Sri Lanka and Pakistan can follow the “Bangladesh economic miracle” model to avoid their economic crisis. While Sri Lanka is going through an economic recession, its South Asian neighbor Bangladesh has confirmed itself as a South Asian economic miracle.
As Bangladesh celebrates its 51and anniversary of independence this year, its tremendous economic growth has made it an emerging hub for regional connectivity, attracting more trade and investment opportunities.
According to the World Bank, the country has been one of the fastest growing economies in the world over the past decade, supported by a demographic dividend, strong exports of ready-to-wear garments (RMG) and stable macroeconomic conditions.
Bangladesh is also on track to graduate from the UN list of Least Developed Countries (LDCs) in 2026. Poverty has fallen from 43.5% to 14.3% in two decades, while in Over the past seven years, the country’s garment industry has increased its annual income by 19 dollars. billion to $34 billion, an increase of 79%, according to the International Finance Corporation (IFC).
The regional office of the Friedrich Naumann Foundation for Freedom (FNF South Asia) in New Delhi, India, organized an online discussion entitled “Bangladesh: Henry Kissinger’s basket case is an economic success” on April 7 .
According to the discussions, in 2021, Bangladesh celebrated its Golden Jubilee of Independence. Described as a “desperate case” by Henry Kissinger, the American Secretary of State in 1972, this young nation is today a model of growth and economic success. Bangladesh started out as a low per capita income country along with countries like Chad, Rwanda, Burundi and Nepal. Today, the country has crossed the per capita income threshold of USD 2,000, with a GDP of around USD 355 billion, securing a position in the world’s top forty economies by GDP. So our discussions today will look at the growth story.
Bangladesh has made various economic, trade, social and health progress under good conditions. From being an extremely poor country in the 1970s. Today, Bangladesh is marching confidently towards becoming a middle-income country before the whole decade is over. He will be graduating from a middle income country and that is a pretty huge achievement. While the course of Bangladesh over the past 50 years is highly admirable. In the years and decades to come, it will have to meet challenges to sustain and even excel in relation to its past performance. From my point of view, Bangladesh has become an important partner of Germany. And it is one of my goals as a member of the German parliament to further facilitate cooperation and ties between Bangladesh and Germany, because it will be a solution from which everyone will benefit.
Bangladesh has met all the conditions to graduate from LDC status in 2026. Now the question is, how did that happen? The fundamental answer is, of course, that it was the toils and sweat of workers, people, laborers, farmers, entrepreneurs, investors, policy makers and NGOs that have all brought together the efforts of its diligent staff. And the net result of the efforts of the spirit of all this variety, various groups of popular people in the country have produced the result. If you hear Henry Kissinger’s prediction, you will be extremely disappointed. But here is Bangladesh surprising people. But we can say that it is not a surprise. It is not a paradox. It is the result of efforts, hard work and sweat of Bangladesh, people who are its main resources, we don’t need mineral resources, mineral resources can be a curse, but people are not a curse.
The systemic exploitation of East Pakistan at the time, followed by massive destruction of economy, infrastructure and livelihoods caused by the war of liberation, posed an insurmountable challenge to the government of the day. Millions of people have returned home from India to a war-torn country with no food, shelter, medical aid or other basic needs. It was then that Mr. Henry Kissinger called us hopeless. If he was here today, we’re sure everyone would have edited his comments. Now, having seen the progress we have made over the years over the past 50 years. To be precise. It was in this context that the first generation of Bangladeshi NGOs emerged, focusing primarily on emergency relief and rehabilitation.
It is well known that since the 1980s, Bangladesh has made astonishing progress in a wide variety of development indicators, such as reducing the prevalence of extreme hunger and poverty, increasing education primary education, school enrollment rates and the reduction of infant and maternal mortality, among others. This progress has been reflected in an impressive record of sustained GDP growth, for decades much, if not most, of Bangladesh’s development has taken place outside the purview of successive governments. For example, the 2003 report of the four World Banks showed that 34.1% of foreign aid costs were distributed to the NGO sector. The vibrant community of NGOs and civil society organizations working on the full range of development issues has been the main driver of progress. Without a doubt, things like poverty reduction have been a huge success. Here, then, are some of the contributions that NGOs have made to the development of Bangladesh over the past 50 years and to bringing the country to where it is today.
