Restoring Democracy: Key task for the interim government

Following the fall of the previous government in Bangladesh, a power vacuum persisted for several days, until a new interim government was formed under the leadership of Muhammad Yunus. However, from the outset, this administration faces considerable challenges. In recent years, public dissatisfaction and unrest due to the worsening economic crisis have become increasingly apparent, playing a major role in mobilizing widespread participation in the recent student-led movement.

The country’s foreign reserves are steadily depleting, commodity prices continue to rise, and inflation has reached unbearable levels, exacerbating the struggles of everyday life for citizens. In this context, if the new government is to gain and maintain public trust, its immediate priority should be curbing inflation and stabilizing commodity prices. Achieving some level of economic stability within the next two to three months is crucial.

To restore economic stability, the interim government must take swift and decisive measures to address inflation, currency stabilization, and foreign reserves. Over the next 4-5 months, inflation needs to be brought down significantly, with the exchange rate normalized and reserves slightly increased. Tangible improvements must be evident to the public quickly to regain trust.

Many Western nations have successfully reduced inflation from 10-12% to around 3% within six months by implementing stringent monetary policies. Bangladesh can achieve similar results if the right steps are taken promptly. The currency exchange rate should be determined by market forces, and the government must avoid financing its expenditures by printing money. Likewise, banks should not be propped up by injecting newly printed currency. Adopting these fiscal disciplines, along with securing foreign aid, would significantly stabilize the economy.

The challenges extend beyond economics. After the fall of the previous government, law enforcement, particularly in Dhaka, faced a major disruption. Almost all police personnel withdrew, leading to attacks on police stations in various parts of the country. Restoring law and order is critical to ensure the environment needed for economic recovery.

Public frustration is mounting due to casualties, arrests, and alleged torture by law enforcement agencies during protests, while the deaths of police officers in attacks by agitated crowds have added further tension. The trust deficit between the public and law enforcement is now glaring, with both sides feeling insecure. Political analysts emphasize that the interim government’s biggest challenge will be restoring law and order and rebuilding mutual trust between law enforcement and the public.

To achieve this, a comprehensive transformation is needed within law enforcement. The culture of corruption, the use of force for political purposes, and the pervasive mistrust stemming from a history of abuses must be addressed. For public confidence to return, irregularities within these agencies must be rectified transparently, and the mindset of those in power needs to shift. This involves stopping the misuse of law enforcement as a political tool and allowing them to operate independently based on the rule of law.

Reforms should also extend to other key institutions in the state. Civil society and analysts have long advocated for reforms targeting corruption, abuse of power, and inefficiency within the system. The Anti-Corruption Commission, the judiciary, and law enforcement agencies, including the Rapid Action Battalion (RAB), need to be evaluated and restructured where necessary. Clarity on these reforms is essential before the transition to a new political government, as only systemic change can address deep-rooted issues and build a more trustworthy and fair state apparatus.

This period represents an opportunity for the interim government to lay the foundation for long-term institutional integrity and public trust by prioritizing transparency, accountability, and genuine reform across all sectors of governance.

Constitutional institutions in Bangladesh require substantial reform to ensure their independence and to shield the state from power abuses and corruption. Historically, these institutions have been compromised under political influence, limiting their ability to function neutrally. This situation has resulted in a state apparatus vulnerable to inefficiency and corruption. The new interim government faces the dual challenge of addressing a collapsed law and order situation while initiating reforms amidst economic tension and administrative unrest.

The demand for reform is high, with civil society and students calling for more time to overhaul the state. However, political parties, notably the BNP, are pushing for quick elections, with demands for polls within three months. The question remains whether significant reforms can be implemented within such a short period, given the systemic challenges that need addressing.

A delicate balance must be struck between restoring order and ensuring that the interim government does not overstay its mandate. Critics argue against a prolonged tenure for the unelected government, warning that taking too long for reforms could undermine democratic principles. At the same time, hastily organized elections without foundational reforms may lead to a return of the issues that prompted the crisis in the first place.

Rushing into elections simply because political parties demand it can indeed be risky for the new government. Building state institutions that are truly independent and impartial takes time, and hasty actions could lead to further instability. The situation is particularly complex given the major challenges the new government must face, including managing public trust, stabilizing the economy, and restoring law and order.

Experts suggest that the new government should seek the confidence and cooperation of political parties to address these challenges. Analysts are clear that the interim government will need to navigate difficult circumstances. While the student-led movement successfully ousted the previous authoritarian government, the road ahead remains difficult.
Following Sheikh Hasina’s resignation on August 5 and departure from the country, the interim government, headed by 84-year-old Nobel Laureate Dr. Muhammad Yunus, was formed on August 8. Although it is a civilian-led government, there are concerns about the role of the military. Michael Kugelman of the Wilson Center points out that while the military may not officially control the government, it is likely to have significant behind-the-scenes influence.

Fears persist that if the interim government’s term is extended, the military could gradually consolidate power, though they seem less interested in direct control than they were in past decades. The protests that led to the government’s fall resulted in more than 400 deaths, highlighting the volatility of the current situation. The new government faces the daunting task of balancing reform with maintaining stability while managing public expectations.

Following Sheikh Hasina’s departure, her allies are reportedly facing retaliatory actions, raising concerns from human rights groups and diplomats. Amnesty International's Smriti Singh emphasized that the interim government’s priority must be to ensure public safety, protect property, and restore freedom of speech and peaceful assembly. Controlling further violence will be critical, and if law enforcement cooperates neutrally, stability can be quickly restored.

Despite Bangladesh’s impressive economic growth since 2009, averaging over 6% annually, income inequality has worsened, with not everyone benefiting equally from the progress. This disparity fueled widespread unrest, impacting key sectors like the garment industry. Bangladesh, home to 3,500 garment factories, relies heavily on garment exports, which account for 85% of its $5.5 trillion in annual exports. However, the recent instability led to factory closures, and companies like Hula Global have redirected some orders to other countries, posing a risk to the economy.

The unrest stems from deep political dissatisfaction. The January election that secured Sheikh Hasina’s fifth term as Prime Minister was widely rejected, with major opposition parties boycotting the process. The new government faces significant challenges in stabilizing the situation while addressing public discontent and restoring trust in governance.

According to Thomas Keen, an analyst at the International Crisis Group, the massive public support for the recent student protests in Bangladesh is largely due to the absence of competitive elections over the last 15 years. The interim government now faces the critical task of laying the groundwork for restoring democracy in the country. The democratic situation in Bangladesh has significantly deteriorated, with the absence of free and fair elections being a central concern.

Gwen Lewis, the UN Resident Coordinator in Bangladesh, has expressed expectations that the interim government will work toward rebuilding a state system that earns public trust and is accountable to the people. Thomas Keen also emphasized the importance of credible investigations and legal actions regarding recent tragic events, urging the public, including students, to remain patient and cooperative with the new government as it navigates these challenges.

The interim government’s efforts to rebuild institutions, address public grievances, and ensure transparency will be crucial in restoring confidence and setting the stage for a more democratic future in Bangladesh.

Raihan Ahmed Tapadar: Researcher and columnist.