Bangladesh on the Brink: The Economic Crisis and Its Impact on Human Rights
INTRODUCTION
Following the 1971 Liberation War, Bangladesh introduced a policy that reserved a substantial share of high-ranking posts in civil service and government sector for the families of freedom fighters – an advantage that controversially extended even to the forthcoming generations. Over the years, this led to a surge in the unemployment rate among educated youth and ignited widespread dissatisfaction across Bangladesh, as they fought for meritocracy and fairness in the job market.[1]The unrest escalated into widespread protests, fuelling civil disorder, and deepening Bangladesh's political crisis, driven by eroding public confidence in governance and political leadership.[2]
Consequently, the long-serving Prime Minister Sheikh Hasina resigned and fled the country, plunging the nation into turmoil. This presented the Muhammad Yunus-led interim government with the formidable challenge of stabilising the country by tackling critical issues such as rising unemployment, a shrinking GDP, and inflation to prevent an impending economic crisis stemming from political instability.[3] Amid the apprehension of an economic downfall, the vulnerable populations such as Rohingya refugees, the minorities (Hindus), and women and children live under the threat of violations of human rights. Hence, this double-edged sword needs to be put to rest prior before it escalates into a storm, for which the following discussion is essential.
ECONOMIC TRAJECTORY
After declaring its independence from Pakistan, Bangladesh began its journey in 1971 with a negative economic growth rate of -5.5%, but it quickly transformed into one of the fastest-growing economies, driven primarily by its export income from Ready-Made Garments (clothing industry).[4] Remarkably, it sustained this growth despite the ongoing political instability, low global markets and infrastructure deficit. However, recent protests and political turmoil have put this progress in jeopardy.
What began as an attempt to restore the economy, due to unfortunate decisions, evolved contrastingly into an economic disaster. Among the many sectors bearing the brunt, the most severely impacted are employment rates, Foreign Direct Investment (“FDI”), Gross Domestic Product (“GDP”), exports and per capita income.[5] The International Monetary Fund (“IMF”) has reported a decline in real GDP to 4.8 percent, with high international commodity prices and financial constraints worsening Bangladesh’s economic vulnerabilities.[6] From the perspective of a potential foreign investor, Bangladesh no longer appears to be an attractive option, as its FDI reserves are declining, and the economy is on the verge of disintegration. This ongoing crisis obstructs the achievement of Bangladesh's 8th Five-Year Plan (the nation's economic development strategy) objectives, highlighting an imperative need for immediate action to stabilise and enhance the economy to sustain the country’s growth rate.[7]
INSTABILITY BREEDS INEQUALITY AND INJUSTICE
The abovementioned economic crisis in Bangladesh pauperised social inequalities, with marginalized communities such as ethnic minorities and rural women, along with unemployed graduates on the barren side of the fence. For instance, the 2021 Human Rights Watch[8] report served as a testament to the plight of unpaid garment workers – mostly women – who were systematically ushered into poverty due to frequent delays in payment of wages during the COVID-19 pandemic, violating their right to an acceptable standard of living warranted under Article 25(1) of the Universal Declaration of Human Rights (“UDHR”).[9]
Parallelly, ethnic minorities such as those thriving in the Chittagong Hill Tracts encounter systemic discrimination in matters of land ownership and access to primary education, further violating Bangladesh’s commitments as a signatory to the UDHR.[10] A careful observation of the real-world scenario shows that albeit the Constitution of Bangladesh guarantees all its citizens the right to buy land in any region in the country, Bengali citizens are categorically refused this right in these regions.[11] Such unchecked systemic discrimination is still thriving under the nation’s independent regime, amounting to clear violation of customary international law. As a signatory state, Bangladesh is legally bound to safeguard these seminal principles, since such instances are some of the many more that escape media attention, often resulting in fuelling public discontent.[12]
Furthermore, the inequities stemming from this crisis are palpable since a 2017 study[13] conducted by the Bangladesh Institute of Development Studies showed that over 66% of university graduates are unemployed, even in the presence of initiatives such as the Employment Generation Program for the Poorest (“EGPP”).[14] Such dysfunctional policy lapses contravene Article 6 of the International Covenant on Economic, Social and Cultural Rights (“ICESCR”), ratified by Bangladesh in 1998, which obligates signatories to ensure equitable access to meaningful and dignified work opportunities for all citizens without prejudice.
