It’s one-party rule under a democratic framework

A one-party authoritarian government system can work well to become a developed nation but at least some areas should be less politicised, said eminent economist Prof Wahiduddin Mahmud.

He said Bangladesh's government system can be described as a one-party authoritarian rule under a democratic framework.

"This type of government does not necessarily hold fair elections and, so its popularity can't be measured. This type of government usually wants economic development because its validity depends on the development of the economy."

Wahiduddin was speaking at an event yesterday marking the launch of the book titled "Bangladesh's Future Development: Agenda for Reform" authored by Prof Mohammed Farashuddin, a former governor of the Bangladesh Bank.

Bangladesh Institute of Development Studies (BIDS) organised the event at its office in the capital.

Citing the example of South Korea, Wahiduddin, also a former caretaker government adviser, said this government system can bring development.

Under a one-party authoritarian rule, at least some important areas should be less politicised, the economist said. "If possible, those should not be politicised at all."

For instance, the governor of Bangladesh Bank should be allowed to take steps independently, he said.

"In bureaucracy, promotions should be based on performance and merits instead of political connections. Otherwise, talented people will feel discouraged to work better," said Wahiduddin.

According to the economist, this type of governments usually patronise some people and give them unusual benefits and that is why real entrepreneurs remain deprived.

The former DU teacher said human rights and freedom of expression should not be considered trivial things.

Putting emphasis on human development, Wahiduddin said a country cannot grow after a certain period just based on infrastructural development. "It needs proper human development to get to the next level."

Binayak Sen, director general of the BIDS, said a one-party government system can be effective in helping a nation become a developed country.

"But some sectors should be allowed to run without political connections," he said and named the sectors -- banking, revenue, education and health.

Former BB governor Farashuddin said political leaders want the economists to be complaisant, but it would be better for development if the leaders listen to the criticism.

He urged the government to reform the banking and insurance sectors with highest priority. "The reforms should start by focusing on default loans."

He said the government has eased loan rescheduling rules and this has ultimately impacted the banking sector.

The second-highest priority should be given to revenue collection by expanding the tax net, said Farashuddin.

"This is because only a small group of people are paying tax properly. If the net was expanded, the budget deficit would have been lower."

He said fixing the interest rate cap at 9 percent, keeping local currency overvalued for around 10 years, and multiple exchange rates hurt the economy.

Multiple exchange rate system is not seen in any other country because this benefits some people, he said.

He said black money, loan default, and tax evasion are inter-linked and people who are involved in those are powerful. "Those people should have been brought to book."

The former governor recommended making the central bank governor's post a constitutional one and extending the office's tenure to six years so the governor can work independently for a long time.

He also stressed the need for export diversification and pre-feasibility studies for all public projects.

Addressing the event, Prime Minister's Economic Affairs Adviser Mashiur Rahman said the central bank is an independent body and its governor enjoys freedom.

"We have seen only one governor stepping down as he was not capable of making any decision due to political reasons," he added.

Sattar Mandal, emeritus professor at Bangladesh Agricultural University, Prof MM Akash, former chairman of economics department at Dhaka University, Zaidi Sattar, chairman of Policy Research Institute of Bangladesh, Shams Rahman, vice-chancellor of East-West University, Fahmida Khatun, executive director of Centre for Policy Dialogue, and Kazi Iqbal, research director of the BIDS, also spoke at the event.