It is difficult for an economy to grow when the engines of growth themselves suffer from fundamental defects. For many years, Bangladesh has ranked among the countries with a high perception of corruption. Despite widespread discussion and extensive media coverage, there has been little improvement. Almost everyone is aware of corruption, whether as a beneficiary or a victim. Although the relevant agencies remain active, the overall level of corruption has not come down. At the same time, good governance remains elusive.
It is evident, and a matter of national shame, that corruption has crossed a tolerable limit. The consequences are severe. Revenue collection has suffered, the costs of national projects have escalated repeatedly, the cost of doing business has risen and ordinary people face increasing hardship. Ultimately, economic growth is affected. Weak governance and the absence of strong oversight mechanisms are among the main reasons. Without clear political will, it is unlikely that any meaningful progress will be achieved.
Countries often cited as successful in reducing corruption, such as Botswana, Estonia and South Korea, demonstrate the importance of political commitment, civil society pressure and robust anti-corruption efforts. Reforms in Japan and recent actions by new governments in Fiji also show that progress is possible, even if uneven.
Several common factors emerge from these examples. Strong political will is essential, with leaders visibly committed to tackling corruption. Civil society pressure and citizen advocacy can play a decisive role. Transparency and accountability require clear laws and public access to information. Institutional reforms are needed to strengthen the judiciary and law enforcement. These experiences confirm that determined leadership at the highest level is a precondition for reducing corruption.
In South Korea, sustained pressure from citizens helped generate that will. In Botswana, long-standing commitment from political leaders was crucial. Other contributing factors include a relatively autonomous and merit-based judiciary and public service, along with transparency and participation in policy making and public spending.
For decades, the taxation system in Bangladesh has been marked by a narrow tax base, a low tax-to-GDP ratio, tax evasion and corruption. Honest taxpayers often face unjustified higher burdens, harassment and suffering, while some business groups and individuals evade taxes in collusion with corrupt officials. The government has taken various isolated measures over the years, but the results have fallen short of expectations. Although per capita income has risen to over $2,500, this has not been reflected in a broader tax net or stronger revenue collection. It is difficult to ignore the fact that income declarations by some political leaders in nomination papers do not appear consistent with their lifestyles.
This situation cannot be allowed to continue indefinitely. Many developing countries have addressed similar problems with care and have improved their tax-to-GDP ratios. Long overdue tax reforms, including digitalisation as an effective tool, have no real alternative if the current situation is to improve.
There have also been serious governance failures across almost all sectors of the economy over the past fifteen years, if not longer. Non-compliance with laws and regulations, unqualified individuals in key positions, ineffective independent directors, undue political interference, including influence over the legal system, and weak ethical standards and professionalism have all contributed to the problem. Together, these factors have placed the economy and its growth under sustained strain.
The challenges and the remedies are well known. What matters most is the political will to take forward a genuine clean-up process, supported by experienced and relevant experts and professionals. This will not be easy, as vested interests linked to power are deeply involved. Yet there is no alternative. Without political will, reform will remain rhetoric, and economic growth will continue to be constrained.
The writer is a senior partner of Hoda Vasi Chowdhury & Co and a former president of ICAB
