Bangladesh: Prospects Underlying Its Booming Economy

The Asian Development Bank ranked Bangladesh as the fastest-growing economy in the Asia-Pacific region, surpassing China, Vietnam and India. Better infrastructure, education, governance and industrial revolution are some of the underlying factors responsible for the booming economy. Of late Bangladesh has set a target of becoming a developed nation by 2041 which will coincide with the platinum jubilee of its independence. However, the probability and obscurity associated with the target cannot be ignored. Mumeninaz Zaman unravels the various factors in details.

- Mumeninaz Zaman

The hostile political beginnings and its struggle for independence have left the country poverty-stricken. Post-independence in 1971, the country has gradually transformed to be a major industrial hub in Asia. The transition from a coexisting country to an established country has not been an easy ride. Throughout the transformation from an agrarian economy to industrialization, Bangladesh has shown remarkable growth in its economy.

According to the World Bank, Bangladesh aspires to be a middle-income country by its 50th birthday in 2021. Since Independence, the World Bank through its concessional lending arm—the International Development Association (IDA)— has committed more than $30 billion in grants, interest-free and concessional financing credits to Bangladesh. Supported by sustained economic growth its international poverty line has reduced from 44.2 percent in 1991 to 14.8 percent in 2016/17. Rapid growth enabled Bangladesh to reach the lower middle-income country status in 2015. The three eligibility criteria- Life expectancy, literacy rates and per capita food production have increased significantly. Hence, in 2018, Bangladesh graduated from the UN’s Least Developed Countries (LDC) list for the first time. If Bangladesh meets the graduation criteria for a second time, at the next triennial review in 2021, the country will be recommended for graduation from the LDC category in 2024.

Factors that triggered the economic growth