Experts Urge Homegrown Reforms to Secure Bangladesh's Future

Bangladesh must reinforce policy independence, strengthen institutions and pursue nationally driven reforms to sustain long-term economic growth and steer its next phase of development, leading economists, business leaders and academics said at a high-level discussion organised by the Policy Research Institute of Bangladesh (PRI) on Sunday.

The discussion, titled "Development Strategy and Policy Independence: Navigating Bangladesh's Development Pathway," brought together prominent policymakers, researchers, corporate leaders and development experts at PRI's conference room in the capital to examine the country's future economic direction ahead of its graduation from Least Developed Country (LDC) status.

Presenting the keynote paper, Dr Anisuzzaman Chowdhury, Professor Emeritus at Western Sydney University and former Special Assistant to Bangladesh's Chief Adviser, said the country's early economic success was driven by bold domestic policy decisions, including the privatisation initiatives introduced during President Ziaur Rahman's tenure, the rapid expansion of the ready-made garment (RMG) industry and the integration of agriculture into the broader economy.

He warned, however, that Bangladesh's policy autonomy has gradually weakened as reforms have become increasingly shaped by external influences instead of national priorities.

Drawing lessons from Vietnam and South Korea, Dr Chowdhury said their remarkable economic achievements were built on consistent, independent and long-term policymaking. He stressed that Bangladesh must strengthen social capital, empower civil society, curb vested interests and depoliticise public institutions�"particularly educational institutions�"to build effective governance and restore policy independence.

Chairing the session, PRI Chairman Dr Zaidi Sattar traced Bangladesh's economic transformation since the early 1990s, recalling that reforms introduced after the 1990 economic crisis shifted the country from a state-led, import-substitution model to a more competitive market economy through trade liberalisation, exchange rate flexibility, privatisation and financial sector reforms.

Although the pace of reforms slowed in later years, he noted that Bangladesh has significantly reduced its dependence on foreign assistance, with external aid declining from around 6 per cent of GDP in the 1970s to below 2 per cent today�"a sign of growing economic resilience.

Metropolitan Chamber of Commerce and Industry (MCCI) President Kamran T Rahman questioned the continuing debate over policy conditionalities imposed by the World Bank and the International Monetary Fund (IMF), arguing that Bangladesh should focus on shaping reforms that reflect its own development priorities.

Centre for Policy Dialogue (CPD) Executive Director Dr Fahmida Khatun said the country's growing negotiating capacity has enhanced its policy independence, but emphasised that policymakers must remain focused on long-term structural transformation as Bangladesh prepares for LDC graduation.

SANEM Executive Director Dr Selim Raihan observed that the effectiveness of engagement with development partners ultimately depends on Bangladesh's own negotiating strength and institutional capacity rather than external prescriptions.