‘People will one day feel remorse over inequality,’ Kaushik Basu says at Dhaka event

Indian Economist Kaushik on Thursday said that just as people in modern days feel ashamed of the history of the slave trade, future generations will feel remorse over the extreme inequality that exists in the world at present.

Economic progress and human well-being cannot be fully understood through gross domestic product (GDP) alone, said Kaushik Basu, professor of economics at Cornell University, USA.

Indicators such as the quality of healthcare and education, nutrition, inequality, ownership of assets and the distribution of economic opportunities also need to be taken into account when measuring economic progress, he added while speaking as the keynote speaker at the “Syed Humayun Kabir Memorial Research Conference 2026”

The conference was jointly organised by Banglar Pathshala Foundation and Sajida Foundation at a hotel in Dhaka on Thursday.

Professor Rehman Sobhan chaired the session titled “Equity, Capabilities and Well-being”. Ahmed Javed Chowdhury, founder of Banglar Pathshala Foundation, delivered the welcome address. Sajida Foundation Chairperson Farooq Sobhan and the foundation’s senior research adviser Sajeda Amin delivered the opening remarks.

In his opening remarks, Ahmed Javed Chowdhury said economic development is not the only basis for the development of a society.

Societies also progress through ideas, intellectual life, a critical public sphere, rational thinking and engagement with education.

Joining the conference virtually from the United States, Kaushik Basu said economic inequality is increasingly turning into inequality in people’s voices. The influence of the ultra-rich in the public sphere is growing as they are able to buy newspapers, television channels and social media platforms.

He said broader indicators are needed alongside GDP to measure economic performance and human well-being.

Basu said his model contains 21 indicators for measuring economic performance and human well-being. These include the quality of healthcare, the quality and reach of education, nutrition, inequality and the distribution of asset ownership.

He also stressed the importance of expanding ownership opportunities among a broader section of society to widen economic opportunities. In this context, he cited the ownership structures of Renata and Sajida Foundation as examples.

Basu said creating opportunities for a broader section of society, including workers, to have ownership in the corporate sector could help expand economic opportunities.

Mere showmanship in the name of CSR is not enough

In his concluding remarks as chair, economist and Centre for Policy Dialogue (CPD) Chairman Professor Rehman Sobhan said new models of corporate ownership are needed to improve the welfare of disadvantaged people.

He said such a model should allow workers to have a stake in corporate ownership. A huge amount of wealth is concentrated in the hands of a small group of people, while inequality has reached extremely high and unacceptable levels. Policy alternatives therefore need to be considered, he said.

Sobhan said mere showpiece activities in the name of corporate social responsibility (CSR) are not enough. A portion of a company’s shares or ownership should be allocated to a foundation that can serve as a permanent and sustainable source of funding for public welfare activities.

He said a capability-based approach is an important element of such a model. Ensuring quality and universal healthcare for all is also a key part of this approach.

Institutions cannot survive without good governance

Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman said clear goals and objectives, along with good governance, values and ethical leadership, are necessary to keep an institution effective over the long term.

He said a commitment to equality, justice and ensuring people’s rights regardless of identity should also be embedded in the foundations of an institution.

Iftekharuzzaman said eliminating corruption from Bangladesh would be difficult, but efforts to control and prevent corruption must continue. Civil society should continue to demand accountability even from outside formal government and institutional power structures, he said.

Coordination needed between government and society

Sajida Foundation Chairman and former foreign secretary Farooq Sobhan said leadership, accountability, merit-based systems and a focus on outcomes are essential to building strong institutions.

He said Bangladesh still has shortcomings in developing an integrated system of governance. Coordination among government ministries needs to improve, while communication between the government and society also needs to be strengthened.

The government does not have all the knowledge or solutions, he said, adding that Bangladesh needs an approach that brings together the ‘whole government’ and the ‘whole society’.

More resources needed for health and education

M Saiduzzaman, a member of the Board of Trustees of the Centre for Policy Dialogue and a former finance minister, said Sajida Foundation’s work focuses on health, livelihoods and building people’s capabilities.

Progress in these areas requires adequate public resources alongside good governance, transparency and accountability, he said.

He stressed the need to raise Bangladesh’s tax-to-GDP ratio, saying it is lower than that of many countries in South and Southeast Asia. Increasing the ratio would allow the government to allocate more resources to health and education, he said.

Saiduzzaman also expressed concern over the quality of education. The number of universities in the country has increased, he said, but the quality of education has not improved at the same pace. Improving the quality of education and research should therefore be given priority.

Succession and transfer of management

Shehzad Munim, adviser to Sajida Foundation and an independent director of Linde Bangladesh, said succession planning and passing an institution’s values and principles on to the next generation are important for building institutions that last.

He said the values, objectives and principles of Sajida Foundation have been firmly embedded in its organisational culture. As the organisation grows, he said, responsibility for its day-to-day operations should gradually be transferred to professional management.

At the same time, efforts are under way to further strengthen its frameworks for transparency, accountability and talent management, he said.