All the policy papers are silently in favor of reforms to encourage private sector but most of the members at political office and administration are against the opening up of the economy to the private sector. They don't own the policy and un-willingly implanting those policies. Maybe this dilemma ought to continue to end of the total transformation of economy.

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2. the political will of state ownership has been reflected in the constitution within the four basic
principles, namely Nationalism, Democracy, Socialism and Secularism.
There were over 400 manufacturing enterprises in the public sector, comprising nearly 85
percent of all assets in industrial enterprises under government management.
These industries were given under the control of the Ministry of Industries. In order to well
manage, government formed ten new sector corporations, which are in the nature of holding
companies responsible for the management of the Government-owned units within each sector.
These sector corporations took over management of jute; cotton textiles; sugar; food and allied
products; fertilizers, chemicals and pharmaceuticals; oil, gas and minerals; paper; steel;
engineering and shipbuilding; and forest industries.
Government also took over Bengali-owned jute, cotton textile and sugar mills with assets of
more than Tk. 1.5 million. The economy came under state control and the management vested
with bureaucrats, who have no-experience of running the enterprises.
The history of bureaucracy has an interesting legacy from era of British East India
Company. They were private sector bureaucrats to run the business. But the history was very
different. The Queen of England given permission to four British companies to expand business
throughout the world and the East India Company (EIC) has given responsibility of South Asia
and South East Asia.
These companies had their own army and gradually take the political control over the world
though war, diplomacy and purchase of properties. The EIC virtually took over the rule of
Bangla and Bihar in 1757 with fall of Nawab Siraj ud Daulah after historical war of Palashi and
consolidated its position as a dominant power in India by 1784. EIC has gradually changed the
administrative system. The business executives of company changed from merchants to that of
statesmen, from traders to governors, judges and magistrates.
After the Shepahi Mutiny of 1757, the British government annexed South Asia and created a
corps of specially talented officers, - selected from the Commercial services as well as army and
entrusted them with the pioneering task of settling existing and newly conquered areas, making
political adjustments, restoring law and order, assessment and collection of land revenue,
administration of criminal and civil justice, maintenance of roads and bridges, digging canals,
opening schools and hospitals in order to gain the confidence of people. After the 1947, the
Pakistan has created a civil service but the mentality of official was legacy of British period. The
bureaucracy of Bangladesh formed with the few officials ex-services of Pakistan with British
ruler mentality.
In the theory of Socialism, the state ownership understands to be community ownership that
mean owned by and managed and controlled for the community. The nationalization became the
take over the management of these enterprises by defeating the ideology of state-ownership of
economic activities and vested to bureaucracy.
This has been observed in all the developing countries and in most of the developed ones, a large

3. number of State Owned Enterprises (SOEs) ultimately became financially inefficient and
incurred heavy losses. Since their very inception the SOEs in Bangladesh were plagued by
inefficiency, mismanagement, heavy losses and similar other shortcomings.
These state companies got bank credit under "state guarantee" and recommendation of the
government and enjoy disproportionate shares of domestic credit with private sector. These loss-
making SOEs and Banks are supported by special funds in the budget for their survival.
Government has earmarked Tk 5,000 crores in the national budget of 2016-17 only for ailing
public sector Banks, while the private sector bank earning hefty profit in the same market. The
nationalized sector in other countries also has similar fate like Bangladesh.
In 1993, public sector incurred losses to the tune of Tk. 25 billion. This amount represents about
50% of the annual project aid disbursement and nearly 2% of the GDP. Government could not
rescue the ailing SOEs investing money in the form of capital infusions or as subsidies and/or
write-off of bad debts. The government has no other choice to disinvest the SOEs.
The service sectors were under state control since the beginning and Bangladesh still has a large
number of public enterprises (grouped under 38 corporations) in operation. The SOEs dominate
many important sectors. They accounted for 71% of the value added in the utilities (power, gas
and water), nearly 100% in railway and communications. By this time, the power generation has
been partially allowed in the private sector. The Banking and insurance sectors opened up the
private investment but still dominated by public sector through patronization of government.
In 1947 the country Pakistan start journey with Eden building was the center of power. The Eden
Building (the Secretariat) became power-centre due to authority over all economic activates by
the bureaucrats. The Eden Building became "Makkah" of all business persons. They had to visit
Eden building for small approval and reference and favoritism of all trades.
There is a history of Eden Building. During the British rule, after many shift of places finally
Eden School got a place at Topkhana Road and constructed school building but after
independence of Pakistan, the provincial government had not building to accommodate
secretariat shifted from Writer's Building at Calcutta, North & South block, Delhi. Government
took over the newly built school buildings with a promise to return the building after
construction of own building but that never happened.
They had constructed some more building and gradually name as Secretariat. The writer
Building in Koltatta still exist and Indian love to call it in it's name. I can remember that, while I
was a child, my father was a staff Government Printing Press at Tejgaon but frequently visited
Eden Building to meet his bosses. The colleagues my father hardly alive but the nation gradually
forgot the name of building. A few days back I saw an official paper public work department
mentioning Eden building.
Why we don't like to preserve our history or why try erase history is a mystery of the character of
the nation. But the characteristics of persons working in Eden building still same as bureaucrats
of British period. The name of country changes thrice but without change of mentality.

