Praise from WB, IMF, ADB empowered Hasina govt's corruption: Anu Muhammad
The economist says those who used the term ‘development miracle’ must now take responsibility
Highlights
- Anu Muhammad blames World Bank, IMF, and ADB funding for enabling corruption in the Hasina government
- Criticises the IMF for prioritising subsidy cuts and price hikes
- Points out remittance amounts exceed IMF loan plans but receive little recognition
- Calls for bureaucratic reforms, describing the current system as wasteful and ineffective
Praise for development and project funding from the World Bank (WB), International Monetary Fund (IMF), and Asian Development Bank (ADB) had empowered the Hasina government to engage in corruption and irregularities under the guise of progress, economist Anu Muhammad has said.
The power wielded by the previous government was built on a "support base" that included the bureaucracy, certain business factions, and international organisations, he said at a symposium on Bangladesh economy in Dhaka today (18 January).
"The term development miracle was widely used during that time," he remarked. "Those who used such terms must now take responsibility."
He highlighted that the corruption and looting in sectors such as energy, power, and mega projects contributed to the collapse of vital systems like public education, healthcare, and transportation.
The WB, with the ADB closely following, played a central role in these projects, while the IMF continued to offer various policy prescriptions, said the former economic professor at Jahangirnagar University.
He pointed out that the IMF's main focus has been on cutting subsidies and raising the prices of goods and services.
"According to their advice, everything except wages must increase. VAT has been raised based on their recommendations, interest rates have gone up, and decisions have been made that will drive inflation higher," said Anu Muhammad, also a writer and public intellectual.
He mentioned the amount of remittance sent within two months exceeds the loans the IMF plans to provide over three years.
"Yet, those who send remittances are not acknowledged. Instead, the burden of these policies is being placed on the general public, all in response to the IMF's directives."
The event, "White Paper and Thereafter: Economic Management, Reforms, and National Budget," was organised by the White Paper Preparation Committee 2024, in collaboration with the Citizen's Platform for SDGs, Bangladesh.
Role of bureaucracy
Anu Muhammad also highlighted the role of bureaucracy in supporting the previous government's unchecked activities and stressed the need for structural reform.
"The bureaucracy has become a black hole where resources vanish without results. Without reforming this structure, real change is impossible," he said.
While expressing some hope for an interim government, he acknowledged their limitations, adding, "Although interim governments face challenges, there is hope for initiating small but significant changes."
The economist further warned that the destruction of institutions by the previous government's actions has had a longer-lasting impact than financial corruption.
"Institutions no longer operate through proper processes; everything depends on top-down orders. Restoring these institutions is crucial, but the government lacks a strong stance on this issue," he added.
He also criticised the current government for not actively stopping "mob violence" and "factional conflicts" to disrupt educational institutions.
"Instead of restoring institutional processes, various groups are using students and power struggles to create disorder," he concluded.