Strategy for Growth Bangladesh
Bangladesh has survived the recent economic recession & was successful to hold a sustainable inflation rate during that period. This country has a better GAP growth rate than the other developing nations too. This report is prepared as an integral part of my task for the DDCD, as one of their strategy 2050 report holder which helps me to accumulated & also very interested with this topic where I can empowered & acknowledged myself as on the report. I tried to illustrate my thoughts, imaginations & objects with the help of most updated statistical data available. We will be standing at our 59th years of our independence in 2050.
We want to see an economy with the presence of an accounting democratic system. In this report I tried my best to present a model of Bangladesh that may become at 2050. I tried to be rational with my vision & Judgment. I tried to illustrate an outline of a future Bangladesh that will reflect the expectations & desires of the inhabitants. Bangladesh is a developing country with vast population base where population is a problem. We think this should not be considered as an impediment in achieving this vision. Rather
I have formulated all the vision, goals, & proposals with keeping this strength in mind. This paper is the reflection of thoughts on our beloved country. I try my best to portray my thought, imagination with the real & possible statistical data support. This report work is my own paper work which includes materials & information from most of the workshops, seminars & conferences of DDCD & others. I try my best to make this paper a truthful, realistic, one with proper data references, sources & other statistical data. Finally I hope that by the years 2050 we will see all the dreams & projections oncoming true.
That will make this report a successful one. Acknowledgement First of all I would like to thank Almighty Allah, the most Merciful, for giving me the opportunity to complete the report. The successful accomplishment of the Internship Program is the outcome of the contribution of number of people, especially those who took the time and effort to share their knowledge and thoughts to improve the report. My heartiest gratitude and appreciation goes to my honorable supervisor, Md. Kumara Has Assistant Professor, Department of Business Studies, State University f Bangladesh for his proper guidance and co-operation in preparing the report.
I am also thankful to my loving parents who have always been my source of inspiration. My special thanks go to my senior brothers, who helped me with providing all the sufficient information so that I can make this report very successfully. Cordial assistance and kind suggestions. Executive Synopsis Bangladesh stared its Journey in the early ass’s as one of the poorest countries of the world. In 1972 the per capita income of Bangladesh was 190 USED (at 1995 constant dollar), one of the five poorest countries of the world.
Henry Kissing, the then Secretary of State of the US termed Bangladesh as a bottomless basket for aid programs. Although history of reform in Bangladesh dates back to late ass and many of the reforms came out governments own initiative, major reforms in Bangladesh came out as implementation of a package of structural adjustment policies under the auspices of the World Bank and the MIFF in sass and early sass. Bangladesh is one of the first 35 countries which adopted Breton Woods institution sponsored Structural Adjustment Program (SAP).
It started with World Bank structural and categorical adjustment loans (SALSA and Sells) in 1980. MIFF introduced three-year structural adjustment facility (SAFE) in 1986 in Bangladesh. Since then funding from MIFF and the World Bank has been provided under the umbrella of SAP. We commonly face negative options on Bangladesh in different public gatherings. There is always a downward view of people about this country. Intolerable traffic, excruciating load shedding scenario, pollution, corruption, eve teasing & terrorism are some of the common topics of our discussion.
This negativity is somehow creating a barrier for giving this country a new look. When you are pessimistic from inside then everything else becomes impossible to you. We believe that we are in the other side of this pessimistic vibe surrounding us. We see Bangladesh as a successful country in the future. In the next 20 years timeline, we dream of a Bangladesh which will be competent like Malaysia or Singapore. This paper is an outcome of all accumulated view from every facts & aspects that is related for the improvement of Bangladesh.
I tried my best to give my whole knowledge to frame an outcome on through this report taking a Justified shape backed by sufficient facts, figures & other statistical data. I tried to prove it that the dream we see is not a dream, the image we imagine is achievable. I take a deep look on through my study to broaden the thought by dividing the topic in four vital segments: Economic vision Socio political vision Environmental vision Science & Technological vision Literature Review In this paper I has presented different features of these components & sketched different plans on their positive transformation.
