Economic Barriers · Economy of Bangladesh

Development Realities of Bangladesh

Development Realities of Bangladesh

Md. Joynal Abdin

The Daily Sun on October 5, 2017

Bangladesh is one of the most potential Least Developed Countries (LDCs) to be graduated from the list within next one or two decades. It has proved its capacity by achieving several socioeconomic indicators during the last few decades.

For example, Bangladesh reduced the number of people living below poverty line from 31.5% in 2010 to 23.2 % in 2016, maintained economic growth rate between 6-7 % during the last couple of years, increased foreign exchange reserves to $33 billion in 2017 from $10.8 billion in 2010, reduced lending rate from 15% in 2013 to 9.5% in 2017 etc. Bangladesh economy proved its resilience power in much international financial turmoil in the past. We are hopeful to overcome current challenges like massive flood in the Northwestern part of the country, injection of about a million Rohingya refugees by Myanmar into its Southeastern part etc. too.

We have visions to be developed from our major political platforms in the form of vision 2021, vision 2030 and vision 2041 etc. Now it is a moral responsibility of the political leadership to implement the visions from respective platforms. Bangladesh economy has to maintain 7% plus economic growth rate for the next couple of years in order to graduate to middle income country status within the projected period. Maintaining economic growth numerically may not be enough to be a middle income country without inclusiveness of the growth. That means we need inclusive economic growth in a rate of 7 plus per cent. For inclusive growth we have to ensure female participation in the income generating activities, not only minimising the gender gap in the labour market. Macroeconomic stability has to be ensured through maintaining the trade balance, underperforming loan, stability in the financial sector etc.

Unemployment is another major treat to the economic development of Bangladesh. Employment generating movement or making the workforce self-employed is a major task for the government and policy makers now. Industrialisation especially promoting micro, small and medium enterprises could be an aid to employment generation. The government may go for rapid policy reform to make the investment wheel move faster than ever before. Restrictions, licensing requirement, registrations and permit requirements could be reduced to boost up the investment climate.

Policy reformation is not enough to boost up development of the country. We have to ensure an entrepreneurial environment from every aspect like, pro-entrepreneurial education system, well setup skill development facilities, availability of business development services, reduced requirements of permits, registrations, licences etc. Free movement of capital machinery and raw materials, hassle free transportation, security and safety of the local and foreign investors have to be ensured by the state.

Bangladesh has to be more cautious about the skill development of its population from top to the bottom edge. About 8 million Bangladeshi expatriate workers are earning $13-15 billion per year whereas it has to pay back $5-6 billion per year by recruiting less than half a million foreign professionals here. Per head income and payment ratio is too high here. Therefore we have to train up our expatriate workers to ensure better earnings in the bottom of the pyramid. At the same time we have to train up our professionals to develop managerial and technical skills to take over the seats from the foreign professionals for saving foreign exchange at the mid-level.

Bangladesh has to start a good number of trade policy reforms for better flourishing of the economy. Internationalisation of local companies could initiate journey of a Bangladeshi global brand like the Coca-Cola, Bata etc. Reform is required to increase access to foreign capital by the Bangladeshi entrepreneurs. Capacity building of the sea ports to handle growing foreign trade of the country is one of the most urgent needs of the time.

Other socioeconomic priorities for development of Bangladesh could includes reform the education system to make it productive and demand driven, spreading up the healthcare facilities into the door step of rural poor people, promoting agriculture for food security and agro-processing industrialisation, infrastructure development, electricity generation and other energy security, qualitative change in the politics, maintaining friendly trade regime with the trade partners, rooting out corruption through social revolution etc.

Working upon the Sustainable Development Goals (SDGs) could be a comprehensive syllabus for Bangladesh to be on the right track of development. There are 17 goals and 169 targets to be achieved by the UN member countries by 2030. Goals and targets of the SDGs are setup to boost up economic, humanitarian and environmental development of the planet and to save the planet as a whole. Therefore rigorous efforts from all stakeholders are required to achieve the SDG goals in time so that development of Bangladesh could be a reality of tomorrow. Political leaders, bureaucrats and well off people of the society have to be more responsive from respective positions to achieve each of the 169 targets by Bangladesh. 

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