How business-friendly is our politics?

and an increasingly hostile business environment. Many were forced into default by the vicious cycle of the banking sector. High interest rates drove entrepreneurs into paralysis; some left the country altogether. A climate was created where doing business itself was made to look like a crime, as if creating employment was an offence.

Entrepreneurs who tried to remain independent of the government were targeted by agencies such as the NBR. Thus, the country’s most promising private sector became hostage to the narrow interests of political parties. Meanwhile, NGOs emerged to utilise foreign development aid. Although their stated mission was to change the fate of the poor, in reality, they served donor interests. While they failed to change the lives of the poor, the foreign funds transformed the lives of NGO leaders – lavish offices, expensive cars, and luxury lifestyles, all without capital or labour. A new elite class was created in society. These NGOs not only promoted depoliticisation but also engaged in negative propaganda against private entrepreneurs. Under the cover of development aid, they sought to ensure Bangladesh remained dependent on loans, because a self-reliant Bangladesh would reduce foreign assistance, threatening their wealth. Thus, by the late 1980s, NGOs had become rivals of private investment. Supported by foreign funding, they too ventured into business, often enjoying tax exemptions that private entrepreneurs were denied. This pushed the private sector into yet another unequal competition.

In such a hostile investment environment, the July Revolution took place. The masses, dreaming of a new Bangladesh, toppled autocracy. The idea of state reform began to be discussed. The National Consensus Commission even drafted the July Charter. But in this agenda of state reform, the economy was neglected. There was no discussion on how Bangladesh would advance the private sector, nor on how business-friendly the future state would be. Instead, after 5 August 2024, a trend emerged of portraying private entrepreneurs as adversaries. In just 14 months, thousands of factories were shut down, millions lost their jobs, and industries were subjected to arson, looting, and seizures. Entrepreneurs who created jobs for millions and played a key role in economic progress had their bank accounts frozen for months under the guise of investigations. Character assassination of the private sector became a mission. Today, the entire private sector is fearful and frustrated. In the journey to build a new Bangladesh, the private sector has been pushed aside. The policymakers of the government show little interest in private entrepreneurs; some even appear to have declared war against them.

The Chief Adviser recently returned from attending the UN General Assembly. During the session, he held several meetings on investment. Yet not a single private entrepreneur was included in his delegation. Without including entrepreneurs, how can foreign investment be attracted?

In February, the national election will be held. Political parties have already begun campaigning. Yet, in their manifestos, the private sector is absent. What vision do they have for guiding the private sector if they come to power? Will entrepreneurs once again be forced into blind allegiance to whichever party is in government? This is a pressing question. Political parties must clarify their stance on private entrepreneurs. Just as a flowing river dries up if blocked, the private sector will collapse under persistent obstacles. If that happens, the economy will face a deep crisis, and politics itself will become unstable. The dream of a new Bangladesh will die, leaving us trapped in the same old vicious cycle.