Economic Reporter :
Building on strong export growth and higher remittances, Bangladesh has successfully transformed its economic structure since the 1980s, graduating to middle-income status as average annual growth remained strong at 6 percent, says Asian Development Bank (ADB) in its two new reports.
More importantly, this growth has been inclusive; poverty has declined markedly; employment has increased; and access to better health, education, and basic infrastructure widened substantially, it adds.
“Improved infrastructure and a more diversified economy can help Bangladesh increase economic growth, create meaningful jobs, and enhance the country’s structural transformation as a thriving middle-income economy,” the ADB reports say.
“The ready-made garments sector and overseas remittances have fuelled strong growth of over 6 percent in the past decade, allowing the economy to recently graduate to middle income status,” said Edimon Ginting, Director in ADB’s Economic Research and Regional Cooperation Department.
“Moving forward, the country can sustain higher growth through investment in sectors such as light engineering, machinery repair, and agricultural cold chains. Better infrastructure and policy reforms can help the country capture these opportunities, Edimon Ginting added.
The first study, ‘Bangladesh: Consolidating Export-led Growth’, uses economic diagnostic tools to identify critical constraints to growth and sets out policy recommendations to help tackle them.
Public-private partnerships can contribute to infrastructure upgrades in some of the country’s most successful economic sectors, while secured land ownership and improved urban planning and development will help attract more foreign investment, the report said. Reliable electricity, efficient urban transport systems, and measures to support new industries and economic activities are also important.
Poverty in Bangladesh declined rapidly from nearly 49 percent in 2000 to below 24 percent in 2016. The study notes that reducing poverty more evenly across the country, boosting access to financial services for low income groups, and strengthening social safety nets will further improve livelihoods and increase economic opportunities.
Building on strong export growth and higher remittances, Bangladesh has successfully transformed its economic structure since the 1980s, graduating to middle-income status as average annual growth remained strong at 6 percent, says Asian Development Bank (ADB) in its two new reports.
More importantly, this growth has been inclusive; poverty has declined markedly; employment has increased; and access to better health, education, and basic infrastructure widened substantially, it adds.
“Improved infrastructure and a more diversified economy can help Bangladesh increase economic growth, create meaningful jobs, and enhance the country’s structural transformation as a thriving middle-income economy,” the ADB reports say.
“The ready-made garments sector and overseas remittances have fuelled strong growth of over 6 percent in the past decade, allowing the economy to recently graduate to middle income status,” said Edimon Ginting, Director in ADB’s Economic Research and Regional Cooperation Department.
“Moving forward, the country can sustain higher growth through investment in sectors such as light engineering, machinery repair, and agricultural cold chains. Better infrastructure and policy reforms can help the country capture these opportunities, Edimon Ginting added.
The first study, ‘Bangladesh: Consolidating Export-led Growth’, uses economic diagnostic tools to identify critical constraints to growth and sets out policy recommendations to help tackle them.
Public-private partnerships can contribute to infrastructure upgrades in some of the country’s most successful economic sectors, while secured land ownership and improved urban planning and development will help attract more foreign investment, the report said. Reliable electricity, efficient urban transport systems, and measures to support new industries and economic activities are also important.
Poverty in Bangladesh declined rapidly from nearly 49 percent in 2000 to below 24 percent in 2016. The study notes that reducing poverty more evenly across the country, boosting access to financial services for low income groups, and strengthening social safety nets will further improve livelihoods and increase economic opportunities.
