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Purpose

This paper aims to assess state capacity in Bangladesh and to analyse the reasons for the apparent failure of public agencies in creating the conditions for and in enhancing sound governance in the country. Conflicts between political parties and the government's lack of clear policy goals have led to a political situation, which is fragile and largely dysfunctional.

Design/methodology/approach

The paper reviews the main conceptual literature on governance and state capacity and assesses the status of state institutions in Bangladesh – how they fare, the way they operate and their implications for governance.

Findings

The paper points to the failure of the state machinery in formulating and implementing sound policies. Successive governments have politicised the administrative system and compounded the inefficiency and ineffectiveness of the government. Corruption, nepotism, and clientalism have produced flaws and shortcomings at both political and administrative level. Political instability in government and poor governance has produced a state that is weak and fragmented.

Research limitations/implications

It is mainly focused on one country and is a general overview of key developments, trends and flaws in the functioning of the state.

Practical implications

It is relevant for understanding the general trends and dynamics of state capacity building within a broad framework of governance in a developing country. The findings may be useful for policy makers in reform initiatives.

Originality/value

It provides an assessment of the practical problems of political and administrative management in an unstable political environment.

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