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The economy of Bangladesh is the 31st largest economy in the world as measured by purchasing power parity (PPP). It has made significant strides in its economic sector since its independence in 1971. The Bangladeshi garments industry is one of the largest and most comprehensive industries in the world. Before 1980, Bangladesh's economy and foreign exchange earnings were driven by the jute industry. However, this industry started to fall dramatically from 1970, when polypropylene products gained popularity over the jute products.
Current GDP per capita of Bangladesh registered a peak growth of 57% in the Seventies immediately after Independence. But this proved unsustainable and growth consequently scaled back to 29% in the Eighties and 24% in the Nineties.
Bangladesh has also made major strides to meet the food needs of its increasing population, through increased domestic production. Currently, Bangladesh is the fourth largest rice [1] producing country in the world. The land is devoted mainly to rice and jute cultivation, although wheat production has increased in recent years the country is largely self-sufficient in rice production. The country has large reserves of natural gas and limited reserves of coal and oil. While Bangladesh's industrial base is growing, unskilled labor is inexpensive and plentiful.
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Please read the article below to have a view of economic growth of Bangladesh.
2007 in Bangladesh: A Conduit to the Great Spirit
Bijan Lal Dev
Bangladesh stepped into its second year on January 11, 2008 with the present Caretaker Government of the Chief Adviser Dr. Fakhruddin Ahmed cashing a number of significant achievements in the social and political sectors and facing some challenges in the economic front. Achievement is measured as steps in a desirable direction. The Caretaker Government steps have been sincerely in the desirable direction of 150 million people of the country. At the critical juncture of the nation, it took offices last year with a view to achieve two main goals. Firstly, to establish a corruption-free society where there would not exist any exploitation, terrorism and nepotism. Secondly, holding a free, fair and credible general election and handing over the power to the elected Government upholding real democracy. Although one year is not enough to assess achievements at national level, yet the Government have taken a lot of extraordinary reforms measures in many sectors, including judiciary, politics, economy, social sectors like, education, health and agriculture in addition to poverty alleviation initiatives. Many positive changes at all strata of life have taken in place so far. Dwelling on the achievements of the Caretaker Government during the last one year, we can first talk about the law and order situation prior to 1/11 of 2007. Chaos and disorder, political unrest and anarchy were then the order of the day. Foreign investors, donor agencies and development partners were about to turn their back. The whole nation was in dilemma. On this backdrop, a state of emergency was declared on January 11, 2007 and the present Caretaker Government was sworn in. The events afterwards are only moving forward despite many natural and artificial odds.
From the first day of the Government, it launched an unprecedented massive drive against large-scale individual graft. Initiatives were taken to free politics from corruption and black money and the grip of musclemen. Transparency, honesty and accountability have been ensured in the financial sector including trade and industry. The government has restructured almost all the major institutions including the Election Commission, Anti-Corruption Commission, Public Service Commission and University Grant Commission to make the institutional fully functional and vibrant. The independent judiciary has finally embarked on a historical journey as it came out of the control of the executive organ of the state on November 1, 2007 to make sure that the people get justice, get it quick and face no harassment in getting so. Death sentences for six top terrorists of banned Jaa’matul Mudassarin Bangladesh were executed. The Government had root out the terrorist activities in the name of religion from the country. The preparation of a flawless voter list with photographs is going on in full swing making steady progress to fulfill the roadmap to holding a free and fair general election by the end of 2008 to ensure unfettered democracy.
Services sectors development
Qualitative changes have been brought to services sectors including port, communication, gas, electricity and telecommunication. 11-day stay of ships at the Chittagong Port has been reduced to three days due to the construction of Newmooring Terminal, starting of three shifts work instead of two shifts, increase in container holding capacity of the port, reduction of stages of delivery of goods and proper management of workers. As a result, 30 per cent cost has been saved in handling goods at the Chittagong port. It encourages the exporters and importers to make pro-active plan to expand their business. Due to these management development initiatives in the Chittagong port, the gateway to Bangladesh, foreign investors are showing special interest to invest in Bangladesh. Land acquisition for construction of the Padma Bridge at Munshiganj involving Taka 100 billion is going on. Physical works at the construction site has also started. Steps have been taken to turn the Dhaka-Chittagong Highway into four lanes at a cost of Taka 21 billion. Multi-dimensional efforts have been taken to ease the traffic congestions in the cities especially in Dhaka and Chittagong.