Bangladesh is facing different challenges concerning these categories. There is a big threat of Global Climate Change on our head too. But besides this off putting circumstances, we are full of different opportunities too. Our economy will flourish if we can exploit these opportunities. These opportunities will lead us toward a opportunities coming to our way in the next 40 years in this report. This gives me a confidence on my dream on a wealthy & self-sufficient Bangladesh in 2050. Sustainable economic growth is compulsory to achieve the “Future Bangladesh” we see.
A double digit GAP growth will help us in this regard too. In his report we have projected growths in different fundamental macroeconomic indicators to Justify that t will be possible to be a “Tiger Economy of Asia” in the next 40 years if proper execution& management of my direction are ensured. Proper manipulation of resources will be a vital issue for us. I provide here different facts of resources manipulation & how they should be managed in next 40 years timeline. Bangladesh has many competitive edges over its neighboring & other developing countries.
We only have to make sure that we are providing a better business environment for them. We have demonstrated different comparative & competitive advantages of our s over the other countries & have sketched a Roadman” to make most out them all. Bangladesh has in recent decades achieved reasonably rapid economic growth and significant progress in social development indicators despite many impediments: the desperate initial conditions after gaining independence, lack of resources, natural disasters, widespread corruption, and a record of systemic governance failure.
By identifying the sources of growth stimulus and the drivers of social transformation, the paper addresses what it calls Bangladesh development surprise. Over all through this report I want to say it straight that we have to be optimistic bout our country & tried to exemplify that it is very much possible to make our dream come true of a “Prosperous Bangladesh” Bangladesh today is the 48th largest economy in the world with a GAP of IIS$225 billion on the basis of purchasing power parity. In nominal terms, the per capita income is IIS$ 750 with a GAP size of nearly IIS$ 90 billion.
Bangladesh is also the 70th largest exporter and the 4th largest ARM exporter in the world. Bangladesh is also the 21st fastest growing economy. With an impressive 5% annual GAP growth for the last 20 years, our economy has moved to a new growth trajectory. Bangladesh is no longer in position to be considered as one of the least developed countries (OLD) in the world. Internet connection has already reached to the 50% piazza of Bangladesh and broadband fiber connectivity to that piazza will be available within next 1 year.
Guidelines for both submarine and terrestrial cable owned by private organization are ready and Just waiting for advertisement. 3 terrestrial and 2 submarine cable licenses will be given to private sector. Leading US investment bank Goldman Cash has included Bangladesh as one of the Next-11 (N-11) countries after the BRICE nations of Brazil, Russia India and China to be one of the rising economies of the world. Similarly, JP Morgan and Price Waterholes Coopers have also included Bangladesh as one the potential growth economies of the world.
DDCD took the government from vision 2021 to vision 2030. There will be some obstacles to achieve this vision but we can overcome all the is providing physical, financial and policy support but the young should lead us toward the right direction. We need a science and technology based society to build a Digital Bangladesh. General people neglect science, math and English. Background of the Report Bangladesh is a developing economy heavily dependent on external factors. External factors such as remittances, exports, imports, foreign aid have had major influence on our economy.
Although the impact of these factors has not been uniform and has changed a lot over time. In the ass, newly independent country Bangladesh went through a structural change that was largely propelled by foreign aid. But in the later years Bangladesh economy has made transition from aid dependence to trade dependence. This study has looked in details of these factors and its impact on our economic growth. We have determined the economic growth on respect of Real GAP growth. Among these four factors export and import directly affect the GAP equation.
Remittance allows the recipients to spend it on for consumption and investment. Foreign aid and grants help the economy to strengthen specially for underdeveloped countries. This study has also compared the trends and level of its impact on GAP with three other SACRA countries. The report adds that future growth of Bangladesh will depend on promoting export, sustaining remittances, and triggering export. Bangladesh will require a breakthrough in the performance of the external sector.