Apart from exhibiting economic and societal growth markers, Bangladesh has also witnessed a transition towards digitalization, which has effectively given rise to a growing pool of entrepreneurs who are positively impacting the lives of urban and rural societies, including through to greater financial inclusion. Bangladesh is now a model for other developing countries, thanks to the participation of many public and private sector stakeholders. The webinar referred to this theme of progress through the prism of a sustainable economy, poverty reduction and the impact of information technology on development.
Last year, Bangladesh celebrated its Golden Jubilee of Independence after gaining independence from Pakistan in 1971. Over the years, the image and identity of post-independence Bangladesh has changed on the world stage. . It has become a donor country of an aid recipient country. A silent revolution has taken place in the country.
The coronavirus pandemic has devastated global economies. The economies of all South Asian countries, including Bangladesh, have been negatively affected. However, amid the pandemic, Bangladesh has overtaken South Asian countries in terms of economic development. This success was achieved in the 1950sand the year of independence mainly through the manufacture and export of ready-made garments and remittances from expatriates.
The World Bank, an international lending agency, gave a positive view of the South Asian economy, overcoming the effects of the pandemic. In a report titled South Asian Economic Bounce Back but Face fragile Recovery, the agency said South Asia’s average gross domestic product (GDP) growth in fiscal year 2021 could be 7, 2%. After that, in fiscal year 2022, average growth could be less than 4.4%.
Bangladesh is ahead of its two neighbours, India and Pakistan, in achieving this growth. The government has set itself a growth target of 6.1% for the current financial year and 7.2% for the next financial year.
Although Bangladesh leads in terms of GDP per capita, India is one of the largest economies in the world in terms of size. India’s economy is 10 times larger than that of Bangladesh. The best way to understand how rich the citizens of a country really are is to determine their purchasing power. That is to say, with the money he earns, he can buy whatever he wants. This is why the size of GDP is calculated on the basis of purchasing power parity (PPP) to compare the economies of different countries. According to the IMF, India’s share in world PPP GDP this year is 7.39%, while Bangladesh’s share is only 0.659%.
In terms of GDP, Bangladesh has overtaken India for two consecutive years, but in some social indicators, Bangladesh overtook the neighboring country seven years ago. For example, Bangladeshi girls have a higher education rate and female birth rate than Indian girls. In Bangladesh, infant and under-five mortality rates are lower than in India.
However, in terms of GDP, Bangladesh has overtaken India for two consecutive years, but in some social indicators, Bangladesh overtook the neighboring country seven years ago. For example, Bangladeshi girls have a higher education rate and female birth rate than Indian girls. In Bangladesh, infant and under-five mortality rates are lower than in India.
India is a very big country. There are states like Bihar and Chhattisgarh, as well as states like Delhi and Punjab. So, on average, not everyone’s true picture shows up. But Bangladesh is undoubtedly doing well. So with the increase in GDP and income per capita, we have to look at different social indicators.
On the other hand, Bangladesh, which former United States national security adviser Henry Kissinger acerbically called a “bottomless affair” in 1972, has achieved over the past 50 years the best results than Pakistan, the country from which he separated, according to the International Forum for Rights. and Security (IFFRAS), an international think tank headquartered in Toronto, Canada. Bangladesh’s progress is not accidental. The economies of Bangladesh, India and Pakistan have grown much faster since 2004. This progress was maintained until 2016. But the situation started to change in 2017. The growth rate of Bangladesh has greatly increased during the coronavirus pandemic.
Bangladesh shows that the path remains. Sri Lanka can follow this model to avoid its economic recession, as the rise of Bangladesh is “from the bottom of the basket model to the model of economic growth“.
*The writer is based in Karnataka, India and earned a Masters degree from Jawaharlal Nehru University in International Relations. He is a researcher and analyst in strategic and international affairs. He can be reached at [email protected].