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Growth amid decline: The governance paradox

Growth amid decline: The governance paradox
Photo: Collected
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From the ruins of war, famine, poverty, and institutional collapse, Bangladesh has emerged as a lower-middle-income economy with significant achievements in exports, poverty reduction, women’s participation in the workforce, life expectancy, education, infrastructure, and social development. The rise of the ready-made garment industry, the contribution of millions of migrant workers, the resilience of rural communities, and the determination of ordinary citizens have transformed Bangladesh into one of South Asia’s most dynamic economies.

Yet beneath this impressive progress lies an increasingly urgent question: Why has Bangladesh struggled to build governance institutions and leadership systems capable of matching the scale of its economic and social transformation? The answer cannot be found simply in the success or failure of individual leaders. The central problem is structural. The country suffers from systems that too often fail to identify, promote, protect, and sustain competent leadership. Institutions remain vulnerable to political influence; merit is frequently challenged by loyalty and patronage; accountability is inconsistent; and long-term national priorities are often overshadowed by short-term political calculations. This is the essence of Bangladesh’s leadership deficit.

Leadership is often understood as a matter of personality – charisma, popularity, courage, vision, or political strength. Strong states are built upon institutions that continue to function when governments change, leaders retire, political priorities shift, or crises emerge. The real test of leadership is whether that leader can build institutions capable of making sound decisions.

Effective governance rests upon three principles: rule-based administration rather than personality-based control; transparency supported by enforceable accountability; and continuity combined with the capacity to adapt. When these principles weaken, governance becomes uncertain. Decision-making becomes centralised, officials become reluctant to exercise professional judgment, and leadership becomes increasingly focused on political survival and immediate visibility rather than strategic and sustainable national development. This is particularly dangerous for a country seeking to become an upper-middle-income and eventually a developed nation.

The nation has achieved impressive economic progress. Exports have expanded, infrastructure has improved, and national income has increased. But economic growth alone cannot guarantee institutional stability. A larger and more complex economy requires stronger financial regulation, better urban management, transparent procurement, effective taxation, reliable courts, and accountable local government. The institutions required to manage a predominantly rural and poorer economy are not sufficient for a rapidly urbanising, industrialising, globally connected, and climate-vulnerable nation. Bangladesh also should strengthen the institutions responsible for maintaining, regulating, financing, and governing these investments.

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Governance weaknesses are visible across several sectors. The financial system remains vulnerable to non-performing loans and weak institutional discipline. Public institutions often suffer from administrative delays and fragmented authority. Major projects can experience cost escalation and implementation delays. Cities face congestion, pollution, unplanned development, and poor coordination among agencies.

One of Bangladesh’s persistent weaknesses has been the concentration of authority around powerful individuals or narrow political groups. Centralised authority can sometimes produce rapid decisions. But excessive centralisation weakens institutions by discouraging independent judgment, limiting internal debate, and reducing accountability. When institutions become dependent upon personalities, their effectiveness may rise or fall according to political circumstances. Professional officials may become more concerned with political expectations than institutional responsibilities. Institutional independence does not mean institutional conflict. It means that public bodies should perform their duties according to law, evidence, and public interest.

The quality of governance depends greatly upon what the system rewards. If political loyalty is valued more than competence, merit will gradually weaken. If promotions are disconnected from performance, efficiency will decline. If institutional failure carries little consequence, public responsibility will erode. The problem is therefore not simply financial corruption. It is also the corruption of incentives.

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The country needs systems where competent officials are recognised, honest professionals are protected, innovation is encouraged, and persistent failure has consequences. Senior public officials should be evaluated through transparent performance systems linked to measurable outcomes such as service delivery, project implementation, administrative efficiency, and public satisfaction. At the same time, public servants require continuous professional training in public policy, digital governance, financial management, ethics, climate resilience, and evidence-based decision-making. Artificial intelligence, climate change, global trade, urbanisation, and financial complexity require expertise beyond traditional administrative methods.

Political parties are the principal institutions through which future leaders emerge. Yet when internal democracy is weak, leadership opportunities become limited. Candidate selection may become opaque, while young and capable individuals struggle to rise. They should establish transparent rules for internal elections, leadership selection, candidate nomination, and financial accountability. Political competition should not mean permanent hostility. Governments and opposition parties can disagree strongly while cooperating on national priorities such as education, climate resilience, financial stability, judicial reform, public health, and long-term economic planning.

Government services should increasingly be delivered through accessible digital platforms. Licensing, taxation, land records, social protection, and public complaints should be simplified and integrated. Digital governance can reduce delays, limit discretionary authority, and reduce opportunities for corruption. But technology alone cannot solve governance problems. Digital systems must be supported by institutional accountability, data protection, professional capacity, and independent oversight. The judiciary requires improved case management and greater efficiency. Long delays in justice weaken the rule of law and increase the cost of doing business. The financial sector requires stronger regulation, professional bank governance, transparent accountability, and effective mechanisms for dealing with non-performing loans.

Local government must also be strengthened. Dhaka and other rapidly growing cities cannot be effectively managed through excessive centralisation. City governments need greater authority, professional capacity, financial resources, and public accountability.

Citizens must become informed participants rather than passive observers. They should have access to reliable information about public expenditure and development projects. Public hearings, citizen report cards, local monitoring mechanisms, and accessible grievance systems can strengthen trust and improve public services. An informed citizen is a safeguard for the state.

Bangladesh should adopt a phased reform strategy. During the first two years, priority should be given to visible improvements: digital public services, transparent procurement, project-monitoring platforms, faster administrative procedures, and effective grievance mechanisms. Within three to five years, deeper reforms should include civil-service performance systems, financial-sector governance, stronger oversight institutions, judicial modernisation, and improved local-government capacity. Over six to ten years, Bangladesh should institutionalise merit-based leadership development, political reform, export diversification, advanced digital governance, climate resilience, and long-term national planning.

Reform must be measurable. Independent institutions should publish regular scorecards covering public-service delivery, judicial efficiency, project implementation, financial stability, urban management, and public confidence. Without measurement, reform becomes rhetoric. Without accountability, policy becomes aspiration.

The challenge is whether the country can build institutions strong enough to sustain that progress, protect the public interest, and ensure that national development does not depend upon the strength or weakness of particular individuals.

Deliberate reform will require political courage, national consensus, administrative discipline, and continuity across governments. But it offers the only credible path toward a state that is capable, accountable, inclusive, and resilient. Bangladesh has already achieved an economic transformation. Its next transformation must be institutional.

The views expressed in this article are solely those of the author

The writer is a columnist and political analyst

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