Dishonest by Design

Laws create incentives, not just prohibitions. This series examines policies in Bangladesh where the rational response to the rules is to lie, evade, or forge.

1 part

Part 1

In Bangladesh, the Bigger the Default, the Better the Deal

The rules of Bangladesh's banks reward the borrowers who never pay.

Pay 2 percent of what you owe and the default tag comes off. That is the rule for Bangladesh's largest borrowers, and it is why almost half of every loan in the country is in trouble.

Political EconomyJune 5, 20268 min read