Impact of an industry in the economy of Bangladesh

Rapid economic development

Bangladeshs economic model has been consistently mindful of the poor and the disadvantaged.
Indicators of extreme poverty demonstrate that poverty has fallen from around 50 per cent of the
population in 2000, to just over 30 per cent in 2010. Broad improvements in social welfare have been
secured. This is rooted largely in Bangladeshs abundant supply of inexpensive labour, and in successful
government policies that promote macroeconomic stability and growth. With the global economic
recovery, favorable demographics and improving investor confidence, growth may accelerate above its
current trend rate of 6 to 6 per cent in the coming years.
Bangladesh retains a deep commitment to social solidarity and to a progressive development agenda.
Many MDG targets, in areas ranging from poverty reduction to infant mortality, have been secured. The
Government has also shown itself able to recognize delivery weaknesses and marshal resources
accordingly. This is most clear in relation to maternal mortality, where Bangladesh successfully overcame
a significant challenge, securing a 30% reduction in deaths during child birth over only four years. This
bodes well for future interventions to capitalize on MDG successes, to further improve access to
healthcare and schooling.
Ongoing government programs have targeted disaster preparedness and recovery, with great success.
Bangladeshs vulnerability to disasters is significant, but the countrys track record has been exceptional
at improving human security and saving lives. While extreme climatic events still tragically result in some
deaths, numbers have fallen drastically. This provides a sound foundation for addressing other pressing
questions of environmental sustainability.

http://www.bd.undp.org/content/bangladesh/en/home/countryinfo.
html

Increase national & per capital income

The per capita income in Bangladesh will increase by 11.39 percent to $1,466 this fiscal year, according to the
Bangladesh Bureau of Statistics.
It was $1,316 in the last fiscal year, Planning Minister AHM Mustafa Kamal said at a meeting of the National
Economic Council yesterday.
Alongside an increase in the gross domestic product (GDP), the per capita income also soared, said officials of
the BBS, adding that they estimated the GDP growth to be 7.05 percent by the end of this fiscal year in June.
The Gross National Income (GNI) was Tk 18,314,994 million ($2,343 million) this fiscal year when the
population was 159.9 million.
This will be seen as a giant leap for the country towards becoming a middle-income nation after being
bracketed with low-income nations for decades.

Bangladesh was elevated from the low income status to lower middle income nation last year, meeting the
World Bank's requirements comfortably.
The development came against the backdrop of the country achieving higher per capital income amid a stable
economic growth.
The WB used 2014 data to determine this year's ranking.
On July 1 each year, the WB revises the income classification of the world's economies based on the GNI per
capita of the previous year.
Bangladesh's per capita income was $1,080 in 2014, higher than the Washington-based lender's set threshold of
$1,045.

http://www.thedailystar.net/frontpage/capita-income-rises-14661204930

Development of living standard

The market-based economy of Bangladesh is the 44th largest in the world in nominal terms, and
32nd largest by purchasing power parity; it is classified among the Next Eleven emerging
market economies. According to the IMF, Bangladesh's economy is the second fastest growing
major economy of 2016, with a rate of 7.1%. Dhaka and Chittagong are the principal financial
centers of the country, being home to the Dhaka Stock Exchange and the Chittagong Stock
Exchange.The financial sector of Bangladesh is the second largest in the subcontinent.
In the decade since 2004, Bangladesh averaged a GDP growth of 6.5%, that has been largely driven
by its exports of ready made garments, remittances and the domestic agricultural sector. The
country has pursued export-oriented industrialisation, with its key export sectors
include textiles, shipbuilding, fish and seafood, jute and leather goods. It has also developed selfsufficient industries in pharmaceuticals, steel and food processing. Bangladesh's telecommunication
industry has witnessed rapid growth over the years, receiving high investment from foreign
companies. Bangladesh also has substantial reserves of natural gas and is Asia's seventh largest
gas producer. Offshore exploration activities are increasing in its maritime territory in the Bay of
Bengal. It also has large deposits of limestone. The government promotes the Digital
Bangladesh scheme as part of its efforts to develop the country's growing information
technology sector.
Bangladesh is strategically important for the economies of Northeast India, Nepal and Bhutan, as
Bangladeshi seaports provide maritime access for these landlocked regions and
countries. China also views Bangladesh as a potential gateway for its landlocked southwest,
including Tibet, Sichuan and Yunnan.
In 2016, per-capita income was estimated as per IMF data at US$3,840 (PPP) and US$1,386
(Nominal). Bangladesh is a member of the Commonwealth of Nations, D-8 Organization for

Economic Cooperation, the South Asian Association for Regional Cooperation, the International
Monetary Fund, the World Bank, the World Trade Organisation and the Asian Infrastructure
Investment Bank. The economy faces challenges of infrastructure bottlenecks, insufficient power and
gas supplies, bureaucratic corruption, political instability, natural calamities and a lack of skilled
workers.

