Govt fails to dismantle entrenched networks of businessmen, bureaucrats

The government has failed to dismantle entrenched networks of businessmen and bureaucrats despite assuming office through a mass uprising, economists and bankers said yesterday.

They warned that unless the power structure is reformed and jobs are created, another upheaval could occur.

The observations came at a seminar titled "Prioritising Economic Reforms: Building Institutions and Rebalancing the Power Structure", organised by Voice for Reform, Nagorik Coalition, and Bangladesh Research Analysis and Information Network (BRAIN) at the Bangladesh Development Bank in Dhaka.

Mushtaq Khan, professor at SOAS University of London, said reforms would not deliver results without changes in who holds power.

"If the same oligarchs keep shaping policy, nothing will change. We have already seen organised crime in the power sector. Unless even a fraction of this is stopped, risks will rise further," he said.

He added that collusion in the power sector had led to overpricing and excess subsidies, pushing up costs by about 25 percent. If subsidies are withdrawn, energy prices will rise further and accelerate deindustrialisation.

Banking leaders also expressed concerns. Islami Bank Chairman Prof M Zubaidur Rahman alleged that S Alam Group had acquired 82 percent of the bank's shares and siphoned off large sums.

"Clearly, they did not consume it alone; they shared it with others," he said, adding that legally the bank could not buy back its shares. Instead, S Alam's stake would be sold to strategic investors.

Selim RF Hussain, former managing director of BRAC Bank, said it was risky for a banker to serve as an MD of a bank in Bangladesh as businessmen often became chairmen of banks with as little as 2 percent shareholding.

"Our banking sector should gradually be consolidated into 10–12 banks," he said.

Monzur Hossain, member of the General Economics Division at the Planning Commission, said institutional weakness was undermining reforms. "If party loyalists are appointed, institutions cannot perform. Governance is key," he added.

Others, including Fahim Mashroor, Rashed Al Mahmud Titumir, Syed Akhtar Mahmood, Zia Hassan, and Kawsar Chowdhury, stressed the need for stronger institutions, accountability, productivity benchmarking, and diversified SME support.