Dhaka: Economists, academics, business leaders, and policy experts today underscored the importance of strengthening Bangladesh’s policy independence to ensure sustainable and inclusive economic development while navigating an increasingly complex global environment.
According to Bangladesh Sangbad Sangstha, the observations came at a fireside conversation titled ‘Development Strategy and Policy Independence: Navigating Bangladesh’s Development Pathway,’ organized by the Policy Research Institute of Bangladesh (PRI) at its conference room in the capital.
Speaking as the featured guest, Professor Emeritus at Western Sydney University and former Special Assistant to the Chief Adviser, Dr. Anisuzzaman Chowdhury, emphasized that policy independence is fundamental to Bangladesh’s long-term economic progress. He highlighted that the privatization initiatives introduced during Shaheed President Ziaur Rahman’s tenure, along with the emergence of the ready-made garment (RMG) industry and agricultural integration, laid the foundation for the country’s economic transformation, as stated in a press release.
Referring to the development experiences of Vietnam and South Korea, Dr. Chowdhury noted that their economic success was built on independent and consistent policymaking tailored to domestic needs. He mentioned that during an interim government’s tenure, Bangladesh Bank did not fully adhere to certain policy prescriptions of the International Monetary Fund (IMF), underscoring the importance of adapting reforms to Bangladesh’s own economic realities.
He stressed the need to strengthen social capital, empower civil society, eliminate vested interest groups, and depoliticize public institutions, particularly educational institutions, to enhance governance and policy autonomy. Dr. Chowdhury also expressed optimism that tighter global immigration policies would encourage Bangladesh’s young population to seek greater economic opportunities and reforms within the country.
PRI Chairman Dr. Zaidi Sattar, who moderated the discussion, remarked on Bangladesh’s significant economic shift following the democratic transition in 1991. He recalled the economic challenges of the early 1990s, noting stagnant growth, critically low foreign exchange reserves, and severe macroeconomic instability. The government responded by shifting from an import-substituting, state-controlled economy to a market-oriented, liberalized, and open-trade framework through exchange rate flexibility, current account convertibility, privatization, and financial sector reforms.
Metropolitan Chamber of Commerce and Industry President Kamran T. Rahman commented on how World Bank and IMF financing has traditionally been accompanied by governance and reform-related conditions. He questioned whether such conditions reflected reforms Bangladesh needed to undertake or commitments that had not been fully implemented.
Centre for Policy Dialogue Executive Director Dr. Fahmida Khatun stated that Bangladesh has strengthened its policy voice and negotiating capacity over the years, resulting in greater policy independence. She emphasized that as the country’s graduation from Least Developed Country (LDC) status approaches, policymakers should focus on long-term structural transformation rather than short-term adjustments. She also warned that growing global polarization has weakened multilateral institutions, complicating international cooperation, and stated that genuine policy independence requires resilience against both external pressures and domestic vested interests.
SANEM Executive Director Dr. Selim Raihan noted that civil society has consistently advocated for deeper reforms, while development partners, including the World Bank and IMF, have increasingly taken country-specific contexts into account. He added that the success of such engagements largely depends on Bangladesh’s own negotiating capacity.
Participants exchanged views on the institutional reforms and policy priorities required to support sustained, inclusive, and resilient economic development, emphasizing the importance of informed dialogue among policymakers, researchers, private-sector representatives, and civil society. The session featured a distinguished panel: Kamran T. Rahman, President of the Metropolitan Chamber of Commerce and Industry; Dr. Fahmida Khatun, Executive Director of the Centre for Policy Dialogue; Dr. Selim Raihan, Executive Director of the South Asian Network on Economic Modeling (SANEM); Dr. AKM Waresul Karim, Dean of the School of Business and Economics at North South University; and Md. Rezwan Selim, Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).