Furthermore, Internet shutdowns that were imposed to curb the protests ended up adding fuel to the fire, since they disrupted education, business operations, and access to information all over the national territory.[15] Such unreasonable and extended shutdowns violate Article 19 of the International Covenant on Civil and Political Rights (“ICCPR”), which secures freedom of expression and access to information.[16] With the Human Rights Committee’s repeated emphasis on the critical role of digital access, as underscored in UN General Comment No. 34 under the Article, Bangladesh’s approach is often met with furrowed brows.[17]
In addition, systematic discrimination against ethnic minorities, Hindus in particular, obstructs access to education, occupation and housing. Such actions amount to serious contraventions under the International Convention on the Elimination of All Forms of Racial Discrimination (“ICERD”), to which Bangladesh became a party in 1979.[18]
Cumulatively, all this abuse of human rights not only decelerates Bangladesh’s Vision 2041[19] on its path to becoming a high-income state – but also jeopardizes the “Leave No One Behind”[20] agenda envisaged by the Asian nation. Since international obligations are often tagged as “toothless”, Bangladesh now requires immediate implementation of multi-operational policies assisted by international aid such as that by the UN to effectively bounce back and also safeguard human rights.
CONCLUSION AND WAY FORWARD
Bangladesh urgently requires targeted, actionable measures that categorically address both economic recovery and human rights concerns. A mixed approach involving public-private-partnerships, coupled with specifically tailored start-up incentives such as low-interest loans and mentorship initiatives could be implemented. With the unemployed youth at the prime focus of these policy frameworks, Bangladesh could harness their potential while simultaneously generating domestic income and fostering innovation.
Parallelly, providing tax benefits to foreign investors, such as transitory exemptions for first-time market entrants, could bolster foreign direct investment (FDI), which currently stands at a plummeting rate of 0.3% of its GDP.[21] In an instrumental move to complement this strategy, the market could be diversified by investing heavily in micro, small, and medium enterprises (“MSMEs”), which employ over 25-30% of the labour force of the nation. This would not only make the market more resilient against global market fluctuations, but also form the backbone for sustainable economic growth.
In addition, Bangladesh could utilise aid from international organisations such as the World Bank and the United Nations, like it did during the COVID-19 pandemic. In 2021, the country negotiated 250 million USD in support of their national budget from the World Bank for accelerating nationwide recovery after the economic collapse.[22] A homologous approach applied now could leverage much-needed financial aid for rallying the nation back on its feet.
Finally, on the human rights obverse, urgent legal reforms appear essential. The National Human Rights Commission of Bangladesh could be empowered to strengthen enforcement mechanisms, ensuring accountability for human rights violations and checking systemic discrimination. Legal reforms to the effect of enhanced alignment with ICESCR and ICCPR could prove vital in ensuring the same and upholding citizens’ rights. In addition to these reforms, an indirect yet careful intervention may be done by the international community with the help of diplomatic pressures, targeted sanctions under the above multilateral treaties, so that the leaders could be held accountable for violating international humanitarian law. However, the same must be done without disrespecting the sovereignty of Bangladesh, and ensuring that these sanctions are appropriate and proportionate.
Bangladesh is an economy that is heavily influenced by the youth. With policies specialising in their empowerment coupled with legal reforms that address discrimination and exploitation, the state can successfully appreciate the interdependent dichotomy of economy and human rights. And with foreign investors adding to the national capital, Bangladesh could thus sustainably envisage an economically and socially backed system that knows how to strategize finance and safeguard rights.
[1] Spandana Janapati, Youth Unrest In Bangladesh: The Quota System And The Struggle For Political Reform, The Organisation for World Peace (Aug. 15, 2024), theowp.org/reports/youth-unrest-in-bangladesh-the-quota-system-and-the-struggle-for-political-reform
[2] Anbarasan Ethirajan & Hannah Ritchie, What sparked the protests that toppled Bangladesh's PM?, BBC News (Aug. 6, 2024), www.bbc.com/news/articles/cq5xye1d285o
[3] Akriti Anand, How Bangladesh crisis may impact its economic growth: Explained, LiveMint (Aug. 7, 2024), www.livemint.com/economy/how-bangladesh-crisis-may-impact-its-economic-growth-explained-sheikh-hasina-muhammad-yunus-11723038572512
[4] Axel Van Trotsenburg, Defying the odds: Bangladesh’s journey of transformation and resilience, World Bank Group (Mar. 1, 2023), www.worldbank.org/en/news/opinion/2023/03/01/defying-the-odds-bangladesh-s-journey-of-transformation-and-resilience
[5] Faisal Mahmud, Bangladesh’s ongoing political crisis is ‘high risk’ for fragile economy, Aljazeera (Nov. 15, 2023), www.aljazeera.com/economy/2023/11/15/bangladeshs-ongoing-political-crisis-is-high-risk-for-fragile-economy
[6] Akriti Anand, How Bangladesh crisis may impact its economic growth: Explained, supra note 3.
