Economist Debapriya Bhattacharya on Thursday observed that the government must balance the need for reforms to ensure sustainable development with the potential for economic repercussions if individuals, groups, or parties feel targeted.
鈥楢lthough efforts to introduce reforms have started, political, administrative and institutional hurdles remain,鈥� he said while exchanging views with the Economic Reporters鈥� Forum in the city.
In his speech, Debapriya, also the head of the committee preparing a white paper on the country鈥檚 economy, said that a lawless economy had emerged in the recent years and created a colossal nexus involving bureaucrats, 鈥榰niform-wearing bureaucrats鈥�, politicians and businessmen, which monopolised the relevant institutions and organisations to siphon off public funds for personal gains.
He said that systemic corruption that permeated various institutions in the previous government led to a misallocation of public funds and hindered development.
The public will now bear the consequences of this corruption, as the government spending has been inefficient and funds have been misappropriated and laundered abroad, he said.
鈥楧espite the corrupt practices, a facade of development was maintained to deceive the public,鈥� he added.
To sustain the corrupt system and maintain the illusion of development, he said, authoritarian tendencies became necessary.
And that created the cyclical relationship of the nexus, he mentioned.
However, the current political climate has provided an opportunity to break this cycle and implement reforms, he added.
The public policy expert said the scope, continuity and pace of the government organisations would depend on how confident the government was when it came to the economy and the level of comfort people were in.