4. The first government of independent country framed the 1st five year plan, Annual Development
Programs were prepared according and implemented. Periodic reviews and changes of the fiscal
and monetary policies as well as of the export and import policies were undertaken with the
socialistic theory of Bangabandhu government. This reflects the efficiency of the than
government to reform the economic and political policies in such a short period of three and half
years.
Basic principles of labor policy, industrial workers' wages policy and policies regarding pay
scales embracing all categories of government and public sector employees including those of
the nationalized enterprises were laid down by the government in respond to the ideologies of the
state. After the assassination of Bangabandhu in mid-Seventies and specially fall of Soviet
Union, block the policy has started changed under the pressure of west and donor agencies.
The military government of Gen Zia has declared the features of mixed economy having public
and private sector to complementing each other and an interim 2 years ADP has been adapted.
They had initiate the sell out to people of their choice and handover the state owned enterprises
to previous management in contract to the state ideology without much change in constitution.
The two military governments have gradually opened up the economy for private sector like
bank, insurance, telephone sectors and side by side sold many enterprises to the private
entrepreneurs. They also made the business less controlled by government and also reduced the
regulations and also opened up the foreign investments.
The donors are always insisting on consultation on all policy issues with the public sector. The
energy, natural resources, communication and import of fuel and energies are strictly under
government control except limited power generation in the private sector. The 7th Five your plan
and Sustainable Development Goal (SDG) sponsored by UN has emphasis enormous
responsibilities to private sector.
All the policy papers are silently in favor of reforms to encourage private sector but most of the
members at political office and administration are against the opening up of the economy to the
private sector. They don't own the policy and un-willingly implanting those policies. Maybe this
dilemma ought to continue to end of the total transformation of economy.
The un-employed citizens also roamed around Motijheel area for private employment and still
look at Eden building. The current B2B business also significant without much control of Eden
Building. This change of policy has given the commercial business hub of Motijheel a new
power centre. By this time, the entrepreneurs also have gained considerable foothold in the
political offices.
The road from Eden Building at Topkhana Road has office of left wing Political Parties like
Communist Party of Bangladesh and Workers Party of Bangladesh. The Paltan Moidan is very
close where all the national leaders promises socialistic state and still may echoing thousands of
slogans against capitalist and capitalism.
The national Mosque is next to these offices of political parties. There are some offices of

5. newspaper and news agencies having a negative perception of private sector. The traditional
attitude of bureaucrats is resisting the shifting of power and the road is not smooth. The road to
Motijheel from Eden Building has many challenges from some stakeholders.
The capabilities of private sector are also questionable. We have long way to Motijheel and the
road has many obstacles and barriers such as legal, ideological and psychological. The business
also lacking integration to well organized stock market at Motijheel with involving the common
investors in economic activities.
The writer is a Legal Economist