This year’s Nobel Prize winners in economic sciences (Daron Acemoglu, Simon Johnson and James Robinson) demonstrated the importance of social institutions for the well-being of a country. Societies and extractive institutions where the rule of law is weak struggle to achieve growth or improve living standards. The Nobel laureates’ research helps us understand how Bangladesh, trapped in extractive institutions inherited from its colonial past, failed to achieve the desired magnitude of prosperity after independence.

Extractive institutions that concentrate power and resources among a select few often hinder widespread economic opportunities. These institutions prioritize the interests of political elites, military leaders, or specific economic groups, creating a system in which wealth and decision-making power are stacked at the top. In such environments, most people are excluded from the economic and political benefits that foster growth and innovation. As a result, inequality increases, social mobility decreases and broader development opportunities are suppressed. The economic system of the last 16 years in Bangladesh has served as an example of such extractive institutions; Here, the real beneficiaries were a handful of citizens and their descendants (the political elites, bureaucrats and business conglomerates who had control over the country’s resources). This period largely ended in August of this year. To understand how extractive institutions can transform into more inclusive institutions in the context of Bangladesh, we can look at student movements that challenge economic and power structures by protesting discrimination and demanding equal socioeconomic opportunities.

Historically, popular uprisings and social movements have played a vital role in shifting extractive institutions towards inclusion by amplifying the voices of excluded groups and pressuring governments to implement changes. For example, the Language Movement of 1952, which secured Bangla as the official language, and the 1990 movement, which led to the end of military rule and the restoration of democracy in the country, are pivotal in the history of Bangladesh as they highlight the role of youth activism. Confronting established power structures. Recently, students have mobilized around critical issues such as road safety in 2018 and civil service quota reforms in 2018 and 2024.

The 2018 Road Safety Movement began after two students were tragically killed in a hit-and-run incident. It quickly turned into a nationwide protest against the mismanagement of our roads. Civil society has become increasingly vocal about negligence, corruption and lack of accountability in the transport sector. Similarly, during the 2018 and 2024 quota reform protests, students successfully pressured the government to reform the civil service recruitment system by reducing job quotas reserved in favor of certain groups. These quotas, which disproportionately benefited certain families and politically connected individuals, were seen as barriers to merit-based hiring and career advancement. Quota reform movements were a small but meaningful step towards a more inclusive system that aimed to level the playing field for all citizens, regardless of their background.

Student movements in Bangladesh are more than isolated incidents of unrest; they symbolize a broader, structural challenge to the extractive institutions that dominate the political and economic landscape. If student movements continue to press for reforms to address employment opportunities, social inequality and corruption, they will in effect be calling for a shift from exploitative practices to more inclusive systems. The success of these movements depends on their ability to connect with other disaffected groups and maintain pressure on the government.

In countries such as Tunisia, Egypt, and South Korea, student-led movements became catalysts for regime change and reform as they gained momentum and aligned with other social groups. The potential for such change exists in Bangladesh. As student movements continue to grow, they can play an important role in the country’s transition to a more inclusive and participatory society. The outcome of this transition will depend on the durability of these movements and the willingness of the ruling elite to compromise or confront political and economic turmoil.

After all, the struggle between extractive and inclusive institutions is not just a struggle over resources; This is a fight about the future of the country. Inclusive institutions tend to promote economic growth, innovation, and political stability by allowing broader participation in decision-making processes and ensuring that opportunities are available to all citizens. For Bangladesh, which continues to grapple with high levels of inequality, corruption and governance challenges, student movements represent a beacon of hope for more inclusive and equitable development.

Students in Bangladesh confront the exploitative nature of the system by challenging the status quo, whether in economics, education, governance or public safety. If these movements garner broader support and align with other social forces, they could lead to reforms that would make institutions more transparent and accountable. This reflects the broader theoretical process in which social mobilization, crises, elite conflict, and external pressures contribute to the transformation from extractive to inclusive institutions.

Dr Shamsul Arifeen Khan Memun is a professor of economics and a member of the BCS general education staff. He currently works at the Directorate of Secondary and Higher Education (DSHE) under the Ministry of National Education.

The views expressed in this article belong to the author.

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