According to the report, the key to the breakthrough lies in effective integration of Bangladesh economy with the global economy which will ultimately depend on the ability of political leadership to undertake necessary policy reforms and institution building measures. We see Bangladesh as a successful country in the future. In the next 40 years timeline, we dream of a Bangladesh which will be competent like Malaysia or Singapore. This paper is an outcome of all accumulated view from every facts & aspects that is related for the improvement of Bangladesh.
I tried my best to eve my whole knowledge to frame an outcome on through this report taking a justified shape backed by sufficient facts, figures & other statistical data. I tried to prove it that the dream we see is not a dream, the image we imagine is achievable. Objectives of the Report Study of the trend that may come as the new improvement & development of Bangladesh Develop formulation of plan that is very useful for us to Detailed study of each of the strategies and show how it is useful for the economic growth for Bangladesh.
Compared with three other countries Signifies the possible outcome that we can obtain in near future Strategically growth inducted by the society In this study, we will mainly focus on the impact of the four external sectors on GAP. We will discuss recent trends in GAP as well as in the external sectors and explain how they are related to one another. We will also discuss how the different sectors contribute to GAP and identify the key GAP accelerators. Methodology Flow or work In order to have an extensive idea about the topic a detailed literature review has been undertaken.
The other research papers we have studied and done the literature review on are the following: 1. The significant aspect related to Bangladesh 2. Potential area of productivity 3. Improvement of sources 4. New segmented area where we can improve 5. Sequential growth of existing area of industrial aspect been undertaken. We have conducted a detailed study on the research paper “Bangladesh 2020: An analysis of Growth Prospect and External Factor Behavior” by Debonairly Apothecary and Tama Kumar Debt.
In this paper the researchers projected external factor growth in 2020 and gave a brief summary of the impact of the factors. In our study we have done a detailed research on the impact of external factors on GAP growth. Data Collection Types of Data I find most of the related data as on the help of the general reasoning where there is a very well-known reason of Journal & articles written by different persons of Bangladesh. Sources of Data The general source is classified with the different aspect which is related as on their main view of information & related field. . National Accounts Statistics published by Bangladesh Bureau of Statistics 2. Bangladesh Economic Review published by the Financial Advisor Wing, Ministry of Finance 3. Economic Trends 4. Www. Earthiness. Com (For the Data of India, Pakistan and Sardinia) 5. DDCD Website 6. Bangladesh 2050. Com Structuring the Vision The total report is structured as they are signified of nature & main topic is gathered with the total information & solution Data Analysis conducted over the main frame of the information. Limitations The present study is not out of limitations.
Some constraints are appended below: Lack of Information or data: Adequate and in-depth well organized information is not available for access. As vision 2050 is relatively a new addition in the government’s strategy, there lacks sufficient studies and literatures in this respect. Time Constraints: It is nearly an impossible task to cover the entire purview of strategy for growth: 2050 thin the limited time frame. Comparison Status: Major part of the report is based upon the secondary sources of data, which consists of the views and opinions of the financial analysts.
In that case, the reliability and authenticity of the information provided by them is not absolutely above the question Finally the nature of the information on the topic of strategy for growth: 2050 is to some extent critical to apprehend. It was quite difficult to have sufficient knowledge and understanding in that particular field within the short time period of internship. Fundamental Part Bangladesh: At a Glance General Information of BAD Bangladesh has an agrarian economy with 32% of GAP coming from the Agriculture Sector. Major agricultural products are rice, Jute, wheat, potato, pulses, tobacco, tea and sugarcane..
The country is the largest exporter of Jute and Jute goods in the world. Readmes garments are among the most exportable items. Tea, frozen shrimp, fish, leather goods and handicrafts are also major exportable commodities. The country has under gone a major shift in its economic philosophy and management in recent years. At Bangladesh birth, the country embraced socialism s the economic ideology with a dominant role for the public sector. But, since the mid-seventies, it undertook a major restructuring towards establishing a market economy with emphasis on private sector-led economic growth.
