Political will a must to restore confidence in businesses

In Bangladesh today, the central question facing the economy is not simply how to stabilise financial institutions or stimulate investment. It is whether the political leadership possesses the will to confront decades of entrenched corruption, rebuild trust in public institutions, and restore confidence among ordinary citizens and entrepreneurs alike. Without decisive political action, no economic reform will deliver the transformation the country urgently needs.

For nearly a generation, Bangladesh's economy evolved under a model that fused political power with business interests in increasingly unhealthy ways. Elections were commercialised; politics served the narrow interests of a privileged few; and the private sector was often incentivised not by innovation or productivity but by proximity to the ruling elite. The result, unsurprisingly, was a system in which the state ensured profits for its loyalists while ordinary taxpayers carried the burden of debt, inflation and collapsing services.

The consequences of this model are now brutally visible in the banking sector. More than one-third of all loans are classified as non-performing -- a figure that would be considered catastrophic anywhere else in the world. Two years ago, government officials insisted the share was only 8 per cent, even as independent estimates placed it closer to 25 per cent. Today, with clearer data and fewer political incentives to obscure reality, the true figure has surpassed 35 per cent. This is not simply a financial statistic. It reflects a decade and a half of patronage-based lending, regulatory capture, and the near-total absence of institutional accountability.

When a banking sector becomes dysfunctional, the consequences ripple far beyond the vaults of commercial banks. Businesses lose confidence. International investors retreat. Domestic capital sits idle because entrepreneurs fear regulatory harassment on one side and systemic instability on the other. An economy cannot function when trust evaporates -- and in Bangladesh, trust has been eroding for years.

The present government's approach -- what some critics describe as a "catch the thieves" model -- acknowledges the gravity of the crisis but risks creating a new climate of fear in the business community. Accountability is essential; impunity must end; but without a coherent political and economic strategy, punitive actions alone can deepen uncertainty. Entrepreneurs must know that justice is being sought in the national interest, not as part of a new political vendetta. People need to see a credible roadmap, not just a list of culprits.

To fix the system, Bangladesh must begin by confronting an uncomfortable truth: the country's financial collapse did not occur because businesspeople were inherently corrupt, but because politics created a system in which corruption was rewarded and accountability was punished. The political sphere, not the marketplace, is the true battleground. The next financial model must therefore emerge from political reform, not only economic tinkering.

This requires two forms of political will. First, the courage to prosecute those who plundered public wealth -- no matter how powerful they once were. For fifteen and a half years, a small circle of well-connected individuals enriched themselves through bank fraud, capital flight, and systematic extraction from public resources. Some of these individuals owned large industrial units employing thousands of workers. Their collapse has already left an estimated 1.4 million people jobless. Justice must be done, but justice must be accompanied by a plan for the workers who now find themselves unprotected and abandoned.

Second, political leaders must be prepared to democratise the economy -- a task far more complex than prosecuting yesterday's oligarchs. Democratising the economy means ensuring that growth benefits reach ordinary citizens rather than remaining concentrated in the hands of a small clique. It means prioritising public transport, youth employment, and entrepreneurship instead of politically linked mega-projects that often create more debt than opportunity. It means building institutions that enforce contracts, regulate competition and protect workers' rights.

Bangladesh will not regain the trust of expatriates, investors or its own citizens unless it builds a system grounded in fairness. The money siphoned out of the country must be brought home, but recovering stolen assets is only part of the story. The deeper task is to ensure such theft is never again possible. That demands an independent financial regulator, transparent procurement systems, credible audits, and a judiciary insulated from political influence.

But none of these reforms can succeed without political consensus. Elections in Bangladesh, long treated as business ventures, must be returned to their rightful place as the foundation of democratic legitimacy. An opaque electoral system cannot deliver transparent economic governance. A political arena riddled with criminalisation cannot produce credible economic reformers. Cleaning up the political process is therefore not a luxury -- it is a prerequisite for economic recovery.

The July uprising, with its youthful energy and demand for fairness, showed that the country's people are no longer willing to accept an economy designed to serve a privileged minority. Their discontent was not only political; it was economically rooted. Young people want jobs, not patronage. Workers want security, not sudden factory closures. Entrepreneurs want predictable rules, not political favouritism. These aspirations form the bedrock of any future political settlement.

The next government -- whatever its composition -- will inherit a fragile economy and an impatient population. Its greatest challenge will not be attracting foreign investment or negotiating new loans. Its real test will be whether it can convince the country that political leaders are prepared to place public interest above private gain. Confidence is not built by slogans or policy papers. It is built by visible, consistent, politically costly decisions that demonstrate a commitment to fairness.

Bangladesh stands at a critical juncture. The old economic order has collapsed under its own corruption. A new one is waiting to be built -- but it will not emerge without political courage. As the financial sector teeters, businesses hesitate, and young people search for opportunities abroad, one truth becomes increasingly clear:

Restoring confidence in Bangladesh's economy is not an economic challenge alone. It is a political one -- and only political will can solve it.

mirmostafiz@yahoo.com