In 2009, Bangladesh was ranked 139th in the Corruption Perception Index (CPI) by Transparency International (TI). That year, Vietnam was in 120th place. Fast forward to 2022, Vietnam has risen to 77th, while Bangladesh has slipped back to 147th, eight places lower than in 2009.
As the years progressed, we were supposed to improve. Instead, we rank second-lowest in South Asia, only ahead of Afghanistan. Experts warn that if unchecked, we may even fall behind Afghanistan.
A recent survey by the Centre for Policy Dialogue, a prominent research organisation, found that nearly 68% of 71 business leaders reported a high degree of corruption as the biggest obstacle to doing business in Bangladesh last year.
The question arises: Why have we so flagrantly failed to address the malaise of corruption?
Bangladesh has seen impressive economic growth, which is reflected in various economic indicators, such as per capita GDP, per capita income and GDP growth. Research shows that economic growth typically leads to a reduction in corruption. However, this has not been the case in Bangladesh. The government has been aware of this for years and even admitted it.
In 2015, then-Finance Minister Abul Maal Abdul Muhith stated that Bangladesh incurs an annual loss of 2 to 3% of its gross domestic product (GDP) due to corruption.
In 2017, in a letter sent to Mohammad Shafiul Alam, the Secretary of the Cabinet Division, Iqbal Mahmood, the Chairman of the Anti-Corruption Commission (ACC), mentioned, “It is an established truth that corruption is one of the main obstacles to national development and progress. Research reports from various institutions indicate that if corruption is prevented, the country’s GDP will increase by 2% every year.”
Over the years, corruption has become institutionalised and normalised in Bangladesh. It is not a recent issue and shares similarities with other countries. It stems from entrenched characteristics within the administrative and socio-political systems that have developed over decades.
Bangladesh grapples with numerous challenges, including a large population, high illiteracy rates, limited resources, an underdeveloped economy, political instability, and pervasive corruption at various levels of society and government.
Since the very beginning, corruption has been deeply ingrained as an integral part of the economic, political, and social fabric of our country. Little has changed despite every successive government pledging to crack down on it.
Why has Bangladesh failed to live up to the promises of reducing corruption and ensuring justice for the corrupt?
In the first decades, the reason for Bangladesh’s growth was the competitive development structure, or factor-led growth, where markets and trade were liberalised. Such growth can be seen in the early stages of development when generating output takes precedence over the effects of corruption. It can be inefficient. However, in the next stage, efficiency-led growth cannot be achieved simply by increasing factor intensity. And here, with corruption ingrained in our system, our growth momentum has begun to slow down.
Golam Moazzem, Research Director, CPD
Dr. Iftekharuzzaman, the executive director of Transparency International Bangladesh (TIB), believes that the lack of political commitment is the primary obstacle to preventing corruption.
“The lack of political commitment is the number one reason, although it’s not the only one,” he said. “No country in the world could eradicate corruption without making an example out of the corrupt. After all, it is a punishable offence.”
Dr Khondaker Golam Moazzem, a prominent industrial economist and the Research Director at the Centre for Policy Dialogue (CPD) believes that while Bangladesh initially prospered despite corruption and weak institutions, that phase has passed.
“In the first decades, the reason for Bangladesh’s growth was the competitive development structure, or factor-led growth, where markets and trade were liberalised. Such growth can be seen in the early stages of development when generating output takes precedence over the effects of corruption. It can be inefficient.”
Bangladesh is expected to graduate from LDC status in 2026, for which efficiency-led growth is crucial. Dr Moazzem argues that achieving such growth will be difficult with corruption deeply embedded in the system.
“However, in the next stage, efficiency-led growth cannot be achieved simply by increasing factor intensity. And here, with corruption ingrained in our system, our growth momentum has begun to slow down.”
The ACC has the capability to crack down on corruption, but it cannot be utilised to its potential. During 2007–2009, a peppy song was frequently broadcast on the BTV that went like this: How will you continue violence and extortion? ACC will get you at midnight. The once mighty organisation, ACC, has now been reduced to a paper tiger.
“The ACC has occasionally brought small-time offenders to justice, but the big fish have enjoyed impunity.
Because of the impunity that is enjoyed, especially by those in positions of power with political connections, financial strength or strength of ‘muscle’ corruption cannot be controlled,” Dr Moazzem added.
Additionally, Dr Iftekharuzzaman noted that big businessmen heavily dominate the parliament, giving them the collective power to pass laws that could thwart anti-corruption initiatives.
“As they are so strongly represented in the parliament and in the governance structure, they have been able to capture the policy structure. And as a result, they are not only influencing the process of holding to account those who are responsible for corruption, but they are also benefiting from it, which is why the opportunity cost of corruption has not effectively controlled corruption.”
If we look at Vietnam, capital punishment is a legal penalty there for crimes like corruption, fraud and embezzlement. And Vietnamese authorities are not shy about enforcing it.
Vietnam sentenced three bankers to death in April of 2014. They were convicted of embezzlement, abuse of power and economic mismanagement involving millions of dollars of illegal loans from state-owned banks.
The same thing happened in 2017: Vietnam sentenced another ex-banker, Nguyen Xuan Son, to death for his role in a fraud case involving $69 million of illegal loans from OceanBank. He was the former general director of the bank and later became the head of state oil giant PetroVietnam. His co-defendant, Ha Van Tham, the ex-chairman of OceanBank and one of Vietnam’s wealthiest men, was jailed for life on the same charges. However, similar scenarios seem nigh impossible in Bangladesh.
When asked why Bangladesh is lagging behind Southeast Asian countries in corruption prevention, Dr Iftekharuzzaman opined that the main difference lies in the commitment and institutions.
“The global and regional experience, particularly those of some of our Southeast Asian neighbours, shows that there are a few critical elements of corruption control that have to be mainstreamed in the governance structure and the political structure. Southeast Asian countries, even though they have some draconian laws about corruption, got the job done,” he said
“Without the political commitment and institutional strength, such progress would not have been possible,” he added.
Dr Moazzem also thinks that the reason behind the success of Southeast Asian countries is their institutional strength.
“There, the governments carry out the role they are expected to. The governments also monitor and enforce the rules and regulations strictly. Therefore, they are going further ahead of us.”
Responsible institutions must build the overall governance structure in a manner conducive to corruption control. This includes not only the ACC but also other state institutions, starting with the parliament, which has a very significant role in controlling corruption.
This role entails not only talking about corruption and drafting laws against it but also holding the ministries and the government, in general, accountable on behalf of the country’s people.
Shadique Mahbub Islam. Sketch: TBS
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Shadique Mahbub Islam. Sketch: TBS