Bangladesh is the latest country to see protests erupt over the state of the economy. In July, students took to the streets to protest against a decision by the country's Supreme Court that reinstated a quota system for government jobs that they believed favoured ruling party supporters.
The government responded by killing over 400 protesters, fanning the flames of protest that continued even after the courts reduced the number of people in the prison. On August 5, Prime Minister Sheikh Hasina announced her resignation.
Activists take part in a protest against former Prime Minister Sheikh Hasina and her government in Dhaka, Bangladesh, on August 2, 2024, demanding justice for more than 200 people killed in demonstrations. Activists take part in a protest against former Prime Minister Sheikh Hasina and her government in Dhaka, Bangladesh, on August 2, 2024, demanding justice for more than 200 people killed in demonstrations. Rajiv Dar, File/AP Images
Meanwhile, young people in Kenya have been protesting since parliament approved a tax bill in June that would hit the poor the hardest. The proposed tax on menstrual products has become a symbol of the extent to which the government is willing to squeeze people to pay off the country's debt. In July, President William Ruto sent the bill back to parliament for amendments, but protests have continued in some areas and have also sparked protests in Nigeria against economic reforms that have raised the cost of living, and in Uganda against government corruption.
These protests come on the heels of those in Pakistan and Angola over the past year in response to government cuts to energy subsidies, and in 2022, demonstrations across Sri Lanka following the government's default on debt led to the ouster of the president.
The specific triggers of these protests vary, but one common thread is anger at an intolerable economic system: The cost of living is rising worldwide, but most people's wages have not risen accordingly, while rising interest rates are forcing many governments to divert larger portions of their revenues to debt service, further reducing spending on already underfunded public services like health and education.
But the protesters' anger doesn't just stem from despair over poverty. Ruling parties have monopolized public employment while eroding private sector labor protections. They've cut electricity subsidies to pay creditors instead of taxing the rich. Public services are neglected amid rampant corruption. In many countries, the drive by many people, especially young people, to rise up against the state's brutal hand stems from a collective rejection of a system that reinforces inequality.
We should heed their message. Governments, and international institutions that wield great influence in shaping economic policy, have accepted that, as the UN Special Rapporteur on Extreme Poverty and Human Rights, Olivier De Schutter, has said, “economic growth brings prosperity for all.” In doing so, they have enabled an explosion of economic inequality.
But this approach is unraveling as debt and climate change pressures grow, and protesters refuse to accept the idea that the victims of inequality should pay the price.
Take Bangladesh, for example: A focus on the garment industry has led to rapid economic growth that has led many to hailed the country as a development miracle. But the government attracted foreign investors by collecting extremely low taxes, encouraging a “race to the bottom” through international taxation and allowing companies to pay poverty wages.
As a result, Bangladesh has one of the lowest tax-to-GDP ratios in the world.
Rock-bottom revenues have forced the Bangladesh government to seek a loan from the International Monetary Fund (IMF) in 2022. It is not surprising that nearly every country affected by the recent wave of economically-driven protests has an IMF program. But IMF loan conditions, ostensibly aimed at stabilizing the economy, often exacerbate poverty and inequality.
At the same time, many governments are severely constrained by an international system designed to benefit richer countries: Rising interest rates are sending debt service bills soaring, but the global system for debt restructuring is not working.
We need a new economic model rooted in the respect and promotion of human rights – a human rights economy. This concept would put respect for human rights at the heart of every aspect of the global economic system, from debt to taxes to international financial institutions.
Recognising that an obsession with growth is incompatible with an environmentally sustainable economy, a human rights approach emphasises the equitable distribution of resources that can fund the realisation of rights such as universal access to quality health care, education and social security, and ensuring that people are paid a minimum living wage.
The potential for such a paradigm shift is very real. On August 16, governments took a major step forward by voting overwhelmingly in favor of the terms of reference for a new United Nations tax treaty. The treaty offers a rare opportunity to fix the rules that have left Bangladesh in a revenue-poor situation despite its high growth, potentially unlocking billions of dollars in new revenue for developing countries.
Many wealthy countries are skeptical of the treaty, but they should recognize that their fate is too closely tied to the fate of others to ignore the shaky ground beneath the protesters' feet. People are standing up for their rights, and they deserve more than cosmetic changes.
Sarah Sadoun is senior economic justice researcher at Human Rights Watch.
The views expressed in this article are the author's own.
