Bangladesh: Let the Spirit Be A Reality

Dr. Abdul Momen*

Published on April 01, 2006

Bangladesh, the third largest Muslim majority country that was created in 1971 from a spirit of emancipation---to end exploitation, to establish multiparty democracy and rule of law, and to achieve economic prosperity, opportunity and wellbeing for all is now facing systematic deprivation as �rule of the few, democracy of the rich, and exploitation of the corrupts� is being established in the country. It is one of the poorest nations of the world whose per capita income a day is barely a dollar ($1.20). In 1971, it had 75 million people and its per capita annual income was $100 and now that has increased to $440 in 35 years� time, an average annual growth rate of 4.4 per cent [since 1991 when multi-party democracy reestablished in Bangladesh, its per capita income growth showed significant improvement]. In contrast, the average growth rate of South Asian countries is 5.1% for the same period.  With such a growth rate, Bangladeshi leaders, its bureaucrats and intellectuals are highly complacent and they are proud of their achievements. Bangladeshi leaders nowadays claim that ��we are no longer poor, we are not low income country anymore, and we have achieved miracles in agriculture and garments. Therefore, we are now the envy of the world�. 

 

Bangladesh Minister Claims �We are No Longer Poor�

Such could easily be sold to the millions of uneducated and illiterate Bangladeshi commoners whose number is ever increasing from 60 million in 1975 to over 90 million now, more so as it has some truth. In fact, in the area of agriculture, women empowerment and garment exports Bangladesh did excellent.  But to the greater world and in the forums of those that evaluate countries objectively and comprehensively, it is hard to sell that Bangladesh is no longer poor. Reason, the reality is different--- Bangladesh is still a �low income country� as per world view. As per the World Bank low income countries are those that have a per capita annual income below $826. Ours is only $440 (as per the World Bank�WB generally gets the data from the home government and unless they are highly fabricated, they report the same). Lower middle income countries are those that have annual per capita income level between $826 and $3,255, the upper middle ones have an income level between $3,256 and $10,065 and the high income countries are those that have an income level over $10,066 per annum. Given these categories, Bangladesh is still a long way to reach a decent level.

 

Political Leaders: Are They Better Manager?

However, important element is; are we better off vis-�-vis others, at least our immediate neighbors?  In this world of competitiveness, each nation is in a mad race to provide better living standards and opportunities to its nationals. Forget about Singapore or USA, among the SAARC nations, in terms of per capita income growth, we are proud to beat Nepal and Pakistan, two countries that are run by despots. The rest of them are still doing better relative to us. For example, the BNP�s number one enemy, India given its myriad problems, given its mounting population of 1.3 billions has attained a per capita income growth rate of 5.2% per annum for the same period. In the case of Malaysia and Maldives, two Muslim countries, their per capita growth rates for the period are 7.6% and 7.4% respectively. A comparative analysis of SAARC and other selected nations� per capita income and growth rates is given in Table 1. Although a comparative analysis does not allow us to be complacent but the good news is, we are doing better relative to Pakistan, the home of Islamic fundamentalists. While their annual per capita income growth rate is 3.8%, ours is 4.4%. When our economy was basically ran by bureaucrats both military and civilian, our growth rate was similar to that of Pakistan. It was only 3.9% for the period 1970-90. Our per capita income increased from $100 in 1970 to $210 in 1990. However, when �less educated, less sophisticated� politicians as portrayed by bureaucrats and government controlled media started running the country, our growth rate increased significantly from $210 in 1990 to $440 in 2005, a growth rate of 5.4% per annum for the period 1990-2005 [from 1990 to 2000 growth rate was 7.1% --per capita annual income increased from $210 to $390, and from 2000 to 2005 is 3.1%--per capita annual income increased from $390 to $440 respectively.  Does it tell any story?

