Cost of politics
Bangladesh

7 Key Takeaways: Cost of Politics

1

Politicians interviewed for this research indicated that candidates often spend between BDT 20-50 million (US$164,000-411,000) to gain the favour of influential party leaders during the selection of candidates phase.

2

The campaign phase is often the most capital-intensive part of the election process, with candidates spending between BDT 30-50 million —or even more—depending on the constituency and level of competition.

3

Vote buying was a feature of all election contests in 2024, with payments per vote starting at BDT 1,000 (US$8).

4

In 2024, 66% of elected MPs were businessmen, a trend that is consistent across political parties.

5

Only 15% of candidates receive substantial financial support from their parties with access to such support higher for wealthier candidates who receive preferential treatment due to their ability to self-fund or contribute to party expenses.

6

In 2018, only 40% of MPs submitted their mandatory financial disclosures of their election-related expenses.

7

Before its dissolution due to a mass uprising in August 2024, the 12th parliament had only 19 directly elected female members out of a total of 300.

Population: 173 million
Head of Government: Muhammad Yunus (interim)
Ruling party/coalition: Interim government
Last election: 2024
Next election: TBD
Number of registered voters: 119.6 million
Annual salary of member of legislature: BDT 660,000 (US$6,000)
Year of study: 2025

Key Findings

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Context

  • In the wake of the July 2024 uprising in Bangladesh, an interim government has been established to stabilise the nation and address long-standing issues in governance, both political and financial.
  • The fairness of parliamentary elections in Bangladesh has been a critical concern since the country gained independence in 1971. But the issue has become especially pronounced over the course of the last three general elections held in 2014, 2018, and 2024 which have been marred by widespread allegations of rigging and malpractice, primarily attributed to the former ruling party, the Awami League.
  • A lack of political accountability backed by a culture of impunity, widespread corruption, and failure to engage in genuine communication between the ruling party and the public continues to undermine the democratic framework. The resulting distortions in the political ecosystem led to the 2024 student uprising, which was supported by the wider public. The uprising has shaken the very foundation of the current political culture, with the student catalysts demanding political reform and a thorough overhaul of the political parties.
  • Both the 2018 and 2024 elections witnessed a discernible trend of increasing participation from businessmen in politics, signaling a shift in the political landscape where economic interests may heavily influence governance and policymaking.

Money in politics

  • Politics in Bangladesh is characterised by substantial financial expenditures. The rising costs of electioneering have created barriers for many aspiring politicians, especially those from marginalised communities, including women and youth.
  • A 2018 study, revealed that nearly 82% of lawmakers possessed assets worth more than BDT 1 crore. Among these, 32% owned assets exceeding BDT 5 crore. To put this into perspective, only 0.06% of Bangladesh's total population had a net worth of over BDT 1 crore in 2016.
  • The Election Commission of Bangladesh (ECB) requires all candidates and political parties to submit detailed reports of their election-related expenses. But it lacks a robust mechanism to verify these reports' authenticity, allowing money to exert an unchecked influence over Bangladesh's political landscape.

The cost of politics

  • An estimated BDT of 5-10 crore is required prior to the formal campaign, to cover the period from three to five years before the election, with additional expenses incurred for those elected to office in the aftermath of polls.
  • Candidates often begin their campaign expenditure well before they receive official nominations. These early investments focus on building relationships with local influencers and mobilising grassroots support, and can start two or three years before elections. This means that even before obtaining a party nomination, candidates can incur significant expenses. They often spend money on community events, make donations to local institutions, and work to build public support through informal patron-client networks.
  • The campaign phase is often the most capital-intensive part of the election process, with candidates spending between BDT 30-50 million —or even more—depending on the constituency and level of competition. These expenditures cover various campaign essentials, such as promotional materials, salaries for campaign workers, and logistics for organising rallies. Additionally, candidates budget for securing support from local influencers and voter groups.
  • According to one of our interviewees, who was an MP candidate, election day itself also entails substantial financial commitments, with a minimum of BDT 5 million being spent on average per candidate.
  • An additional layer of electoral spending focuses on direct voter engagement. As election day approaches, candidates often engage in a tradition locally called "moon night," where they distribute cash and goods to voters the night before the elections with amounts given varying significantly across constituencies.
  • The need for "speed money" has emerged as a typical post-election expense in Bangladesh. The bureaucratic processes associated with elections can be notoriously slow and inefficient. Some politicians resort to bribing officials to navigate these challenges and expedite these critical tasks by paying substantial sums - sometimes between BDT 400,000-500,000 - to expedite administrative processes, such as the official publication of election results or necessary documentation.
  • After being confirmed as the winner, elected MPs in Bangladesh encounter various ongoing financial obligations. These post-election costs include funding community projects, maintaining local offices, and regularly contributing to party funds. Many MPs find themselves in a continuous cycle of financial pressure to meet the needs of their constituencies.

Sources of funds

  • Candidates in Bangladesh's elections typically rely on formal and informal funding sources. The formal sources include contributions from political parties and personal savings. In contrast, informal sources include donations from businesses, vested interest groups, and sometimes illicit contributions from foreign actors and criminal syndicates.
  • Businesses typically prefer to fund candidates in areas where they possess considerable assets or conduct operations.
  • Political parties in Bangladesh generally provide limited financial support to individual candidates. According to a 2020 study, they mainly offer "in-kind" assistance, such as volunteers, transportation, and access to party platforms.
  • As a result, candidates must rely heavily on personal funds or private sponsors to cover most of their campaign expenses. It has been estimated that over 60% of candidates in Bangladesh rely on their personal assets to pay for campaign costs before turning to private sponsors.

Implications for democracy

  • The high cost of politics and lack of networks to access the campaign finance required remain formidable barriers for women and youth candidates in Bangladesh, impacting their ability to participate meaningfully in the political arena. Additionally, female candidates encounter significant societal and political bias.
  • For youth candidates, financial challenges are intensified by a lack of support within party structures and limited public acceptance of young political figures.
  • The groups most adversely affected by the influence of wealth in politics comprise women, students, and community leaders. These individuals face unique challenges due to a lack of wealth in asserting their voices and gaining representation, regardless of their political beliefs, religious affiliations, or ethnic backgrounds.
  • Informal financing distorts the democratic process by giving wealthy candidates a competitive edge. Those who have access to informal funds are more likely to win elections, which can lead to corruption and diminished public trust in the political system.
  • Business-friendly policies take precedence over policies that would benefit the general public, the cycle of financial influence strengthens, leading to a political system where business interests disproportionately impact decision-making, often to the detriment of the needs and welfare of the broader population.
  • Bangladesh's significant political costs have contributed to the ingraining of a criminal influence network that has shaped the country's political and economic landscape.
  • Official positions and development projects are often awarded to those who can pay off decision-makers rather than qualified individuals. This practice results in substandard infrastructure, including poorly constructed roads and bridges, and as corruption permeates government services, basic amenities become inaccessible without paying bribes.

Recommendations

  • Implementing robust campaign finance laws is crucial to addressing the financial imbalances in Bangladeshi politics.
  • To restore faith in democratic processes, it is crucial to undertake reforms that promote transparency and facilitate selections based on merit rather than privilege.
  • Establishing democratic practices within political parties is essential for reducing the influence of vested interests that distort the political landscape.
  • It is essential to enhance voters' understanding of the value of transparency and integrity in politics and governance. Public awareness campaigns should target urban and rural communities, emphasising the importance of informed voting and holding elected officials to account for their promises in driving meaningful change.
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Cost of politics