“A second liberation.” This is how the new leader of the interim government of Bangladesh, Professor Muhammad Yunus, described the historic events currently unfolding in the country.
In recent weeks, after decades of autocratic rule, millions of people have taken to the streets in villages, towns and cities. Fed up with the corruption, nepotism and oppression led by former Prime Minister Sheikh Hasina, who we are told fled to Delhi. As we see time and again in countries around the world, young people in particular are demanding their democratic rights.
I have visited Bangladesh many times and got to know the country well, especially when I was CEO of Unilever, which we built into the largest consumer goods company in the country. Professor Yunus is a Nobel Peace Prize winner and the father of microfinance for entrepreneurs who would not normally get credit. Yunus, who I am fortunate to call a friend, has lifted millions out of poverty and driven grassroots development.
But in recent years, he has been relentlessly pursued for political reasons by Sheikh Hasina’s corrupt regime, which viewed him as a threat and embroiled him in one sham trial after another.
Now, with broad support at home and abroad, his job is to lead Bangladesh through fair and transparent elections as the country takes what is hopefully an irreversible step toward its democratic future.
CEOs of major companies around the world will be watching developments closely: Bangladesh is one of the fastest growing economies in the region, having even overtaken India.
But the international business community should do more than just watch. We can actively support the country on its new course. A free, stable and prosperous Bangladesh is good for the world and certainly good for the companies that do business there.
This is a country of 170 million people, two-thirds of whom are young. Many of those protesting are educated, working and digitally savvy people whose frustration is even greater because they recognize their country’s enormous potential.
Bangladesh’s economy faces major challenges, not least persistently high inflation and enormous external debt, which has doubled since 2016. The economic mismanagement of the previous regime will not be easily remedied.
Yet growth prospects have proven surprisingly resilient even after the COVID-19 pandemic. Per capita income has tripled over the past decade, and growth has been driven by the garment industry, which supplies markets around the world. Bangladesh is an economic engine in the making, whose potential can be fully realized through a bold and comprehensive program of political and economic reforms.
In the short term, businesses with a presence can help the transitional government restore stability and get the economy moving again. Every day that factories and offices remain closed or contracts go unfilled hurts ordinary people. Resuming business will demonstrate confidence in the transitional government in Dhaka and its commitment to democratic renewal. The same goes for encouraging foreign investment. Now is the time to invest in new and existing businesses, and in particular to create high-quality jobs. By doing so, you are not only investing in your business, but also strengthening Bangladesh’s economic prospects at a crucial moment, thus maximizing your return.
In particular, the country urgently needs more help in the fight against climate change. Although it is a world leader in climate change adaptation, i.e. in combating the effects of global warming, it is consistently listed as one of the most vulnerable countries in the world. Due to its geographical location, it is particularly vulnerable to natural disasters and extreme weather events such as floods, cyclones and droughts, which have increased at an alarming rate.
However, Bangladesh is struggling to secure international support, including access to climate finance. Without stronger climate action, the country’s economic gains risk being offset by the rising costs of environmental disasters. Mitigating climate risks is essential for the country’s economy and prosperity – and additional private capital plays a crucial role in this.
Crucially, the private sector can actively and vocally support Bangladeshi authorities and citizens in restoring the country’s democratic institutions, tax system and rule of law. Don’t stay silent and don’t sit idle. Business leaders can advocate publicly and privately for the reforms needed to root out rampant corruption and restore public confidence in the state and also in industry.
No one can say for sure where things go from here. The country is at a crossroads, but there is optimism. Professor Yunus talks about his country moving towards the “three zeros”: zero net carbon emissions, zero wealth concentration and zero unemployment. That is more than ambitious, but perhaps this vision is exactly what Bangladesh – and many other governments – need.
In this election-filled year, the events of the last week remind us how difficult it is for autocratic regimes to crush hope. Citizens around the world, especially young people, want to determine their own future and live in a society where there is equal opportunity. It is up to all of us to stand with them – and to support Bangladesh on its way forward.
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