 

Table 1: Comparative Analysis of Per Capita Income and Growth Rates

of Selected Countries for period 1970-2005

SAARC Countries

1970 (in $)

2005 (in $)

Annual Growth rate %

Bangladesh

$100

$440

4.4%

Bhutan

80

520

5.7

India

110

620

5.2

Maldives

220

2510

7.4

Nepal

80

260

3.5

Pakistan

170

600

3.8

Sri Lanka

180

1010

5.2

Non-SAARC countries

 

 

 

South Asia Region

110

590

5.1

China

110

1290

7.5

Malaysia

390

4650

7.6

Myanmar (Burma)

105

1170

7.3

Thailand

210

2190

7.1

Source: World Bank, World Tables, 1993, World Development Indicators, 2005 and the ADB, Key Indicators, 2005.

 

Secondly, what these statistics mean? It means in the world of competition while we secured barely a grade of F or D- during our bureaucratic rule (1975-90), we secured a B or B+ during 1st ten years of political rule (1990-2000) that gave us lot of hope and aspirations. Nevertheless, now owing to widespread corruption, rise of terrorism, near failed governance, family cartels, and the accompanying misrule, we have started failing even to maintain our past achievements.  In fact, per capita income growth rate during 2000-2005 barely maintained an average of 3.1% per annum much below to that of 7.1% of 1990-2000.

 

Prime Minister Zia Claims Satisfaction

While our competitors obtained a grade of B or above, the BNP-Jamath coalition government presented us a failing grade [Khaleda�s 1st term (1991-96) was much better]. Unfortunately, by ignoring the reality, the Bangladesh Prime Minister Khaleda Zia repeatedly claimed that �she is proud of her achievements�. Does it mean that she is proud of her failing grade? Does it mean that she is proud that the purchasing capacity and standard of living of her nationals did not increase as much as that of the others? Does it mean that the Bangladeshi leaderships not only failed to achieve nation�s potentials they even failed to realize their own shortcomings and failures? Albert Einstein once remarked that if you know your problem, half the battle is won.

 

One political analyst joked and said �Prime Minister is right�. She is right as she might be talking only of her family and friends that achieved miracles----an economic growth rate beyond imaginations. In 1981 when her husband, General Ziaur Rahman was assassinated, she and her family were basically penniless. Her husband was a military officer earning less than $100 a month when founder President of Bangladesh Bangabandhu Sheikh Mujib was murdered in a military coup. He was financially honest and therefore, when he died, he had no wealth of his own. He had no house, no savings, apparently no cash and therefore, the whole nation became sympathetic to his widower, Mrs. Zia.

 

In India, when Prime Minister Jawaharlal Nehru died, he had no house for is family although his father, Motilal Nehru was a very rich man. Therefore, Lal Bahadur Shasri the new Prime Minister of India had no difficulty to get approval of his Congress Party to appoint former Prime Minister Nehru�s only daughter Indira Gandhi as a Deputy Minister basically to provide her a shelter in New Delhi. Thus she came into limelight in the Indian politics and built her own career and a dynasty. However, when she lost her position of power, Mrs. Gandhi returned the government property without fanfare.  Following India, the BNP government of Justice M. A. Satter granted Mrs. Khaleda Zia, the widower, a government accommodation the �Sena Bhavan�, the official residence of the C-N-C of Bangladesh Army. He also provided her two government rental properties just to earn a minimum living. In addition, Vice President Satter donated his personal house to Mrs. Zia. Now at a stroke of magic wand Prime Minister Zia and her family has become one of the richest families of Bangladesh. Definitely, her purchasing power and her standard of living for herself and her family have enhanced thousand times and therefore, it is no wonder that she is �proud of her achievements�, remarked the analyst. However, it is not uncommon in Muslim countries that their leaders on assumption of powers become filthy rich. Out of 10 richest heads of government nearly 7 were Muslims. After the deaths of Iraq�s Saddam Hossain and UAE�s Zahid Bin Al Nahiyan, their number has gone down. This is in sharp contrast to that of Muslim leaders of early age. All four Caliphs; Abu Bakr, Omar, Osman and Ali plus great leaders like Salahdin and Ibne Tariq led very simple lives unlike today�s Muslim leaders.  

 

In any case, Bangladeshi nationals are hopeful that prior to her next election Mrs. Zia may surprise the nation by returning public properties under her custody with accumulated rents and expenses and thus she will leave a personal example that a leader of a Muslim country who has performed Hajj many times at public expense is no less patriot than a non-Muslim leader like Mrs. Indira Gandhi!

