UNIVERSITY OF DHAKA Phone: 9661900-73 Ext. 6490 DEPARTMENT OF POLITICAL SCIENCE Fax : 880-2-8615583 DHAKA – 1000, BANGLADESH Email : [email protected] Date : 01-11-2016 ___________________________________________________________________________________________ Certificate of the Supervisor I am pleased to certify that Mrs. Sabera Yasmin, bearing the Registration No. 79 for the Session 2012 - 2013 in the Department of Political Science, University of Dhaka has prepared her Ph.D. thesis “Democracy and Economic Growth: An Analysis of Political Economy of Bangladesh” under my supervision. This study was monetarily supported by the University Grand Commission, University of Dhaka, Bangladesh. The thesis is Mrs. Sabera’s original work where Mrs. Sabera’s earlier M. Phil study findings serve as a foundation. This thesis was not submitted earlier for degree or publication. Dr. Khundkar Nadira Parveen Professor Department of Political Science University of Dhaka Dhaka, Bangladesh vii Ph.D. Thesis on Democracy and Economic Growth: An Analysis of Political Economy of Bangladesh (The study has been conducted under the Fellowship Program of University Grants Commission of Bangladesh) Supervisor Dr. Khundkar Nadira Parveen Professor Department of Political Science University of Dhaka Researcher Sabera Yasmin, M. Phil. (Pol. Science) (DU) Registration No. 79 Session: 2012 - 2013 Department of Political Science University of Dhaka November 2016 CONTENTS Page no. i. Declaration iv ii. Abstract v - vi iii. Certificate by Supervisor vii iv. Acknowledgement viii – ix v. VITA x – xi Chapters Tile of the chapters 1. Chapter 1: Introduction and rationales of the study 1-14 2. Chapter 2: Objectives, hypothesis and methodology of the study: Phases of analysis of the study 15 - 26 3. Chapter 3: The Theoretical framework of democracy and of good 27 - 69 governance in Bangladesh perspective 4. Chapter 4: Democracy in Bangladesh: Historical Background and Lesson 70 - 114 Learned 5. Chapter 5: Conceptual Analysis of Democracy and Economic Growth 115 - 141 Measurements in Bangladesh 6. Chapter 6: Economic growth in Bangladesh: Trends and Beneficiaries Sector wise 142 - 172 7. Chapter 7: Economic Policies and Performances: A cross examination of Political Regimes in Bangladesh 173 - 208 8. Chapter 8: Economic Growth and Political Stability in Bangladesh 209 - 214 9. Chapter 9: Democratic Roles of Regime(s) and Economic Growth: Mathematical Modeling of Linkages and Hypothesis Testing 215 - 258 10. Chapter 10: Analysis of Data and Research Findings 259 - 274 ii 11. Chapter 11: Problems and Obstacles Establishing Democracy & Good Governance in Bangladesh: Dilemmas for Sustainable Economic Development 275 - 284 12. Chapter 12: Promoting a Democratic Society in Bangladesh: One Piece at a Time 285 - 307 13. Chapter 13: Conclusion 308 – 311 14. Reference(s) (a) Books & Articles 312 - 316 (b) Website (c) Newspaper(s) 15. Bibliography 317 - 318 16. Annexure 319 - 319 iii Declaration This doctoral thesis entitled “Democracy and Economic Growth: An Analysis of Political Economy of Bangladesh” submitted by me for the award of the Degree of Doctor of Philosophy at the University of Dhaka is based upon my own work. This study was carried out under the supervision of Professor Dr. Khundkar Nadira Parveen, Department of Political Science. It was carried out on leave-for-study granted by the Government of Bangladesh where it was monetarily supported by the University Grand Commission (UGC), University of Dhaka. I here declare that this thesis was not earlier submitted to any university or institution for the award of a degree or publication. Sabera Yasmin, M. Phil. (Pol. Science, DU) Ph.D. Fellow University Grant Commission (UGC) Registration no. 79 Session: 2012 – 2013 University of Dhaka iv Abstract Democracy and Economic Growth: An Analysis of Political Economy of Bangladesh Democracy is a government of the people, by the people, for the people. ---- Abraham Lincoln, Gettysburg Speech, 1863 Economic growth of a country, like Bangladesh, can be comparative to the strength of its democratic institution that simultaneously require a good governance where higher strength of democracy in practice can lead to a greater economic growth where checks & balances on government as a mechanism for securing property rights must be in place. ---- Sabera Yasmin, Doctoral thesis, Dhaka University, 2016 Economic development of Bangladesh is a very critical issue. It is very simple word but it is easy to say and difficult to do. There is change in constraint behind the economic development in aspect of price, wage and employment. In our country the main problem is inadequate opportunities for its population to work on. So, rapid growth of population is not a great threat for