South Asian neighbours – Sri Lanka and Pakistan
\n– can follow the economic miracle of Bangladesh to overcome their economic
\ncrisis to make a turnaround.<\/p>\n
As Sri Lanka is going through an economic recession, Bangladesh has been
\nconfirmed as a South Asian Economic Miracle’, said a feature story written by
\nJohn Rozario published in Sri Lanka based Daily News.<\/p>\n
The feature titled “Sri Lanka and Pakistan: Lessons from ‘Bangladesh Model,”
\nis as follows:<\/p>\n
Bangladesh marks its 51st independence anniversary this year, and its
\ntremendous economic growth has made it an emerging hub for regional
\nconnectivity, attracting more trade and investment opportunities.<\/p>\n
According to the World Bank, the country has been among the fastest-growing
\neconomies globally over the past decade, supported by a demographic dividend,
\nstrong ready-made garment (RMG) exports and stable macroeconomic conditions.<\/p>\n
Bangladesh is also on track to graduate from the UN’s Least Developed
\nCountries (LDC) list in 2026. Poverty fell from 43.5 per cent to 14.3 per
\ncent in two decades, while in the last seven years, the country’s garment
\nindustry has increased its annual revenue from US$ 19 billion to US$ 34
\nbillion-a 79% rise, according to the International Finance Corporation (IFC).<\/p>\n
The Friedrich Naumann Foundation for Freedom (FNF South Asia), Regional
\nOffice in New Delhi, India organised an online discussion titled,
\n“Bangladesh: Henry Kissinger’s basket case is an economic success” on April
\n7.<\/p>\n
Golden Jubilee of Independence<\/p>\n
According to the discussions, in 2021 Bangladesh celebrated its Golden
\nJubilee of Independence. Labelled as a “basket case” by Henry Kissinger, the
\nUS Secretary of State in 1972, this young nation stands today as a template
\nof growth and economic success. Bangladesh started as a country with a low
\nincome per capita along with nations such as Chad, Rwanda, Burundi, and
\nNepal.<\/p>\n
Today, the country has crossed the per capita income threshold of US$ 2,000,
\nwith a GDP of about US$ 355 billion, securing itself a position in the top
\nforty economies of the world in terms of GDP.<\/p>\n
Bangladesh has made various progress economically, business-wise, social and
\nhealth services in good conditions. From being an extremely poor country in
\nthe 1970s, today, Bangladesh is confidently marching toward becoming a
\nmiddle-income country before the whole decade will be over.<\/p>\n
It will be graduating from a middle-income country and that is quite a huge
\naccomplishment. In the coming years and decades, it will have to address
\nchallenges to support or even excel compared to its past performance. From my
\nperspective, Bangladesh has become an important partner of Germany. And it is
\none of my goals as a Member of the German Parliament to further ease the
\ncooperation and ties between Bangladesh and Germany, as this will be a
\nsolution where everyone benefits.<\/p>\n
Bangladesh has fulfilled all the requirements for graduating out of LDC
\nstatus in 2026. Now, the question is, how did that happen? The fundamental
\nanswer is, of course, it is the toils and sweat of workers, general people,
\nfarmers, entrepreneurs, investors, policymakers, and NGOs all put together
\nthe efforts by its diligent people all around.<\/p>\n
And the net result of mind efforts of all these variables, various groups of
\npopular people in the country did produce the result. If you hear Henry
\nKissinger’s prediction, one would be extremely disappointed. But here is
\nBangladesh which surprises people. But it can be said it is not a surprise.
\nIt is not a paradox. It is the result of the efforts, hard toil and sweat of
\nBangladesh, people who are its main resources, we do not need mineral
\nresources, mineral resources can be a curse, but people are not a curse.”<\/p>\n
The systemic exploitation of then East Pakistan, followed by massive
\ndestruction of the economy, infrastructure and livelihoods caused by the
\nLiberation War, posed an insurmountable challenge to the government of the
\nday. Millions of people returned home from India in a war-ravaged country and
\nhad no food, no shelter, no medical help, and other basic needs. It is at
\nthis point that Henry Kissinger called us a basket case. If he were there
\ntoday, we are sure everyone would have edited his comments. It is in this
\ncontext that the first generation of Bangladeshi NGOs appeared, primarily
\nfocusing on relief and rehabilitation.<\/p>\n
It is well known that since the 1980s, Bangladesh has made astonishing
\nprogress in a wide variety of development indicators, such as reducing the
\nprevalence of extreme hunger and poverty, increasing primary education, and
\nenrollment rates, and reducing child and maternal mortality, among others.<\/p>\n
This progress has been mirrored by an impressive record of sustained GDP
\ngrowth, spending decades, much, if not most, of Bangladesh’s development, has
\nhappened outside the purview of successive governments.<\/p>\n
For example, 2003 four World Bank reports showed that 34.1% of the foreign
\naid costs were distributed to the NGO sector. NGOs and civil society
\norganisations working across the spectrum of development issues have been the
\nprincipal drivers of progress.<\/p>\n
Undoubtedly, things like reducing poverty have been an enormous success. So,
\nthese are some of the contributions that NGOs have made to the development of
\nBangladesh over the past 50 years and taking the country where it is today.<\/p>\n
Economic and societal growth<\/p>\n
Apart from showcasing markers of economic and societal growth, Bangladesh has
\nalso seen a transition toward digitization, which has effectively given rise
\nto a growing pool of entrepreneurs who are positively impacting lives in both
\nurban and rural societies, such as through greater financial inclusion.
