Relief, hope in Bangladesh as new chief takes over

DHAKA, Jan 13 (Reuters) Bangladesh's powerful Awami League alliance called off plans for new blockades and strikes, signalling its acceptance of a respected economist as head of an interim government tasked to hold disputed elections.

The decision by the Awami League-led alliance came as people on the streets and political analysts today hailed the appointment of former central bank governor Fakhruddin Ahmed to the post and hoped he would succeed in forging political unity.

''Due to the changed political scenario, we are withdrawing all action programmes,'' Awami League general-secretary Abdul Jalil said late on Friday. The party had vowed to boycott the elections because it said the government had failed to ensure they were free and fair.

A rival alliance led by previous prime minister Begum Khaleda Zia's Bangladesh National Party (BNP), which ruled the country until October, responded cautiously to the new appointment.

Ahmed was named to the job on Friday by President Iajuddin Ahmed, a day after Iajuddin stepped down from the post, put off polls and declared a national emergency in a bid to halt violence that has killed dozens, injured hundreds and hurt business.

Although Iajuddin imposed a night curfew and tough controls on the media under emergency laws, they were withdrawn within 24 hours on Friday in the face of strong condemnation.

The decisions seemed to restore a semblance of normalcy in Dhaka as armed policemen and soldiers patrolled the streets and kept vigil at key facilities.

This week's dramatic political events came after weeks of often violent protests against Iajuddin by the Awami League's former prime minister Sheikh Hasina.

Hasina had accused Iajuddin of favouring Khaleda in the run-up to the polls and had decided to boycott the vote.

Khaleda stepped down in October at the end of her five-year term.

Under the constitution, a caretaker administration runs the country and has to prepare for elections within three months.

As the new caretaker chief, Ahmed's first task would be to appoint a council of advisers and then open talks with the two main political alliances who have been at loggerheads over the conduct of polls, originally due on January 22.

Analysts said he was a good choice for the job.

(EMERGENCY WELCOMED) ''The general impression is that he can take charge effectively and hold elections in which everyone will take part,'' said Golam Sarwar, editor of Jugantar, a Bengali language newspaper.

Ahmed, 66, taught economics at Dhaka University and later worked as a civil servant before joining the World Bank and serving it in various capacities for over two decades.

The Princeton scholar was governor of Bangladesh's central bank from 2001 to 2005 and was since managing the country's apex micro-finance organisation.

The emergency laws, introduced for the first time in 30 years, ban protests, marches, political activities on the streets and public criticism of the government.

The European Union urged Dhaka to restore people's civil and political rights at the earliest.

''The EU hopes that the newly appointed chief advisor and his caretaker government concentrate their efforts to create the conditions conducive to the holding of credible democratic elections as soon as possible,'' it said in a statement.

But people on the streets as well as newspaper editorials welcomed the restrictions.

''These strikes and closures brought us nothing but trouble and losses,'' said Mohammed Wahid, a 54-year-old businessman who sells sarees in a crowded Dhaka market.

''We need consensus and a positive approach to elections.

This politics of hate will get us nowhere,'' he said.

Diplomats and analysts fear that a prolonged crisis and political uncertainties could play into the hands of Islamist extremist groups who have been trying to gain a bigger foothold in one of the world's most populous Muslim nations.

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