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Bangladesh Faces Economic Fallout from Quota Movement Unrest

Bangladesh’s political landscape is currently experiencing turmoil, especially among the youth and intellectuals. The widespread aspiration to “develop Bangladesh” is at a critical juncture as concerns about the country’s future grow due to the ongoing quota movement.

On June 5, quota protests aimed to challenge the employment reservation system that allocated 56% of public jobs to specific groups, prioritizing lineage over talent.

The violent clashes on July 18 left at least 200 dead and thousands injured. The government’s response included a heavy police presence, curfews, and internet shutdowns.

Although the Supreme Court reduced the quota to 7% on July 21, protesters are now demanding the release of those detained and the resignation of officials responsible for the crackdown.

These unrests have severely disrupted the economy, causing supply chain disruptions, soaring inflation, and business losses of over Tk 1,000 crore due to internet shutdowns. These conditions have forced many educated youth to seek opportunities abroad, exacerbating the brain drain phenomenon.

According to a 2021 report, about 45,000 Bangladeshi students went abroad for higher education, with a brain drain index of 7.6, higher than the global average of 5.55.

Fahim Mashroor, CEO of Bdjobs.com, expressed his change of heart on LinkedIn, calling out parents who are now sending their children abroad due to the country’s inability to protect their future while earlier arguing about Bangladesh’s huge potential. Mir Shahrukh Islam, CEO of Bondstein, highlighted the long-term impact on the ICT sector, predicting a 10-15% job loss due to power outages. This has forced companies to outsource work, further straining the economy.

In 2024, the unemployment rate in Bangladesh was around 3. 51% in the first quarter.

It is expected to increase due to the heavy financial losses suffered by the technology and call center industries due to internet shutdowns. The government must urgently address these issues, engaging with citizens to foster an environment that rewards talent, respects justice, and creates opportunities for growth.

In doing so, Bangladesh can work to retain its brightest minds and build a prosperous future. The challenge is not only to create a country where young people are motivated to stay and contribute to the country’s development but to achieve this through collective effort and commitment to positive change.

This critical moment calls for decisive action to ensure that future generations can live with dignity, security, and fulfillment.

 

Tazeen Nuwari Anwar

LLB, LLM and Barrister of England and Wales

Taught law for six years at the British School of Law, before joining Bangladesh’s largest startup, ShopUp

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