[7] 8th Five year plan July 2020-June 2025, Promoting Prosperity and Fostering Inclusiveness, General Economics Division-Bangladesh Planning Commission (Dec. 2020), plancomm.gov.bd/sites/default/files/files/plancomm.portal.gov.bd/files/68e32f08_13b8_4192_ab9b_abd5a0a62a33/2021-02-03-17-04-ec95e78e452a813808a483b3b22e14a1.pdf
[8] Garrett D. Brown, Women Garment Workers Face Huge Inequities in Global Supply Chain Factories Made Worse by COVID-19, Volume 31, Issue 2, NEW SOLUTIONS, 113-124 (2021).
[9] Universal Declaration of Human Rights, 1948, UN General Assembly Resolution 217 A.
[10] Kallol Bhattacherjee, Rights group allege Bangladesh Army was inactive while indigenous people attacked in CHT, The Hindu (Sep. 20, 2024 1200 IST), https://www.thehindu.com/news/international/rights-group-allege-bangladesh-army-was-inactive-while-indigenous-people-attacked-in-cht/article68660840.ece#:~:text=In%20a%20setback%20to%20the,the%20southeastern%20part%20of%20Bangladesh
[11] A Comparative Review of Discrimination in the Chittagong Hill Tracts Regarding the Protection of Fundamental Human Rights, Perspective, (Mar. 4, 2024), https://www.perspectivebd.com/article/a-comparative-review-of-discrimination-in-the-chittagong-hill-tracts-regarding-the-protection-of-fundamental-human-rights
[12] Universal Declaration of Human Rights, G.A. Res. 217 (III) A, U.N. Doc. A/RES/217(III) (Dec. 10, 1948), https://www.un.org/en/about-us/udhr/foundation-of-international-human-rights-law.
[13] Manzoor Ahmed, Graduate unemployment: Who's to blame?, The Daily Star (Jan. 13, 2023), https://www.thedailystar.net/opinion/views/news/graduate-unemployment-whos-blame-3219261
[14] Employment Generation Program for the Poorest, Korea-World Partnership Facility (Mar. 13, 2019), https://documents1.worldbank.org/curated/ar/976511552537992494/pdf/135278-BRI-PUBLIC-13-3-2019-9-16-56-ProgrambriefonEGPPF.pdf.
[15] Nandini Singh, Bangladesh protests: Internet shutdown, curfew imposed, 97 dead in clashes, Business Standard (Aug. 5, 2024), https://www.business-standard.com/world-news/bangladesh-protests-internet-shutdown-curfew-imposed-97-dead-in-clashes-124080500205_1.html
[16] International Covenant on Civil and Political Rights, 1966, UN General Assembly Resolution 2200A (XXI).
[17] General Comment No. 34 on Article 19: Freedoms of opinion and expression, The Office of the High Commissioner for Human Rights CCPR/C/GC/34 (July 29, 2011), https://www.worldbank.org/en/news/press-release/2021/03/26/world-bank-helps-bangladesh-create-inclusive-and-quality-jobs-and-recover-from-the-covid-19-pandemic.
[18] International Convention on the Elimination of All Forms of Racial Discrimination, 1965, UN General Assembly Resolution 2106 (XX).
[19] General Economics Division, Sustainable Development Goals Bangladesh Report, Bangladesh Planning Commission (2020), https://info.undp.org/docs/pdc/Documents/BGD/SDGs-Bangladesh_Progress_Report%202020.pdf.
[20] United Nations Sustainable Development Group, Leave No One Behind, UNSDG: 2030 Agenda, https://unsdg.un.org/2030-agenda/universal-values/leave-no-one-behind (last visited Feb. 10, 2025).
[21] Foreign direct investment, net inflows (% of GDP) - Bangladesh, World Bank Group (2023), https://data.worldbank.org/indicator/BX.KLT.DINV.WD.GD.ZS?locations=BD.
[22] World Bank Helps Bangladesh Create Inclusive and Quality Jobs and Recover from the COVID-19 Pandemic, World Bank Group (Mar. 26, 2021), https://www.worldbank.org/en/news/press-release/2021/03/26/world-bank-helps-bangladesh-create-inclusive-and-quality-jobs-and-recover-from-the-covid-19-pandemic.