Bangladesh is among the world’s most populous nations, but most of its population is poor. Formerly East Pakistan, Bangladesh gained independence in 1971 after the war with West Pakistan. The size of the country whose capital is Dhaka is 143,998 square meters with a population of 161 million people. The main language for the Bangladesh people is Bengali with the major religions being Islam and Hinduism. Life expectancy is 69 years and 70 years for men and women respectively. The population growth rate is estimated at 1.2 % with infant mortality rate of 45/1000. The city of Dhaka is the largest in a population with 13.391 million people, followed by Chittagong, Khulna, and Rajshashi that have populations of 5.239, 1.781 and 932 000 residents respectively. Bangladesh is located in one of the fertile places in the world, thereby making it ideal for the growth of cash crops such as rice, sugar cane, wheat and tea. The low-lying geographic of Bangladesh traversed by the tributaries of Ganges and Brahmaputra rivers makes it prone to frequent floods and cyclones that have for years contributed to the destruction of property and loss of lives. Military rule was the form of governance for 15 years, but later the nation embraced democracy in 1990 but with minimal change in the political tension.
Political history of Bangladesh
Bangladesh was under the British colonial rule and separated from the larger Pakistan to become East Pakistan. With the backing of India, Bangladesh managed to achieve its independence in 1971 having engaged in a series of wars with its West Pakistan counterpart. The first parliamentary elections resulted in a landslide victory for the Awami League, but the end of a civilian rule would come in 1975 when a coup took place with members of then president family killed. A second parliamentary election was done in 1979 with the Bangladesh Nationalist Party coming into power. However, the reign of the elected president did not last long after he was assassinated in a coup attempt in 1981. Suspension of the constitution and banning of political parties by General Ershad in 1982 characterized major political problems in Bangladesh that were destructive for the economic and social progress of the nation. Ershad was elected as president in 1986 on a five-year term where the constitution was reinstated. However, the opposition was not satisfied with the regime and staged series of demonstrations and strikes. The mass protests by the opposition seemed to have been successful since in 1990; Ershad stepped down followed by his conviction and jailing in 1991 for crimes related to corruption and illegal possession of weapons. Since then, there were frequent wrangles between the ruling party and the opposition leading to mass killings, boycotting of parliamentary sessions and declaring a state of emergencies as a way to cool the tensions in Bangladesh. Currently, Bangladesh has Abdul Hamid as President, and Sheikh Hasina as Prime Minister but there is still a war between the ruling party and the opposition just like in the previous regimes.
Economic history of Bangladesh
The location of Bangladesh is historically a place that had the advantage of fertile soils, an abundance of fish, wildlife and enough water. The standards of living back then were higher than the majority of its South Asian counterparts such as South Korea and Singapore. The major share of development budget was also allocated to West Pakistan which led to Bangladesh depending on imports to survive. Nationalization of the industries was, therefore, destructive as it reduced the pace with which the nation would produce experienced human capital to steer its growth. A large number of illiterate and unskilled labor force proved destructive for the nation. Bangladesh currently has Gross Domestic Product of 223.941 billion US dollars. From 1996, the country’s growth rate had stuck at 6 % but with structural reforms, the current annual GDP growth rate is 7.1 % making it the second fastest growing economy in 2016 according to IMF estimates. The service sector is leading in GDP with 53.39% followed by industry and agriculture at 31.28 % and 15.33 % respectively. 13 % of the people live below $ 2 a day with the majority of the labor force working in the agricultural sector. Main industries in Bangladesh include; textiles, ship building, automotive parts, fertilizer, natural gas and renewable energy. Export goods that continue to contribute to positive growth include ready-made garments, defense equipment, leather goods, agricultural produce and pharmaceuticals.
The textile industry in Bangladesh is a key strength for the nation since it ranks as the second largest in the world. Main export partners include developed nations such as United States, Germany, United Kingdom, Italy and Spain. Bangladesh also imports products from Hong Kong, Singapore, China and Indonesia with China being the major importing partners.
Current state of Bangladesh
Bangladesh still imports more than its exports in efforts to cater for social needs of its people. Bangladesh has the vision to be achieved by 2021 where key improvements measures have been established. The nation aims at providing accessible housing and health care to its people, improve its education and business sector by taking advantage of advancements in information and communication technologies and working closely with its allies in funding major projects. International trade is growing with sectors such as frozen food, leather, textiles, ship building and ICT showing tremendous growth. However, corruption is a major issue pulling the nation back hence creating the need to improve governance in efforts to reduce embezzlement of public funds.
Attributes to success of the Bangladesh economy
Private sector participation in the economy has improved with major sectors such as banking, telecommunications, media, and aviation owned privately contributing to economic growth. Expansion in the garment exports has contributed widely to improvement in export earnings that has continued to boost revenue budget for Bangladesh. IMF and World Bank have played an important role in providing funds intended for various programs such as poverty reduction with millions of dollars provided for Bangladesh to improve its socio-economic situation. The government of India has also been supportive providing credit to help Bangladesh boost its economy. Dependence on foreign aids has decreased thereby helping the nation stabilize regarding having enough reserves to finance its projects. Better flood control, irrigation and efficient use of fertilizers have also seen the nation experience improved agricultural productivity. Rural agriculture has been boosted by rural credit and appropriate distribution of incentives which are key motivators to farmers.
Actions and policy recommendation
A key consideration for Bangladesh would be to find solutions to its long-term political instabilities that have pulled the country backward for many years. Brutal killings and assassination of politicians have contributed to wrangles between the Awami League and Nationalist Party. The country also needs to ensure speedy implementation of its economic reforms in efforts to achieve its 2022 vision that aims to improve key sectors such as health, education, and ICT. Investing in education is important since it will help Bangladesh build on its human capital to work in the industrial and service sector while reducing reliance on agriculture as a primary source of employment. Rural farmers need to be provided with incentives including modern agricultural techniques with the need to also ensure farmers adopt modern agricultural technologies and activities. Adoption of modern agricultural practices will help the nation cope with a seasonal hunger that makes it spend a lot on importing food. It is important that the nation continues to encourage foreign investments that are key to creating employment for millions of locals and improving collaboration the government to achieve successful implementation of major projects. Bangladesh also needs to continue investing in its sea vessel building industry which is becoming a major competitor in the world.
Changes in outside governments and multinationals that boost growth
Bangladesh is a member of major organizations both regionally and internationally. Such organizations include WTO, UN, IMF, Common Wealth of Nations, Asian Infrastructure Investment Bank and South Asian Association for Regional Co-operation. The organizations have played key roles in providing funds for Bangladesh to fund its major projects such as investments in education, health, ICT and housing projects for its people. Multinationals have increased their investments in Bangladesh thereby contributing largely to the growth of the economy. Foreign investments have been encouraged by improved security in the region with investors putting their money into oil and gas industry, banking, telecommunication and power generation.
Expectations of the next decade
The next decade will see Bangladesh rank among the top emerging economies in the world with key strides in social and economic reforms. The current security situation is good compared to the previous regimes with optimism that the political situation of the nation will continue to stabilize. Investment in education will also be key to building human capital and enabling millions to be employed in the service and industrial sectors. Improved employment levels due to foreign investments and the fact that the government has the vision to boost its health sector and provide conducive housing to its people means that the social welfare of people will be improved. Farmers will adopt modern agricultural practices to reduce effects of seasonal hunger in Bangladesh.
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