Paid people positioned in central bank to favour specific groups: Debapriya

Distinguished Fellow of the Centre for Policy Dialogue (CPD) Dr Debapriya Bhattacharya has alleged that people with vested interests had been strategically placed within Bangladesh Bank (BB) to serve the interest of particular groups.

“They printed money, showed fake reserves. A person who is not qualified to run a bank was allowed to do so,” said Dr Debapriya, who also heads the government-formed White Papers Publishing Committee on Corruption.

He made the remarks at a seminar titled ‍‍`Policy Dialogue on Financial and Economic Reforms in Bangladesh‍‍`, held at the BRAC Inn, Mohakhali, in the capital on Saturday.

 “We are in the middle-income trap. If the state is not repaired, reforms will not be sustainable. Unless economic stability is achieved, it is not possible to move forward on the path of reform,” said Dr Debapriya.

He suggested that economic reforms must follow speedily once stability is ensured.

Drawing a metaphor, Dr Debapriya likened Bangladesh’s economy to two vital organs, saying, “Bangladesh has two kidneys: one is the financial sector, the other is the energy sector. Both had been consumed by the previous government. Those who exploited the energy sector also ravaged the financial sector.”

He criticised the development narrative of the previous government, pointing out discrepancies in growth data. “Information is politicised. Growth without private investment is shown, whereas tax-to-GDP does not increase. No taxes, no investment, and while visible development is showcased, social development in health and education has been severely undervalued,” he emphasised.

Salim RF Husain, Chairman of the Association of Bankers, Bangladesh Limited (ABB), stressed the need for digitising the central bank to enhance transparency in financial transactions. “There has been looting in the financial sector under direct government sponsorship, involving businessmen and politicians,” he added.

Bankers, economists and researchers attended the seminar.