The key to saving Bangladesh

The question of why some nations thrive while others languish in poverty and political instability has preoccupied scholars, policy-makers, and citizens alike for decades. 

In their groundbreaking work Why Nations Fail, Nobel laureates Daron Acemoglu and James A Robinson argue that the answer lies not in geography, culture, or luck, but in institutions. Political and economic institutions, whether inclusive or extractive, determine the trajectory of nations, shaping opportunities, incentives, and ultimately, prosperity.

Inclusive institutions create a level playing field, protect property rights, encourage investment, and foster innovation. Extractive institutions, by contrast, concentrate power and wealth in the hands of a few, stifle competition, and impede human potential.

Bangladesh, now approaching the completion of its 55th year of independence, presents an instructive case. Born from the struggle for political and cultural freedom in 1971, the nation started with enormous potential. Its people demonstrated resilience, courage, and ingenuity. Yet, the journey from liberation to sustained prosperity has been uneven, revealing both the promise and peril of institutional design.

The book’s central thesis resonates deeply with Bangladesh’s experiences. The country’s early years were marked by political turbulence, weak rule of law, and concentration of power, hallmarks of extractive political institutions. 

These conditions undermined economic development, discouraged innovation, and perpetuated inequality. Corruption, nepotism, and political patronage, unfortunately, became recurring challenges, reflecting the extractive structures that Acemoglu and Robinson warn against.

Yet, Bangladesh’s story is not merely one of struggle; it is also a story of remarkable transformation. Despite institutional weaknesses, the country has achieved impressive economic growth, significant improvements in social indicators, and a growing global presence. 

Microfinance is a quintessential example of how innovative solutions can bypass structural limitations and empower marginalized populations. Social entrepreneurship, advances in the garment industry, and expansion in digital services show that progress is possible even under imperfect institutions. However, sustainable prosperity demands deeper institutional reform.

The lessons of Why Nations Fail are particularly relevant to policy-makers and citizens in Bangladesh today. 

First, strengthening inclusive political institutions is paramount. Democracy, transparency, and accountability must go beyond rhetoric; they require robust systems that prevent the concentration of power, uphold the rule of law, and ensure that political leaders are accountable to the people. 

Political stability, rather than partisan dominance, should be the ultimate goal. Without inclusive political institutions, even the most innovative economic policies risk being short-lived.

Second, economic inclusivity is vital. While Bangladesh’s economic growth, often exceeding 6% annually, is commendable, persistent inequalities and vulnerabilities indicate that benefits are not universally shared. 

Access to quality education, healthcare, and financial resources must be widened to empower citizens across all strata of society. Inclusive economic institutions ensure that individuals and communities can contribute meaningfully to the nation’s growth, creating a virtuous cycle of opportunity and productivity.

Third, the role of civic engagement cannot be overstated. Strong institutions require an active citizenry that demands accountability, challenges corruption, and participates in decision-making processes. 

Bangladesh has a rich history of civic activism, from the Language Movement of 1952 to the Liberation War of 1971. Rekindling that spirit in contemporary governance, while adapting to modern challenges, could help bridge the gap between institutional ideals and everyday realities.

Fourth, education and human capital development also emerge as critical pillars. Inclusive institutions flourish when citizens are empowered with knowledge and skills. 

Bangladesh has made commendable strides in literacy rates and gender parity in primary education, yet challenges remain in higher education, technical training, and research capacity. Investing in human capital is not merely an economic imperative; it is a strategic step toward institutional inclusivity, innovation, and long-term resilience.

Fifth, environmental sustainability is another dimension where Bangladesh’s institutional choices matter profoundly. As one of the most climate-vulnerable countries in the world, Bangladesh faces existential threats from rising sea levels, cyclones, and river erosion. 

Inclusive institutions that integrate climate resilience into economic planning, urban development, and social welfare programs are essential to protect both livelihoods and national development gains.

Lessons from the world

The experience of other nations offers both caution and hope.

South Korea, once impoverished and politically unstable, transformed into a technological and industrial powerhouse through inclusive reforms, education, and long-term vision.

Conversely, nations with abundant resources but extractive institutions, such as Venezuela, illustrate how wealth can become a curse if power remains concentrated and unaccountable. 

For Bangladesh, the path forward is clear: Economic and political inclusion, strengthened institutions, and civic empowerment are the cornerstones of enduring success.

At a deeper level, Why Nations Fail challenges citizens and leaders alike to confront uncomfortable truths. It forces a reflection on choices, policies, and systemic structures that either enable or constrain human potential. 

For Bangladesh, this reflection is both urgent and empowering. The nation’s achievements in poverty reduction, women’s empowerment, digital innovation, and microfinance demonstrate what is possible. 

Yet, the full promise of Bangladesh can only be realized if inclusive institutions become not the exception but the norm.

By committing to inclusive political and economic institutions, fostering civic engagement, investing in human capital, and addressing environmental vulnerabilities, Bangladesh can chart a trajectory toward sustainable prosperity. 

The nation’s history shows resilience, creativity, and determination; its future depends on translating these qualities into systems that empower every citizen. Bangladesh has the potential to not just survive but thrive, not just grow but lead, not just endure challenges but redefine them as opportunities. 

By learning from history, embracing inclusivity, and strengthening institutions, the nation can write a new chapter of prosperity, dignity, and justice fulfilling the promise envisioned by its founding generation and affirmed by the lessons of nations around the world.

A Gafur is former Executive Director, The American Chamber of Commerce in Bangladesh.

Source: Dhaka Tribune.