WRITING in 1789, at the birth of the US, Thomas Jefferson suggested that 鈥榥either the representatives of a nation, nor the whole nation itself assembled, can validly engage debts beyond what they may pay in their own time.鈥� But with the birth of Bangladesh鈥檚 post-Hasina democracy, we are in danger of neglecting that wisdom.
Presented with the opportunity to rebuild the country, politicians are instead focusing on the pursuit of power. Presenting policies ahead of an election, none are acknowledging the fundamental economic challenges Bangladesh faces, let alone proposing solutions.
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Uncontrolled national debt
PERHAPS one problem is that our national debt is a figure so large it is meaningless in most people鈥檚 day-to-day lives. Currently running at $166.7 billion, it鈥檚 equivalent to about 41% of Bangladesh鈥檚 annual gross domestic product.
Debt can be dangerous. Heavy debt can stifle the economy, slowing or even reversing growth, increasing unemployment and preventing investment in public services.
If allowed to get out of control, it can cripple a country and instead of investing in our children, we are sentencing them to a lifetime working to pay for our mistakes.
Other countries have paid the price of poor debt management. The financial crises in Greece and Sri Lanka took a heavy toll. More than a decade ago, Greece needed a bailout by the EU and IMF. The conditions imposed proved difficult to meet, public sector wages and pensions were slashed and taxes increased. Unemployment, especially youth unemployment, rose and the public disquiet resulted in riots against the reforms.
In Sri Lanka, the government was forced to resign following protests against the economic situation. Decades of a growing deficit had seen services crumble, with the population facing power cuts and fuel shortages because their government could not pay its bills.
In both cases, a common factor is that it is not the generation of decision-makers that pays the price. Whether it is today鈥檚 Sri Lankan taxpayers footing the bill of yesteryear鈥檚 politicians or Greek youths dealing with a devastated economy, they lived the consequences of their forefather鈥檚 lack of foresight.
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Political silence
BUT despite these very real and very painful examples, fiscal policy has become the elephant in the room; we know there is a problem, but no one talks about it.
This is, perhaps, a problem of politics. Difficult truths are typically not a vote-winner, so politicians seeking power are unlikely to admit that proper budget management will mean difficult and possibly painful policies. Instead, discussion skirts around the fiscal challenges we face. Candidates and leaders refer to corruption, food prices and IMF loans, but never address the heart of the matter.
Fortunately, elections are the time when voters have power. And they could and should exercise that by demanding answers. Instead of accepting vague soundbites and slogans, voters have a right to know what the political candidates think about the debts and how they want to deal with it. When those candidates are in office, they will manage the debt, so the electorate should know what they plan before they are asked to cast their votes.
As always, there are solutions to these problems. In fact, when you look around the world, many countries have proportionately more debt than Bangladesh, including many that are widely considered economically strong nations.
However, they manage that situation because they have a different approach. Their fiscal policy and budgets are subject to full transparency and robust scrutiny. Whether it鈥檚 the taxpayer or international bodies, dealing with a nation that has robust fiscal management, even if they have relatively high debt, is preferable to a nation where politicians avoid the issue.
One easy way to deal with it is to create an independent body. Many countries already do this, setting up commissions or offices whose job is to scrutinise and publicly comment on, without fear or favour, the government鈥檚 plans.
Setting up a budget and national audit committee in Bangladesh to perform a similar role would be an important first step. It could inform the public of the costs of manifesto promises and the effectiveness of future governments in managing their accounts.
It would provide analysis, transparency and, most importantly, accountability. It would mean that instead of political promises, we would be able to vote on meaningful pledges. And we would know that money was actually being used effectively, supporting priorities like investment in our export industries, creating jobs and fuelling sustainable growth and not just disappearing into ineffective projects or, worse, corrupt leaders鈥� back pockets.
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Building trust through transparency
TRANSFORMING Bangladesh into an economic power is possible, but it can only be done through the will of people and politicians.
Aside from the legislative framework to set up oversight through a budget and national audit committee, it needs agreed priorities to work on, like ensuring sustainable public finances and intergenerational stability.
But it also needs political will. Parties should develop the discipline of including comprehensive fiscal plans for their policies, proving not just that they can deliver but that they provide value for money. Perhaps most importantly, political parties and the people need to know both the cost and the value of policies and promises, so everyone can make informed decisions.
It is not too late for Bangladesh. Despite the problems and abuses of political power of recent years, it鈥檚 still possible to nurse our economy back to good health.
The dangers are that we are following the path of Greece or Sri Lanka, with high unemployment, low wages and a stagnant economy fuelling unrest that crowds out the current potential for change.
But if we get it right, we can create a new culture where Bangladesh has a transparent and open discussion about the national finances and expenditures. Instead of debt being an anchor on our ambition, it can become a vital tool as we navigate the future, creating a prosperous Bangladesh that offers fairness, opportunity and prosperity for all.
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Sabina Khan, a law graduate from Middlesex University London, is an elected local councillor in London and a school governor.