 

Bangladesh: A Divided Nation

Although ethnically Bangladeshis are basically similar, it is a divided nation now. There are two groups� one group is rich and powerful and they live on �illegal income� and �public fund� like that of Mrs. Zia and her family. This group composes of urban businessmen, government bureaucrats, political leaders and the like.  Their number is small-- may be 100,000 or so in a land of 145 million. Their legal income could be between $300 and $1,000 a month but their illegal income ranges between $2,000 and $100,000 a month. The other group is the vast mass of people that live hand to mouth, less than a dollar a day. They are the ones in the name of whom all foreign aid and assistance are being received by Bangladesh government basically to be looted out by the mighty group known is �lootera�. No wonder, as per Bangladeshi economists, out of $37 billion worth of foreign aid and assistance that it received since its independence nearly 75% have either been looted or misused. No wonder, Bangladesh is the only country in the world that topped the list of corrupt nations consecutively for the 5th time last year. No wonder, in spite of hard work, creativity and resiliency, Bangladesh is still a �low income country�.

 

Bangladesh Prime Minister might be talking of the achievements of this 1st group, the lootera that have looted its banks, its factories, its lands, its resources and the like. Now to make them more rich, a new law is being passed by the Bangladesh government that would allow �selected defaulters� exemption from paying not only the �accumulated interest� but also the �principal�. Therefore, it may be time to borrow more funds and get defaulted to evade any payment and let the next government face the music!. If you have borrowed millions of taka from a Bangladeshi bank (as many rin-kelafee did) and is allowed to not to pay any of it, will you not be happy? Of course, you will. Therefore, our 1st group is happy with the government as all resources are being siphoned off to them. They are happy as rules, laws and regulations of the country are directed to satisfy their needs and evil actions and designs. Unfortunately such policies failed to guarantee wellbeing of the masses. Such failed to achieve the spirit of the liberation war and such is against the normal business practices. Such also failed to achieve the rule of law and economic emancipation of the masses that the father and dreamer of this exploited nation of Bangladesh, Bangabandhu Sheikh Mujibur Rahman had in mind.  

 

Economically, the nation is sharply divided into two. It is also politically highly polarized. There are two parties, the government and the opposition and they hate each other. Those in the government are up to grab as much as they can, and as fast as they can. Those in the opposition are destined to destroy the government. In the process, the Bangladeshi nationals continue to suffer. They have no jobs-- youth unemployment rate is hovering around 40 per cent close to that of Afghanistan. However, the government feels complacent as it is still lower to that of Iraq and Palestine!

 

For ordinary people life is a constant struggle�.high inflation rate, scarcity of electricity, scarcity of drinking water and in fact, scarcity of almost all essentials of life. Such scarcity however does not affect the rich and the powerful that much. They have their own generators, and they have their own supplies of essentials from abroad. For them, Bangladesh is a land of opportunity and a land of miracles where the rich and powerful do not have to work to earn a living unlike the Americans. They only need to maintain their link with the power house. They go to work at their pleasure, and they maintain a lavish life being served by half a dozen of servants.

 

Corruption is Good for The Country?

It is interesting that a group of such businessmen and professionals, staunch supporters of the present government argue that �corruption is good for the country� because it transfers �public fund� to �private hands�. Since private businessmen are investors and efficient vis-�-vis government, such transfer is beneficial for the country, they argue. They justify it as follows: let our importer �A� imports $100 million worth of merchandise. To avoid import duties, our importer A instead of declaring $100m import, declares only of $50 million. If he would have declared $100m, then he would have to pay, say, $300m as duties. By declaring $50m, he pays only half i.e. $150m as duties. Thus he saves $150m. Now out of this saved $150m, he pays, say $10m to the Board of Revenue and Custom officials as bribe and grease money. Therefore, he has net saving of $140m. Our importer A uses this saved funds first, (1) to import more of the same products that in the process reduces scarcity of that product in the country and ensures moderate market price and secondly, (2) with the accumulated funds, our importer A establishes few garment factories that employ few thousand laborers. Therefore, they argue that cheating of $150m is beneficial for the country. Moreover, the public officials that received $10m as bribe use the same to build apartment buildings or flats that expatriate Bangladeshis joyfully buy. Alternatively, if our importer A was honest and our Custom officials were not corrupt, public exchequer would have received $300m. What would they do with this fund? A few mighty bureaucrats and leaders would have looted it or spent it by buying more government autos for their families, for their official trips, for sending their kids abroad for education, for medical treatments abroad, for government parties and the like. They argue that except a few like Tariq Zia, for example, there is very little external leakage. Therefore, they are convinced that corruption is good for the country as it transfers funds from public sector to private investors. 

