Inequality a result of centralisation of political power: economists

While policymakers claim that inequality is a by-product of development, economists say it is caused by the centralisation of political power. 

"Power is the principal base of inequality and inequality rises if the state power is misused," said Prof Rashed Al Mahmud Titumir, chairman of the Department of Development Studies at the University of Dhaka.

The Gini coefficient, which measures the dispersion of income or distribution of wealth among the members of a population, stood at 0.499 in 2022, according to data from the Bangladesh Bureau of Statistics.

It was 0.482 in 2016 and 0.458 in 2010, meaning income inequality in Bangladesh has been rising.

Though policymakers claim that the disparity may rise in the primary level of development, this theory has already been voided, said Titumir.

A centralised power system automatically creates autocracy and leads to the evolution of clientelism, meaning the exchange of goods and services for political support, which impacts the policy implementation of a government, he said.

As a result, disparity widens and poverty reduction processes slow. In this process, the government institutions are syndicated, so the delivery of their services deteriorate, he said.

Titumir was delivering a commemorative speech marking the 11th death anniversary of Professor Dr Muzaffar Ahmed, one of the leading economists of Bangladesh.

The event was organised by Reading Club Trust and Prof Muzaffar Ahmed Memorial Shangshod at Professor Muzaffar Ahmed Chowdhury Auditorium of the university.

An economy can develop under a non-democratic government but then people feel troubled in many ways, said Prof MM Akash, chairman of the Department of Economics at the university.

But policymakers claim the trouble to be a "pain of development". When an economy develops, there is also human development. However, here too the problem of inequality remains, he said.

The policymakers should attain a deeper insight into whether the human development varies for the people based on their income. "The economic growth should be with equity not equality," said Akash.

The problem of Bangladeshi institutions lies in the implementation of policies even if they are formulated with good intentions, mainly due to the prevalence of riches and businesspeople in parliament, he said.

As long as the money, muscle and manipulation remain, the dictator in the election system, the prevalence of riches and the cohesive power system will not dissipate, he said.

People should protest any wrongdoing they witness, said Prof Badiul Alam Majumdar, secretary of Shushashoner Jonno Nagorik (SHUJAN), while reminiscing the contributions of Ahmed in establishing people's rights.

MA Sattar Mandal, professor emeritus at Bangladesh Agricultural University, and Prof Rowshan Jahan, the spouse of Ahmed, also spoke at the event, which was moderated by architect Iqbal Habib.