Focus Writing : (Bangladesh: Towards a Middle Income Country Opportunities and Challenges )

Bangladesh: Towards a Middle Income Country Opportunities and Challenges

Bangladesh is now accredited as one of the next 11 emerging economies. Since the 1980s, the country has averaged 5%–6% annual gross domestic product growth. Its per capita income is now 1602 us dollar and foreign investment is nearly $2.53 billion. Women participation in labor force has increased to 41%, literacy rate to 63% while school dropout rate has reduced to 20.4%. There are now 143 schemes of social safety net. Poverty rate is also on the decline.

This growth was accompanied by a significant decline in poverty, an increase in employment, greater access to health and education, and improved basic infrastructure. As a result, the once poor country is now considered middle income.

The next goal is to reach upper-middle-income country status by 2021. This ambitious initiative will require annual GDP growth of 7.5%–8% and will entail overcoming significant obstacles and seizing on new opportunities brought about by changing global circumstances.

It means our country is experiencing economic boom. Six ongoing mega projects testify such claim. First of all, with a cost of $2.9 to $3.7 billion, Padma bridge is expected to open before the end of 2018 Secondly, Metro Rail Project (rail route from Uttara to Bangladesh bank) will smoothen the communication system within the capital. Thirdly, Ruppur Nuclear Power Plant will bring about some huge changes in the national power productivity. Moreover projects like Rampal Power Project, Paira Deep Sea Port and Matarbari Coal Power Plant will definitely change our economic condition for better.

Bangladesh is also a leading global exporter of ready-made garment products. McKinsey recently predicted that apparel exports could gross $36 billion by 2020. Goldman Sachs highlighted Bangladesh as one of the next 11 emerging economies and JP Morgan identified it as a ‘Frontier Five’ regarding the booming economy.

Moreover relations with India and China have opened avenues of cooperation due to the landmark visits of our prime minister to both these countries. Relationships with Nepal and Bhutan have considerably been improved.

The government has tackled the chronic power and energy scarcity taking different short, mid and long-term plants. Now Bangladesh can generate 14980 megawatts power. The telecom sector, with nearly 100 million cell phone subscribers, has attracted FDI. Now the number of internet subscribers are 6.36 crore.

Apart from these achievements, Bangladesh has also taken a leading role in the UN peacekeeping missions to enhance peace, promote dialogue and encourage cooperation. Bangladesh has become a brand name in UN peacekeeping as a top contributor participating in more than 51 missions involving 1,21,407 peacekeepers since 1988. Bangladesh is also the birthplace of microcredit, pioneered by the Nobel Peace Prize recipient, Professor Muhammad Yunus – the founder of Grameen Bank. The Bank’s approach has been replicated in more than 100 countries.

About 10 million Bangladeshis are now working overseas in 155 countries. The reserve of the country has reached 31.7 billion dollars, according to the data provided by Bangladesh Bank in the last month, because of their remittance.

However Bangladesh has some challenges as well. The political scene during the last few decades has been full of bitterness, animosity and violence. There is little energy left for giving constructive views on the national issues in the parliament. We should not forget that democracy consists of free media, rule of law, transparency of all government decisions, accountability of the government to the mass people and independent judiciary. Peaceful co-existence, tolerance and mutual respect are the basic elements of democracy. And these are also essential for ensuring a booming economy.

Meanwhile the widening disparity between rich and poor within the country is shattering the dream of the mass people. According to Bangladesh Economic Association, 50 percent people are landless, while 6.2 percent families own 40 percent of the total land in the country. It is also mentionable that corruption has been widespread in the country. Combating corruption is necessary for stimulating economic growth and social development.

Under such circumstances a few steps may help us to get rid of these problems. Firstly, the government will have to ensure a stable political situation. Secondly, experts have opined that information and communications technology (ICT) will be a crucial sector for economic development in Bangladesh. So Bangladesh has to focus on service sector through information and communications technology.

Thirdly, remittance earning may increase if the government could send more skilled and trained workers abroad. In that case the overseas employment ministry needs to be more active in encouraging vocational training.

Finally, Bangladesh must create adequate jobs for its unemployed population to defeat poverty. Over 2 million labour forces join Bangladesh job market every year. New job opportunities should be created for them so that they can also contribute to the economy. In the meantime government will have to encourage local and foreign investments.