Bangladesh’s Economic Miracle Faces New Challenges After Leadership Change

The Economic Miracle and Its Challenges in Bangladesh

Not long ago, Bangladesh was celebrated as an economic miracle, a beacon of rapid growth that lifted millions out of poverty. The nation’s singular focus on exporting textiles and apparel propelled its economy forward and garnered international praise for its prime minister, Sheikh Hasina. However, her abrupt departure from power this week has unveiled the limitations of this narrow economic strategy.

As Bangladesh grapples with soaring inflation and rising unemployment, many economists attribute these issues to a series of poor policy decisions made during Ms. Hasina’s tenure. Her increasingly authoritarian governance, coupled with pervasive corruption, fueled public frustration that ultimately led to her ousting.

A New Chapter for Bangladesh

In the wake of these developments, the country stands at a crossroads. Student protesters who demanded Ms. Hasina’s resignation have called upon Muhammad Yunus, a Nobel laureate renowned for his pioneering work in microfinance, to lead an interim government. Mr. Yunus now faces an immense challenge ahead.

• Immediate Goals: The foremost priority is to restore order and stabilize the country’s economy.
• Long-Term Vision: Beyond immediate concerns, Bangladesh must tackle deeper economic stresses that originally ignited the protests. This includes addressing the urgent demands for accountability and justice in the wake of Ms. Hasina’s repressive policies.

A garment store was set ablaze during protests in Dhaka, highlighting the unrest that has gripped the nation. Credit: Abu Sufian Jewel/Agence France-Presse — Getty Images

The duration of the interim government and the scope of its mandate remain uncertain. However, the aspirations of the populace rest heavily on this new administration and Mr. Yunus, who are tasked with delivering justice, fostering a functional economy, establishing democracy, and ensuring the rule of law alongside a transparent and accountable government. As Saad Hammadi, a fellow at the Balsillie School of International Affairs in Canada, remarked, they carry the weight of many hopes and expectations.