Bangladesh’s Interim Government Charts Path Toward Reform

BowerGroupAsia wrote an update to clients on key reforms of Bangladesh’s new interim government.

Context

• Bangladesh Chief Adviser Muhammad Yunus announced a set of reform initiatives in a nationwide address September 11, marking the end of his first month in office. He also catalogued some of the major achievements of the interim government, amid pressure from growing public expectations and declining public services. The government’s legitimacy will for the most part depend on its ability to ensure the continued provision and improvement of public services.
• Labor unrest continues in the country, particularly among garment workers, who are clamoring for higher wages. This discontent in factories is raising concern in foreign-owned factories. The Ministry of Labor and Manpower has agreed to review salaries through meetings including factory owners, labor unions and government agencies.
  
  

Significance

• Yunus announced the formation of six commissions headed by respected specialists. This is in keeping with the transition toward a democratic system of government by establishing a fair electoral system and good governance, which is at the core of Yunus’ policy.
• The commissions are expected to start work October 1 and finish by December 31. Based on their recommendations, the interim government will organize discussions with major political parties. A series of discussion will then take place with representatives from civil society, political parties and the government. Yunus expects the discussions to help finalize the outline of the reform plan and its implementation. The Bangladesh Nationalist Party has cautiously welcomed the initiative and called on the interim government to arrange elections as soon as the reforms are completed. Public reactions have been generally positive.

Implications

• Multiple segments of society seek to cash in on Bangladesh’s new opening following the fall of the last government, which exercised tight control over the country. The interim government still enjoys widespread support and has appointed competent, honest and dedicated people to its leadership, so it is possible that the situation will improve soon. For now, the speed and strength of Bangladesh’s economic recovery will depend on the government’s ability to complete its reform agenda.

We will continue to keep you updated on developments in Bangladesh as they occur. If you have any questions or comments, please contact BGA Head of Research Murray Hiebert at mhiebert@bowergroupasia.com.

Best regards,

BowerGroupAsia

BowerGroupAsia