Finance Adviser Dr Salehuddin Ahmed has emphasised the urgent need for establishing countervailing power in Bangladesh to ensure effective checks and balances in governance. Speaking at the launch of Dr Hossain Zillur Rahman’s new book “Orthoniti, Shashon O Khomota: Japito Jiboner Alekkho”, Dr Salehuddin remarked that good governance has become increasingly difficult over the years, particularly due to the concentration of power and institutional deterioration.
The event took place on Saturday at the CIRDAP Auditorium in Dhaka, attended by eminent academics, economists, political analysts, and civil society members.
Key Observations by Dr Salehuddin
- Lack of Checks on Power:
“There is no check and balance on the power of the Prime Minister or Members of Parliament. Without reforming this area, other reforms will prove ineffective.”
- Governance Challenges:
“In my experience of running the Ministry of Finance, I’ve found it extremely difficult to govern a country like Bangladesh effectively.”
- Need for Political and Institutional Reform:
“Even political parties need internal reforms. Development cannot happen without a political framework.”
- Economic Crisis and Banking Sector:
“No country in the world has suffered such economic turmoil as Bangladesh in the last 16 years,” he said, citing former central bank governor and student Dr Ahsan H Mansur.
“An estimated $35 billion is required to rescue the banking sector, while the IMF estimated it at $18 billion. Chairpersons of banks have looted nearly 80% of their institutions’ funds.”
Table: Estimated Banking Sector Losses
| Metric | Estimated Value |
| Outstanding Bank Loan | ৳20,000 crore |
| Estimated Embezzled Amount | ৳16,000 crore (80%) |
| IMF’s Rescue Estimate | $18 billion |
| Revised National Estimate | $35 billion |
Institutional Decline and Economic Governance
Dr Salehuddin criticised the systemic weakening of national institutions, stating that:
“Most institutions are dysfunctional. The same individuals remain in power, and the system has not been repaired.”
He also highlighted the tax-to-GDP ratio, which remains around 7.5%, significantly lower than countries like Norway and Sweden.
On LDC Graduation
Referring to Bangladesh’s planned graduation from the Least Developed Country (LDC) status, he acknowledged opposition from business communities but stressed the importance of preparation.
“We can’t avoid LDC graduation; we must be prepared for the transition.”
Remarks by Other Prominent Speakers
- Dr Hossain Zillur Rahman:
“If we don’t focus on economy, governance, and power simultaneously, real improvement will be elusive.”
- Prof Mahbub Ullah:
“If political stakeholders don’t address existing inequalities, the country faces even greater risks.”
- Dr Fahmida Khatun (CPD Executive Director):
“Weak institutions are a product of a lack of competitive politics. We’re still trapped in low-level equilibrium.”
- M Humayun Kabir (Bangladesh Enterprise Institute President):
“Democratic practice must be sustained at all costs.”