During the nineties, the country has completed a major stabilization program which has reduced inflation as well as fiscal and current account deficits and established a healthy foreign exchange reserve position with low and sustainable debt-service liabilities. With modest economic growth, the basic indicators related to health, education and poverty have all shown sustained improvement. Roll in terms of GNP based on the purchasing power parity method of valuation, and the 55th largest in terms of nominal GNP in U. S. Dollars. In the past decade, Bangladesh enjoyed a positive growth rate in GAP and other macroeconomic indicators.
As the most densely populated country in the world, Bangladesh is facing the problems of illiteracy, malnutrition, unavailability of medical facilities etc. Sustainable economic development is one of the major goals of Bangladesh. Political turmoil has hampered the expected growth pattern in Bangladesh. The rate of population growth is high. With only 148,000 square kilometer there is ore than 1416. 45 core population [Editor’s note: a core is a one followed by seven zeros, or 10 million. ]. Although the GAP growth rate is at a high level, the high rate of population growth absorbs the expansion.
So, the growth rate of per capita GAP is low compare to many other developing countries Bangladesh at a Glance Official Name People’s Republic of Bangladesh Government System :Parliamentary Chief of the Country :President Chief of the Government :Prime Minister Climate & Rainfall :Tropical; 1194 millimeter – 3454 millimeter Noun to august) Population :164. 4 million as on October 2010 Land type Flat fertile alluvial land Borders :Linda at north, west & east,: Manner in east: Bay of Bengal in south Land area :1 ,47,570 square kilometers Territorial water :12 nautical miles Capital :Dacha Standard time :GMT 6+ Life Expectancy at birth :66. Years Per capita real IN $1421 :4246 km Labor force :Agriculture: 48%, Industry 24%, service 14% Literacy rate : pop% Major industries :Tea, textile & apparels, Jute, ARM, fertilizer, paper, newsprint, leather, :fish procession, cement, ceramics, pharmaceuticals Major exports : Raw Jute, processed Jute, tea, ARM, leather, knitwear, newsprint, fruits & vegetables, UT flower, fish products.
Major trading partners :China, Malaysia, USA, Thailand, EX. Economic Zone, Australia, Japan, AAU Sea ports :Chitchatting, Mongol Tourists season :October to march Roads & highways :Railway – 2835 km, national highways – 3478 km, regional highways – 4222 km, inter district roads – 13248 km. Major Macro Economic Indicator In 2011 In 2050 Significant Part: Strategy for Growth Boston 2050 Driver: CIT In Bangladesh, investment in this sector is mostly confined to information processing. Recently call centers are new sector of investment. Bangladesh has a relatively cheap ND rapidly growing IT workforce.
Government has invested in submarine optical cables and high speed internet connections. However, potential for investment in IT related infrastructure is enormous. Light Engineering potential in this sector as well. Foreign investors can take advantage of Bangladesh low cost and easily trainable labor and already established light engineering industry along with its infrastructure to manufacture quality products like machinery parts, bicycle etc for export. Ship Building Bangladesh is emerging as builder of small and medium size ships. With low cost ND skilled ship builders and world class ship building companies.
Bangladesh can hope for more investment in this sector. Textiles and Clothing This is the fastest growing industry in Bangladesh with readmes garments accounting for more than 75% of total exports. Bangladesh is best placed region for textiles and garments for a couple of decades and with an increasing trend in exports to the EX. and the ASSAI. Government incentives for spinning and weaving include cash subsidy of the fabric cost to exporters sourcing fabrics locally. There is huge export – quality fabric demand supply gap in ARM which is met by imports. Potential for backward linkage is also appealing.
Pharmaceuticals Bangladesh offers a good number of qualified pharmacist, bio-chemist and chemists for this industry. Government offers support for importing raw materials for pharmaceutical production. Government has also taken the initiative to modernize, expand and attract foreign investment in this industry. At present, there are about 255 pharmaceutical companies operating in Bangladesh of which 20 percent are exporting their products to the world market. Leather and Leather Products About 90% of leather and leather products of Bangladesh are marketed abroad, costly in the form of finished leather, leather garments and footwear.