Yunus in Davos: What is the state of Bangladesh's economy?

• Bangladesh faces five major risks.
• Economists and politicians express a tone of despair.
• The interim government is focusing more on administrative and institutional reforms than on economic management.
• Despite forming several commissions for state reforms, there are no guidelines for economic reforms.
• The interim government is operating under the budget formulated by the previous Awami League government.
• Businesspeople claim that this is the worst time for businesses in 34 years.
• The public is questioning why so many people lost their lives in July-August. Despite the anti-discrimination slogans during the uprising, the government has taken no steps to address economic inequality.

Professor Dr. Muhammad Yunus, the head advisor of Bangladesh's unelected interim government, is currently in Davos, Switzerland, to attend the World Economic Forum. There, he will meet with heads and representatives of several European and Middle Eastern governments. This year's theme for the World Economic Forum is "Collaboration for the Intelligent Age." As Yunus attends a conference on such a topic, what is the state of Bangladesh's economy?

Ahead of the World Economic Forum (WEF) Davos conference, the WEF in a report published on January 15 identified a five major risks for Bangladesh this year. The biggest risk is inflation, followed by extreme weather (floods, heatwaves), pollution (air, water, soil), unemployment and lack of economic opportunities, and economic downturn (recession, stagnation).

Are Yunus and his government prepared to tackle these risks? The answer can be easily found in the words of Bangladesh's renowned economists, many of whom support Yunus's government. They are concerned and disappointed. Here are some excerpts from the January 21, 2025, report by Bangladesh's Prothom Alo newspaper:

On Saturday (January 18, 2025), during a discussion titled "White Paper and Beyond: Economic Management, Reforms, and National Budget," economists and politicians could not offer any hopeful messages. Their voices were filled with despair. They complained that the interim government is focusing more on administrative and institutional reforms than on economic management. Despite a month and a half passing since the submission of the White Paper Committee's report, the government has done nothing to implement the recommendations.

The government has irresponsibly increased the value-added tax (VAT), making life even more difficult for ordinary people.

Debapriya Bhattacharya, the head of the White Paper Publication Committee, said that while the interim government has formed several commissions for state reforms, there are no guidelines for economic reforms. Many believe that the interim government is operating in the same manner as the previous government. The interim government is operating under the budget formulated by the Awami League government.

Zahid Hossain, the chief economist of the World Bank's Dhaka office, mentioned inflation, saying that while commodity prices have cooled globally, they have not in Bangladesh. There are reasons for this. The fire brigade arrived late and, instead of pouring water, poured oil. Later, it was found that there were problems with the pipes.

The most concerning statement came from businessman Syed Nasim Manzur. He said, "I have been doing business in this country for 34 years. I have never seen such a crisis in my entire business career. If this situation continues, investments will move to other countries." If this is the worst time for businesses in 34 years, when will the good times come, and who will bring them?

While political parties and student leaders are fiercely debating the credit for the July uprising and cannot reach a decision even in all-party meetings, what is the condition of the ordinary people who participated in the movement?

The working-class people who joined the July-August movement have returned to their respective professions after August 5. None of them think about taking credit for the movement or running for the next election. But these nameless people wanted a little relief, which they did not get; instead, the continuous rise in commodity prices has made their lives even more difficult.

The public is questioning why a large uprising occurred in July-August if the interim government is operating in the same way as the previous government regarding economic issues. Many lives were lost during this period. Despite the anti-discrimination slogans raised during the uprising, the government has taken no steps to address economic inequality.