
• Any other concerned body​

From my limited experience in public affairs and rather longer exposure to the state of governance in Bangladesh, I have come to believe that the real problem faced by all governments has not been the deficiency of the policies or lack of reforms but the failure to implement its own policies. These failures originate from a lack of commitment, presence of vested interests which run contrary to the outcomes of policy, and a lack of competence due to the progressive degeneration in the quality of governance. Hopefully, Prof Yunus, the IG, and the various commissions will keep such a perspective in mind in finalising their recommendations for reforms and taking decisions on how to implement them.

Prof Rehman Sobhan is chairman of the Centre for Policy Dialogue (CPD).​

 

[Saif]

Hasina regime cooked economic growth data

Many economic parameters were cooked during the past Awami League regime while over US100 billion learnt to have been siphoned off the country, a Brussels-based agency reports and suggests rapid reforms for a rebound. Macroeconomic indicators, including export figures and growth data, were

thefinancialexpress.com.bd

Hasina regime cooked economic growth data
Suggests swift political reforms in interim period to improve governance, ensure better economic decision-making
FE REPORT
Published :
Nov 16, 2024 00:34
Updated :
Nov 16, 2024 00:34

Many economic parameters were cooked during the past Awami League regime while over US100 billion learnt to have been siphoned off the country, a Brussels-based agency reports and suggests rapid reforms for a rebound.

Macroeconomic indicators, including export figures and growth data, were believed to be manipulated and were "highly misleading", according to the report styled 'A New Era in Bangladesh? The First Hundred Days of Reform'.

The report, prepared by International Crisis Group and published Friday, says it was an open secret that Hasina's administration was manipulating key economic data for much of its time in office.

It has cited World Bank estimation that from 2015 to 2019 about half of Bangladesh's reported gross domestic product (GDP) growth was "unexplained", in that it could not be attributed to structural improvements or the effects of earlier reforms.

Export statistics were also doctored: in early July, Bangladesh Bank said export figures for the previous fiscal year alone had likely been inflated by $10 billion.

"It was rubber-and-pencil growth," the highly critical report says quoting an international macroeconomist.

"In other words, the numbers were cooked, though to what extent remains unclear," it adds about the alleged cooking of books on data.

The European agency notes that corruption also worsened under the deposed government, particularly in the banking sector, and became a major source of resentment.

More than $100 billion is thought to have been moved offshore illegally over the past fifteen years.


"Industrial-scale looting by ruling-party acolytes" has left some of the country's biggest private banks insolvent, according to regulators, putting depositors' money at risk.

"It's a classic case of crony capitalism," a foreign economist said. "The amount of embezzlement that the country has faced, particularly in the financial sector, is extraordinary."

Foreign governments should also help the interim government recover the proceeds of corruption and state-sanctioned theft that are sitting in banks and property markets outside Bangladesh, the agency suggests.

It notes that despite popular grievances over economic hardship, long-term economic reform is a lesser priority for the interim government than political change.

Its view is that addressing fundamental economic problems, such as low tax revenues, will take years - far longer than the interim government's likely lifespan - whereas political reforms to improve governance can be taken more swiftly and lead to better economic decision-making.

The post-uprising interim government is focused on short-term macroeconomic priorities, such as maintaining stability, building up foreign-currency reserves and bringing down inflation.

The early signs suggest that policymakers can avoid a Sri Lanka-style economic crash that brings down the government.

The interim government, in the recovery process, has secured billions of dollars of additional financial support from multilateral financial institutions, including the International Monetary Fund (IMF), the World Bank and the Asian Development Bank.

Exchange-rate reforms have helped boost foreign reserves. Inflation, while still high, has declined from its July peak, and Dhaka has started to clear its debt in the power sector. It is also seeking to renegotiate terms with some of its external creditors, including Russia and China, says the report.

Led by Nobel laureate Muhammad Yunus, the administration is expected to remain in office for another year, and maybe, longer. If the interim government falters, however, the country could revert to the status quo ante or even enter a period of military rule.

It should avoid staying in power too long and build consensus on new measures among political parties. External actors should offer aid, India should work to repair its image with the Bangladeshi people, suggests the report.

Foreign governments and multilateral institutions should provide the interim government with technical and financial assistance, including on security, judicial, electoral and economic reforms.​

 

[Saif]

BNP’s pledge for reforms sounds good

We would like to see the party match its words with actions

www.thedailystar.net

BNP’s pledge for reforms sounds good
We would like to see the party match its words with actions

Visual: Star

BNP's acting chairperson Tarique Rahman made a number of promises on Thursday, which we hope the party sincerely intends to fulfil. Such promises, however, are nothing new. We have heard similar promises when a party was not in power only to see them being forgotten after coming to power. Nevertheless, the promises made by BNP in its reform agenda sounds promising on paper.

