Politics is the driving force of a state, while economics forms its backbone. The two are like parallel tracks of a railway line—neither can function without the other. If politics is not investment- and business-friendly, the economy falters; if the economy collapses, politics too is threatened. Unfortunately, in Bangladesh this fundamental philosophy has often been ignored. Even after 54 years of independence, both politics and the economy have struggled to move forward in the right direction. Democracy has repeatedly stumbled, citizens’ rights have been denied, and authoritarianism has taken root. At the same time, despite enormous potential, the economy has failed to achieve its desired success.
A country’s political philosophy shapes the economic framework. In Bangladesh, shifts in state policy since independence have left the economy without a steady path. After 1971, the nation embraced a socialist model, closing the door to private enterprise. Countless young people who dreamed of becoming entrepreneurs after the Liberation War found their ambitions stifled, leading to unemployment, frustration, and in many cases, crime. After 1975, the economy opened up to free market policies, and within a short span, private entrepreneurs, through hard work and talent, pushed the nation toward growth. The private sector became the lifeline of Bangladesh’s economy.
Even without major state support, private entrepreneurs helped transform the so-called “bottomless basket” into a land of opportunities. Yet over the last five decades, the private sector has been treated like an orphan—neglected and often exploited. Political parties have used businesses primarily for their own interests. Instead of nurturing entrepreneurs, they divided and politicized them, drawing them into party-based networks. Entrepreneurs were forced to show allegiance to ruling parties just to secure essentials such as bank loans or utility connections. Corruption, extortion, and political interference became routine obstacles for businesses.
State-owned banks were handed over to party loyalists, opening the door for widespread loan fraud. Billions of taka were borrowed by fictitious companies with no intention of repayment, destabilizing the banking sector. Private bank licenses were also distributed along political lines, placing ordinary depositors at risk. Genuine entrepreneurs struggled with high interest rates, bureaucratic obstacles, and harassment. Many went bankrupt, became loan defaulters, or even left the country altogether. In such an environment, doing business often felt like a crime.
Those entrepreneurs who tried to remain independent from political influence often found themselves targeted by state agencies such as the National Board of Revenue. At the same time, foreign aid created the rise of non-governmental organizations (NGOs). While their stated goal was poverty alleviation, in reality they often served donor interests and fostered a new elite class, living in luxury on foreign funds. NGOs also opposed private enterprise, positioning themselves as competitors by receiving tax benefits and operating with special privileges.
This hostile environment has recently worsened. The July Revolution, which toppled authoritarian rule, promised a new Bangladesh with reforms. The National Consensus Commission drafted the July Charter for state reforms, but economic issues were largely overlooked. Instead of empowering private enterprises, thousands of factories have closed in the past 14 months, leaving millions unemployed. Entrepreneurs have faced arson attacks, looting, and forced closures. Bank accounts of prominent business owners have been frozen for months under so-called investigations, leaving the entire sector fearful and disillusioned.
In this new political order, the private sector seems deliberately sidelined. Even during the Chief Adviser’s recent trip to the United Nations General Assembly, where he attended several investment meetings, no private entrepreneur was included in the delegation. This raises questions about whether foreign investors can be attracted without the participation of domestic business leaders.
With national elections scheduled for February, political parties have already launched campaigns. Yet in their promises, the private sector remains neglected. There is no clear roadmap on how future governments intend to support or integrate entrepreneurs. Will businesses once again be forced into blind loyalty to whichever party comes to power? This remains an urgent question.
Like a river that dries up when obstructed, the private sector too will collapse under continued restrictions and hostilities. If entrepreneurs are not empowered, the economy will fall into deeper crisis, dragging politics down with it. The much-cherished dream of a new Bangladesh will wither away, leaving the nation trapped in the same old cycle.
