At a time when Bangladesh is grappling with political transition and rising economic disparities, two of the country’s most respected economists - Professor Rehman Sobhan and Dr. Wahiduddin Mahmud - have delivered powerful reflections on the nation’s development journey. Speaking at a seminar organized by the Bangladesh Institute of Development Studies (BIDS) in Agargaon on Tuesday, both economists questioned whether the country’s decades of reforms have translated into justice, equality, and accountable governance.
The seminar, centered on “Apostles of Development: Six Economists and the World They Made” - a book by Yale University historian Professor David C. Engerman - examined how South Asian economists shaped modern development thinking. The event brought together scholars, policymakers, and economists from Bangladesh and abroad.
Rehman Sobhan: Growth Without Justice Has Deepened Inequality: In his keynote remarks, Professor Rehman Sobhan, Chairman of the Centre for Policy Dialogue (CPD) and one of Bangladesh’s foremost development thinkers, offered a sobering assessment of the region’s economic trajectory. “Reforms have indeed taken place,” Sobhan said, “but inequality has grown even wider.” He explained that while South Asian countries, including Bangladesh, have achieved impressive GDP growth and made progress in poverty reduction, this prosperity has not been equitably distributed. “We have achieved growth and reduced poverty, but inequality has deepened alarmingly,” Sobhan stated, as quoted by The Daily Industry. “This inequality is not just economic; it has begun to shape our political structure. Today, the financial elite have captured the state, and as a result, the very foundation of democracy has become fragile.”
He pointed out that despite repeated reform initiatives, governments across South Asia have failed to address the structural roots of inequality - unequal access to assets, political patronage, and systemic exclusion of marginalized groups. “Current policymakers tend to view inequality merely as a poverty alleviation issue,” Sobhan observed. “They focus on social safety nets and welfare programs but ignore the deeper structural issues of unequal power, political privilege, and limited access to opportunity for the poor.”
Sobhan also drew historical parallels, reminding the audience that the economic disparities between East and West Pakistan were state-created, not market-driven. “The inequality that existed between East and West Pakistan was the result of state policy, not the free market,” he said. “After independence, state intervention was essential to correct that imbalance. But even after more than fifty years, we have not managed to eliminate that inequality.” He warned that if Bangladesh continues to allow economic and political power to concentrate in a few hands, “social harmony and democratic accountability will remain elusive.”
Wahiduddin Mahmud: Democracy Must Be Accountable and Participatory: Echoing Sobhan’s concerns, Dr. Wahiduddin Mahmud, Interim Government’s Planning Adviser and one of Bangladesh’s most respected economists, underscored the persistent governance deficits that threaten sustainable development.
Speaking as the chief guest at the event, Mahmud said, “We still have not built a sustainable and accountable system of governance in Bangladesh. More than fifty years after independence, we have yet to develop a political structure that truly represents the people.”
According to Mahmud, the country’s immediate goal should be “to transition toward an accountable and sustainable democratic society” - one in which justice, participation, and equality are guaranteed. “Democracy is meaningful only when it is accountable and participatory,” Mahmud said. “Without an independent judiciary, a strong parliament, and efficient state institutions, sustainable development is impossible.”
He emphasized that economic justice cannot exist without political balance. “Unless we can bring equilibrium between political and economic power, we cannot establish justice in society,” he said. While acknowledging that it is impossible to abandon market systems entirely, Mahmud argued that the state must ensure fairness and social equity within the market economy. “The state’s responsibility is to ensure that the market works for everyone, not just the privileged few.”
Mahmud also observed that Bangladesh’s ideological divisions have blurred over time. “Who is left, who is right - that distinction has almost disappeared,” he said. “Politics today is shaped by religious, social, and ethnic dimensions. But what people now desire most is a society where inequality declines, dignity are upheld, and the state guarantees equal opportunity for all.”
Debate Rooted in South Asia’s Intellectual Legacy: The seminar drew inspiration from Professor Engerman’s book, which profiles six influential South Asian economists - Rehman Sobhan (Bangladesh), Mahbub ul Haq (Pakistan), Lal Jayawardena (Sri Lanka), and three Indians: Amartya Sen, Jagdish Bhagwati, and Manmohan Singh - all Cambridge-trained scholars whose ideas transformed development policy in the Global South.
Engerman’s work highlights how these economists sought to balance state-led planning with market efficiency, while confronting the realities of postcolonial inequality. In his remarks, Professor Engerman said that South Asia’s economists were “not merely technocrats, but moral thinkers,” whose goal was to link economics with human well-being. He added, “Their vision of development was as much about justice and dignity as it was about growth.”:
Panel Reflections: Reform Without Redistribution: Former BIDS Director General Dr. Binayak Sen, Dhaka University economist Professor MM Akash, and CPD’s Distinguished Fellow Dr. Debapriya Bhattacharya participated in the discussion, highlighting the disconnect between policy reform and social justice in Bangladesh.
“Bangladesh has carried out reforms - fiscal, trade, and institutional - but these have not led to inclusivity,” said Dr. Akash. “Growth has benefited the top tier, while the poor remain trapped in low-wage, insecure jobs.”
Dr. Binayak Sen emphasized the failure of trickle-down economics. “The assumption that growth automatically reduces inequality has been proven wrong. What we need now is targeted redistribution and greater accountability in governance.”
CPD Executive Director Dr. Fahmida Khatun added that while the private sector has flourished, “state institutions have lagged behind, creating an imbalance where economic power dominates political institutions.”
Governance and Accountability: The Missing Link: In his concluding remarks, Mahmud reiterated that governance reform remains Bangladesh’s greatest challenge. “Accountability must be institutionalized - not personalized,” he said. “We have to build systems where institutions, not individuals, ensure transparency and justice.”
He cautioned that Bangladesh cannot rely solely on economic indicators to measure success. “GDP growth alone cannot be our benchmark,” Mahmud said. “Our true progress will be measured by how much dignity, equity, and opportunity our citizens enjoy.”
Professor Rehman Sobhan, in his final reflection, urged young economists to think beyond growth metrics. “We need to reimagine development as a process of empowerment - not enrichment of the few,” he said. “Unless economic and political power are democratized, our so-called reforms will continue to reproduce inequality.”
A Call for a New Vision of Development: The seminar concluded with a call for a new vision of development - one that places justice, accountability, and equal opportunity at its core. “Bangladesh stands at a crossroads,” said Dr. Debapriya Bhattacharya. “The country has achieved impressive economic numbers, but without addressing inequality and governance deficits, we risk eroding the very social foundations of progress.” In a country where growth has outpaced equity, both Sobhan and Mahmud’s words serve as a reminder that true development is not just about reforms, but about fairness - a vision that requires courage, integrity, and collective will.
