‘Free and Fair’ Bangladesh Elections Met With Mixed Reactions
Bangladesh’s national election this weekend marked the first of several political developments in key sourcing locales this year.
Prime minister Sheikh Hasina, head of the incumbent League party, is set to start a fourth consecutive term as the national leader with her party winning 223 out of 298 seats. The Jatiya Party secured 11 seats and 61 seats went to independents—many of whom are also members of the Awami League. The main opposition, the Bangladesh Nationalist Party (BNP), boycotted the elections as their demands for a caretaker government to ensure a fair event were not met.
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Members of the business community received the news with muted optimism, with some saying the “past few months were like a Damocles sword hanging over them, and now they could begin to go about business.”
Elsewhere in Asia, elections are coming to Pakistan on Feb. 8, Indonesia on Feb. 14, and Feb. 25 elections in Cambodia, which will decide on a new senate. India will vote in the spring and a date for Sri Lanka’s election has been announced but the process should wrap up by September.
The U.S. and EU too go to the polls this year, among 64 major global elections scheduled for 2024, with others including Mexico, Tunisia, and South Korea.
At a press briefing in Dhaka on Monday, some international observers described the elections as “free, fair and peaceful” and eased mounting tensions, garment factory owners and manufacturers told Sourcing Journal. Bangladesh apparel industry stakeholders reiterated concerns that the election could lead to possible sanctions or other measures by important buyer countries, including the U.S.
“Considering the overall situation, all the observers present here agree that the 12th National Parliamentary Election of Bangladesh was held peacefully and with the participation of the common people. It was free, fair and very safe,” said Terry L. Easley, chairman and CEO of TenetDFS, which works in international project financing for the energy, transportation, housing, maritime, mining, and defense sector. Easley, part of an international delegation visiting Bangladesh, made the remarks at a media briefing at the Jatiya Press Club.
“We have heard of some isolated incidents, like clashes among the supporters of the government’s candidates, independent candidates and other parties which is unexpected. But if we review the overall election situation, those incidents are very insignificant,” he added.
More than 127 foreign observers were in Dhaka to witness the parliamentary elections which were boycotted by the opposition party amid months marred by protests, violence, arrests and arson.
While many business owners expressed caution, given that protests could ramp up in the coming weeks, they said they’re pleased to carry on with policies and economic measures which have supported apparel export growth during tough times. Political stability is also good for business, they added.
Shahidullah Azim, vice president Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told Sourcing Journal, “The apparel sector has been facing back-to-back challenges over the past years with the Covid pandemic, geopolitical crises, the global economy shrinking, inflation in the EU and U.S., and also our national election which is sorted out now. We are expecting all of this will be overcome and we will go for normal business now. There was too much inventory, and that is being exhausted. Now, we have been receiving more inquiries.”
Looking ahead, Selim Raihan, a professor of economics at University of Dhaka, said the government must focus on buoying the Bangladesh economy.
“The present macroeconomic crisis in Bangladesh stems from the chronic unresolved structural issues, such as poor tax revenue performance, a weak banking sector, ineffective public expenditure management, unsuitable trade and industrial policies for economic and export diversification, low foreign direct investment, inadequate public spending on health and education, and weak institutions,” he said.
Asked if there was a quick solution to these problems, he said success in controlling inflation “depended on implementing a wise monetary policy, a supportive fiscal policy, and coordinated market management to prevent unfair practices and the quality of economic leadership, which depends on the ability and responsibility of the policymakers to design and implement economic reform policies and strategies.
“Unfortunately, Bangladesh lacks such quality economic leadership during this crisis time, which needs to be backed by a strong political will,” he said, adding that the apparel sector which drives more than 80 percent of the country’s exports will continue to “be exposed to external pressure for compliance and labor issues.”
Abdul Hil Rakib, managing director of Team Group and director in charge of the BGMEA Innovation Center, reiterated the point.
“What do we want in the industry? We want good governance. The government is supportive as far as our industry is concerned, they understand the business. But the challenge lies in their acceptance of the issues facing us,” he said, adding that accountability is essential for growth.
“When you don’t have accountability you can become arrogant, and that is my concern. The government has been doing a lot on infrastructure and improvement, but the talk on transparency and traceability needs to be clear. That is one of the dangers of having a weak opposition—it is hard to have proper checks and balances,” he said.
“Economic issues are a part of the global scenario, not only touching Bangladesh,” he added.
Not everyone is pleased.
Many observers lamented dismal voter turnout, and claimed opposition parties were strong-armed, and pointed to the current government’s troubling trend toward authoritarianism.
There’s also a sense of discontent that last month’s new minimum wage is hardly enough to help garment workers get by.
Business leaders said geopolitics will be top of mind moving ahead, even as the U.S. and Bangladesh have wrestled over keeping China from becoming a strong player or investor in the region.
As Abdul Hil Rakib said, “I see that there is pressure coming from many geopolitical blocks; anti-China, anti-Russia, anti-U.S.—territorial power plays on many fronts—but as we are a developing country we have to take that pressure from our elder brothers.”
Another garment manufacturer is relieved that the election is a done deal.
“At least we can put worries about it behind us and plan for every possible means for growth to meet our targets for the coming years,” they said. “We have invested a lot in green factories and compliance. Now we need to make sure we don’t lose out on any count as geopolitics mar the world.”
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