Business Groups in Bangladesh

Capitalist accumulation and corruption


Private sector corruption is usually a result of the collusion between powerful economic and political interests. At early stages of economic development these links are often used to monopolise certain government subsidies or policies. Some of the monopolising firms use these to protect their inefficiencies and capture policies. They cannot be profitable without these subsidies and remain consistently inefficient.

Even though some groups were initially granted policy ‘breaks’ only because they had forged links, they also used the policies to upgrade their productivity and become competitive. Some of the more powerful and economically capable firms in developing countries including in ACE’s countries did exactly this. These firms lay the foundations for a competitive local sector despite their origins being in corrupt relationships at odds with the benchmarks of good governance.

This cross-country project will trace the evolution of such local firms and analyse their impact on growth in their respective sectors. It will attempt to isolate proactive policy from their experiences to help reduce the need for collusion along with providing the correct incentives for local firms that want to invest.

Partners: Mushtaq Khan (SOAS) and Transparency International Bangladesh

Other projects

Power in Bangladesh

Productive investments in the power generation sector have been minimal, while less efficient and more costly investments have multiplied. There has been significant corruption through rent capture be...

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Climate Change in Bangladesh

As a developing country subject to potentially serious damage as a result of climate change, Bangladesh has received significant subsidies from development partners to invest in adaptation and mitigat...

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Skills in Bangladesh

Overall, the performance of skills training programmes in Bangladesh has been poor. But some targeted programmes have done well because they have addressed relevant market failures with targeted fundi...

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Health Providers in Bangladesh

Health systems in many countries create incentives for health workers to engage in corrupt practices that lead to inappropriate and ineffective care, leading to high costs and poor outcomes for those ...

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