Ancient Bengal[ edit ] East Bengal —the eastern segment of Bengal —was a historically prosperous region. Under Mughal ruleBengal operated as a center of the worldwide muslinsilk and pearl trades. In terms of shipbuilding tonnage during the 16th—18th centuries, the annual output of Bengal totaled around 2, tons, larger than the combined output of the Dutch ,—, tonsthe Britishtonsand North America 23, tons. Ship-repairing, for example, was very advanced in Bengal, where European shippers visited to repair vessels.
Poverty incidence has fallen from 60 percent to around 30 percent.
Gender parity has been achieved in primary and secondary school enrollment. Alongside the progress in education, health, and gender equity, Bangladesh is also in the midst of a growth takeoff that has reduced poverty and doubled per capita income since Bangladesh is one of the few developing countries that is on target for achieving most of the Millennium Development Goals, and is considerably ahead of target on some indicators.
Neither is clearly applicable to Bangladesh. The economic growth rate rose significantly afterbut it only reached 6 percent inand has never exceeded 7 percent. Furthermore, spending on education and healthcare 2. Several other countries in South and Southeast Asia have grown at similar or higher rates than Bangladesh in the last 10 to 15 years, including India, Bhutan, Vietnam, Cambodia, and Laos.
Reductions in Poverty and Inequality Alongside the progress in education, health, and gender equity, Bangladesh is also in the midst of a growth takeoff that has reduced poverty and doubled per capita income measured at purchasing power parity since The Bangladesh government deserves praise for putting in place the essential preconditions that have allowed private sector dynamism to fuel economic growth over the last two decades.
Structural reforms in the s and s led to broad macroeconomic stability and low fiscal deficits. Successive governments have also had considerable success at keeping inflation at a moderate level. Bangladesh has not managed to attract high levels of foreign direct investment FDIbut the strong performance of remittance inflows has taken on the role of FDI in bolstering the foreign exchange account and smoothing out fluctuations in GDP due to varying domestic economic conditions.
Persistent poverty is without a doubt an important issue for Bangladesh, but perhaps less so than for many other developing countries. There are fewer class- and ethnicity-based barriers to social mobility than in many other developing countries, and the benefits of economic growth have tended to reach most levels of society, including the very poor.
The main stimulus to economic growth in the country has come from labor-intensive garment exportsa vibrant and dynamic private sector, micro-and small-scale enterprises in manufacturing and services, remittances from migrant workers, and rise in the size of middle class.
Moreover, estimates for the period from to suggest that the process of increasing income inequality that many other developing countries have experienced has actually slowed down or even reversed in Bangladesh.
Road to Middle-Income Status Bangladesh has earned a reputation in the global market for low-cost, high-quality manufacturing through its garments sector.
The impact of this reputation was demonstrated by the fact that the exports of readymade garments from Bangladesh rose by a sharp Due to recent increases in wages in China and India, it is likely that manufacturing in other industries may also shift to Bangladesh in the next few years, including in pharmaceuticals, plastic and ceramic goods, leather goods, shipbuilding, and light machinery such as bicycles and batteries.
An emerging export-based IT sector will also contribute to growth. India has already offered duty-free market access to nearly all Bangladeshi products, and China has indicated that it may expand zero-tariff facilities to 95 percent of Bangladeshi goods.
The major challenges seem to be the political stability, predictability of policy environment, competent bureaucracy, and quality of education. The government and the people of Bangladesh have their eyes fixed on the horizon, working hard to realize the twin dreams of eradicating extreme poverty and achieving middle-income status by He can be reached at syed.
The views and opinions expressed here are those of the individual author and not necessarily those of The Asia Foundation.The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
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The development experiences of Third World countries since the fifties have been staggeringly diverse—and hence very informative. Forty years ago the developing countries looked a lot more like each other than they do today. Factors influencing economic development of Bangladesh.
Print Reference this. Published: 23rd March, Economic development of Bangladesh is a very critical issue "Economic Development" it is very simple word. But it is easy to say and difficult to do.
Need help with your essay? Take a look at what our essay writing service can do for you. Scientific American is the essential guide to the most awe-inspiring advances in science and technology, explaining how they change our understanding of the world and shape our lives. According to the IMF, Bangladesh's economy is the second fastest growing major economy of , with a rate of %.
  Dhaka and Chittagong are the principal financial centers of the country, being home to the Dhaka Stock Exchange and the Chittagong Stock Exchange. Help support The Asia Foundation.
Close; Search entire site I N A SIA. Weekly Insights and Analysis. Bangladesh’s Development Surprise: A Model for Developing Countries. June 25, Syed A. Al-Muti is The Asia Foundation’s associate director for Economic Development Programs based in Bangladesh.