A new report by the Brussels-based International Crisis Group has accused the previous Awami League government of manipulating key economic data and enabling large-scale corruption, with over $100 billion allegedly siphoned out of Bangladesh over the past 15 years.
The report, titled “A New Era in Bangladesh? The First Hundred Days of Reform,” highlights severe economic mismanagement during Sheikh Hasina’s administration, including inflation of export figures and misleading GDP growth rates.
Citing World Bank estimates, the report notes that from 2015 to 2019, half of Bangladesh’s reported GDP growth was “unexplained,” lacking any basis in structural reforms or economic improvements.
Export data was similarly questioned, with Bangladesh Bank revealing in July that export figures for the last fiscal year were likely overstated by $10 billion. An international macroeconomist referred to the figures as “rubber-and-pencil growth,” underscoring the alleged fabrication of data.
The report criticizes the pervasive corruption that flourished under the deposed government, particularly in the banking sector. It alleges that “industrial-scale looting by ruling-party acolytes” rendered major private banks insolvent, endangering depositors’ money.
One foreign economist described the situation as a “classic case of crony capitalism,” highlighting extraordinary levels of embezzlement in the financial sector.
The agency claims over $100 billion was illegally transferred abroad during the Awami League’s tenure, and it calls for international assistance in recovering these funds.
It suggests foreign governments support the interim administration in tracing and reclaiming the proceeds of corruption stashed in foreign banks and property markets.
The interim government, led by Nobel laureate Muhammad Yunus, has prioritized stabilizing the economy, addressing inflation, and rebuilding foreign-currency reserves. It has also secured significant financial backing from institutions like the International Monetary Fund (IMF), World Bank, and Asian Development Bank, enabling it to clear debts in the power sector and negotiate better terms with creditors, including Russia and China.
Exchange-rate reforms have bolstered foreign reserves, and inflation has eased from its July peak, signaling progress. However, the report warns that deep economic reforms, such as increasing tax revenues, will require years—beyond the likely tenure of the interim administration.
