Published: 08:43 AM, 13 June 2025
Political Hegemony As A Facilitator of Financial Crime in Bangladesh
Shahidul Alam Swapan
In Bangladesh, the concentration of political power within the narrow elite has become more than a governance issue - it raises urgent concerns about financial integrity, accountability and democratic resilience. The question today is how unchecked political domination erodes transparency, weakens institutions and facilitates widespread corruption, effectively transforming political control into a vehicle for financial exploitation.
Over the past few decades, Bangladesh has witnessed the entrenchment of power by a ruling class that maintains its control through a combination of patronage networks, media control and repression of dissent. Elections are often marred by allegations of manipulation and intimidation of voters, reinforcing the domination of the ruling elite. How hegemony facilitates financial crime Political domination in Bangladesh has become a means of gaining unchecked access to public resources.
The mechanisms are crony capitalism and state capture Political elites often form alliances with business figures, granting them advantageous contracts, monopolies and regulatory exemptions. Weakened anti-corruption institutions designed to fight corruption - such as the Anti-Corruption Commission - are often influenced by political considerations, leading to selective application of the law. Investigations and prosecutions are rare when it comes to allies of the ruling class, which only encourages financial malfeasance.
The merger of political power and financial crime has devastating consequences: Erosion of public confidence in institutions. Political power and financial crime are Bangladesh's silent crisis. In Bangladesh today, political power is no longer just a matter of governance - it has become a gateway to unchecked financial privilege. The concentration of political authority in the hands of a ruling elite has created a system that allows corruption to flourish under the guise of legitimacy. While political hegemony is not in itself a crime, it has fostered a culture where financial crimes are committed with impunity, sheltered from the institutions of the state and the weakening of accountability.
In Bangladesh, political domination has become a means of gaining unchecked access to public resources. The mechanisms are as follows Political elites often form alliances with business figures, granting them favourable contracts, monopolies and regulatory exemptions. What's needed is not just change at the top, but reform across the board: Restore independence to oversight institutions like the ACC and the judiciary. In Bangladesh, political domination has become a means of gaining unchecked access to public resources. Crony capitalism and state capture, weakened anti-corruption institutions, political immunity from accountability. Investigations and prosecutions are rare when it comes to allies of the ruling class, which only encourages financial malfeasance. In Bangladesh today, political power is no longer just a matter of governance - it has become a gateway to unchecked financial privilege. The concentration of political authority in the hands of a ruling elite has created a system that allows corruption to flourish under the guise of legitimacy. While political hegemony is not in itself a crime, it has fostered a culture where financial crimes are committed with impunity, sheltered from the institutions of the state and the weakening of accountability. Over the years, Bangladesh has seen the development of a political structure in which opposition voices are regularly sidelined, civil society is restricted and independent institutions are systematically eroded. This unchecked power is accompanied by an ability to influence every sector, from the judiciary and law enforcement to the world of finance and business. Allegations of corruption in sectors like banking, energy, and health services are common.
Courts and law enforcement agencies are frequently accused of acting in favor of the politically connected. In such a system, justice becomes selective, and the truth becomes a risk. The lack of transparency in public finance management, including foreign aid and pandemic-related expenditures, adds to growing public mistrust. It fuels brain drain, deepens inequality, and undermines the very foundation of democratic society. Political hegemony in Bangladesh has not only undermined democracy but also institutionalized a culture of impunity in financial matters.
Political elites often form alliances with business figures, granting them advantageous contracts, monopolies and regulatory exemptions. In return, these business entities inject money into political campaigns and patronage networks.
This system makes it possible to embezzle funds and rig tenders for major public projects such as infrastructure, energy and healthcare. Institutions that are supposed to fight corruption - such as the Anti-Corruption Commission (ACC) - are often influenced by politics, resulting in selective enforcement. Investigations and prosecutions are rare when it comes to allies of the ruling class, which only encourages financial malfeasance. Senior politicians and their families are rarely held accountable for financial malfeasance. Allegations of money laundering, offshore bank accounts and illicit wealth accumulation are often dismissed or buried. Meanwhile, whistleblowers and journalists are threatened, arrested or worse.
One of the clearest signs of this politicized system is the rise of crony capitalism. Businesses linked to political leaders are granted preferential access to contracts, land, licenses, and credit. Major infrastructure projects are frequently awarded without proper bidding processes. These practices not only siphon public money into private hands but also block honest entrepreneurs from competing fairly in the market.Allegations of corruption in sectors like banking, energy, and health services are common. But prosecutions — especially of high-ranking individuals — are rare. Anti-corruption bodies, while constitutionally mandated to be independent, often act under political pressure or remain inactive.
When corruption is exposed, the response is often silence or retaliation. Journalists and whistleblowers who investigate financial misconduct face harassment, legal threats, or arrest under vague digital security laws. Courts and law enforcement agencies are frequently accused of acting in favor of the politically connected. In such a system, justice becomes selective, and the truth becomes a risk.
At the same time, state institutions — from regulatory bodies to public banks — often serve the interests of those in power, rather than the public good. The lack of transparency in public finance management, including foreign aid and pandemic-related expenditures, adds to growing public mistrust. The impact is not abstract. When public funds are misused, schools go underfunded, hospitals lack equipment, and rural infrastructure suffers. When jobs are given based on political loyalty rather than merit, the youth lose faith in fair opportunity. When justice is denied, people lose hope in the system itself.
This erosion of trust has long-term consequences. It fuels brain drain, deepens inequality, and undermines the very foundation of democratic society.
Political hegemony in Bangladesh has not only undermined democracy but also institutionalized a culture of impunity in financial matters. While the international community and civil society have raised concerns, sustained internal reform is necessary. Ensuring judicial independence, empowering anti-corruption bodies, and protecting press freedom are essential steps toward dismantling the nexus between political power and financial crime. Until these changes occur, political dominance in Bangladesh will continue to serve not merely as a tool of governance — but as a system of sanctioned exploitation.
Shahidul Alam Swapan is a
private banking financial crime
compliance expert and columnist
based in Geneva, Switzerland.
