White Paper and Task Force: Lack of enthusiasm for economic reforms and dissatisfaction with the committee

White Paper and Task Force: Challenges in Implementation

Two reports on economic reforms have been submitted, yet there has been no significant government initiative to implement their recommendations. This has raised concerns about whether expectations for structural economic reforms will be met.

The current interim government commissioned two separate reports: one on corruption and irregularities during the previous authoritarian Awami League government, and another on future economic strategies. The first, a white paper, was prepared by a committee led by economist and Honorary Fellow of the Center for Policy Dialogue (CPD), Debapriya Bhattacharya. The second was a report by a task force led by former Director General of the Bangladesh Institute of Development Studies (BIDS), K.A.S. Murshid. The white paper was submitted to Chief Advisor Professor Muhammad Yunus on December 1, while the task force report followed on January 30. However, committee members have expressed disappointment over the lack of action taken to implement their recommendations, suggesting that economic reforms are not a priority for the government.

Lack of Government Action

Debapriya Bhattacharya stated that while the Chief Advisor acknowledged the white paper, key figures in his advisory council have not accepted it. He noted that either the government lacks the capacity for reform or the current political environment is not conducive to implementing changes.

During the 15.5-year tenure of the Awami League government, discussions about corruption, money laundering, and economic mismanagement were prevalent. Following the government’s collapse on August 5 due to a mass uprising, the interim government took office on August 8 and formed multiple commissions, committees, and task forces to recommend reforms. Of the 11 commissions formed, six have submitted full reports, and a National Consensus Commission has been created under the Chief Advisor’s leadership to review and implement the recommendations. While discussions with political parties have taken place, no concrete steps have been taken regarding the white paper or task force reports.

A senior Finance Ministry official stated that the recommendations would be reflected in the next fiscal year’s budget. However, he emphasized that not all proposals can be implemented immediately and that the process would occur in phases, with some steps taken by the current government and the remainder left for the next administration.

Findings of the White Paper

The white paper committee, formed on August 29 and led by Debapriya Bhattacharya, included 12 experts from various institutions. After three months of research, they submitted a 397-page report detailing economic irregularities, including:

• $234 billion laundered abroad under the previous government.
• Bribes from government projects amounting to Tk 161,000 crore to Tk 280,000 crore.
• Wastage and looting of up to 40% of development project costs.
• State-sponsored bank takeovers leading to Tk 6.75 trillion in distressed loans.
• Embezzlement of Tk 1 trillion from the stock market.

The committee recommended structural reforms to combat these issues, emphasizing seven key areas: economic stability, budget framework planning, prioritization of reforms, LDC transition strategy, SDG acceleration, and development partner engagement. However, apart from inflation control and foreign reserve stabilization efforts, no visible progress has been made.

Task Force Recommendations

The task force, formed on September 11, comprised economists and industry experts. On January 30, they submitted a 526-page report with recommendations including:

• A progressive tax system to ensure higher contributions from the wealthy.
• Increased allocations for education and healthcare.
• Support for 1,500 export-oriented companies.
• Splitting Bangladesh Biman and privatizing part of it.

The Advisory Council initially decided that each ministry would select and implement one recommendation during the interim government. However, a month later, there has been no significant progress. Key proposals, such as reforms in civil aviation and export sector support, remain unaddressed.

Expert Opinions and Challenges

Selim Raihan, a member of both committees, expressed disappointment over the lack of action, attributing it to bureaucratic resistance and a lack of political will. He warned that the window for meaningful reforms is closing as election preparations take priority.

At a CPD conference, Commerce Advisor Sheikh Bashiruddin admitted he had not received the task force report, despite it being publicly available on the Planning Ministry’s website. Task force leader K.A.S. Murshid expressed surprise at this statement, further highlighting government inertia.

Former Dhaka Chamber of Commerce and Industry president Abul Kasem Khan emphasized that while good policies exist, their implementation remains a challenge. He urged the government to involve businesses in executing economic reforms, suggesting that even partial implementation of recommendations would boost confidence among stakeholders.

Conclusion

Despite the submission of comprehensive reports and clear recommendations, the government has yet to take substantial steps toward economic reforms. Bureaucratic hurdles, political distractions, and a lack of prioritization have stalled progress. As elections approach, experts fear that the opportunity for meaningful economic restructuring may be lost.