Weak institutions lead to bad governance
Despite racking up impressive GDP growth numbers over the years, Bangladesh's failure to establish effective institutions and institutional capacity is very disappointing. At a recent panel discussion, experts expressed their concern regarding how this would affect the country going forward, particularly as it graduates from the least developed country (LDC) category. Bangladesh has had to pay a hefty price already due to its weak institutions. While our economic performance has been admirable, various studies by national and international organisations have revealed on multiple occasions how our economy could have performed better if it weren't for reasons that are ultimately tied to weak institutional capacity—such as widespread corruption and lack of accountability and transparency on part of state agencies.
The rising inequality—both economic and social—is another major problem that we see as a result of feeble institutions. This has also been holding us back from attaining our developmental goals, including the UN's Sustainable Development Goals (SDGs). For years, experts have been harping on the matter, asking politicians and bureaucrats to take it seriously. However, due to the unfortunate fact that weak institutions allow for a lack of accountability and transparency—which in turn can be exploited by people in positions of power—none of them seem to have been listening. As a result, Bangladesh's institutions rank among some of the worst in the world.
If we look at the banking sector for example, we see that the sector has been in perpetual crisis for years—with some fearing that we haven't even seen the worst of it yet—due to the absurd policy-making of the central bank and numerous interventions from the finance ministry in its decision-making. The lack of autonomy of our central bank is a perfect example of how we have failed to build effective and independent institutions. Another such example is the lack of independence of our Anti-Corruption Commission, whose powers have been gradually weakened by policymakers through laws that outright undermine our constitution—by granting civil servants undue privileges.
Throughout the world, there have been countless examples of countries that have failed to make the jump that we are about to, simply because they failed to develop effective institutions that can hold bureaucrats and politicians accountable. Will we turn out to be another such case?
If not, it is high time for our policymakers to recognise the danger we are in, and pursue policies that strengthen the capacity of institutions that are supposed to hold the decision-makers accountable. We have to try and instil the concept of checks and balances in all our state institutions. Otherwise, those in positions of power will continue to do as they please—and exploit state power for personal benefits—instead of acting in the best interest of the country.
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