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Mumbai Global corporations might add Bangladesh to their increasing list of unknowns. Prime Minister Sheikh Hasina’s resignation and flight from Bangladesh’s 170 million people may calm protests. Her sudden ouster on Monday, after 15 years of iron-fist leadership, worries global firms, including textile companies.
Fast-fashion shareholder reacted well to Hasina’s exit. H&M said it was “concerned” about Bangladesh’s progress and opened fresh tab sources from 1,000 manufacturers. Even during a worldwide equity sell-off, its stock and that of Levi Strauss and Zara-owner Inditex plummeted barely 1% on Monday.
After hundreds of students were killed in a weeks-long crackdown on job-quota protests, factory activity was hampered. Ready-made garments will account for 90% of Bangladesh’s $55 billion exports in 2024, according to the International Monetary Fund. Investors will hope this encourages Bangladesh to resolve any ongoing disruptions.
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For international investors, the early signals are promising: Some demonstrators want Nobel Peace Prize winner Muhammad Yunus to lead the temporary government, which the army promises. Banker and economists can help Bangladesh stabilize remittances, address a jobs crisis, and lower inflation by 10%. However, elections will occur, and Yunus’ prior political attempts failed.
The long-term prospects is questionable. Awami League controlled an increasingly one-sided democracy as Hasina built Bangladesh into one of the world’s fastest-growing economies. The main opposition Bangladesh Nationalist Party has boycotted national elections, and this week she banned Jamaat-e-Islami, which had been outlawed for over a decade.
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