IN the write-up published on 24 January 1999 in this column, I argued that for moving the Bangladesh economy, which is embarked on free market reforms and globalization a la ‘Washington Consensus’. forward for the benefit of all the citizens of the country, a true working partnership between the government and the private sector needs to be established. How can a partnership between these two institutions be built so that it serves the national interests — sustained growth, poverty alleviation, social cohesion, political stability, ecological protection, and renewal?

In the age of planning and government controls, the government called the shots and the private sector adjusted to the contrived regime. Even in the days of free trade prior to the First World War, the colonial governments were in the driving seat and even the multinationals originating in those countries worked in close cooperation with the respective home governments in conducting their businesses overseas, largely in the respective colonies, enriching themselves and their home countries. The fre^imarket economy of the late 20 century is of a different genre. In this case, although the multinationals and transnationals generally have their feet solidly tied to the home economies, the home governments do not have a great deal of influence on their design and workings. They are driven primarily by their own missions shaped by their overriding goal of making profits and enhancing their share and influence globally in their respective Wh^^fof operation.

However, they often enlist the help of their home country governments, which is true particularly of the USA-based corporations, to secure contracts around the world, particularly in the developing countries. It is not infrequent that the home governments exert influence. on behalf of the corporations, on the governments of their 'client.' (te. aid receiving) countries.

The nation-states in the present globalization paradigm, even those of the West, do not have a great deal of control over the current proceedings of the process and the shaping of its future. In fact, it is the governments of the western countries which have released the forces of globalization. with Thatcherism in the UK and Reaganism in the USA playing leaa roles in the 1980s. It is interesting to note that the denouement thus created in the world order has reduced the in-

fluence of the governments over the future dimensions and course of the process to a large extent.

The trends set are certainly irreversible, having affected all aspects of economic, political and social life across the world. Social and political tensions are visible in western countries as a result of the free market engineering, and these countries are actively looking for social democratic renewal and ways and means of building social perspectives appropriately into the economic process, A number of developing countries, Mexico in 1994 and more recently East and South Asian countries have found their reforms come unstuck and faced serious economic and financial turmoil.

The poor countries have in general been forced, through the threat of assistance cut-off. to adopt free market reforms and Serialization, as prescribed. In ct. the changes wrought in the functions and functioning of the global systems are so fundamental that there is perhaps no choice for any country in the present unipolar world to avoid its impact and refrain from joining it. Indeed, the globalization is multifaceted. It has to do with world-wide spread of high technologies of unprecedented sophistication and consequences in different fields of human endeavour such as production, distribution, communication. and movement’ of funds. For example, it requires {‘list the pressing of a computer >utton to effect an instantaneous transfer of billions of dollars from one corner of the world to another, with huge impact on parties affected one way or another. Production is being relocated, based on opportuni- . ties for cost reductions. The industrial age in the western countries is being overtaken by the knowledge age. with knowledge workers replacing industrial workers on a wide-scale.

The consequence is that employment is now often on part-time, consultancy and individual basis, rather than by way of long-term employment of many in particular industries or companies, Even in countries where industrialisation is at low levels, the impact of globalization is, through its various ramifications, bringing about sea-changes in national economic management and external economic relations. The

communications revolution (global cable TV networks. Internet) and interest-based (e.g. environmental protection and enhancement, abolition of child labour, etc.) global coalitions are bringing even the poorest countries of the world into the fold of global networks.

Under such a circumstance, the question that needs to be raised is what role the government of a country like Bangladesh can play in shaping the country's future course of development in economic, social and cultural fields. The capitalist sector in this country is not only small but is in fact oriented more to finance capitalism and making of quick profits through trade and by serving as local agents of multinationals and transnationals. Given that the functioning of both the government

and the capitalist sector is subject to much outside influence, would not a partnership between these two ‘dependent’ institutions be at once a product and a further promoter of Bangladesh’s on-going globalization. with externa! interests driving the process, and national interests remaining in the background?

The ability of the nationstates, particularly in the developing world, to manoeuvre the workings of the private sector in the globalized setting Is rather limited, given that the reform agenda pursued by a government is externally dictated and has riot been sanctioned by the country’s polity autonomously through a process of debates and consensusbuilding.This clearly is an anachronism in a democratic set-up. In a democracy, the political agenda, to have broad-based support within the polity, must reflect economic, social and cultural perceptions, de-sires'and goals of the people, articulated by the people themselves through appropriate social institutions.

