The temporary government successfully averted a more severe economic and geopolitical downturn during a highly unstable period, but fell short in implementing substantial institutional reforms, transparency, and inclusive governance, according to participants at a recent policy discussion.
Economic expert Mamun Rashid noted that while the temporary government faced a precarious economy, especially post the July 2024 protests, its main accomplishment was preventing further deterioration rather than achieving a significant recovery.
Former banker Mamun Rashid emphasized that the economic situation in early 2024 was dire, with key macroeconomic indicators facing immense pressure. However, the post-transition era showed a shift from decline to stabilization, notably in foreign reserves, remittances, and banking discipline.
Noteworthy actions by the temporary government included reforms in the banking sector, such as revamping bank boards and conducting forensic audits, particularly in troubled Islamic banks. Nevertheless, these actions were seen as maintaining the status quo rather than initiating a profound transformation.
Anwar-Ul-Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries, highlighted that private sector growth slowed to 6.2 percent, with only 17.28 percent implementation of the annual development program within six months. He criticized the overreliance on bureaucrats by advisers, resulting in disconnected policy decisions.
Political scientist Rounaq Jahan stated that public expectations post-August 2024 included reduced social divisions and increased open discourse, which did not materialize. Despite more open discussions, individuals are facing labeling and targeting, fostering a climate of fear.
Jahan criticized the temporary government for pursuing numerous ambitious reforms without broad consensus, particularly focusing on constitutional changes while neglecting electoral readiness. She underscored the importance of ensuring a credible upcoming election due to past controversies.
M Humayun Kabir, president of the Bangladesh Enterprise Institute, mentioned the challenges of rising regional and global uncertainties during the temporary government’s tenure, including issues with India on water sharing and trade disruptions under the former US administration. Kabir praised the economic partnership agreement with Japan but criticized the lack of strong institutional coordination between foreign affairs and commerce ministries.
Hossain Zillur Rahman, executive chairman of PPRC, who moderated the discussion, acknowledged the temporary government’s success in addressing macroeconomic challenges and navigating a complex geopolitical landscape. However, he cautioned that sustainability without transparency and social accountability would not lead to enduring change. Rahman emphasized the need for rebuilding political dialogue and trust among parties and citizens, stating that elections alone would not resolve systemic issues but could act as a catalyst for positive change.