 

They further argue that such argument bears close to that of extra judicial killing by the RAB, a special security force. This force generally kills �reputed criminals� after arrest. Since no one dares to testify against �reputed criminals� owing to fear of reprisals, they justify �extra-judicial killings�. Basically, as rule of law failed, they argue, extrajudicial killing is welcome and beneficial to the nation. They agree that out 1,200 or so people that have been killed extra judiciously either under the �Operations Clean Heart� in the name of �heart attack� or �cross fire death� under the RAB, 1% or 2% could be �innocent� victims. Given such possibility, they still argue that �extrajudicial killing� that Prime Minister Khaleda Zia has started is really good for the country. Similarly, they argue, given state of the nature, corruption is also good for the country.

 

The common people refuse to buy such arguments. They still believe that �corruption is bad for the country� just like human rights activists that believe that �extra judicial killing is bad for the nation�. Therefore, we have two groups, the rich and the powerful that favors corruption and the commoners that opposes it. The 1st group is pleased with the achievements while the 2nd is still struggling to survive. No wonder, while the Prime Minister�s claims appear accurate to the 1st group, they are simply �lies and disinformation� to the second group.  

 

Faith in the Government Shattered

Faith in the government is being shattered and common people started believing that �privatization� is good for the country. They argue that all the social developments, for example, women empowerment, micro-credit financing, adult education, family planning, availability of safe drinking water and sanitation for which Bangladeshi governments take great credit and pride were the products of non-government organizations (NGOs) and private groups. They argue that garment export boom or the agricultural self sufficiency were the result of indigenous private entrepreneurs and poor farmers. When the monopoly of the mobile phone business was under Morshed Khan, Bangladesh Foreign Minister, it did not work as each one had to pay over $3,500 for service connection plus other �transaction costs�. Therefore, only the rich could afford it.

 

When the Awami League party formed government in 1996, it broke down the mobile monopoly and opened up the sector to a number of private companies including the Grameen phone. Garmeen soon started to provide service at $125 or below, a sharp contrast to that of Morshed Khan�s $3,500. Such facility created Mobile Village Lady and it earned fame for the nation. It once again proved that �least government� and minimum control is good for the nation. Unfortunately, Khaleda Zia has a tendency to increase both her Cabinet members and the bureaucracy. She over extended both of them and as a result, the government is not functioning at all in Bangladesh now and it will continue to deteriorate as long as there is no transparency, as long as each official is not entrusted with responsibility and accountability. No wonder that common people are now demanding more of privatization---privatization of Railway, Postal, Airlines, Airports, Ports, Gas and Electricity, Fertilizer distribution, Rajuk and such other services.

 

The main cause is, they are fed up with government offices. In today�s Bangladesh, without payment of �bribe� or alternatively, exerting official influence, none can get any work done even if it�s a routine matter.   Moreover, a simple job takes repeated trips.

