The Economic Miracle and Political Turmoil in Bangladesh
Not long ago, Bangladesh was lauded as a remarkable economic success story. The nation’s unwavering focus on exporting textiles and apparel resulted in rapid economic growth, lifting millions out of poverty and earning Prime Minister Sheikh Hasina international acclaim. However, her unexpected departure from power this week has revealed the inherent weaknesses of this one-dimensional economic strategy, particularly as Bangladesh grapples with soaring inflation and rising unemployment—issues that many economists attribute to misguided policy decisions.
Ms. Hasina’s increasingly authoritarian governance, coupled with pervasive corruption throughout the country, has only fueled the public’s frustration, culminating in widespread protests that ultimately led to her ousting. Now, Bangladesh stands at a crucial crossroads, tasked with determining its future direction.
Student protesters who had rallied for Ms. Hasina’s resignation have turned to Muhammad Yunus, a Nobel laureate renowned for his pioneering work in microfinance, to lead an interim government. Mr. Yunus faces an immense challenge ahead.
In the immediate term, the priority for the country is to restore order and stabilize its economy. However, in the longer term, Bangladesh must confront the broader economic pressures that initially drove citizens to take to the streets. This daunting task is compounded by urgent demands for accountability and redress regarding the numerous abuses committed during Ms. Hasina’s repressive tenure.
A garment store ablaze during protests in Dhaka on Sunday, a stark representation of the turmoil. Credit: Abu Sufian Jewel/Agence France-Presse — Getty Images
The duration of the interim government and the extent of its mandate remain uncertain. Nevertheless, both it and Mr. Yunus carry the weight of the populace’s aspirations, which include delivering justice, fostering a functional economy and democracy, and establishing the rule of law alongside a transparent and accountable government. According to Saad Hammadi, a fellow at the Balsillie School of International Affairs in Canada, this is a pivotal moment for Bangladesh.