The demand of natural gas is increasing everyday and it reached to 1700 million cubic feet (mmcf) in January 2008. To cope with the growing demand, 300 mmcf gas is being extracted from the newly developed Bibiana Gas Field at Sylhet every day. Five new exploration wells were excavated resulting the total number of the wells is 73 in different gas fields. Production of electricity has been increased to 3400-3600 MW by generating 600 MW more power. Five power plants with the capacity of 690 MW are being set up. They will come into production by 2008. Besides, steps are at final stage to set up two power plants each of capacity to produce 450 MW. The Government has taken plans to meet the growing demand of electricity by raising the present production at 4600-4800 MW by 2011. Drives against illegal VOIP companies were launched. Cases against the 20 illegal VOIP companies were filed and Taka 6.18 billion was realized. 55 economic ISD calling systems, including earlier 25, have been started. Land has been acquired to establish a High Tech Park at Kaliakoir near Dhaka. Steps have been taken to connect Bangladesh with the second sub-marine cable line to ensure uninterrupted internet connection.
Electoral roll
In line with the announced roadmap of the newly constituted Election Commission, twenty million adult citizens of the country have been enlisted by December 2007 as voters with photographs as per the road map. They are expecting to finish the mammoth job of voter listing 3 weeks ahead of schedule June 2008. Amendments to the Public Representatives Ordinance, 1972, Electoral Code of Conduct and draft of rules for Registration of Political Parties have been prepared. The Government will start dialogues with the political parties soon to overcome the prevailing differences as the right way to start its 2nd year into power.
Combating corruption
The newly constituted Anti-Corruption Commission has so far filed cases against 141 important persons, including former ministers, former state ministers, former parliament members and former government officials. Of the cases, verdicts on 18 cases have been delivered, 53 cases are under trial and charge sheets against 69 cases have been submitted to the courts. A Search Committee has been constituted for appointment of vice-chancellors, pro-vice-chancellors and treasurers for the public universities. District Municipalities of three hill districts have been reconstituted. Implementation of the Chittagong Hill Tracts Peace Agreement is going on. Film Censor Board has been reconstituted. Task Force has been formed for eliminating vulgarity from the film industry.
Welfare initiatives
Considering the welfare of some 2.70 million garments workers, 90 per cent of who are women, Minimum Wage Board has been reconstituted. Minimum wage of Taka 1,500 has been fixed for workers. It has so far been implemented at 4,968 garment factories out of total 5,000 units in the country.
The freedom fighters are the illustrious sons of the soil. Out of seven Birshreshtha (the greatest hero) of Bangladesh, two were buried outside the country in 1971 as they were at war at that time. Remains of Birshreshtha Flight Lieutenant Matiur Rahman and Sepoy Mohammad Hamidur Rahman have been brought to Bangladesh recently. Honorarium for families of Birshreshthas, injured freedom fighters and martyrs has been increased by 50 percent.
The government has introduced ‘citizen charter’ at all services providing organizations to ensure transparency and accountability and reduce public sufferings. What services, how and when a person can get is explained in the charter. If anybody denied providing the desired service, remedial measures are also given in the charter. In one year, the Government promulgated 41 ordinances to bring back normalcy in various sectors and ensure rights of the people. Right to Information Ordinance is at the final stage for approval. The Consumers Rights Ordinance is also offing.
Healthcare facilities for the people at public hospitals have been strengthened. Patients are now getting all services in the hospitals without hassles. The number of beds at hospitals of the country has been increased by 4,519. The number of students of four medical colleges has been increased by 100. Services for delivery have been extended at 105 Upazila (Sub-district) health complexes. Average rate of child birth has been reduced to 3.0 from 2.7. 98 percent children were brought under the immunization program.