Tarique emphasised building a Bangladesh where not even the prime minister could abuse power, highlighting principles such as the rule of law, human rights, freedom of speech, transparency, and accountability. Drawing from BNP's "31-point Outline for Structural Reforms," he reiterated some objectives that are both novel and ambitious. For instance, no party has previously placed much emphasis on ensuring a free press. But Tarique declared his resolve to enable the media to "speak truth to power" and openly criticise the government. If implemented, this would mark a significant departure from the Awami League's harsh persecution of dissidents and journalists. Furthermore, the proposed reforms to curtail the government's excessive power—including the introduction of a bicameral parliamentary system and limiting the prime minister's tenure to two consecutive terms—suggest that the party might be embracing more mature political practices.

Unfortunately, if we observe the party's actions, we can deduce that it is already faltering in realising some promises, mainly that of curbing corruption. For example, there have been multiple reports of "BNP-linked" groups extorting citizens, with its party members or activists allegedly filling the void of AL-established syndicates—as well as regular infighting within the party. While BNP leadership has issued warnings against such behaviour, more decisive actions are necessary. Otherwise, such incidents will continue to cast doubt on assurances from BNP's leadership and make it harder for citizens to place their trust in the party.

BNP's pledge to build an inclusive, liberal, and democratic Bangladesh—by balancing power among the legislative, judicial, and executive branches and dismantling the tools of oppression used by past governments—is commendable. However, sincerity is the key to achieving such a transformation. Much of the scepticism surrounding BNP—as well as other political parties—could be addressed if the party itself practiced democratic principles, such as decentralising its decision-making process. Additionally, it could move away from the failed dynastic politics of our region, which has acted as an obstacle to the democratisation process.

The July uprising demonstrated that people are fed up with dynastic politics driven by violence, oppression, and corruption. Many have sacrificed their lives to break free from this system and secure the rights of all citizens. All political parties, including BNP, must honour these sacrifices and ensure they are not in vain.

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[Saif]

Engage private sector more in reforms to energise economy

The government should increase its engagement with the country’s private sector in making policies and decisions amid ongoing reforms, according to prominent business leaders, who cited major challenges such as high inflation, rising interest rates and slowing demand and investment that are now...

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Engage private sector more in reforms to energise economy
Business leaders urge govt at The Daily Star discussion

Mir Nasir Hossain
Former president of FBCCI

A tighter monetary policy taken by the Bangladesh Bank alone cannot contain inflation. The government should take steps to curb extortion and establish healthy management in the supply chain to control the rising prices.

Mostafa Kamal
Chairman of MGI

Vietnam takes only 7 days to decide on an investment proposal, but red tape delays the process in Bangladesh to over 7 months. A law should be there to complete the process within 3 months.

Kamran T Rahman
President of MCCI

Allocating just 10 percent of the unused lands of tea gardens can help generate up to 6,000MW of clean energy. This can be delivered to industries hit by the energy crisis through corporate power purchase agreements.

Monzur Hossain
Research director of BIDS

The government should go for thorough analysis of every sector and review the policies once every three months. Besides,
inflation will not come down if reserves do not become stable.

Tanvir Ahmed
MD of Envoy Textiles

The recent labour unrest has heavily damaged the country's image. I know a group, which lost a work order of 20 million pieces of garments to Vietnam just because of the unrest.

Abrar Hossain Sayem
President of BAYLA

Bangladesh can establish a national data platform and go for using big data analytics with the help of artificial intelligence to make informed decision for capacity expansion or investment in any sector.

The government should increase its engagement with the country's private sector in making policies and decisions amid ongoing reforms, according to prominent business leaders, who cited major challenges such as high inflation, rising interest rates and slowing demand and investment that are now plaguing private businesses.

Mentioning that the private sector is the key driver of Bangladesh's economy, they said increased engagement can better resolve their issues and remove investment bottlenecks, boosting employment and economic growth.

The businessmen were speaking at a discussion, styled "100 days of the Interim Government: Economic Review", organised by The Daily Star at its office in Dhaka.

Tanvir Ahmed, managing director of Envoy Textiles, said the local economy has stagnated and businesses have become dry. "The economy must be put in order fast. Otherwise, trouble in the financial sector will continue to rise."

He said people have a lot of expectations from this government, so it should sit with the stakeholders. But they have not seen any such interactions until now.

"We are exposed. We know our sufferings better than anyone else," Ahmed said.

Mir Nasir Hossain, a former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said there was virtually no government in Bangladesh for three days between August 5 and August 8 following the ouster of the Sheikh Hasina-led government by a mass uprising.

"Miscreants took this advantage and continued unrest."

Apart from the weak law and order situation, Hossain added that there were also logical reasons for the unrest in the garment sector. He said workers were angry as they were not being given different service benefits.

It was also due to some of the factory owners delaying regular salary payments, he said.

Moreover, instigation from outsiders was also a major cause for the labour unrest in the garment sector, he added.

Children of workers are being deprived of better education, while workers must now spend more for basic housing, he said, adding that the factory owners need to improve community engagement.

