ABSTRACT
Bangladesh could be a good example for those interested in the political economy of developing countries and in particular, how a country with a huge spirit of independence chose its own developmental path to become a top adherent of multilateral financial institutions. The chapter draws on first-hand accounts of some witnesses closely involved in the formative years of the creation of the country’s political economy. The chapter is dedicated to presenting the shifts that occurred in Bangladesh’s political economy over the last three decades from a historical perspective. A special focus is on the initial few years that were so crucial for subsequent developments. The strategic shifts in the development agenda mark broadly that Bangladesh failed to withstand both internal confusion and external pressures to march on its own path to development. The failure, in fact, determined Bangladesh’s future in regard to a persistent and overwhelming engagement with the Bretton Woods Institutions [BWIs] in the broader area of development strategies. Although the early days seemed a bit uncomfortable and encountered some resistance, it did not take much time to smooth out the engagement with the BWIs. Initially, there was political resistance and also resistance from the Planning Commission to the creation of a rapport with the BWIs. However, we do not find any such resistance in the later phases of the history of Bangladesh. Thus, though Bangladesh was exposed to BWI tutoring with reluctance in the beginning, the relationship was transformed afterwards into an obedient and persistent engagement.