Economic Issues
Bangladesh being a Least Developed Country has been contributing greatly in integrating the global trade under a single umbrella since the inception of the World Trade Organization in 1995. The present Government is upholding the spirit of the globalization and urging the developed and developing economies for ensuring the compensatory measures including allowing duty-free and quota-free access to all products of the LDCs to their markets. Responding to the contribution of Bangladesh to the causes of the LDCs, Bangladesh has been unanimously re-elected as the Chairman of the LDCs in last November. Bangladesh has been the biggest exporter amongst the LDCs and maintaining an annual export growth of 13 per cent. Last year, Bangladesh exported US $12.45 billion registering 13.18 per cent growth. Import of commodities, primary and intermediate raw materials and capital machinery has also been increased by about 16 per cent last year. Better Business Forum headed by the Chief Adviser has been constituted to exploit the full potentiality of the country in the field of trade and investment.
Bangladesh earned an all time record remittances of US $6.57 billion during the year as 570,593 workers exported to various countries of the world during the time. 16 technical training centers have been set up to develop skilled manpower for export and 6,479 workers were given training in the year. 120,000 male and female youths have been provided with training on various trades as per new guidelines prepared for creating more jobs at home and aboard.
Revenue earnings have been increased by 23.72 percent and income tax by 46 percent. Foreign currency reserve reached at US $5.47 billion which is US $1.88 billion more than 2006. US $228 million have been invested in the six export processing zones in the country, which is double than the previous year. Bank Company Law, 1991 has been amended. Three nationalized commercial banks have been turned into public limited companies for strengthening their capacities. An initiative has been taken to amend Anti-Money Laundering Law, 2002.
With the rise of prices of oil, agricultural and industrial goods in the world market, Bangladesh has also been experiencing price hike in most of the daily commodities. As the price spiraling of food items has been affecting the people below the poverty-line and fixed income group, the Government has taken a good number of steps ‘including open market sales of essential commodities at subsidized prices’ to ensure sufficient supply of the essential items to them. Steps have been taken to increasing the agriculture production mainly rice, wheat, vegetables and pulses. Farmers are being provided with fertilizers, quality seeds and irrigation water with subsidized prices. Agricultural research has been geared up. About Taka 800 billion has been distributed to the farmers as agricultural soft loan.
With the initiatives to agricultural development, steps have been taken to increase industrial investment from home and abroad. The foreign direct investment in telecommunication sector attracted investors in other sectors. An initiative has been taken to make the jute mills profitable concerns by carrying out reforms in the jute sector. ‘Biman’ the Bangladesh airlines has been turned into a public limited company for making it a profitable organization.
Foreign relations
The relationship between Bangladesh and the friendly countries including the South Asian countries have been strengthened further during the one year tenure of the present Government. New avenues have been opened up to increase manpower export and improve trade relations. The image of Bangladesh has reached a new height due to practicing pro-active diplomacy based on the principles of respect for national sovereignty and equality, non-interference in the internal affairs of other countries, promoting peaceful settlement of the international disputes and respect for international laws and the principles enunciated in the UN Charter. A number of bilateral and multilateral agreements and protocols have been signed with a good number of countries and regional and international groups to invigorate country’s investment and exports of goods, services and manpower.
Governance
Preparation of the Secretariat Instructions, 2007 is at the final stage. This will help guiding the officials to serve the people with honestly and sincerely. Efforts have been taken to make the civil servants knowledge-based and efficient. A total of 2,685 officials have been trained at home and aboard for bringing dynamism in the civil administration.
Social safety nets
The Caretaker Government has faced two consecutive floods and the devastating cyclone ‘Sidr’ with remarkable efficiency. These natural calamities have damaged life, belongings, agriculture and economy of the country. Activities have been successfully carried out to distribute adequate relief goods and rehabilitate victims of these calamities. The resilient nation found out their way to begin a new life with the tremendous support of the Government and the armed forces. The monthly allowances of widowed and destitute women, children of orphanages, poor senior citizens have been increased both in number and amount. Gender sensitive approaches have been implemented to empowering the women.
Thousand of years ago, Hermit Thrush rode on the back of the eagle and reached the house of the Great Spirit to bring back a melodious song to comfort the human beings and in Bangladesh the people are aspirating a lasting democracy, peace and progress by December 2008 through the present Caretaker Government. The main strength of the Government is that it has had a popular backing from all walks of life in the country. The media, civil society, donor agencies, and development partners across the world are also supporting the every initiative of the Government.
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