In fact, it is not only through a political agenda thus generated can the government act with authority in the shaping of policies and programmes of re-

forms and development. It can deal creatively and purposefully with' the key proponents of globalization, namely, the World Bank, the IMF arid the World Trade Organization (WTO) and other international agencies and bilateral donors pushing for further free market reforms to be carried out by a country, when the logic and the strength behind the proposals and arguments it puts forward are shaped by people's needs and perspectives articulated through appropriate social institutions.

The free markets engender and accentuate economic and social inequality and exclusion. because they are the hunting grounds of the rich and the powerful. The poor and the marginalized have little or no access to them, because they are neither able (in terms of skills,

access to resources and institutions) nor informed to do so. Now, if the baseline is characterised by high inequalities and an overwhelmingly large exclusion ratio, then the free market reforms instead of promoting progress for all will further widen the exclusion and may generate social disruptions and political upheavals of serious proportions.

The Bangladesh society is characterised by the pre dominance of economic, political, social and cultural exclusion Half the people are poor on the basis of lack of access to the minimum required calorie intake. The number poor goes up by millions more if other basic needs including a measure of freedom of choice are taken into consideration. The majority of the population is illiterate: un- and underemployment is widespread: the large majority of those employed in most sectors, particularly In agriculture, small enterprise and informal sectors suffer from low productivity: and the decision making processes (national and local) bypass the overwhelming majority.

In this setting, social institutions such as professional associations. trade unions, mu-

tual help societies, voluntary groups focusing on common interests, community interactions. and social customs, conventions and understandings, etc.. are also limited to the educated. elite minority. And local government institutions which, when properly constituted and mandated, can play an important role in social mobilisation at the grassroots throughout the country; are also yet to be properly developed in this country. Under the circumstances, the needs and aspirations of the excluded majority in particular cannot find proper articulation and expression. The on-going free market reforms in Bangladesh therefore contain potent forces of political and social disruptions and chaos, unless people-centred democratic checks can be instituted to moderate those tendencies.

But democracy and unfettered free markets are in fact antagonistic to each other. The free markets, being based on individualism and meritoo-racy„ have no use for customs arid traditions and social institutions. The individual remains supreme. But democracy is a process of social Intermingling and consensus building, the basic means of which are social institutions and political processes. In order to keep the markets from accentuating socio-economic exclusion, cultural degeneration and political chaos, democracy thus has a crucial role to play.

The idea is to bring the two antagonistic forces into a working partnership, which is socially desirable and economically rewarding for all. People at large, are necessarily the ultimate arbiters of the contours and thrusts of this alliance. Thus, people's choices and perspectives articulated through social institutions need to be. through democratic political practices, brought to bear on the way the markets function, while the markets exploit the national and international business dynamics freely within those broad social parameters. That is, the individual initiative is allowed to flourish as moderated by social influences and the economic markets incorporate desirable social imperatives. The pathway generated as a result is one that is socially acceptable market economy, or what may be termed as social market, type.

How might one pursue this

goal of social market-based de-velopment pathway in Bangladesh, which is obviously a difficult to achieve? To that end. education, particularly basic education, needs to be spread as fast as possible to enable the people in a basic sense to begin to move out of ‘exclusion’ and mainstream themselves, but. at the same time, it is crucially important that local government institutions are properly established, for the ordinary people to find an institutional framework for them to participate more actively in the decision-making processes. With education spreading, ordinary people may be expected to participate more actively in the governance process through local government institutions and eventually in wider national contexts through various social institutions and political processes. This process of social and political renewal may also unleash forces to counteract the widespread corruption and antisocial activities in public and private sectors and promote morality and ethical integrity in both.

The government may pro-actively assist the strengthening of social institutions for a better articulation of people's needs and aspirations, and positively respond to their points of view and proposals, At the same time, the realities facing the country (large-scale poverty, illiteracy, and unemployment: resource endowment, its limitations and potentials centring around land, water and people; technological and skill limitations; resource constrained small and marginal farming, etc.) should be properly assessed and imperatives arising therefrom built into the reform process to work out a modified reform agenda suited to the situational context and needs of Bangladesh. This may then be put to the people for debate and consensus formation. The social imperatives and reform requirements, thus evolved.' would provide the basic guidelines for the government to foster partnership linkages with tine private sector (domestic and foreign).

It should be in the interest of the private sector to take those social and political dynamics into'its stride and build the partnership that will allow its functioning, as sanctioned by a consensual social contact providing the basis for general acceptability and systemic stability. within a broad social market economy and globalization, framework, as opposed to unfettered free markets and untamed globalization entailing undesirable and disruptive social and political consequences.