Corrupt nexus monopolised govt entities, siphoned off public funds: Debapriya

A lawless economy had emerged in recent years and created a colossal nexus involving bureaucrats, "uniform-wearing bureaucrats", politicians, and businessmen, which monopolised the relevant institutions and organisations to siphon off public funds for personal gain, said eminent economist Debapriya Bhattacharya today (31 October).

Debapriya, the head of the committee preparing a white paper on the country's economy, said that systemic corruption that permeated various institutions in the previous government led to a misallocation of public funds and hindered development.

Speaking at a views-exchange meeting with the Economic Reporters' Forum (ERF) in Dhaka, he said they came up with this observation very clearly through their investigation and research.

The public will now bear the consequences of this corruption, as government spending has been inefficient and funds have been misappropriated and laundered abroad, he said. "Despite the corrupt practices, a facade of development was maintained to deceive the public.

"To sustain the corrupt system and maintain the illusion of development, authoritarian tendencies became necessary. And that created the cyclical relationship of the nexus," said Debapriya, a distinguished fellow of the Centre for Policy Dialogue (CPD).

However, the current political climate has provided an opportunity to break this cycle and implement reforms, he added.

Although efforts to introduce reforms have started, he said, political, administrative, and institutional hurdles remain. The government must balance the need for reforms to ensure sustainable development with the potential for economic repercussions if individuals, groups, or parties feel targeted, he added.

The public policy expert said the scope, continuity, and pace of the government organisations will depend on how confident the government is when it comes to the economy and the level of comfort people are in.