Reliable Brokers
Online Investing
Alerts & Analysis
Easy Trading

Experts: Bangladesh’s growth at risk without decentralization

PRI ED Khurshid Alam called for inclusive dialogue on strengthening local governance, describing it as cornerstone of broader reforms

Update : 25 Sep 2025, 07:43 PM

Experts at a seminar on Thursday warned that Bangladesh’s development cannot be sustained without meaningful decentralization and stronger local government institutions.

The Policy Research Institute of Bangladesh (PRI) hosted the second session of its two-part series titled “Can Bangladesh Develop Without Decentralizing? – Lessons from East Asia and Reflections on Local Government Reform and Other Commissions’ Reports.”

PRI Executive Director Dr Khurshid Alam called for inclusive dialogue on strengthening local governance, describing it as a cornerstone of broader reforms.

Dr Badiul Alam Majumdar, member of the National Consensus Commission, emphasized that decentralization must be accompanied by political reform. “If politics continues to function as a business rather than a public service, honest people will remain reluctant to join,” he said, adding that the principle of subsidiarity—resolving issues closest to citizens—should guide reform efforts.

Delivering the keynote, PRI Director Ahsan highlighted evidence showing Bangladesh is among the most centralized countries of its size. He said such centralization undermines service delivery in education, health, sanitation, and infrastructure. Citing East Asian experiences, he argued that well-designed, accountable, and transparent decentralization is essential for sustained growth.

Ahsan supported many recommendations of the Local Government Reform Commission but criticized proposals for indirect elections of local representatives and overlapping jurisdictions, warning that these could weaken accountability. He also called for clarity in fiscal and administrative decentralization to avoid fragmentation.

Dr M Masrur Reaz, Chairman and CEO of the Policy Exchange of Bangladesh, noted that economic activity remains overly concentrated in Dhaka and Chittagong. He said Dhaka’s traffic congestion alone causes an estimated $4 billion in annual losses and urged stronger coordination between local and central governments to cut waste and improve public services.

The seminar concluded with a question-and-answer session, reaffirming that decentralization is central to building a more inclusive, accountable, and resilient development model for Bangladesh.

The event brought together leading policymakers, economists, and governance specialists to discuss how decentralization could improve public services, reduce economic overconcentration, and make development more inclusive.

Top Brokers