Originally posted in প্রথম আলো on 10 January 2024

Businessmen ‘ruling over’ state policy-making

Political analysts and advocates for good governance express concern about the increasing dominance of businessmen in parliament, contending that it sidelines politicians and transforms the fundamental nature of parliamentary representation.

The number of businessmen in the national parliament is continuously on the rise. Since independence, the count of traders has consistently increased in every parliament, with few exceptions. Out of the 300 seats in the outgoing parliament, 182 were occupied by businessmen.

However, the election on 7 January set a new record. In the upcoming 12th National Parliament, the number of businessmen is expected to increase to at least 199, constituting two-thirds of the total number of parliamentarians. The majority of them contested elections as the ruling Awami League candidates and secured victory.

Political analysts and advocates for good governance express concern about the increasing dominance of businessmen in parliament, contending that it sidelines politicians and transforms the fundamental nature of parliamentary representation. They argue that businessmen are gaining control of the policy framework for their financial interests, investing in politics primarily to enhance their wealth.

Rounaq Jahan, a political scientist and Honorary Fellow at the Centre for Policy Dialogue (CPD), a private think tank, has extensively studied the growing involvement of businessmen in politics and its repercussions.

She states, “I don’t see anything positive in the huge number of businessmen going to Parliament. If businessmen had entered Parliament through fair competition, there would be no problem. However, some businessmen are advancing their own interests by obtaining undue benefits from the government. By becoming public representatives, these businessmen are exploiting their positions for personal financial gain, and there is insufficient oversight in this regard.”

Rounaq Jahan remarked, “Certain businessmen are exploiting the developed nexus between politics and business. Due to their influence in politics and parliament, they shape policies to suit their own interests. Consequently, those involved in business syndicates, irregularities in the banking sector, or occupying banks are not held accountable. Their political influence shields them from reforms that may threaten their interests.”

In the 12th National Parliament elections, the Awami League secured an absolute majority once again, with all 280 winners either being nominated by the Awami League or running as independent candidates closely associated with the party. Additionally, 13 winners were nominated by partners and allies of the Awami League-led coalition, while only five candidates came from different parties.

Based on an analysis of the affidavits submitted by candidates along with their nomination papers, the civil rights organisation Shushashoner Jonno Nagorik (SHUJAN) reported that out of the 1,945 candidates in the election, 1142 were businessmen, constituting 58.71 per cent. Among them, 170 out of 265 Awami League candidates, 173 out of 262 Jatiya Party candidates, and 302 out of 433 independent candidates were identified as businessmen.

Analysing SHUJAN’s data and the unofficial list of winners published by the Election Commission, it appears that 194 of the winners in 298 seats of the 12th parliamentary elections are businessmen. Of these, 145 are from Awami League, nine from Jatiya Party, one from Jasod, one from Kalyan Party, and 38 are independent.

Prothom Alo’s analysis suggests that at least five additional businessmen have won the election outside SHUJAN’s list, including four from Awami League and one independent candidate. In total, at least 199 businessmen are set to become members of the National Parliament, among whom 40 have identified themselves as politicians and farmers, with many also involved in business.

Fewer lawyer members
Over the five decades since independence, the number of businessmen in the national parliament has increased by 48 percentage points. This shift has significantly reduced the representation of individuals from other professions in Parliament. Some politicians are now engaged in both business and politics.

Lawyers, who were once prominent as legislators and in the country’s politics, played a significant role as public representatives at both national and local levels. However, in the last 30 years, the participation of lawyers, especially in parliamentary elections, has decreased, while the involvement of businessmen has risen.

According to data from the anti-corruption organisation, Transparency International Bangladesh (TIB), in 1973, 18 per cent were businessmen, and 31 per cent were lawyers in the first National Parliament. However, Rounaq Jahan’s book “Bangladesh Politics: Problems and Issues” stated that 25.5 per cent of the 283 seats in the First National Parliament were lawyers, 23.67 per cent were businessmen, 14.84 per cent were farmers, 9.89 per cent were teachers, and 12.36 per cent were politicians.

According to SHUJAN and TIB data, in 1991, the proportion of traders increased to 38 per cent in the fifth parliament. By the 11th parliamentary election held in 2018, as many as 62 per cent of the 300 members were businessmen. The remaining members included 14 per cent lawyers, 4 per cent farmers, and 7 per cent politicians.

Iftekharuzzaman, the executive director of TIB, stated that the increased representation of businessmen in parliament does not necessarily result from a normal political process. Their political influence often stems from their wealth as businessmen.

Notably, nomination trading is a well-known phenomenon in Bangladesh, where individuals secure nominations through illicit transactions. Many politicians express concerns about being marginalised in politics, feeling like an endangered species.

Iftekharuzzaman highlighted the issue of businessmen influencing policy-making in the parliament, citing examples of laws being crafted to serve their interests. The significant problem, he emphasised, is the takeover of the policy framework in crucial sectors such as banking, apparel, or energy by businessmen. This shift is altering the fundamental character of Parliament, with more attention being paid to praising leadership and securing personal privileges rather than creating laws and ensuring government accountability.