\nBangladesh is now a role model for other developing countries, owing to the
\nparticipation of many stakeholders in both the public and private sectors.<\/p>\n
The online seminar referred to this theme of progress through the lenses of a
\nsustainable economy, poverty reduction, and the impact of information
\ntechnology on development.<\/p>\n
Last year, Bangladesh celebrated its golden
\njubilee of independence after gaining independence from Pakistan in 1971.
\nOver the years, the image and identity of post-independence Bangladesh have
\nchanged in the world arena. It has become a donor country from an aid
\nrecipient country. A silent revolution has taken place in the country.<\/p>\n
The Coronavirus pandemic has devastated the world economies. The economies of
\nall South Asian countries, including Bangladesh, have been negatively
\naffected. However, in the midst of the pandemic, Bangladesh has surpassed the
\nSouth Asian countries in terms of economic development. This success has been
\nachieved in the 50th year of independence mainly through the manufacture and
\nexport of ready-made garments and remittances from expatriates.<\/p>\n
The World Bank, an international lending agency, has given a positive outlook
\non the South Asian economy, overcoming the effects of the pandemic. In a
\nreport, titled South Asian Economic Bounce Back but Face fragile Recovery,
\nthe agency said that the average growth of South Asia’s gross domestic
\nproduct (GDP) in the fiscal year 2021 could stand at 7.2 per cent. After
\nthat, in the 2022 fiscal year, the average growth may be less than 4.4 per
\ncent.<\/p>\n
Bangladesh is ahead of its two neighbours, India and Pakistan, in achieving
\nthis growth. The government has set a growth target of 6.1 per cent for the
\ncurrent fiscal year and 7.2 per cent for the next fiscal year.<\/p>\n
Although Bangladesh is ahead in per capita GDP, India is one of the largest
\neconomies in the world in terms of size. India’s economy is 10 times bigger
\nthan Bangladesh’s. The best way to understand how rich a country’s citizens
\nreally are is to determine how much purchasing power they have. That is, with
\nthe money he earns, he can buy what he wants. This is why the size of GDP is
\ncalculated on the basis of purchasing power parity (PPP) to compare the
\neconomies of different countries. According to the IMF, India’s share of the
\nworld’s GDP on a PPP basis this year is 7.39 per cent, while Bangladesh’s
\nshare is only 0.659 per cent.<\/p>\n
In terms of GDP, Bangladesh surpassed India for two consecutive years, but in
\nsome social indicators, Bangladesh surpassed the neighbouring country seven
\nyears ago. For example, Bangladeshi girls have a higher education rate and
\nfemale birth rate than Indian girls. In Bangladesh, infant and under-five
\nmortality rates are lower than in India.<\/p>\n
However, in terms of GDP, Bangladesh surpassed India for two consecutive
\nyears, but in some social indicators, Bangladesh surpassed the neighbouring
\ncountry seven years ago. For example, Bangladeshi girls have a higher
\neducation rate and female birth rate than Indian girls. In Bangladesh, infant
\nand under-five mortality rates are lower than in India.<\/p>\n
India is a very big country. There are states like Bihar and Chhattisgarh, as
\nwell as states like Delhi and Punjab. So, on average, the real picture of
\neveryone does not come up. But Bangladesh is undoubtedly doing well. So, with
\nthe increase in per capita GDP and income, we have to look at different
\nsocial indicators.<\/p>\n
On the other hand, Bangladesh, which former US National Security Adviser
\nHenry Kissinger acerbically referred to as a “bottomless basket case” in
\n1972, has in the last 50 years performed better than Pakistan, the nation it
\nseparated from, says International Forum for Rights and Security (IFFRAS), an
\ninternational think tank headquartered in Toronto, Canada.<\/p>\n
Bangladesh’s progress is not accidental. The economies of Bangladesh, India
\nand Pakistan have grown at a much faster rate since 2004. This progress was
\nmaintained till 2016. But the situation started to change in 2017.
\nBangladesh’s growth rate has risen sharply in the Coronavirus pandemic.<\/p>\n
Bangladesh shows the path rests. Sri Lanka can follow this model to avert its
\neconomic recession as Bangladesh’s rise is ‘from bottomless basket to
\neconomic rises Model’.<\/p>\n
The writer is based in Karnataka, India, and has completed a master’s degree
\nfrom Jawaharlal Nehru University in International Relations. He is a
\nresearcher, and strategic and international affairs analyst.bss<\/p>\n","protected":false},"excerpt":{"rendered":"
South Asian neighbours – Sri Lanka and Pakistan – can follow the economic miracle of Bangladesh to overcome their economic crisis to make a turnaround. As Sri Lanka is going through an economic recession, Bangladesh has been confirmed as a South Asian Economic Miracle’, said a feature story written by John Rozario published in Sri […]<\/p>\n","protected":false},"author":1,"featured_media":25844,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-25843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-14"],"_links":{"self":[{"href":"https:\/\/deshnews24.info\/index.php?rest_route=\/wp\/v2\/posts\/25843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/deshnews24.info\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/deshnews24.info\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/deshnews24.info\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/deshnews24.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25843"}],"version-history":[{"count":1,"href":"https:\/\/deshnews24.info\/index.php?rest_route=\/wp\/v2\/posts\/25843\/revisions"}],"predecessor-version":[{"id":25845,"href":"https:\/\/deshnews24.info\/index.php?rest_route=\/wp\/v2\/posts\/25843\/revisions\/25845"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/deshnews24.info\/index.php?rest_route=\/wp\/v2\/media\/25844"}],"wp:attachment":[{"href":"https:\/\/deshnews24.info\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/deshnews24.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/deshnews24.info\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}