Dhaka-To-Delhi: PM Sheikh Hasina Leaves Behind A Teetered Bangladesh; A Snippet Of Economical Unrest!

The once titled 'Asian Tiger', Bangladesh is burning as civil unrest continues to heat up into spiral protests against the longest-serving government in the country, resulting in the resignation of Prime Minister Sheikh Hasina Wazed on August 5th. Hasina, under whose regime, Bangladesh witnessed a remarkable turnaround from the poorest nation to reducing its poverty and showcasing a strong track record of growth, has left behind a teetered country. The shambles in Bangladesh are filled with anger, chaos, disagreement, discomfort and bloodshed, and the days ahead will only be challenging.

Before talking about Bangladesh and its latest disarray situation which could pose a potential and severe impact on its economy, let's first understand Hasina's Bangladesh.

Daughter of Sheikh Mujibur Rahman, the founding father and first president of Bangladesh, Hasina followed in the footsteps of her father. Hasina first became Prime Minister of Bangladesh in the June 1996 election, where she served the first full five-year term as PM since the country became independent.

Although Bangladesh was recognized as one of the booming countries, reducing its poverty levels and enhancing economic growth, Hasina could not erase political tumult in the country which led her to give up her seat in July 2001 to her opposition Khaleda Zia.

Despite being accused of exhortation charges and detained during the political crisis in 2006-2008, Hasina triumphed as Prime Minister in the 2008 election, and to hold the fort since then. She was re-elected in 2014 election, 2018 election and 2024 election. She reigned despite political crisis, deeply rooted in the system, and above attempts of boycotts and protests.

This makes her the longest-serving prime minister in the history of Bangladesh and also the longest-serving female head of government. Combined, she served as PM of Bangladesh for 20 years.

Her Bangladesh In 2 Decades:

As per World Bank data, Bangladesh tells a remarkable story of poverty reduction and development. Since it was one of the poorest nations at birth in 1971, Bangladesh reached a lower-middle income status in 2015. It is on track to graduate from the UN's Least Developed Countries (LDC) list in 2026.

World Bank's report highlighted that Poverty declined from 11.8 per cent in 2010 to 5.0 per cent in 2022, based on the international poverty line of $2.15 a day (using 2017 Purchasing Power Parity and a comparable welfare series). Similarly, moderate poverty declined from 49.6 per cent in 2010 to 30.0 per cent in 2022, based on the international poverty line of $3.65 a day (using 2017 PPP).

Also, human development outcomes improved along many dimensions, like a reduction in infant mortality and stunting, and an increase in literacy rates and access to electricity, as per the report.

The country's GDP growth rebounded to 6.12% in Q3 of FY24. However, in the latest outlook, the World Bank has forecasted Bangladesh's GDP growth to 5.6% for FY24, a slowdown sequentially. This is also lower compared to the average annual growth rate of 6.6% over the decade preceding the Covid-19 pandemic.

What Did Hasina Missed Out On Bangladesh?

World Bank points out that despite gains, inequality has slightly narrowed in rural areas and widened in urban areas.

Explaining further in detail, the World Bank stated that persistent inflation is expected to weigh on private consumption growth, and shortages of energy and imported inputs combined with rising interest rates and financial sector vulnerabilities are expected to dampen investor sentiment. Growth is expected to increase gradually over the medium term as monetary, exchange rate, and financial sector policy adjustments are implemented.

But to achieve its vision of attaining upper middle-income status by 2031, World Bank believes that Bangladesh needs to create jobs through a competitive business environment, increase human capital and build a skilled labour force, build efficient infrastructure, and establish a policy environment that attracts private investment.

Also, the international financial institution stated that development priorities include diversifying exports beyond the RMG sector; resolving financial sector vulnerabilities; making urbanization more sustainable and strengthening public institutions, including fiscal reforms to generate more domestic revenue for development. Addressing infrastructure gaps would accelerate growth.

It added, "Addressing vulnerability to climate change and natural disasters will help Bangladesh to continue to build resilience to future shocks. Pivoting towards green growth would support the sustainability of development outcomes for the next generation."

The Break-Even Point!

The success of Bangladesh lacked justice, equality and humanity. Threats to Hasina's regime erupted after her remarks in July 2024 about student protests who demanded the restructuring of quota systems in the country.

In a conference, as a response to the protest's demand, Hasina said last month, "The grandchildren of freedom fighters don't get quota benefits, will those then go to the grandchildren of the Razakars? That's my question to the countrymen," as per Wikipedia.

Since then, her position in Bangladesh faced backlash, condemnation, and immense anger. It was inevitable. Because protestors increased in multi-fold many adopted her remarks of ' Razakars' in slogans to put forth their demand.

The 2024 Bangladesh quota reform movement was an anti-government and pro-democracy protest in Bangladesh, spearheaded primarily by the students of public and private universities, as per Wikipedia.

Currently, under the quota, 30% of the jobs in government-backed companies are reserved for descendants of freedom fighters. The general category was scrambled for job opportunities in government companies.

Since July, extreme clashes with police, armed forces and members of Awami League, Chhatra League, and Jubo League, resulted in over 300 deaths of civilians, while many were stranded and injured severely.

Even when the Supreme Court of Bangladesh agreed to reform the quote systems, the protestors demanded the exit of Hasina. The protest organisers formed a single demand and announced a non-cooperation movement, calling for the resignation of Hasina and her entire cabinet.

As per reports, Hasina and her younger sister, Sheikh Rehana have landed at the Hindon Air Force base in Uttar Pradesh's Ghaziabad, which is about 30 km from the capital city Delhi. Some reports state that Hasina could seek asylum in the United Kingdom.