System riddled with serious flaws, says finance adviser as reforms stall

“I thought I would be able to push through reforms. But reform requires cooperation from everyone and a properly functioning process. Having seen things from the inside, I can say the process contains so many flaws that you would not believe it. Even so, I delivered quick solutions at the Ministry of Finance. My experience in government service means I know how things should be done. Others have not been able to do so. Many advisers feel deeply frustrated.”

Finance adviser Salehuddin Ahmed made these remarks on Tuesday while briefing journalists after a meeting of the advisory committee on government procurement at the Secretariat.

When asked whether bureaucratic obstacles lay behind the failure to implement reforms, he said, “The bureaucracy is certainly part of the problem. The laws were also poorly drafted in the past. When I served as governor, two or three members from the same family sat on a bank’s board. Then a subsequent minister came along and increased that number to six or more. That represented a move in the wrong direction.”

Salehuddin Ahmed also claimed that, after serving for one and a half years, the interim government would leave the economy in a satisfactory position.

“I believe the economy is in a satisfactory state. The next government will not face major difficulties,” he said.

In response to a journalist’s comment that unemployment had increased despite claims of economic stability, the finance adviser said, “Employment is our biggest challenge. We could not address it. That would have required the development of small and medium-sized industries. We did not have sufficient funds. Bangladesh Bank made efforts, but large factories have low labour intensity. There are many contributing factors.”

When asked to clarify what he meant by “satisfactory”, he said the term referred to stability. “The economy is no longer fragile as before. The next government will be able to take it forward.”

Asked about the interim government taking the highest amount of loan within a year and a half, Salehuddin Ahmed responded, “We took the highest amount of loans, but we also repaid the highest amount of loans. We repaid USD 6 billion (600 crore). The government still had to carry out public sector activities. Another reason for borrowing was that we did not abandon previous commitments.”

Transparency International Bangladesh (TIB) stated on Monday that the government’s visible actions did not reflect the level of development or reform claimed in reality.

Responding to this, the finance adviser said that TIB could not see everything. “They do not have special vision, not even proper vision. Even if they try, they cannot see many things,” he said.

When a journalist remarked that governments tend to view TIB critically once they come to power, Salehuddin Ahmed replied, “No, no, I am not speaking ill of TIB. Have you ever seen me criticise irresponsibly while outside government? I have always focused on fundamental issues.”