Political democracy without economic democracy is meaningless. If people remain trapped in poverty and deprivation, political rights lose their value. True democracy requires the elimination of economic exploitation and inequality, ensuring that citizens can live free from want.
Yet, in Bangladesh, discussions of democracy have long ignored the economic dimension. Recently, however, the new BNP government has begun to include economic democracy in its planning.
Bangladesh’s political and economic foundation lies in its middle and lower-middle classes. Over the past 55 years, the absence of economic democracy has weakened these groups, turning them into a declining class. As a result, political democracy has repeatedly stumbled, and politics itself has fallen under the grip of corruption and criminalization.
Political democracy becomes meaningful only when people’s basic needs are secured. Without solving fundamental economic problems, political freedom remains an empty aspiration.
As Professor Harold Laski observed, until economic equality is established, a truly democratic society cannot exist. In Bangladesh, while political democracy has been debated, economic democracy has been neglected -- causing democracy to falter time and again.
The link between economy and democracy has long existed and for Bangladesh, it is a harsh reality. Experts argue that economic freedom and equality are essential for political stability and democratic progress. History shows that when the economy weakens, the middle class collapses, and democracy cannot survive.
A weakening of the middle class means a weakening of democracy. Politics and economics are like two parallel railway tracks -- without both, the train of democracy cannot move forward. Or it can be compared to a bicycle: If its two wheels do not rotate evenly, it loses balance and falls. When the economy crumbles, politics degenerates, the middle class suffers, and democracy loses its foundation.
Economic democracy also influences other dimensions of democracy. It ensures equal participation for all citizens in collective activity. Yet, in Bangladesh, the richest 10% control 60% of the nation’s wealth, while the bottom 50% -- half the population -- share only 4%. Similarly, the poorest 40% receive just 10% of national income, while the richest 10% take 50%.
Equality, good governance, accountability, and a democratic environment strengthen the economy. A well-organized market builds investor confidence. But when the majority’s economic base erodes, their income and purchasing power decline, weakening democracy itself.
Bangladesh’s history shows that whenever the economy has collapsed, democracy has suffered, and politics has been corrupted. The same pattern is visible globally -- for instance, the Great Depression of the 1930s paved the way for World War II.
During the last 16 years of Awami League rule, corruption was institutionalized under the guise of development, creating an oligarchic authoritarian system. Entrepreneurs were forced to serve ruling party interests, banks were looted, and false statistics were presented as truth.
Honest business became nearly impossible without political connections. As a result, economic inequality doubled compared to 1971. This deadlock was broken in July 2024, when students and citizens rose in an unprecedented mass movement. That uprising echoed the unfinished goals of the 1971 Liberation War -- equality, democracy, justice, and human dignity -- marking the beginning of a new dream for Bangladesh.
In the aftermath, economic issues gained special importance in discussions about building a new Bangladesh. The interim government formed reform commissions and sought consensus through a National Council, but failed to prioritize economic reform.
False statistics about LDC graduation were maintained to serve bureaucratic interests, discouraging investment and stalling job creation. Poverty and inequality grew, contradicting the spirit of the July Revolution. Bangladesh, labeled a so-called “middle-income country,” quickly lost markets and investment opportunities.
The term democracy itself comes from the Greek demos (people) and kratos (rule), emphasizing participation. Economic democracy extends this principle, advocating for ownership, control, and decision-making power to be shared.
Bangladesh has significant potential for democratizing its economy. To achieve this, several fundamental measures are essential but at the heart of it, equitable economic policies must prioritize the poor and marginalized.
- Basic social services: Quality education, healthcare, and access to safe water and sanitation must be guaranteed.
- Pro-poor fiscal policies: Taxation and budget spending should favour the disadvantaged, and the indirect tax system must be abolished.
- Support for small enterprises: Incentives for small businesses and the informal sector can expand production and opportunity.
- Inclusive growth strategy: A development model that benefits all citizens will strengthen economic democracy.
Bangladesh’s journey toward being a better democracy cannot succeed without economic democratization. Only by ensuring equality, justice, and shared prosperity can the nation fulfill the unfinished promises of 1971 and the aspirations of the July 2024 Revolution.
Over the past five and a half decades, Bangladesh’s official narrative of economic growth has been bright -- but its dark shadow has been equally long.
Recent private statistics show that the country's Gini coefficient has climbed from 0.30 in 1971 to 0.60, a stark indicator of extreme income inequality. The divide between urban and rural areas, the capital and the periphery, and the rich and the poor is deepening.
Economists argue that, in terms of inequality, today’s Bangladesh resembles the old divide between East and West Pakistan -- two realities within one nation.
Regional gaps and income concentration reinforce this troubling parallel. Rising inequality, uneven regional development, and the shrinking middle class remind us of the pre-independence divide.
While Dhaka enjoys development, opportunity, and power, the rest of the country suffers neglect and frustration. Without economic democracy -- fair distribution of resources, decentralization, and citizen participation -- political democracy cannot be strong or sustainable. Economic injustice undermines democratic justice.
Numbers behind the divide
Official statistics show average GDP growth of 6.5% between 2006 and 2024, with per capita income rising to $2,850. Yet, 40% of the population still lives below the poverty line, earning less than $2 per day. Urban poverty stands at 34%, while rural poverty exceeds 46%.
Revenue collection has fallen from 12% of GDP (2007-08) to just 6.5% (2025-26). Major infrastructure projects -- Padma Bridge, Jamuna Bridge, the metro rail, airports, and the Karnaphuli Tunnel -- are concentrated around Dhaka and nearby regions, intensifying regional inequality.
Dhaka and Chittagong dominate the economy, controlling 75% of industry, trade, energy use, bank loans, and GDP. This concentration mirrors the pre-1971 imbalance, when West Pakistan monopolized resources while East Pakistan was marginalized.
Democratic threat
Inequality is not only about income -- it extends to opportunities, education, healthcare, political influence, and social security. Such disparity weakens democracy, restricts political participation, fuels unrest, and wastes human potential. The anger of marginalized communities grows, threatening national unity.
Bangladesh fought a Liberation War in 1971 against West Pakistan’s economic exploitation, sacrificing countless lives. Yet, development, jobs, investment, education, and healthcare have been centralized in Dhaka, leaving other regions behind. This imbalance undermines democracy and fuels instability.
Globally, after the 2007-08 financial crisis, the idea of economic democracy gained traction as an alternative to capitalist concentration of wealth and corporate monopoly.
Its principles include:
- Community-first approach -- prioritizing collective welfare over individual profit.
- Shared ownership -- workers sharing ownership and risk.
- Localization -- local control of resources.
Transparency and accountability -- ensuring institutions and governments remain answerable.
Models such as worker cooperatives, employee ownership funds, community land trusts, and participatory representation demonstrate how economic democracy empowers farmers and workers, boosts productivity, and enhances equality.
Analysts believe Bangladesh can democratize its economy through decentralization -- political, administrative, and fiscal. Empowering local governments would increase citizen participation in economic decisions.
Challenges remain such as a large population, weak institutions, corruption, and lack of capacity. Yet, economic democracy is not just theory -- it is essential for building a just society.
Its implementation would bring Bangladesh closer to achieving constitutional goals of social, political, and economic justice.
Salahuddin Ahmaad Bablu is a senior journalist.