Fakhruddin Ahmed
Encyclopedia
Dr Fakhruddin Ahmed (born May 1, 1940) is a noted Bangladesh
i economist, civil servant, and a former governor of the Bangladesh Bank
, the country's central bank
. He was appointed as the Chief Adviser (Head of the Government) of the non-party interim caretaker government
of Bangladesh
on 12 January 2007, amidst chaos in Bangladeshi politics, and remained in that post until a new election was held two years later.
of Dhaka District
, now Munshiganj
, Bangladesh. He took the oath of office as Chief Adviser of the Caretaker Government of the People's Republic of Bangladesh on 12 January 2007. Prior to this appointment, he worked as Managing Director of Palli Karma-Sahayak Foundation (PKSF) from June 2005 to January 2007. PKSF is the largest apex funding organization for micro credit in the world, currently providing financial and institution-building assistance to over two hundred micro-finance institutions. From October 2001 to April 2005, Dr. Ahmed served as Governor
of the Bangladesh Bank
.
While he was Governor, Dr. Ahmed introduced wide-ranging reforms in the conduct of monetary and exchange rate policy, in the development of new financial markets (bond market) and financial instruments (securitization), and in the operation of the financial system. The financial sector reforms included stronger corporate governance measures at the board level and also on internal policies, processes and structures within the banking industry and for non-bank financial institution
s. Other significant reforms undertaken during his tenure included strengthening the capacity of the Bangladesh Bank. Dr. Ahmed’s major achievements included : (i) floating the exchange rate with minimal volatility, (ii) introducing interest rate flexibility and bringing down the interest rate substantially, which in turn contributed to a significant increase in industrial investment, (iii) introducing major corporate governance measures for the first time in the Bangladeshi corporate sector, and (iv) making the Bangladesh Bank an effective regulator and enforcer. The reforms implemented during Dr. Ahmed’s tenure contributed to macroeconomic and financial sector growth and stability in a major way.
Previously, Dr. Ahmed served for over twenty years at the World Bank
, where his work focused on macroeconomic issues as well as on other sectoral and policy issues related to development. During his years at the World Bank, he worked across a number of countries in South Asia, East Asia and Africa.
Prior to joining the World Bank, he served for fifteen years in the erstwhile Civil Service of and in the Government of Bangladesh, lastly as Joint Secretary, Economic Relations Division, Ministry of Finance. Dr. Ahmed began his professional career as a Lecturer in Economics at Dhaka University.
Dr. Ahmed obtained the first position in his class (first class first) in both BA (Hons.) and MA in Economics from Dhaka University. He subsequently received another MA in Development Economics from Williams College
, USA, and a PhD in Economics from Princeton University
, while on leave from his civil service appointment.
swore him in as Chief Adviser to the Interim Caretaker Government, after the former interim government under the President was dissolved. He is credited with bringing an end to the anarchy
that had threatened to sweep the troubled nation. For a country widely perceived as one of the world's most corrupt, the most dramatic aspect of Ahmed's rule is his anti-graft campaign against the establishment. So far, more than 160 senior politicians, top civil servants and security officials have been arrested on suspicion of graft and other economic crimes. The roundup has netted former ministers from the two main political parties, including former prime ministers Sheikh Hasina
and Khaleda Zia
and former acting prime minister Fazlul Haque
.
Ahmed fainted while giving a speech at a tree-planting event on June 3, 2007, apparently due to the heat, and was hospitalized. He was released from the hospital later on the same day and said that he was well.
Following elections in 2008, a new parliament was formed, and on January 6, 2009, the interim government made way for an elected Awami League
government. Ahmed has since then disappeared from public sphere.
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
i economist, civil servant, and a former governor of the Bangladesh Bank
Bangladesh Bank
Bangladesh Bank is the Central bank of Bangladesh and is a member of the Asian Clearing Union.-History:After the liberation war, and the eventual independence of Bangladesh, the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of the country,...
, the country's central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
. He was appointed as the Chief Adviser (Head of the Government) of the non-party interim caretaker government
Caretaker government of Bangladesh
The Caretaker Government of Bangladesh is a form of government system in which the country is ruled by a selected government for an interim period during transition from one government to another, after the completion tenure of the former. As the outgoing government hands over their power, the...
of Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
on 12 January 2007, amidst chaos in Bangladeshi politics, and remained in that post until a new election was held two years later.
Profile
Fakhruddin Ahmed, son of Dr. Mohiuddin Ahmed, was born in BikrampurBikrampur
Bikrampur pargana is situated 12 miles south of Dhaka, the modern-day capital of Bangladesh. It lies in the Munshiganj District of Bangladesh. It is a historic region in Bengal. The region is famous for its early Buddhist scholarships and in the later period for its cultural influences...
of Dhaka District
Dhaka District
Dhaka District is a district located in central Bangladesh, and is the densest district in the nation. It is a part of the Dhaka Division. Dhaka, the capital of Bangladesh, rests on the eastern banks of the Buriganga River which flows from the Turag to the south of the district...
, now Munshiganj
Munshiganj District
Munshiganj also historically known as Bikrampur is a district in central Bangladesh. It is a part of the Dhaka Division and borders Dhaka District.-Geography:...