"The achievement of this government is good, though it may appear that a lot of expectations remain unfulfilled. But it is not possible to resolve all the issues in such a short time."

He said the energy supply to the production units has improved after liquefied natural gas (LNG) imports by the government. "This must continue."

However, factors including higher bank interest rates have turned into a major cause of concern. "The economy will not grow if investment suffers," he said.

He added that the law-and-order situation must be monitored and an environment of confidence must be created. Besides, political parties have responsibilities in curbing extortion, so they should address this, he said.

"Private sector engagement is necessary. Because only the wearer knows where the shoe pinches."

Mostafa Kamal, chairman and managing director of Meghna Group of Industries (MGI), said the involvement of private sectors stakeholders in decision-making should be increased, he said.

He also said ensuring a consistent energy supply is crucial, saying the government should ensure energy supply through exploration as well as consistent imports.

Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry (MCCI), said the banking sector is now in the doldrums.

Citing the high volume of non-performing loans (NPLs) and failed merger attempts for ailing banks, he said, "NPLs have gone through the roof."

He inquired about the progress of the proposed Banking Reforms Commission and urged the interim government to act swiftly. Strengthening money loan courts by increasing the number of judges, he said, could address some immediate issues.

He noted the absence of an exit policy for industries and added many firms cannot leave the business due to a lack of mechanisms.

He also advocated granting duty-free import benefits for raw materials of all export-oriented sectors.

The MCCI president said high inflation has severely affected the population. While interest rate hikes aim to curb inflation, they are straining businesses, he added.

He commended the government for forming reform commissions but urged faster action.

Regarding exports, Rahman urgently stressed the need to meet the European Union's due diligence standards for achieving net-zero carbon emissions by 2030.

Failure, he warned, could devastate the readymade garment (RMG) sector. To support this transition, he proposed allocating 10 percent of land for solar power plants, which could generate 5,000-6,000 MW of clean energy.

This would not only reduce reliance on foreign exchange for energy imports but also bolster export-oriented industries with sustainable power solutions.

Abrar Hossain Sayem, president of Bangladesh Apparel Youth Leaders Association (BAYLA), said sacrifice by the youth played an important role in the formation of the incumbent government and Bangladesh should utilise the bright image of Chief Adviser Professor Muhammad Yunus.

For instance, many international clothing retailers and brands are coming back to Bangladesh with apparel work orders as they have confidence in the Yunus-led government.

He said some 0.4 percent of the local garment factories cannot pay their workers timely because of rises in the cost of doing business. The business cost spike includes a more than 200 percent rise in utility bills, which has been affecting the company's bulk expenditure and profitability.

He said the condition of small and medium ventures should be investigated because of abnormal spikes in the cost of doing business.

Monzur Hossain, research director of the Bangladesh Institute of Development Studies (BIDS), said managing spiralling inflation and implementing sound financial reforms are major challenges for the economy now.

He advocated continuation of the liquidity support to weak banks for their survival.

Hossain said there are private sector representations in two taskforces -- one for developing strategies to boost the economy and mobilise resources for equitable and sustainable development, and another for preparing a "white paper" on Bangladesh's economy.

Envoy Textiles' Managing Director Ahmed said efforts to stabilise the foreign currency reserves and reopen educational institutions after the uprising are some of the major achievements of the current government.

However, expecting a long-term solution from the current government will not be right as it's just an interim government, he said.

"The incumbent government should focus more on the restoration of the law and order and the restoration of confidence in the police force so they can continue. Because new recruitment and replacement of old police is not possible in a short time."

He cited a small incident of shifting a work order for 20 million pieces of garments from Bangladesh to other countries because of the labour unrest.

Ahmed also said the monthly salary of garment factories in the country is more than $600 million and annually the amount is more than $8 billion. The domestic economy is still largely dependent on the garment industry.

He feared losses of $14 billion to $18 billion in the export business of Bangladesh because of the erosion of preferential trade benefits after graduating from the least developed country club in 2026. Local exporters will have to face a 12 percent duty on export to the European Union, where Bangladesh exports more than $25 billion worth of goods in a year.

Bangladesh is still producing low-end garment items with low prices, selling items for $2.80-$2.90 per piece, whereas Pakistan and other countries' average value of garment items ranges between $4.50 per piece and the local exporters make only seven percent profit, he said.

With a higher bank interest rate at 17 percent, sales of apartments also declined to 8,000 units from 20,000 in Dhaka every year, he added.

At the discussion, Mahfuz Anam, editor and publisher of The Daily Star, said, "As a newspaper, we are committed to the growth and prosperity of Bangladesh.

"I believe the private sector is a major actor in that prosperity," he said, adding that The Daily Star wants to be a partner to entrepreneurs who are doing business with integrity and have invested in the advancement of the country.

"We want to be a part of the future growth of Bangladesh. I believe Bangladesh will advance with a healthy, well-governed private sector," he added.​