Development of agriculture
Most Bangladeshis earn their living from agriculture. Although rice and jute are the primary crops,
maize and vegetables are assuming greater importance. Due to the expansion of irrigation networks,
some wheat producers have switched to cultivation of maize which is used mostly as poultry feed.
Tea is grown in the northeast. Because of Bangladeshs fertile soil and normally ample water supply,
rice can be grown and harvested three times a year in many areas. Due to a number of factors,
Bangladeshs labor-intensive agriculture has achieved steady increases in food grain production
despite the often unfavorable weather conditions. These include better flood control and irrigation, a
generally more efficient use of fertilizers, and the establishment of better distribution and rural credit
networks. With 28.8 million metric tons produced in 2005-2006 (July-June), rice is Bangladeshs
principal crop. By comparison, wheat output in 2005-2006 was 9 million metric tons Population
pressure continues to place a severe burden on productive capacity, creating a food deficit,
especially of wheat. Foreign assistance and commercial imports fill the gap, but seasonal hunger
(monga) remains a problem. Underemployment remains a serious problem, and a growing concern
for Bangladeshs agricultural sector will be its ability to absorb additional manpower. Finding
alternative sources of employment will continue to be a daunting problem for future governments,
particularly with the increasing numbers of landless peasants who already account for about half the
rural labor force. Due to farmers vulnerability to various risks, Bangladeshs poorest face numerous
potential limitations on their ability to enhance agriculture production and their livelihoods. These
include an actual and perceived risk to investing in new agricultural technologies and activities
(despite their potential to increase income), a vulnerability to shocks and stresses and a limited
ability to mitigate or cope with these and limited access to market information.

Solving unemployment problem

Proper utilization of natural resources
Economic stability
Reducing dependency on agriculture
Earning foreign currency

Bringing favorable situation

Development of communication & transportation
system

Socio economic development

Reducing the pressure of population on
agriculture
Reducing dependency of foreign trade
Development of defense power

introduction
Bangladesh has maintained an impressive track record on growth and
development. In the past decade, the economy has grown at nearly 6 percent per year,
and human development went hand-in-hand with economic growth. Poverty dropped by
nearly a third, coupled with increased life expectancy, literacy, and per capita food intake.
More than 15 million Bangladeshis have moved out of poverty since 1992.
While poverty reduction in both urban and rural areas has been remarkable, the
absolute number of people living below the poverty line remains significant. Despite
the strong track record, around 47 million people are still below the poverty line, and
improving access to quality services for this vulnerable group is a priority. There are also
many people who could fall back into poverty if they lose their jobs or are affected by natural
disasters.
With nearly 150 million inhabitants on a landmass of 147,570 square kilometers,
Bangladesh is among the most densely populated countries in the world. Sustained
growth in recent years has generated higher demand for electricity, transport, and
telecommunication services, and contributed to widening infrastructure deficits. While the
population growth rate has declined, the labor force is growing rapidly. This can be turned
into a significant demographic dividend in the coming years, if more and better jobs can be

created for the growing number of job-seekers. Moreover, improving labor force
participation and productivity will help to release the potential of the economy. Exploiting the
potential of regional cooperation and making trade policy more conducive to a deepening
and diversification of exports will also play a vital role in the growth process.
Bangladesh aspires to be a middle-income country by 2021.This will require increasing
GDP growth to 7.5 to 8 percent per year based on accelerated export and remittance
growth. Both public and private investment will need to increase as well. Growth will also
need to be more inclusive through creation of productive employment opportunities in the
domestic economy. To sustain accelerated and inclusive growth, Bangladesh will need to
manage the urbanization process more effectively, as well as prepare for adaptation to
climate change impacts.
Becoming a middle-income country will require substantial efforts on many fronts.
These include maintaining macroeconomic stability; strengthening revenue mobilization;
tackling energy and infrastructure deficits; deepening financial-sector and external trade
reforms; improving labor skills, economic governance, and urban management; and
adapting to climate change. Bangladesh can become an export powerhouse, with its laborintensive manufactured and service exports growing at double digits on a sustained basis, if
it speeds up government decision-making. Without timely action, other countries (such as
Vietnam and Myanmar) will take the markets being vacated by china.

http://www.worldbank.org/en/country/bangladesh/overview