Newsletter Archives - BRIEF https://www.briefindia.com/category/newsletter/ Empowering Growth Thu, 03 Oct 2024 07:33:21 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://www.briefindia.com/wp-content/uploads/2021/02/cropped-Brief-India-32x32.png Newsletter Archives - BRIEF https://www.briefindia.com/category/newsletter/ 32 32 Bangladesh: Blame Economics, Politics Not  Alone for Hasina’s Exit https://www.briefindia.com/bangladesh-blame-economics-politics-not-alone-for-hasinas-exit/ Thu, 03 Oct 2024 07:29:11 +0000 https://www.briefindia.com/?p=5212 Bangladesh: Blame Economics, Politics Not Alone for Hasina’s Exit Ayanangsha Maitra The capital Dhaka, the only Prime City in the nation of 17 million , stands as the pulsating epicenter of political power, finance, and the vibrant film industry despite, cities like Chattogram, Sylhet, and Rajshahi are emerging, each with their own unique flair. The […]

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Bangladesh: Blame Economics, Politics Not Alone for Hasina’s Exit

Ayanangsha Maitra

The capital Dhaka, the only Prime City in the nation of 17 million , stands as the pulsating epicenter of political power, finance, and the vibrant film industry despite, cities like Chattogram, Sylhet, and Rajshahi are emerging, each with their own unique flair. The ready-made garment industry  generates billions of dollars, significantly improving the livelihoods of the hardworking female population. The delta nation has become familiar for its peacekeeping mission to sheltering about 7 million Rohingya refugees, fleeing from ethnic conflict-ridden Myanmar. Under the four consecutive terms of ousted Prime Minister Sheikh Hasina, Bangladeshis have experienced transformative changes that positioned the nation as a “role model” for emerging economies in the recent past.

Life expectancy rate in the country has soared from just 47 years in 1971 to over 74, more than that of India. According to the latest data from the World Bank, Bangladesh’s per capita GDP is $2,688, while India’s stands at $2,411. Sheikh Hasina has spearheaded ambitious megaprojects like the Padma Bridge, Rooppur Nuclear Power Plant, and Karnaphuli Tunnel, showcasing remarkable vision and determination. Yet, despite these advancements, she has struggled to maintain the trust of the people. It’s clear that politics alone cannot bear  the blame; economic factors also play a crucial role in shaping this public sentiment.

Under Hasina’s watch, the prices of essential commodities have risen dramatically and unreasonably. Massive corruption during Hasina’s years led to public anger. The syndicate at the market, operating under the cover of the Awami League, controlled commodity prices, which in turn fueled frustration against Hasina.  The  growth report during Hasina years has been marred by allegations of data manipulation and a lack of transparency in the banking and financial system. The new administration in Bangladesh is investigating allegations that the Sheikh Hasina regime funneled at least BDT 2 trillion out of Bangladesh, particularly to the UK, US, Singapore, and the UAE, through the banking system.

The interim government is likely to face significant challenges in managing the economy and restoring stability, despite the professional expertise of its members. Factors such as political uncertainty, public unrest, and external economic pressures can  complicate their efforts. The delta nation enjoys a robust network of connectivity with India that underpins its economic growth. This intricate web of transportation and communication links districts in Bangladesh with states in India, carefully crafted to promote trade and maintain a steady flow of people and goods. The two nations started currency trading but that’s likely to progress under this circumstances.  

India exports a wide variety of commodities, ranging from  raw cotton, food items,  spices, textiles and machinery. India receives one of the highest numbers of visitors from Bangladesh for purpose like Tourist, Healthcare and Business. When relations between Government to Government were at it’s best  – Bangladesh India’s trade rose to $16 billion. India is a irreplaceable partner for healthcare, education and certain essential commodities for the country.

The current leadership, under the aegis of Nobel laureate Muhammad Yunus, will be influenced by two key factors: the Army and the United States. This government is expected to implement significant changes in foreign policy, opening up relationships with several countries that the Hasina government had distanced itself from. With Yunus leading the nation, Bangladesh, which is transitioning from a least developed country (LDC), will have new opportunities and options on the international stage. Yunus will be an effective negotiator with Western lending agencies, but micromanagement of several institutions could pose significant challenges for the country. Security challenge and steady functioning of supplychain are hitting the business hard.

The interim government under Muhammad Yunus will face challenges in reforming the banking system, enhancing public expenditure, improving institutional governance, and restoring stability and normalcy as effectively as possible. While India, as the largest bordering nation, will remain a business partner, it may no longer be viewed as the most reliable partner, at least for now.

(Ayanangsha Maitra is a journalist and Research Coordinator with Center of Geoeconomics for the Global South. Thegeoeconomics.com)

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