Islamism and neoliberalism: The case of Bangladesh Jamaat

In contrast to India, independent Bangladesh had an experience of moving away from the dominance of public sector in the economy to private industries and foreign investments as early as in the decade of the 1970s with the New Investment Policy of 1974. However, there was initially a thrust upon the public sector and economic self-reliance under Mujib with the adoption of socialist and nationalization policies by 1972. As soon as Mujib took charge of Bangladesh, almost 85 per cent of all industries were transferred to the public sector and only small cottage industry was permitted for the private sector. However, this thrust upon the public sector was coupled with a new policy of private sector and foreign investment as early as 1973 because the public sector was unable to reach even the modest levels of production. By the fiscal year of 1973–74, the private sector grew by 64 per cent and during the period of Zia in the late 1970s and Ershad throughout 1980s, economic policies of privatization of industries and denationalization of banks, much akin to neoliberalism gained prominence.

This privatization was not only limited to the domain of manufacturing units or financial sectors but was also extended to social welfare sectors like education, healthcare and public infrastructure, which had traditionally remained within the preserve of the state control. In fact, much like divestment of profit-making public-sector units in India, Bangladesh also witnessed disinvestment of profit-making ‘state-owned enterprises’. Soon after independence, Bangladesh became dependent on international monetary agencies like the World Bank, International Development Association (IDA) and International Monetary Fund (IMF) for assistance. Much of the assistance however, came in the mid-1970s, when IMF's monetary and fiscal policies of structural adjustments were met.