Bangladesh's 'Default Culture' Threatens Development Aspirations, Warns Policy Expert

Defaulting on loans is becoming part of business models to stay competitive in Bangladesh, according to Rehman Sobhan of the Centre for Policy Dialogue.

Sobhan blames the default culture on policies started under President Ziaur Rahman 40 years ago to build up capitalist class.

Sobhan argues Bangladesh is witnessing "complete deinstitutionalisation" where laws are selectively applied based on political connections.

He warns that the discretionary application of laws is dangerous for Bangladesh's development aspirations.

Sobhan says Bangladesh does not have a dominant party system but rather a dominant state built around an individual.