Bangladesh stands on the verge of a new era. After 15 years of authoritarian rule, where crony capitalism weakened our institutions and concentrated wealth among the few, we now have the rare opportunity to rebuild our economy and restore trust in governance.
The key to Bangladesh’s future lies in creating jobs for our vast youth population and ensuring these efforts are rooted in the rule of law.
Revitalization: Building a competitive economy
Under the previous regime, crony capitalism undermined competition, innovation, and trust. Wealth was concentrated in the hands of a few, and resources were misallocated, stifling investment and growth.
To build a brighter future, Bangladesh must dismantle this system and foster transparent, accountable institutions that create an environment where businesses can thrive on merit.
As scholars like Acemoglu and Robinson note in their book Why Nations Fail, “Nations fail today because their extractive institutions do not create the incentives needed for people to save, invest, and innovate.”
Job creation: Unlocking private sector potential
At present, the country has nearly hundreds of thousands of unemployed people, with the lion’s share aged between 15 to 29. Youth unemployment is a major concern, and failing to address it risks both economic stagnation and social instability. Creating jobs must be our highest priority, and we need a multi-pronged approach.
One of Bangladesh’s greatest economic vulnerabilities is its over-reliance on the RMG sector, which employs millions but leaves the economy exposed to global market shocks.
Delay risks squandering this rare opportunity for transformative change
To secure a more resilient future, Bangladesh must diversify its manufacturing base by expanding into higher-value industries like electronics, pharmaceuticals, and information technology.
The private sector must play a critical role in this transformation:
- Industry diversification: To reduce dependency on garment manufacturing, the private sector must be encouraged to invest in and develop new industries. Government policies should support this by offering tax incentives, easier access to credit, and public-private partnerships that attract investment into high-growth sectors.
- Infrastructure and skills development: Investing in infrastructure such as roads, ports, and digital networks is essential for the growth of diversified industries. Equally important is ensuring that our workforce is skilled to meet the demands of modern manufacturing. Vocational training and education must focus on emerging industries like advanced manufacturing, renewable energy, and technology.
- Private sector-led innovation: The private sector is key to fostering innovation and entrepreneurship. By supporting startups and SMEs, we can encourage young entrepreneurs to create new businesses in sectors beyond garment manufacturing. The government can facilitate this through incubators, mentorship programs, and targeted support for youth-led enterprises.
By diversifying industries and leveraging the private sector’s capacity for innovation, Bangladesh can create millions of new, high-quality jobs for its young workforce.
Rule of law: The foundation for growth
None of these job creation efforts will succeed without the rule of law. Establishing a strong legal framework is vital to ensuring that businesses can operate fairly and securely.
Investors need to trust that contracts will be enforced, property rights will be protected, and corruption will not impede growth. This includes establishing transparent procurement practices and ensuring an independent judiciary to avoid political influence. Reforms in the judiciary, anti-corruption efforts, and transparent governance are essential to creating a stable environment where businesses can flourish.
As Lee Kuan Yew, the founder of modern Singapore, said: “Without law and order, there can be no progress.” For Bangladesh to attract the investment it needs and sustain economic growth, strengthening the rule of law must be a top priority for the interim government.
Seizing the moment for transformative change
With bold leadership, strategic investment, and a clear focus on creating jobs in high-growth industries, Bangladesh can seize this once-in-a-generation opportunity to secure national prosperity.
The moment to act is now. Delay risks squandering this rare opportunity for transformative change.
Muheeb Hoque is a freelance writer, principal technology consultant, and son of Shaheed Col M Mojibul Hoque. [email protected].
