International : Although political stability has returned to Bangladesh following the election, the country continues to face slow progress in economic reforms and weaknesses in its institutional framework. As a result, Bangladesh could face long-term risks, warned Liu Chongyi, a Chinese researcher and expert at the Center for South Asian Studies of the Shanghai Institutes for International Studies.

He made the remarks on Monday at the second China-Bangladesh roundtable on “Exchange of Governance Experiences,” held at a five-star hotel in Dhaka, the capital of Bangladesh.

At the meeting, he said that the country’s current stability relies more heavily on the concentration of power than on institutional consensus, which could create challenges for good governance in the future.

According to his observations, two contrasting trends are emerging in Bangladesh’s economic landscape. On the one hand, the external economy has gained some relief due to remittance inflows, export growth and foreign exchange reserves exceeding $30 billion. On the other hand, domestic investment and demand have declined sharply.

Noting that private investment has fallen to its lowest level in 40 years and credit growth to its lowest level in 20 years, he said that the closure of around 95 factories in Dhaka and surrounding areas in recent months had resulted in more than 60,000 workers losing their jobs. He identified the unemployment rate of around 30 percent among educated young people and the fact that one-third of young people entering the labor market each year remain outside education, employment or training as the government’s biggest test.

In foreign policy, he said Bangladesh appears to be applying its “Bangladesh First” policy commendably. The country is seeking to maintain a balance by sustaining stable relations with China and the United States while rebuilding ties with India.

He further noted that although Bangladesh has opportunities to expand relations with India, the United States, the European Union and ASEAN countries alongside China, it needs to attach importance to adopting a strong “Look East” policy.

Expressing strong interest among Chinese companies in investing in Bangladesh, he said, “The people of Bangladesh are extremely hardworking and have a strong desire for development. However, Chinese investors are waiting for specific and clear policy reforms.”

In conclusion, he said, “Sustainable development cannot be achieved simply by increasing grants or welfare spending. Rather, ensuring inclusive development through industrialization, economic diversification and the removal of bureaucratic complexities to create employment is now Bangladesh’s key challenge.”

The meeting was attended as chief guests by Li Kaisheng, vice president and senior researcher at the Shanghai Institutes for International Studies; Bangladesh Education Minister Dr. A.N.M. Ehsanul Haque Milon; Li Shaofeng, cultural counsellor at the Chinese Embassy; and Dhaka University Vice-Chancellor A.B.M. Obaidul Islam, among others.

Source: Shubho, Sakib, CMG Bangla.