 

Innovation: Road to Improved Management

The major resources of Bangladesh are its people, their creativity and ingenuity plus its waters and rivers. If this impoverished nation of 145 million has to prosper and beat its neighbors in competitiveness, it is imperative to introduce a technology based superior system of governance. It is indeed needed innovation of an appropriate technology-based management style. What is technology? Technology encompasses not only computer, machine and equipment, it also includes knowledge and skill based procedures, rules, regulations and system of administration and management. Such knowledge and skill based system of management is our proposed �District Governor System (DGS)�, a devolving type of administration.  Under such a system, a total of 60 or 65 District Governors (DGs) will be elected in each district through adult franchise. Each governor and its administration would be responsible for most of the services within the district such as security, education, commerce, health, local roads, buildings and the like. He or she would be authorized to appoint (as well as terminate) all of his district officials, for example, DCs, SPs, District Education, District Health or such other officers from a pool of centrally certified competent people. Each district administration will determine the pay scale and privileges that it would like to offer to its officials. Naturally, pay scales and privileges of each officer will vary from district to district. It is the DG office that will determine what type of officials or offices they require.  For example, Sylhet district may opt for a Ministry of Tea while that of Mymensingh may opt for a Department of Jute depending on their needs and resources.

 

Except few Ministries like Defense, Law, Foreign and Economic Relations, the responsibilities of the most of the central Ministries should be delegated to the District Governor�s Office and any one that would be considered for senior appointments like Secretaries, Judges, Ambassadors and the like has to go through a rigorous process of public hearing as is practiced in the U. S. Under such a system, corrupt and immoral officials or individuals will fail to get appointed in strategic positions. Corrupt ones may voluntarily distance themselves from being nominated out fear of public disgrace. I am basically arguing to eliminate 20-25 central Ministries and either reorganize or delegate their functions and responsibilities to the DG.  Under such set up, the elected MPs will be basically lawmakers and guardians to oversee any wrong doing while the locally elected Governor and his/her Cabinet will decide what to do and how to do within its district. Under such set up, the monstrous rule of central bureaucracy will be reduced and public participation at grass-root levels will increase. Unless public participation in decision making process is ensured and made transparent, neither corruption nor misallocation of resources could be minimized. Moreover, no one has to crowd in Dhaka City, the nation�s capital to get one�s job done. Such would be done at the local office [for more details, see author�s Bangladesh Development Administration: Need for Institutional Change, in Development Issues of Bangladesh, University Press Limited, 1996]. Such will also minimize public misery, delays, costs, and harassment.

 

DGS: An Innovative Framework for Competitiveness

Under the proposed set up, individual initiatives, creativity and competitiveness will be enhanced. For example, say a condition is set so that the District Police Officer (DPO) or SP would get a full allocation only if it achieves 100% crime free environment. If it fails, allocation would be proportionately lower. Since the disbursement of funds can be made conditional to the degree of achievement, it would create competition within the districts and the officers. Under the proposed set up, the DPO/SP is under the District Governor (DG). The DG office can increase his/her salary and benefits for effective discharge of duties, or even terminate him/her for poor performance. If DPO does a good job and he/she earns a reputation, other DGs might entice him/her with better pay and benefits to join them and in the process, an environment of competitiveness will augment throughout the country. Such competitiveness will soon spread in other sectors too. Therefore, such set up will create an environment of politics of achievements and competitiveness rather than tall talks. Under the proposed structure, the current problems, for example, ill governance, poor law and order situation, widespread exploitative corruption, insensitivity to public needs, rise of terrorism, fear of unfair election and the like is likely to be reduced as powers will be devolved and segregated. Fear of usurpation of powers by non-political elements will also reduce.  Above all, the leadership can provide hopes against despair, dream of creativity and active participation against inactivity and gossip mongering, and an environment of competitiveness against sycophancy and boot licking. Let us hope that the leadership instead of misguiding the people with falsehood and tall talks, will place action programs for the good of the country and the people to achieve the promised land of Sonar Bangla for which millions have sacrificed their lives and belongings. Unless that is done, the nation will remain divided and ever increasing enmity and lawlessness will cripple its economy leading to economic deprivation and chaos.  Therefore, it is imperative to review and reflect and of course, take a bold step though nationwide dialogue and discussion. Let us vow to establish DGS, a technology-based management system with a view to fully utilize the national resources for accelerated growth and development of Bangladesh. Remember, our worst enemy is the fear and fear itself while our best hope is our faith in ourselves. Let us keep our faith alive, let us keep our hope alive. 

___________

* Dr. Abdul Momen is a professor of Economics and Business Management in Boston.