“A second liberation.” This is how the new leader of Bangladesh’s interim government, Professor Muhammad Yunus, has described the historic events that are unfolding in the country.
In recent weeks, after decades of autocratic rule, millions of people have taken to the streets in villages, towns, and cities. They have had enough of the corruption, cronyism, and oppression overseen by former Prime Minister Sheikh Hasina, who has fled, we are told, to Delhi. As we see again and again, in nations around the world, young people especially are demanding their democratic rights.
I visited Bangladesh many times and got to know the country well, primarily when I was CEO of Unilever, which we built into the biggest consumer goods company operating there. Professor Yunus is a Nobel Peace Prize laureate and the father of microfinance for entrepreneurs who would not normally qualify for loans. Yunus, who I am lucky to call a friend, has been credited with lifting millions out of poverty and driving grassroots-led development.
Yet, in recent years, he has suffered relentless politically motivated persecution by Sheikh Hasina’s corrupt regime. Seen as a threat, she has embroiled him in one bogus court case after another.
Now, with wide support in and out of the country, his job is to lead Bangladesh through fair and transparent elections, as the country takes what we hope will be an irreversible step toward its democratic future.
CEOs of major companies around the world will be carefully watching: Bangladesh is one of the fastest-growing economies in the region, even surpassing India.
However, the international business community should do more than watch. We can actively support the country on its new trajectory. A free, stable, and thriving Bangladesh is good for the world, and certainly good for the companies operating there.
This is a country of 170 million people, two-thirds of which are young. Many of those who protested are educated, professional, and digitally savvy whose frustration is heightened because they see their nation’s stunning potential.
The economy of Bangladesh faces serious challenges, not least persistently high inflation and heavy foreign debt, which has doubled since 2016. The economic mismanagement of the previous regime will take some undoing.
But growth prospects have proven surprisingly resilient, even after the COVID-19 pandemic. Per capita income has tripled in the last decade, and growth has been fuelled by the garment industry, which supplies markets around the world. Bangladesh is an economic powerhouse in waiting, the potential of which can be fully unleashed by a bold and inclusive program of political and economic reform.
In the immediate term, companies with a presence can help the interim government restore stability and get the wheels of the economy going again. Every day that factories and offices are closed, or orders remain unplaced, it hurts ordinary people. Getting back to business will demonstrate confidence in the interim administration in Dhaka, and its commitment to democratic renewal. So too does boosting foreign investment. Now is the time to invest in new and existing operations, and particularly to create high-quality jobs. By doing so, you are investing not only in your business but also in strengthening Bangladesh’s economic prospects at a pivotal moment, thereby maximising your return.
Specifically, the country urgently needs more help against climate change. Despite being a global leader in adaptation, which means addressing the effects of global warming, it’s continually listed as one of the world’s most vulnerable nations. Its geography makes it especially susceptible to natural disasters and extreme weather events such as floods, cyclones and droughts, which have increased at an alarming rate.
Bangladesh struggles, however, to secure international support, including access to climate finance. Without greater action on climate, economic gains risk being wiped out by the growing costs of environmental disasters. Helping mitigate climate risk is imperative for the country’s economy and prosperity—and additional private capital has a critical role to play.
Crucially, the private sector can also be active and vocal in supporting the Bangladeshi authorities and its citizens as they work to rebuild the country’s democratic institutions, tax system, and the rule of law. Don’t stay silent or sit on the sidelines. CEOs can publicly and privately advocate for the reforms needed to root out endemic corruption and rebuild people’s trust in the state, and in industry too.
Where things go from here, nobody can be sure. The country is at a crossroads, but optimism is in the air. Professor Yunus speaks of his country moving towards “three zeros”. Zero net carbon emissions, zero wealth concentration, and zero unemployment. It is beyond ambitious, but perhaps this level of vision is precisely what Bangladesh—and many other governments— needs.
In this bumper election year, the events of the last week remind us how difficult it is for autocratic regimes to crush hope. Citizens everywhere, especially young people, want to determine their own futures and live in societies where opportunity is spread. It is up to all of us to stand with them—and with Bangladesh as it forges ahead.
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