Iftekharuzzaman, the executive director of TIB, pointed out an instance where changes were made to the Bank Companies Act in the last National Parliament without being proposed in the Cabinet meeting. The amended Act granted special benefits to bank owners. This example highlights the growing influence of businessmen not only in the parliament but also within the state structure. Businessmen are actively shaping policies, such as those related to loan defaults, to serve their interests. The intertwining of politics and business in Bangladesh has become more pronounced, with businessmen entering politics primarily to enhance their wealth, and their focus remains on profit-making.

Top businessmen in the 12th general election
Several former presidents of FBCCI (Federation of Bangladesh Chambers of Commerce and Industry) have transitioned into politics by becoming members of parliament or seeking political party nominations. Notable among them is Salman Fazlur Rahman, the vice-chairman of Beximco Group, a leading industrial conglomerate, who secured victory in the Dhaka-1 seat as an Awami League candidate. Salman Fazlur Rahman previously served as the president of BTMA (Bangladesh Textile Mills Association).

Another figure is Commerce Minister Tipu Munshi, a former president of BGMEA (Bangladesh Garment Manufacturers and Exporters Association), who won from the Rangpur-4 seat in multiple parliamentary elections.

Additionally, State Minister for Power and Energy Nasrul Hamid, a former president of REHAB (Real Estate and Housing Association of Bangladesh), was re-elected as a member of parliament from Dhaka-3 constituency on the Awami League’s nomination. Nasrul Hamid is the founder of Hamid Group.

AK Azad, the Managing Director of Ha-Meem Group and former president of FBCCI (Federation of Bangladesh Chambers of Commerce and Industry), emerged victorious as an independent candidate in the Faridpur-3 seat. Ha-Meem Group is a prominent industrial group and the country’s second-largest apparel exporter.

A total of 15 businessmen from the ready-made garment sector have secured wins in the election. This includes notable figures such as Shahriar Alam, founder of Renaissance Group (Rajshahi-6); AKM Salim Osman, President of BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association) (Narayanganj-5); Abdus Salam Murshedi, former President of BGMEA (Bangladesh Garment Manufacturers and Exporters Association) (Khulna-4); and others like Abdul Momin Mandal, Managing Director of Mandal Group (Sirajganj-6); Khosru Chowdhury, Chairman of Nipa Group (Dhaka-18); and Tajul Islam, Founder of Fabian Group (Cumilla-9), among others.

Additionally, business leaders from various sectors, including Gazi Group, South Bengal Agriculture Bank, Afil Group, and Gemcon Group, have also secured victories in different constituencies.

Wealth of businessman MPs multiplying
According to the affidavit, at least 16 candidates from the Awami League have both movable and immovable assets exceeding Tk 1 billion. All 16 of these individuals are businessmen by profession. The Minister of Textiles and Jute, Golam Dastagir Gazi, possesses the highest wealth among them, amounting to Tk 14.57 billion. Gazi represents the Narayanganj-1 (Rupganj) constituency and has served as the Chairman of Gazi Group for 15 years, witnessing a remarkable 25-fold increase in his wealth over this period.

Abu Zafar Mohammad Shafi Uddin, the candidate for the Cumilla-8 seat, holds the second-highest wealth among Awami League candidates. Serving as the Chairman of South Bengal Agriculture Bank and SQ Foundation, his wealth exceeds Tk 3.72 billion.

Transparency International Bangladesh (TIB) has presented evidence indicating that at least one cabinet member of the government owns multiple companies abroad. Six companies associated with this minister and his spouse remain actively involved in real estate business overseas, with an estimated value of Tk 23.12 billion. The minister did not disclose these foreign assets in his affidavit.

Furthermore, TIB raised concerns about the authenticity of the information provided in the affidavits, noting a lack of action from those responsible for verifying this information.

Change required
The country’s economy is grappling with challenges stemming from the Covid-19 pandemic and the Russia-Ukraine war. The Awami League, victorious in the election, outlined in its manifesto that it will prioritise 11 key issues. These include maintaining affordable prices for goods accessible to all citizens, boosting employment, enhancing efficiency and capacity in the financial sector, maintaining balance in import-export trade for foreign currency supply, enforcing stringent laws for recovering defaulted loans, and ensuring that banks comply with prescribed reserve requirements.

Prime Minister Sheikh Hasina emphasised the government’s commitment to combating corruption during the manifesto announcement event.

Analysts stress the need for reforms in the country’s political system to address economic challenges. Iftekharuzzaman, the executive director of TIB, suggests that there should be an internal party discussion about the purpose of politics. He emphasises that if politics is deemed for politicians, reforms must be undertaken, urging politicians to take the initiative for the sake of their own interests, party, and democracy.

Additionally, analysts underscore the necessity of significant political commitment to navigate economic challenges successfully.

Rounaq Jahan, a political scientist and honorary fellow at the Centre for Policy Dialogue, expresses, “In the days ahead, numerous economic challenges will emerge. To address this, tough reforms are essential, and political parties must actively contribute. While we emphasise tangible development, it is equally crucial to witness visible good governance. I am keen on observing democratic accountability in this process.”