Published: 12:19 AM, 15 November 2026
Law, Order and Unity: The Path to Rescuing Bangladesh
Clashes between readymade garments workers and police force have led to the shutdown of hundreds of apparel factories in Ashulia, Savar and Gazipur very recently. -Collected
Bangladesh's economy stands at a critical inflection point, navigating one of the most complex and consequential downturns in its history. Years of structural inefficiencies, policy vulnerabilities, and protracted socio-political instability have eroded the country's macroeconomic resilience. Current economic indicators underscore the urgency of the moment: a revenue-to-GDP ratio hovering at a 15-year low of roughly 6.7 to 6.8 percent, persistent inflationary pressures, and a sharp deceleration in private investment have placed considerable strain on growth. Economists and policy analysts emphasize that stopgap stimulus measures or incremental adjustments will no longer suffice; sustainable recovery requires a comprehensive transformation anchored in the rule of law, durable political reconciliation, and institutional fiscal transparency.
Beyond macroeconomic data, a climate of uncertainty weighs heavily on both entrepreneurs and ordinary citizens. Business leaders have expressed concern over extortion under fabricated political pretexts and undue pressure resulting from the misuse of state machinery. In post-July 2024 Bangladesh, critics contend that lingering impunity and retaliatory politics continue to complicate the transition toward stability. Observers argue that deficits in political foresight, alongside uneven diplomatic engagement, risk deepening institutional disorder contributing to closures across factories and commercial enterprises.
At the same time, freedom of speech is facing unprecedented pressure. Journalists operate in an atmosphere of pervasive fear, with more than 300 media professionals facing fabricated murder charges an extraordinary figure that may well set a Guinness World Record. Simultaneously, regressive and hardline factions have grown increasingly assertive within society, seeking to curtail women's access to education and participation in the workforce. Analysts warn that this rise in extremism driven by the distortion of religious norms alongside anti-India and anti-American rhetoric-threatens Bangladesh's long-standing developmental gains.
Meanwhile, some commentators note that key foreign diplomatic missions appear largely disengaged from broader governance challenges, focusing narrowly on targeted commercial interests such as energy and aviation agreements rather than actively encouraging domestic stability. Critics compare this hands-off posture to past international missteps such as the abrupt withdrawal from Afghanistan arguing that it raises questions regarding diplomatic norms and global credibility. Without a decisive course correction, observers caution that Bangladesh risks sliding toward the chronic instability seen in fragile states across the trans-Saharan region.
For ordinary households, the economic fallout is immediate and acute. Rising prices for essential goods have outpaced real wages, while heavy indirect taxation places additional pressure on strained family budgets. As living standards erode, social frustration has coincided with rising crime rates. Several economists have warned of severe, famine-like vulnerabilities among low-income populations-concerns reflected in household welfare data published by the Bangladesh Bureau of Statistics (BBS).
Reversing this trajectory demands national unity, genuine political reconciliation, and the consistent enforcement of law and order. The foremost priority must be upholding the rule of law impartially across every tier of society. Politically motivated litigation against entrepreneurs and journalists, regulatory harassment, extortion, mob violence, and extremist intimidation targeting women's advancement must be addressed decisively. When industrial zones, newsrooms, and commercial enterprises operate under the threat of mob action and arbitrary legal proceedings, capital naturally retreats and new investment stalls. Concurrently, individuals implicated in past financial malfeasance and illicit capital flight must face swift, transparent accountability through specialized tribunals to recover misappropriated national assets.
Yet legal enforcement alone cannot succeed without a stable political foundation. Bangladesh's economy cannot absorb the repeated dismantling of regulatory frameworks with every shift in political power. Major political stakeholders must look beyond partisan rivalries and retaliatory agendas to establish a binding national consensus on economic governance and social progress. Insulating core institutions-most notably Bangladesh Bank-from political interference, while eliminating mob justice and policy unpredictability, is essential to reopening shuttered factories, restoring domestic and foreign investor confidence, and channeling idle liquidity back into productive enterprise.
Alongside political and legal stability, the state must modernize its fiscal architecture and enforce rigorous financial accountability. Heavy government borrowing from domestic banks to finance budget deficits has crowded out private sector credit, pushing private credit growth down to historic lows of 4.75 to 6.5 percent. Rather than burdening struggling households with regressive taxation, authorities must fully digitalize the National Board of Revenue (NBR) and broaden the direct tax base. Simultaneously, addressing over Tk 6 lakh crore in non-performing loans and acute capital shortfalls requires granting full regulatory autonomy to Bangladesh Bank and mandating strict data reconciliation-cross-verifying bank ledgers against Taxpayer Identification Numbers (TIN), VAT filings, and Credit Information Bureau (CIB) records in alignment with international accounting standards such as IFRS 9.
Ultimately, steering Bangladesh's economy toward durable recovery requires confronting technical vulnerabilities alongside their deeper socio-political root causes. By replacing retaliatory politics with national reconciliation, protecting press freedom, curbing mob violence and extremism, safeguarding women's education and economic participation, and instituting transparent, equitable fiscal discipline, Bangladesh can turn a period of profound uncertainty into an enduring foundation for stability and renewal.
Shoeb Chowdhury is an author, geopolitical and business analyst and Chairman, Editorial Board of The Asian Age.
