From promises to performance: Why Bangladesh needs a delivery state

Development-related issues in Bangladesh have been dominated by policy questions throughout recent decades. Government after government promised to enact ambitious plans, launch projects, develop strategies, and set visions of transforming the economy. However, a key issue emerges whether the state can deliver on its promises is a factor in the success or failure of those initiatives.

In the post-LDC graduation period, Bangladesh may find that its most pressing issue is not formulating policies but building the necessary state capability to deliver them effectively.

This challenge is not unique to Bangladesh, since across the world, governments learn that citizens do not appreciate promises made, but outcomes of their governance. Completed roads, reliable public services, an effective investment process, quality education, healthcare, and job creation matter far more than policy documents. Governance is defined by delivery today.

Bangladesh has plenty of ambitious plans in place, including the Perspective Plan, Delta Plan 2100, National Adaptation Plan, Smart Bangladesh, and many others. During the last ten years, the country has made quite impressive progress in infrastructure development, electricity generation, poverty reduction, digitalization of public services, and exports. 

Based on World Bank estimates, Bangladesh's economy has grown more than sixfold in nominal terms since the early 2000s, and exports have increased from about $6 billion in 2000 to more than $50 billion in recent years, despite economic shocks. All this proves that the country is capable not only of having vision, but also of implementing it in specific sectors. Nevertheless, the problem of implementation remains.

Many large-scale infrastructure projects were delayed and budget overruns faced. Public investments fail to generate the expected economic effect due to a lack of necessary reforms. Various regulatory barriers limit investments. Companies point to delays in approvals, taxes, customs clearance, land administration, utilities, and other procedures as key factors constraining their operations. This is not always about the failure of policymaking, but about the lack of coordination and implementation.

Today, economic development is a growing institutional challenge. Job creation, attracting investment, increasing competitiveness, or export diversification cannot fall within the competence of a single ministry. The investor will have to deal with various revenue agencies, customs, local government, power companies, environmental agencies, financial institutions, land agencies, and other institutions before production starts. But while government structures remain vertically organized, development challenges become essentially horizontal.

And that is why so many countries invest in what is called the "delivery architecture" of their governments. Instead of creating additional bureaucratic layers, effective governments tend to set clear priorities, establish measurable targets, ensure constant monitoring, enable quick problem resolution, and coordinate work between institutions.

United Kingdom's Prime Minister's Delivery Unit, established in 2001, became an iconic example of systematic performance tracking in priority sectors. The Performance Management and Delivery Unit (PEMANDU) in Malaysia used data analysis to improve the implementation efficiency of national development programs. Indonesia has similarly strengthened monitoring of its President. These mechanisms have their own specifics and contexts, but all of them use one common approach – delivery deserves as much strategic attention as policymaking.

Today, economic development is a growing institutional challenge. Job creation, attracting investment, increasing competitiveness, or export diversification cannot fall within the competence of a single ministry. The investor will have to deal with various revenue agencies, customs, local government, power companies, environmental agencies, financial institutions, land agencies, and other institutions before production starts. But while government structures remain vertically organized, development challenges become essentially horizontal.

It does not mean that Bangladesh needs to adopt any ready-to-use model. The administrative culture and political systems of each country differ. Nevertheless, there are some lessons to adapt.

Firstly, the government should identify a limited set of strategic priorities for the country rather than trying to monitor everything equally. Priority areas give necessary focus to institutions.

Secondly, delivery requires proper information. Bangladesh's capacity to gather information has been expanded through digitalization. The next stage will be to use that information for decision-making.

Thirdly, the problem of accountability should become more outcome oriented. Completion of all required administrative steps is not the same as problem-solving.

Fourthly, inter-ministerial coordination should become systematic. Most development challenges, from employment generation to climate adaptation and investment promotion, require coordination of actions among institutions.

Fifthly, continuity is very important. Any long-term reform requires institutional memory, professional civil service, and policy stability. Constant restructuring and shifting responsibilities may undermine implementation even when objectives remain the same.

As Bangladesh approaches its goal of upper-middle-income status, the state's ability to deliver will become a key factor in national competitiveness. Countries that successfully sustain high growth for many decades tend to strengthen not only their markets and infrastructure but also their public institutions, which deliver the results.

That is why the discussion about governance should change. Besides the question of the policies declared by the government, we should ask whether public institutions have the incentives, coordination tools, analytical capacity, and administrative culture to implement those policies effectively.

And finally, development is not just about the quantity of strategies adopted by the government or commissions established, but about tangible improvement in people's lives. Political mandate creates governments. Institutional capability creates results. The link between them is delivery. For Bangladesh, strengthening of the link will become the key governance challenge in the next decade.

Zillur Rahman is a political analyst and president at the Centre for Governance Studies (CGS). He hosts 'Tritiyo Matra' on Channel i. His X handle is @zillur.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.