Bangladesh News

Chief Adviser (CA) Fakhruddin Ahmed has said his government will make corruption costly for politicians, bureaucrats and businessmen.

“This is by no means an easy task, but we’re committed to eradication of high-level corruption,” he said while delivering a lecture at Columbia University on Thursday.

The chief adviser also pleaded for checks and balances in democracy to stop abuses of power and corruption, saying the caretaker government is working hard to develop zero tolerance against these vices.

“We must ensure that our people reap the benefits of economic growth… We’re determined to re-institute the checks and balances of a functioning democracy,” he said.

The lecture organised by the World Leaders’ Forum was followed by a 30-minute question-answer session when students of Columbia University and other invited guests asked the chief adviser various questions.

The chief adviser told a questioner that the present caretaker government would not stay a day longer than necessary after the election.

He said two former prime ministers –Khaleda Zia and Sheikh Hasina–have been arrested under the law of the land and they will have access to the due process of law. After judgement in the cases against them at lower courts, they will be able to appeal to the High Court and the Appellate Division.

The chief adviser dispelled the notion that the political parties in Bangladesh will disappear in the wake of the arrests and convictions of senior leaders. He said new leaders will take the responsibilities of their parties and the reformed parties and the reformed administration will yield positive results and help establish good governance.

Asked why Khaleda and Hasina have been kept in sub-jails, Fakhruddin said the sub-jails have been set up in accordance with the jail code as it happened in the past too to accommodate the prisoners.

In reply to a question about the detention of people at an unknown place by military intelligence, the head of the caretaker government said the arrests were made in accordance with the law and the accused were produced before the court.

He said after the arrests both Sheikh Hasina and Khaleda Zia were produced before the court and then sent to jail.

Asked about his own income tax, the chief adviser told a questioner that he has submitted his income tax return.

Director of Southern Asia Institute Mrs Vipya J. Behejia moderated the session.

Earlier in his written statement, the chief adviser said democracy is a necessary but not sufficient condition for good governance. Citing examples, he said democratically elected governments in Bangladesh in the past 15 years failed to promote good governance and protect citizens’ rights.

“We must accept that while democracy may take various forms and manifestations, its ultimate objective is always the same – the rule of law by the will of the people.”

Referring to Westminster type parliamentary democracy practised in Bangladesh, he said, “Winner-takes-all” system of politics implies that winning an election brings nearly absolute power in a given district.

He said the caretaker government is doing its best to purge the malady of corruption in order that the promise of democracy can be fulfilled and elected governments in the future will act for the public good instead of pursuing their own interests.

Rejecting the argument that “corruption increases efficiency”, Fakhruddin, former governor of Bangladesh Bank, said such argument do not account for the negative externalities of corruption or its wider impact on productivity.

The chief adviser whose government launched a war on corruption said, “Our government is thus working hard to develop zero tolerance against abuse of power and corruption.”

In his exhaustive speech, the chief adviser touched on Bangladesh’s success in alleviating poverty through micro-financing, reaching targets of MDGs, labour migration, increases in remittance and over all economic growth.

He said labour migration stimulates development in the countries of origin, but it also benefits the recipient countries by meeting labour shortages in critical areas.

By some estimates, he said, the origin countries of temporary labour migration would enjoy a return of up to $ 200 billion if the EU, Canada, Japan and the US allowed migrants to make up just 4 percent of their labour forces.

The chief adviser said Bangladesh government believes that both source and recipient countries should work to promote temporary labour migration and to protect the interests of migrant workers.

He said temporary labour migration and remittances will continue to play an important role in poverty reduction in the foreseeable future.

Referring to the plight of migrant workers in destination countries, the chief adviser said migrant workers often face prejudice, discrimination and marginalisation. “The lack of a fuller understanding as to how migration can benefit all often breeds these negative reactions. The challenge is to dispel such negativity.”

He said while Bangladesh has made a commendable progress, the country still faces formidable challenges.

He said agricultural production is showing signs of diminishing marginal returns. Given the finite amount of land and a growing population, land use is approaching an upper limit. This severely limits the ability of many poor people to earn a livelihood from farming. “New investments and innovations in agriculture to boost productivity will remain a key to maintaining our food security,” he noted.

Referring to the garment sector that employs more than two million women, he said the future of this important sector will depend heavily on its ability to compete with other garment producing countries. It will also depend on the outcome of the Doha Development Round, in the areas of special and differential treatment.

He said if Bangladesh loses preferential market access for its RMG exports to Europe and North America, the country is likely to face a large number of job losses. “We’re already seeing the signs of a sluggishness in RMG exports. This will have severe adverse consequences on poverty reduction efforts.”

By some estimates, he said, almost 740,000 garment workers, mostly women, will lose their jobs if Bangladesh loses preferences. If possible job losses in other sectors dependent on the RMG industry are taken into account, the number may be as high as 2.6 million.

On trade liberalisation, he said Bangladesh has taken bold steps to liberalise its trade since the early 1990s. Trade now accounts for nearly 37% of our GDP, compared to about 19% in 1992. During the same period, our average MFN tariff declined from 47% to 13.5%.

He said the result of liberalisation is reflected in nearly four-fold increase in the country’s imports, from $ 4 billion in 1992 to $ 14 billion in 2006.

Concurrently, he said, the trade deficit as a percentage of GDP rose from 4.8% to 6.5%. This shows that Bangladesh’s exports have not kept up with the growth in imports. “It’ll remain a daunting challenge for us to pursue a pro-poor trade policy, especially to ensure that liberalisation leads to job-growth, both in traded and non-traded sectors.”