economic development if both in home and overseas employment opportunities can be created. Nowadays, most of the countries that employ foreign labors prefer seeing political stability of Bangladesh, which requires the regime to put effort for democracy & good governance simultaneously. In good governance perspective, regime’s responsiveness (RE), accountability (AC), rule of law (RL) and transparency (TR) seem to be the dominating factors behind the process of good governance where these factors are inter-related each other. With the statistical findings in this study, it might be remarked that the current state of governance of Bangladesh is poor where regime faces challenges like lack of accountability and transparency, lack of rule of law, inefficient leadership, rampant corruption etc. In democracy perspective, Bangladesh has been facing a number of challenges like institutionalized political parties, judicial independence (JI), democratic gesture (DG), executive constraint (EC) etc. Efforts for democracy should involve public education and changing attitudes and expectations, therefore, it is important to begin the process with a clear understanding of problems and potential points of intervention. This will facilitate monitoring of progress and measurement of change over time. Improvements and reforms in other areas will have little impact if the gains made over the last v several decades in elections cannot be maintained. An important element in ensuring that elections are credible is transparency. Civil society advocacy and observation will both be important to maintain and increase transparency. Also important to reduce political tension and encourage acceptance of election results is a perception that the process was administered fairly and neutrally, so advocacy for an unbiased, un-politicized neutral and independent Election Commission might be appropriate. Civil society organizations may encourage the growth of more open, inclusive and democratic political parties by supporting activities aimed at changing public and internal understanding and expectations about the appropriate role of parties in a democracy. This may be accomplished by facilitating the development of issue groups, and by encouraging parties to expand their membership base, so that the parties better represent the interests and aspirations of the broader population. Mechanisms might also be developed that provide opportunities for better communication between Parliament Members and constituents, to strengthen accountability and improve representation. Civic education should also aim to reduce tolerance for corruption and impunity. Finally, to strengthen civil society and help balance the power of the political and commercial sectors, democracy assistance actors should explore ways to encourage the development of voluntary associations and membership organizations. Since 1/11 dilemma is considered to be a black spot to our new phase of democracy (1990 – 2006), it might be a right time to think spreading military bases to many different districts. It might have a very limited office size in capital city for top level communications. In 21st Century, the ICT domination era, by so doing, the government can curtail its huge amount of costs in one hand; on the other hand, it can put further effort for democracy & good governance without worrying the repetition of ill motives of military. Overall, in this gloomy scenario, regime’s efforts for good governance & democracy simultaneously are the dire need of the hour. Though good governance has always been a dream for our country yet, this dream can be transformed onto reality. Sincere and dedicated government can make this dream come true. But it cannot be achieved in a wink of an eye. It requires a great toil and sacrifice. The civil society can play a significant role in this regard. Now, it is very easy to raise public opinion for democracy & good governance through the use of electronic media. The meetings and rallies are also very essential means to bring the trend of establishing democracy & good governance simultaneously on the right track. vi Certificate of the Supervisor I am pleased to certify that Mrs. Sabera Yasmin, bearing the Registration No. 79 for the Session 2012 - 2013 in the Department of Political Science, University of Dhaka has prepared her Ph.D. thesis “Democracy and Economic Growth: An Analysis of Political Economy of Bangladesh” under my supervision. This study was monetarily supported by the University Grand Commission, University of Dhaka, Bangladesh. The thesis is Mrs. Sabera’s original work where Mrs. Sabera’s earlier M. Phil study findings serve as a foundation. This thesis was not submitted earlier for degree or publication. Dr. Khundkar Nadira Parveen Professor