The year 2024 was a monumental time for Bangladesh as protests rocked the nation for three months, culminating in the previous government being forced to resign. Immediately, the interim government was tasked with implementing various structural reforms in order to address the numerous systemic problems facing the average citizen in Bangladesh, including continued vulnerabilities within the financial sector, rising inflation and decreased GDP growth.

Transitional Power

Even before the Monsoon Revolution, Bangladesh was experiencing momentum in economic growth. Implementing trade reforms and export diversification helped to sustain growth as inflationary pressure eased and external conditions improved.

However, that was off the back of 15 years of consolidated power, weakening civilian institutions and using force to suppress critics and opposition members of the government.

Now that the regime had been ousted and the new interim government put in its place, it was immediately faced with the structural pressures a less-than-peaceful transition of power brings about.

The new prime minister laid out a roadmap centered on reform of the financial sector and economic stabilization. Policies such as restoring the independence of the Bangladesh Bank, deregulating the financial market and accelerating reforms to improve revenue mobilization were implemented. These reforms are intended to ensure a gradual ease in doing business in the country and macroeconomic stabilization.

The new ruling Bangladesh Nationalist Party has also made other reforms part of its platform, including combating corruption with a stated zero-tolerance policy. The party has addressed the disparity between the rich and poor, looking to create an Economic Reform Commission to address the gap through the “equitable distribution of growth benefits, upholding equality, human dignity, and social justice.” The party also plans to bring fair wages for the working class and reform labor laws to create better working environments.

Looking Ahead

Since the July Uprising, Bangladesh has been in a state of transition across its economy, politics and standard of living. With structural reforms being passed and plans laid out to address the systemic issues in Bangladesh, the effectiveness of the new government’s approach will become clearer over time.

– Alexander Petrov

Alexander is based in Boston, MA, USA and focuses on Business and Good News for The Borgen Project.

Photo: Flickr