Exploring Bangladesh’s Political Economy: Insights from M. Fouzul Kabir Khan’s Latest Book

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September 9, 2025

New Analysis Unveils ‘Three-Handed Economics‘ Shaping Bangladesh’s Fate

Dhaka – A recently published collection of essays is offering a critical lens on the complex interplay of economic forces and political realities within Bangladesh. The work, compiled by a distinguished economist who prefers to forego traditional academic titles, delves into issues ranging from inflation and banking instability to the broader geopolitical landscape affecting the nation.

A Unique Outlook on ‘Onorthoniti‘

The core of the analysis centers on a uniquely Bengali concept – “onorthoniti” – which describes a form of economic malpractice. Rather than relying on conventional economic theory, the author examines how legal structures, social norms, and power dynamics converge to shape economic outcomes.A central argument posits that the relationship between economists and politicians is fundamentally influential, echoing John Maynard Keynes’s observation that “the world is ruled by little else.”

The ‘Third Hand’ of impunity

A key metaphor introduced in the analysis is the idea of three “hands” at play: the left, the right, and a hidden “third hand” representing pretext or unaccountability. This “third hand” effectively neutralizes efforts by the “right hand”-representing integrity and sound policy-to counteract the actions of the “left hand,” which embodies self-interest and potential wrongdoing. This dynamic, illustrated thru examples from cricket to financial regulation, reveals a pervasive culture of impunity within the country.

This is sharply contrasted with Adam Smith’s “Invisible Hand,” which fosters societal benefit through self-interest. the “third hand”, however, actively obstructs progress at both micro and macro levels, serving as a shield for questionable practices.

Policy and the pursuit of Expediency

the analysis highlights a recurring pattern in policymaking: a preference for short-term fixes over fundamental reforms. Following the Covid-19 pandemic, for example, the government leaned towards immediate financial assistance for businesses rather than addressing underlying structural issues. This pattern persists, with businesses often advocating for quick policy adjustments – such as tax breaks and loan restructuring – while expressing support for long-term reforms they are reluctant to embrace.

A Table of Common Policy Approaches

Policy Approach	Short-Term Impact	Long-Term Impact
Financial Assistance	Immediate Relief	May mask Underlying Problems
Structural Reforms	Delayed Results	Sustainable Growth & Resilience

Serendipity and Systemic Change

The author recounts a pivotal moment during economic reforms in the early 1990s. A seemingly minor query from one official prompted a detailed response that ultimately led to a significant policy reversal and the re-engagement of the World Bank. This anecdote underscores the role of chance, meticulous attention to detail, and individual influence in driving systemic change.

Did You Know? Bangladesh’s economy has shown impressive growth in recent decades, with a GDP growth rate averaging over 6% annually prior to the pandemic, according to the World bank. World Bank – Bangladesh

Looking Ahead: A Memoir in the Works

Plans are underway for a forthcoming memoir by the author,detailing experiences within an interim government and overseeing multiple key ministries. This future work promises further insights into the complexities of governance and policy implementation in Bangladesh.

The Enduring Relevance of Economic Governance

The themes explored in this analysis – the tension between short-term expediency and long-term sustainability, the influence of political considerations on economic policy, and the challenge of accountability – are universal and extend far beyond the context of Bangladesh. Effective economic governance requires a commitment to openness, sound institutions, and a willingness to address underlying structural issues, even when politically challenging. The concept of “onorthoniti” offers a valuable framework for understanding how deeply ingrained practices can undermine economic progress in any nation.

Frequently Asked Questions about Bangladesh’s Economic Landscape

• What is “onorthoniti”? It’s a Bengali term referring to economic malpractice, encompassing unethical or corrupt practices within the economic system.
• What is the significance of the “third hand” metaphor? This represents unaccountable influence or pretext used to sidestep responsibility and maintain the status quo.
• How does this analysis view the role of economists? It emphasizes their crucial role, while also acknowledging the potential for their advice to be ignored or manipulated for political gain.
• What are the key challenges facing Bangladesh’s economic policy? Balancing immediate needs with structural reforms and overcoming a culture of impunity are significant hurdles.
• What is the importance of the 1990s economic reforms in bangladesh? The reforms serve as a case study demonstrating how chance encounters and individual attention to detail can catalyze systemic change.
• How can Bangladesh improve its economic governance? By prioritizing transparency, strengthening institutions, and addressing underlying structural issues.

What steps do you believe Bangladesh should take to address the challenges outlined in this analysis? Share your thoughts in the comments below.