, Bangladesh. He took the oath of office as Chief Adviser of the Caretaker Government of the People's Republic of Bangladesh on 12 January 2007. Prior to this appointment, he worked as Managing Director of Palli Karma-Sahayak Foundation (PKSF) from June 2005 to January 2007. PKSF is the largest apex funding organization for micro credit in the world, currently providing financial and institution-building assistance to over two hundred micro-finance institutions. From October 2001 to April 2005, Dr. Ahmed served as Governor
Governor
A governor is a governing official, usually the executive of a non-sovereign level of government, ranking under the head of state...
of the Bangladesh Bank
Bangladesh Bank
Bangladesh Bank is the Central bank of Bangladesh and is a member of the Asian Clearing Union.-History:After the liberation war, and the eventual independence of Bangladesh, the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of the country,...
.
While he was Governor, Dr. Ahmed introduced wide-ranging reforms in the conduct of monetary and exchange rate policy, in the development of new financial markets (bond market) and financial instruments (securitization), and in the operation of the financial system. The financial sector reforms included stronger corporate governance measures at the board level and also on internal policies, processes and structures within the banking industry and for non-bank financial institution
Non-bank financial institution
A non-bank financial institution is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency. NBFIs facilitate bank-related financial services, such as investment, risk pooling, contractual savings, and market...
s. Other significant reforms undertaken during his tenure included strengthening the capacity of the Bangladesh Bank. Dr. Ahmed’s major achievements included : (i) floating the exchange rate with minimal volatility, (ii) introducing interest rate flexibility and bringing down the interest rate substantially, which in turn contributed to a significant increase in industrial investment, (iii) introducing major corporate governance measures for the first time in the Bangladeshi corporate sector, and (iv) making the Bangladesh Bank an effective regulator and enforcer. The reforms implemented during Dr. Ahmed’s tenure contributed to macroeconomic and financial sector growth and stability in a major way.
Previously, Dr. Ahmed served for over twenty years at the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, where his work focused on macroeconomic issues as well as on other sectoral and policy issues related to development. During his years at the World Bank, he worked across a number of countries in South Asia, East Asia and Africa.
Prior to joining the World Bank, he served for fifteen years in the erstwhile Civil Service of and in the Government of Bangladesh, lastly as Joint Secretary, Economic Relations Division, Ministry of Finance. Dr. Ahmed began his professional career as a Lecturer in Economics at Dhaka University.
Dr. Ahmed obtained the first position in his class (first class first) in both BA (Hons.) and MA in Economics from Dhaka University. He subsequently received another MA in Development Economics from Williams College
Williams College
Williams College is a private liberal arts college located in Williamstown, Massachusetts, United States. It was established in 1793 with funds from the estate of Ephraim Williams. Originally a men's college, Williams became co-educational in 1970. Fraternities were also phased out during this...
, USA, and a PhD in Economics from Princeton University
Princeton University
Princeton University is a private research university located in Princeton, New Jersey, United States. The school is one of the eight universities of the Ivy League, and is one of the nine Colonial Colleges founded before the American Revolution....
, while on leave from his civil service appointment.
2007 interim caretaker government
On 12 January 2007, President Iajuddin AhmedIajuddin Ahmed
-Early life:Ahmed was born in Bikrampur of Dhaka District, erstwhile Bengal province, British India . As the son of Moulvi Ibrahim Mia, Ahmed obtained his B.Sc. and M.S. at the University of Dhaka in 1952 and 1954 respectively and later received his M.S. and Ph.D...
swore him in as Chief Adviser to the Interim Caretaker Government, after the former interim government under the President was dissolved. He is credited with bringing an end to the anarchy
Anarchy
Anarchy , has more than one colloquial definition. In the United States, the term "anarchy" typically is meant to refer to a society which lacks publicly recognized government or violently enforced political authority...
that had threatened to sweep the troubled nation. For a country widely perceived as one of the world's most corrupt, the most dramatic aspect of Ahmed's rule is his anti-graft campaign against the establishment. So far, more than 160 senior politicians, top civil servants and security officials have been arrested on suspicion of graft and other economic crimes. The roundup has netted former ministers from the two main political parties, including former prime ministers Sheikh Hasina
Sheikh Hasina
Sheikh Hasina is a Bangladeshi politician and current Prime Minister of Bangladesh. She has been the President of the Awami League, a major political party, since 1981. She is the eldest of five children of Sheikh Mujibur Rahman, the founding father of Bangladesh and widow of a reputed nuclear...
and Khaleda Zia
Khaleda Zia
Begum Khaleda Zia is the former First Lady of Bangladesh , and then Prime Minister of Bangladesh, having served from 1991 to 1996, becoming the first woman in the country's history and second in the Muslim world to head a democratic government as prime minister. She served again from 2001 until...
and former acting prime minister Fazlul Haque
Fazlul Haque
Justice M. Fazlul Haque is a former High Court judge of Bangladesh, who served as the Chief Advisor of the non-partisan caretaker government of Bangladesh for two days in 2007.-Caretaker government:...
.
Ahmed fainted while giving a speech at a tree-planting event on June 3, 2007, apparently due to the heat, and was hospitalized. He was released from the hospital later on the same day and said that he was well.
Following elections in 2008, a new parliament was formed, and on January 6, 2009, the interim government made way for an elected Awami League
Bangladesh Awami League
The Bangladesh Awami League , commonly known as the Awami League, is the mainstream center-left, secular political party in Bangladesh...
government. Ahmed has since then disappeared from public sphere.