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By Anis Ahmed

DHAKA, Dec 28 (Reuters) - Bangladesh holds a parliamentary election on Monday that may be its most-honest ever and will move it back to democracy after two years of emergency rule by an army-backed interim government.

Bangladeshi hopes are high that the vote for the country's ninth parliament will be credible and put in place a stable civilian government that can attract much-needed aid and investment to the impoverished country of more than 140 million.

But whether the results will be accepted remains a worry due to past post-election experiences and the accusations the two main contenders, former prime ministers Sheikh Hasina and Begum Khaleda Zia, have hurled at one another.

"During BNP rule we fought against terrorism and corruption, something (the Awami League) started and lived with," Khaleda told tens of thousands at a rally in Dhaka on Saturday.

Hasina told a similar rally the previous day: "The BNP, Khaleda Zia and her sons ... pushed the country into serious political turmoil and ruined the economy."

Both have also warned of vote-rigging by opponents. The heated rhetoric may set the stage for protests, strikes and violence by disgruntled supporters of the election's losers.

The run-up to the election has been relatively calm, although the final days of campaigning were marred by an attack on a former leader's motorcade and clashes between supporters of rival candidates, leaving more than 100 people injured.

Analysts say Hasina's Awami League allied with former military ruler Hossain Mohammad Ershad's Jatiya Party will win. Khaleda's Bangladesh Nationalist Party (BNP) and Jamaat-e-Islami ally say that is possible "only if we are cheated".

Hasina and Khaleda alternated as prime minister of the Indian Ocean coastal nation -- where some 45 percent of the people are below the poverty line and which has to contend with frequent floods and cyclones -- for 15 years till 2006.

"BATTLING BEGUMS"

They are known as the "battling begums" for decades of bad faith, acrimony and mistrust. "Begum" is an honorific for women.

Despite the two former leaders' mixed records in office, Bangladeshis and foreign friends and aid donors hope whoever becomes prime minister this time reduces the endemic corruption distorting the country's economy and keeping investors away.

The ex-PMs themselves were each detained for a year by the interim government on various corruption charges, ultimately shelved to allow their release to participate in the election.

An incentive for good future behaviour would be to avoid another army-backed takeover by a regime that would press the charges again.

Either ex-PM would probably pursue gradual liberalisation of the economy, largely agrarian although textiles are a significant export. Hasina has a somewhat stronger pro-business record.

One obstacle to growth is limited power for industry.

Analysts say the country has substantial untapped reserves of natural gas and coal, but it will take strong leadership to overcome nationalistic objections to letting foreign firms with the necessary expertise help develop the resources.

MILITANT CHALLENGE

Although most of Bangladesh's Muslim majority are moderate, dealing with a growing violent militant element will be another challenge for the winner.

While both women say they will crack down on violent groups, Hasina has been a stronger secular government advocate than Khaleda, whose alliance includes the Islamist Jamaat-e-Islami.

Despite the various charges of rigging, independent groups say the authorities have set the stage for a credible vote.

The poll will use the country's first computerised electoral roll with picture IDs. Some 200,000 local and 2,000 foreign observers will monitor the vote. Tight security will be in place.

Among the 81 million registered voters, a third are new and may have a fresh mindset for a credible change in politics.

But some are pessimistic about what comes after the vote, especially with one of the past PMs, whose records in office were mixed at best, expected to head the government again.

"In fact nothing has changed ... nor do I hope for any significant change," said professor Shaheda Obaid, widow of a former BNP leader, on local television.

"They promised us cheap food, year-round work and other benefits. But we hardly saw them after the elections. I suspect the same will happen this time," housewife Safura Khatoon, 55 told Reuters.

Perhaps in response to such sentiments, Hasina and Khaleda both said in final speeches that they wanted to learn from past mistakes and do better this time. (For related stories click on [ID:nSP347930]) (Additional reporting by Nizam Ahmad, Serajul Islam Quadir and Ruma Paul; Writing by Anis Ahmed and Jerry Norton; Editing by Valerie Lee) ((anis.ahmed@thomsonreuters.com; +880-2-8330121))

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