SOME of the most powerful people in Bangladesh are facing personal situations which may be indicative of a bigger problem. The enrichment happens through connections and, occasionally, force that together sustain a socio-political system. This is considered in a very negative light, in general, and is equated with corruption and its attendant vices.
But it is also a fact that such systems grow as part of an extended 鈥榩re-modern鈥� state structure, often linked to how villages operate. In villages, there are no hard and fast rules about what is a crime and punishment because the notions are fluid and all matters can be settled/mediated. What matters is the continuation of the village and the relationships within.
Almost all post-colonial states have this economic model, in varying degrees though, because the crisis of governance was a relatively new idea imposed on a society functioning on largely pre-capitalist economic formations. The two systems 鈥� colonial capital and rural society 鈥� married and, possibly, produced crony capitalism that has a longer history than post-1971 regimes.
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Recent instances and structural issues
MUCH of our political analysis space is occupied by rants and polemics rather than analysis. This trend is also common in the global south. What may be slightly different is the structure of crony capitalism. Interestingly, most critics also oppose market capitalism which is seen as very negative. Are the critics then ready to embrace 鈥榮ocialist capitalism鈥� as in China? That also has a huge quantum of network capitalism, of a different variety though. Whether we like it or not, market capitalism has organic roots while the variants are morphs or distortions; hence, the governance problems..
There is collective amnesia about how the system took root after 1971. There were many property of the fled Pakistani elite which were grabbed by the newly powerful of all kinds or linked to them. Those who did could because they had connections. It was widespread and the fundamentals of the connection economy were largely established then.
The second came in after power change and installation of the military regime and new crony networks and institutional 鈥榯heft鈥�, particularly in the financial sector, began. Despite lingering poverty, Bangladesh has always moved forward economically and, so, there was enough money to be made and all those who did are still very safe. Much of it was institutional which meant that it could not be reduced by good governance practices only. It required institutional restructuring which, of course, none wanted and do not want now either.
Politically, the system never took off because the economic nature 鈥� connection 鈥� could not be compatible with an open political society which means an open market economy. Hence, conspiracy became the norm which is how a series of changes were attempted, all violent.
The third regime in this line was the ultimate peak of sleaze where the chief executive officer of the state became its primary symbol after 1982. Corruption, force and sex were all hallmarks of the third regime and it flourished. Most were willing collaborators..
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The current phase
CRONY/CONNECTION capitalism is state-based as all major decisions are taken by it. It has an elaborate structure, including anti-corruption policies, but corruption is a crime and enrichment is not which is not fully comprehended by many Bangladesh analysts. Making money beyond and above the legal level does not apply as wrong any more. And what senior officials and politicians, let alone businessmen, make are payments for sustaining the system, not 鈥榗orruption鈥�. Everyone who is part of the state system benefits; hence, the corporate nature of enrichment.
Yet, we have seen the three high-profile cases recently and several in the last five years which have drawn media attention and some question marks on the efficiency of the model. Crony capitalism functions in most non-open market economies 鈥� Vietnam is a good example 鈥� but the Bangladesh variety is facing stress. Why?
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Three issues
鈥� Increased internal competition within the sector leading to conflicts. This has been growing and is now open. This is partly because new entrants into the structure are high and are putting pressure on its accommodation capacity.
鈥� Lack of control mechanisms being less efficient than needed for sustaining the system as the size of enrichment has gone beyond management capacity and capital available.
鈥� Political links are critical as an entry pass, but that/state is under pressure from external forces that are also aware of the system and its operating system and knows its weak points.
This has resulted in a large hiccough that has put pressure on the powers that be of the system. As the media is also a part of the system, it is playing up the news on the crisis, but it is very self-preserving. The sudden interest in the accumulated enrichments of the system鈥檚 key players who are also under international scrutiny and then letting them off is a known strategy and has been applied.
Perhaps, the best term to define this would be a crony capitalist market correction which may make the system actually stronger. But, this is about the state and society remains elsewhere operating under a more socially open network though also driven by many similar patterns.
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Afsan Chowdhury is a researcher and journalist.
