Bangladesh has transitioned from crony capitalism to a kleptocratic state following controversial national elections in 2018, eroding democratic rights and accountability, according to Dr. Debapriya Bhattacharya, head of the White Paper committee.
Speaking at a press conference on Monday, Dr. Bhattacharya described the situation as a systemic collapse of institutional integrity.
Dr. Debapriya attributed this decline to a corrupt nexus involving civil and military bureaucrats, politicians, and business elites, which he claimed has severely undermined local government and social strength.
He explained:“When all state mechanisms—legislative, executive, and judiciary—become complicit in theft, it constitutes kleptocracy.”
The White Paper highlighted widespread corruption across sectors, identifying the banking sector as the most affected, followed by infrastructure, energy, power, and ICT.
According to Dr. Debapriya, 23-40% of the development budget was embezzled under the Sheikh Hasina-led Awami League government, with 10% of the population controlling 85% of the country’s wealth.
Reform and Recovery: The Way Forward
To address these challenges, Dr. Bhattacharya called for comprehensive reforms to ensure institutional accountability, economic stability, and improved governance. However, he warned that volatile commodity prices and security concerns could jeopardize long-term reform efforts.
Dr. Zahid Hussain, another key member of the committee, noted that Bangladesh has fallen into the middle-income trap, previously considered only a potential risk. He underscored the need for macroeconomic stability, policy reforms, and stronger institutions to break free from this predicament.
The next six months are critical for Bangladesh, Dr. Debapriya Bhattacharya observed, urging the government to announce a clear economic management plan addressing inflation, foreign currency reserves, and interest rates.
While praising the scrapping of the 8th Five-Year Plan for its “unrealistic” targets, he called for a two-year mid-term development plan prioritizing investment, employment, education, healthcare, and social security.
Despite these economic challenges, Dr. Debapriya dismissed calls to postpone Bangladesh’s graduation from the UN’s Least Developed Countries (LDC) list in 2026, citing that the country still meets all necessary criteria. “The United Nations remains confident in Bangladesh’s readiness to transition to a developing economy,” he said.
Election Integrity and Democratic Decay
Dr. Selim Raihan, a professor of economics at the University of Dhaka, criticized the flawed general elections over the past 15 years, which he argued had destroyed democratic institutions. He emphasized the need for continued reforms to promote private sector investment and economic recovery.
Prof. Mustafizur Rahman expressed concerns about the long-term economic burden of mega projects, noting that significant portions of project funds were lost to corruption.
Survey data included in the White Paper identified civil and military bureaucrats as the most corrupt groups, followed by politicians and businesspeople. The findings reflect widespread public disillusionment with governance in Bangladesh.
