Dr Zahid Hussain, former lead economist at the World Bank’s Dhaka office, challenged the notion of a “dream economy” during the Awami League’s undemocratic 15-year rule, saying official growth figures were grossly manipulated.
From July 2008 to July 2019, GDP growth averaged 4.2% instead of the official figure of 7%, Dr Zahid said, alleging that many policy measures, like duty hikes, only added fuel to the inflation fire.
The veteran economist was speaking at a high-profile symposium on Saturday on the state of the economy. The event, titled "White Paper and Beyond: Economic Management, Reforms, and the National Budget," was organised at a conference centre in Sher-e-Bangla Nagar, Dhaka, by the White Paper Drafting Committee 2024 with support from the Citizen Platform for SDGs.
Dr Zahid identified underinvestment, global disruptions, misguided policies, and the pandemic’s aftermath as key contributors to the current economic downturn.
With low revenue and forex earnings growth, the country became increasingly dependent on debt for its annual development programme. However, the development projects were marred by corruption and mismanagement, he said.
"Consequently, borrowed money (both in dollars and taka) ultimately moved into the accounts of cronies at home and abroad via ADP projects, burdening current and future generations with debt."
The path to reviving the economy depends on sound policies and political commitment to economic reforms. However, the cost of inaction is becoming increasingly evident, Dr Zahid said.
The day-long symposium featured twelve study papers and a series of discussions by local and international experts, focusing on economic management, proposed reforms, and strategies for developing Bangladesh’s economy through the national budget.
Experts at the event stressed the need for comprehensive and long-term reforms to tackle Bangladesh's deeply rooted economic challenges, warning that the nation’s structural issues require immediate attention to ensure sustainable growth.
Bd-Pratidin English/ AM