How does KhanS book characterize the shift in economic policy during periods of military rule in Bangladesh?

The Interplay of Politics and Economics in Bangladesh

Bangladesh’s growth trajectory is uniquely shaped by the intricate relationship between its political structures and economic policies. Understanding this political economy is crucial for anyone seeking to grasp the nation’s progress, challenges, and future prospects. M. Fouzul Kabir Khan’s latest book offers a timely and insightful analysis of this complex dynamic, providing a nuanced perspective on the forces driving Bangladesh’s economic transformation. this article delves into key themes from the book, exploring the past context, current trends, and potential future scenarios for Bangladesh’s economic development.

Historical Roots of Bangladesh’s Political Economy

Khan’s work emphasizes that contemporary economic realities are deeply rooted in Bangladesh’s history. The legacy of colonial rule, the 1971 Liberation War, and subsequent political instability have all left indelible marks on the nation’s economic landscape.

Early Independence & Socialist Leanings: The initial post-independence period saw a focus on socialist principles, nationalization, and centralized planning. This approach, while aiming for equitable distribution, faced challenges in efficiency and productivity.

Military Rule & Structural Adjustment: Periods of military rule (1975-1990) brought about a shift towards market-oriented reforms, frequently enough dictated by structural adjustment programs imposed by international financial institutions like the IMF and World Bank. These reforms, while promoting economic liberalization, also led to social costs and increased inequality.

The Rise of NGOs: The political vacuum and limitations of state capacity fostered the growth of a vibrant non-governmental institution (NGO) sector. These organizations played a critical role in poverty alleviation, microfinance, and social development, frequently enough filling gaps left by the government. BRAC, for example, became a global leader in microfinance and development initiatives.

Key Themes in Khan’s Analysis: Power Dynamics & Rent-Seeking

A central argument in Khan’s book revolves around the concept of rent-seeking – the pursuit of economic gain through manipulation of the political system rather than through productive activities. He argues that powerful vested interests, including political elites, business groups, and landholders, have historically captured state resources and shaped policies to their advantage.

The Role of Patronage Networks

Political Clientelism: Khan highlights the prevalence of political clientelism, where political support is exchanged for favors, contracts, and access to resources. This system undermines good governance and creates distortions in the economy.

Crony Capitalism: The book details how crony capitalism – close relationships between businesses and government officials – has flourished in Bangladesh, leading to unfair competition and corruption.

land Ownership & Inequality: The concentration of land ownership in the hands of a few powerful families remains a significant factor contributing to economic inequality and political influence.Land reforms have been largely unsuccessful due to resistance from vested interests.

Sectoral Analysis: Garments, Remittances, and Infrastructure

Khan’s book provides a detailed sectoral analysis, focusing on the key drivers of Bangladesh’s economic growth.

The Ready-Made Garment (RMG) Industry

Export-Oriented Growth: The RMG sector has been the engine of Bangladesh’s export growth, employing millions of workers, primarily women. Though, the sector faces challenges related to labour rights, workplace safety (highlighted by the Rana Plaza tragedy in 2013), and competition from other low-cost producers.

Global Value Chains: The RMG industry is deeply integrated into global value chains, making it vulnerable to external shocks and fluctuations in global demand.

Diversification Challenges: Khan argues that Bangladesh needs to diversify its export base beyond the RMG sector to achieve sustainable economic growth.

Remittances & Migration

Significant Contribution to GDP: Remittances from Bangladeshi workers abroad are a crucial source of foreign exchange and contribute significantly to the country’s GDP.

Migration Patterns: The book examines the patterns of Bangladeshi migration, highlighting the challenges faced by migrant workers, including exploitation and human trafficking.

Impact on Household Poverty: Remittances have played a vital role in reducing household poverty and improving living standards.

Infrastructure Development & Investment

Infrastructure Deficit: Bangladesh faces a significant infrastructure deficit, hindering economic growth and competitiveness. This includes inadequate transportation networks, power supply, and port facilities.

Public-Private partnerships (PPPs): The government is increasingly relying on public-private partnerships (PPPs) to finance infrastructure projects. Though, Khan raises concerns about the clarity and accountability of these projects.

Chinese Investment: The growing influence of Chinese investment in Bangladesh’s infrastructure sector is also analyzed, highlighting both the potential benefits and risks.

The Future of Bangladesh’s Political Economy: Challenges and Opportunities

Khan’s book concludes with a discussion of the challenges and opportunities facing Bangladesh’s political economy.

Governance & Corruption: Improving governance and tackling corruption are identified as critical priorities for sustainable development.

*Climate Change