Bangladesh’s Political Crisis: Sheikh Hasina Ousted, Ties with India Strained
Team Finance Saathi
26/Dec/2024

What's covered under the Article:
- Bangladesh faces political crisis after Sheikh Hasina's removal, causing strain with India.
- Yunus-led interim government is accused of undermining minorities and human rights.
- Upcoming elections in Bangladesh face uncertainty amid political turmoil and protests.
Bangladesh has entered a phase of political upheaval that has rocked the nation and its international relations, especially with neighboring India. The removal of Sheikh Hasina, the long-standing prime minister, has not only created internal instability but has also cast a shadow over India-Bangladesh ties. This political crisis is marked by widespread protests, unrest, and demands for Hasina's extradition, while Muhammad Yunus, the Nobel laureate, heads an interim government that is already facing mounting allegations.
In August 2023, student protests erupted in Bangladesh, initially over a controversial quota system for government jobs. These protests quickly escalated into a broader campaign calling for an end to Hasina's 16-year reign. Despite protests leading to the deaths of over 1,500 people, the military refrained from using lethal force, and Hasina fled to India. The political scene is now dominated by Yunus, who is favored by the student leaders but whose rise has strained relations with India.
The interim government, which came to power on August 8, 2023, has already begun cracking down on minority communities, including Hindus, leading to India's concerns. The arrest of a Hindu monk on sedition charges has only added fuel to the fire. India's Foreign Secretary Vikram Misri visited Dhaka, signaling New Delhi's attempt to maintain a normal relationship with the new administration.
As the interim government leads the nation towards what it promises will be free and fair elections by 2025 or 2026, questions loom about the credibility of the electoral process. The Bangladesh Nationalist Party (BNP) and Jamaat-i-Islami, two major political factions, are expected to play key roles, though their controversial histories, particularly in relation to the 1971 Liberation War, could lead to a fraught election environment.
Meanwhile, Yunus has faced backlash for attempting to erase the legacy of Sheikh Mujibur Rahman, the founding leader of Bangladesh. In a bold move, the interim government has initiated a shift in national symbolism by phasing out images of Mujibur Rahman from currency notes. The political landscape is changing rapidly, with many Awami League leaders imprisoned or in hiding, leaving the future of Hasina’s party uncertain.
Looking ahead to the 2025 general elections, Bangladesh's political environment remains volatile. The interim government continues to push for reforms but must contend with a fragile economy and a country divided by political unrest. The Asian Development Bank and World Bank have already revised Bangladesh’s growth forecast, citing concerns over poverty and economic instability.
In this challenging period, the Bangladesh government will need to navigate its political future carefully, balancing domestic pressures with its international relationships. The India-Bangladesh ties could either improve or worsen depending on how the situation evolves in the coming months, particularly regarding the extradition request for Sheikh Hasina and how the interim government handles minority rights and humanitarian issues.
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