Authoritarian economy developed under AL regime, reforms needed: Selim Jahan

During the previous government, an authoritarian economy developed in the country, disrupting accountability in economic activities, said Selim Jahan, former director of the Human Development Report Office and Poverty Division at the United Nations Development Programme.

He emphasised that efforts should first focus on reducing inflation and restoring order in the banking sector.

The remarks were made during a discussion event on addressing the economic crisis and transitioning in the aftermath of the student-led mass uprising, organised by Banglar Pathshala at RC Majumdar Hall of Dhaka University today (23 October).

Selim Jahan, former director of the Human Development Report Office and Poverty Division at the United Nations Development Programme, said, "The fundamental problems in our economy have intensified in recent days. We have witnessed the destruction of the economic order at various times."

He added, "An authoritarian economy has developed, with the use of resources largely being arbitrary."

Selim Jahan stated that accountability in the economy and economic activities has been repeatedly disrupted. "Where there was a need to maintain economic order, disruption prevented it from happening, leading to increased inequality."

He added, "This inequality has resulted in a form of polarisation in society, affecting both outcomes and opportunities. If we can't address this fundamental problem, we won't be able to succeed in the end."

He stated, "We often discuss policies and reforms, but there's a noticeable aversion to change. We tend to cling to outdated concepts."

Selim Jahan pointed out that resource and institutional constraints hinder reform efforts. Therefore, short-term, medium-term, and long-term reforms must be planned to address these issues.

"If you speak with people today, the first thing you'll hear is a call to reduce inflation and restore order in the banking sector. These issues should be prioritised in short-term reforms. Immediate action is needed here, while also ensuring that long-term initiatives continue," he said.

Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), stated that the competitive structure in the country has deteriorated over time. "While there were sound policies during the previous government, they were not effectively implemented."

Atanu Rabbani, a professor in the Department of Economics at the University of Dhaka, said, "The governors appointed to the Bangladesh Bank in the last 10 years have not been qualified. Consequently, this has led to chaos in the banking sector."