The previous regime left behind a struggling economy that had been plundered to the brink by serving a select few, disconnected from the people’s needs. The people, enduring disappearances, killings, and state oppression, eventually rebelled in a July uprising marked by the sacrifice of the working class and students seeking liberation from a deepening crisis.
For years, a group of politicians, bureaucrats, and business figures cultivated a system of patronage that favored the elite, leaving the majority marginalized. Democratic rights were stifled, institutions weakened, and accountability disregarded, creating an environment of economic exploitation.
The current economic structure, shaped by this corrupt system, limits public involvement, leading to rising unemployment, particularly among the youth, and increasing poverty levels. The economy operates as a closed entity, hindering progress towards a more inclusive and democratic society.
While the interim government faces challenges in fully reviving the economy, it has made some progress. Inflation has slightly decreased, foreign reserves have grown, and reforms are underway in banking regulations and legal frameworks.
Despite the need for immediate budget revisions upon assuming power, the government had to resort to issuing ordinances under constitutional provisions due to the absence of a functioning parliament. Engagement with political parties on budget matters could have enhanced transparency and public involvement in financial decisions.
Economic indicators paint a grim picture, with GDP growth at a two-decade low, tax collection below expectations, and mounting debt obligations. The economy is further burdened by non-performing loans, rising energy costs, and a depreciating currency, exacerbating challenges for the working class.
The situation poses a threat of deepening poverty and inequality, with a forecasted increase in the number of poor individuals. Job opportunities are dwindling, especially in the private sector, impacting various vulnerable groups, including women in informal sectors.
Addressing structural issues and fostering sustainable job creation through investment and a revamped industrial policy are crucial for long-term economic stability. A skilled workforce and a forward-looking education system are essential for nurturing future economic growth.
Meaningful reforms require a comprehensive strategy and political legitimacy. The path to economic recovery lies in democratizing the economy through transparent and inclusive governance, ultimately empowering the people to shape their economic future through free and fair elections.
The interim government’s primary responsibility is ensuring a peaceful transfer of power through legitimate elections, setting the stage for policy stability and transformative change. The economy is not just about financial metrics; it is about empowering individuals to influence their destinies and kickstart a journey of economic revitalization through democratic processes.