Dhaka: Dr Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue (CPD) and convenor of the Citizen's Platform for SDGs, Bangladesh, has highlighted the interim government's introduction of greater transparency in the economic sector as a significant lesson for future governments. This assessment comes in light of the interim administration's efforts to address and clarify the current economic challenges facing the country.
According to Bangladesh Sangbad Sangstha, Dr Debapriya emphasized that the government has successfully met its initial challenge by providing evidence-based transparency regarding the economic situation and its evolving challenges. This transparency is regarded as a fundamental contribution to the nation's governance. He shared these insights during an interview with BSS at the CPD Centre in Dhaka.
Dr Debapriya pointed out that following the publication of the White Paper, it has become widely recognized that the current government inherited an economy plagued by structural challenges and policy-related issues. He remarked that understanding the benchmark situation was a major challenge for the government, and now both the government and society have a clearer idea about the extent of public fund mismanagement over the past decade and a half.
The economist credited the interim government with promoting transparency, which he hopes will prevent future governments from engaging in the mismanagement that characterized previous administrations. He noted that the White Paper revealed how a triangulation of interest groups, including politicians, business people, and bureaucrats, contributed to the nation's descent into crony capitalism and eventually kleptocracy.
Dr Debapriya further stated that the corruption and malfeasance of the previous regime, as detailed in the White Paper, have been reported by leading global media outlets, including the New York Times and The Economist. As a second challenge, he highlighted the need for the government to stabilize and consolidate the macroeconomic situation, focusing on stabilizing the economy, generating private investment, and creating employment.
He observed that the foreign exchange reserves are stabilizing, and the exchange rate has become more market-based, reducing the likelihood of major shocks. However, he noted that controlling market price rises remains a challenge, with supply-side responses in the face of monetary control still being inadequate.
To address these issues, Dr Debapriya emphasized the importance of institutional and regulatory reforms, which he described as the third major challenge for the interim government. Success in these reforms, he argued, will pave the way for the country's sustainable development in the future.