Leading Economist Proposes Radical Shifts for Bangladesh’s Governance
Professor Mohammed Farashuddin, a former Bangladesh Bank governor and respected economist, recently unveiled a comprehensive vision for national reform. Speaking at the ‘Nehreen Khan Memorial Lecture’ in Dhaka, he presented detailed proposals spanning constitutional, administrative, and economic sectors.
He strongly criticized the caretaker government system, calling it a form of bureaucratic mismanagement. Professor Farashuddin suggested that relying on such a system shows a lack of confidence among political leaders, which is not a positive sign for the country’s democracy.
In his address, titled “Constitutional Reform and Democratic Governance: The Bangladesh Perspective,” he offered several key changes. To strengthen the presidency, he proposed a broad ‘Electoral College’ for presidential elections. This body would include not only Members of Parliament (MPs) but also representatives from various local councils and city authorities. He also suggested that the President should appoint all constitutional posts, following consultations with both the Prime Minister and the Leader of the Opposition.
To address the “winner-takes-all” dynamic in elections, Professor Farashuddin recommended establishing a 100-member Upper House. Members of this body would be elected based on the proportion of votes each political party receives. This Upper House would then review constitutional amendments and important laws.
He also proposed amending Article 70 of the Constitution. This change would allow MPs to vote against party directives on most issues, except for constitutional amendments, no-confidence motions, and finance bills. Additionally, a two-thirds majority within a parliamentary party should be able to form a separate group.
Regarding women’s participation in politics, Professor Farashuddin suggested that at least one-third of a party’s national election candidates must be women for party registration, with this ratio increasing to 50 percent over time. He also advocated for reducing election costs by decreasing security deposits and partially funding campaigns from state resources, along with strict auditing.
In administrative reforms, he highlighted about 500,000 vacant public sector jobs. Filling these positions fairly could significantly reduce unemployment. He also proposed an independent commission to reform the bureaucracy and a scheme to retire inefficient officials with ‘golden handshakes’.
Turning to the banking sector, Professor Farashuddin pointed out alarming trends. The upfront cash deposit required for loan rescheduling has dropped from 10 percent to just 1 percent. The number of family members allowed on bank boards has doubled, and their tenure has tripled. He noted that defaulted loans have surged from Tk 90 billion in 1990 to an estimated Tk 6 trillion today, making up 36 percent of all disbursed loans. To tackle this, he advised separating the interest on non-performing loans into a distinct account.
Despite challenges, he expressed optimism about Bangladesh’s economic future, projecting a trillion-dollar economy by 2036, up from $460 billion today and $10 billion in 1972. However, weak revenue collection remains a major hurdle, requiring full automation of the tax system.
Professor Farashuddin concluded by emphasizing inclusive politics, stating that excluding any large segment of the population from the political process would lead to failure. He stressed that sustainable reform requires universal participation.
The lecture was part of the eighth annual ceremony honoring Nehreen Khan, a former student of East West University, who passed away in 2016.
