Like father like daughter

It is the year 2006, the end of term Bangladesh Nationalist Party (BNP) and Jammat-e-Islami’s all i a n c e government and the beginning of a military backed caretaker government for 2 years. BNP had left the country in a stagnant state with hardly any development in any sector. With championing of corruption 3 times in the world, creating breeding center of radical groups and harboring of militancy, decreasing literacy rate- 082 percent and failureness of adding single megawatt electricity in the national grid was past bearing for most people.

The year 2009 was a harbinger of a fresh start for Bangladesh. After the three years of caretaker government and military rule, Awami League (AL) won the election and formed a government in 2009 with Sheikh Hasina as the prime minister. It was then that The Peoples Republic of Bangladesh saw a glimmer of hope for a better future and a better way of life. Before understanding Bangladesh’s success in development, looking back at the political power shifts in Bangladesh and their relation to Bangladesh development will bring a much clear understanding.

Under the leadership of Khaleda Zia, the BNP regained power in February 1991 elections. In 1991, the parliament overwhelmingly changed the constitution and reestablished the parliamentary system of government, in a rare show of unanimity between the AL and the BNP. Power alternated between the BNP and the AL in elections conducted between 1991 and 2006. In June 1996, the AL was voted to power. The BNP and its coalition allies, including religious-political groups like the Jamaat-e-Islami, won another election in October 2001, handing power to the BNP and its coalition partners. After 1978, parties that support a blend of religion and politics grew in size and influence. In the late 1990s and early 2000s, Islamist militant organisations developed. The country was thrown into upheaval in late 2006 when the outgoing administration and opposition parties couldn’t agree on a number of topics, including who should lead the interim government until the election. Following months of unrest, bloodshed, and instability, a military-backed technocratic caretaker administration was appointed in January 2007 under a 1996 constitutional clause. The AL-led alliance won a landslide victory in the December 2008 election, securing a historic majority in parliament. In early 2009, the government was confronted with a revolt by the Bangladesh Rifles (BDR), a border security unit. Since then, the government has maintained control over the broader political situation, and democratic institutions have performed well. Despite a difficult global climate, notably the global financial crisis during the first three years, Bangladesh’s economy performed well, with growth nearing 6% in 2010. It’s also worth mentioning that the government has made significant progress in a variety of areas, including foreign relations, poverty reduction, and ubiquitous access to electricity, to name a few achievements. Although pervasive corruption and cronyism, as well as resource misallocation, have hampered the country’s progress, there is a rising recognition of the need to confront these issues seriously.

Bangladesh’s per capita income has increased thrice since she came to office in 2008. According to the IMF, the country’s GDP stood at $350 billion in 2021, and had an annual growth rate of 8.2 percent in 2019.

“By learning from the past, I vow to construct a more beautiful tomorrow.” We shall establish a non-communal golden Bangladesh devoid of hunger, poverty, and illiteracy, as envisioned by Bangabandhu Sheikh Mujibur Rahman, the Father of the Nation.”

Prime Minister Sheikh Hasina said at the introduction of her party’s manifesto. The AL manifesto declared that Bangladesh, one of the world’s most densely populated countries with a population of 160 million, will become a middle-income country by 2021, and its present per capita income of $1,750 will be tripled in the next decade. Having succeeded in making Bangladesh a lower middle income country, the target is now set to become an upper middle income country by 2031. The garment sector has grown to become one of the economy’s primary foundations, employing 4.5 million people. It accounts for 14% of GDP and roughly 80% of the country’s $35 billion in exports. Approximately $15 billion in remittances are sent home by over 2.5 million Bangladeshi expats each year. By managing population growth and substantially lowering infant mortality, the South Asian nation has outperformed India and Pakistan in major human development index metrics, resulting in a greater life expectancy of 72 years.

Bangladesh has a solid track record of development and prosperity. Over the last decade, it has been one of the world’s fastest growing economies, owing to a demographic dividend, robust ready-made garment (RMG) exports, remittances, and stable macroeconomic conditions. Following the COVID-19 pandemic, the country experienced a rapid economic recovery.

Bangladesh provides a stunning story of poverty reduction and development to the world at large. Bangladesh went from being one of the poorest countries in the world when it was founded in 1971 to being a lower-middle income country in 2015. In 2026, it is expected to be removed from the UN’s list of Least Developed Countries (LDCs). Based on the international poverty line of $1.90 per day, poverty decreased from 43.5 percent in 1991 to 11.2 percent in 2022.

The COVID-19 epidemic has had a severe impact on Bangladesh, as it has on other nations, limiting economic activity and reversing some of the achievements made in the previous decade. As pandemic-related limitations were relaxed, real GDP growth surged to 6.9% in 2021, supported by a comeback in manufacturing and service sector activities. Exports and private consumption-led growth are driving demand. So far, the vaccination has been administered to more than 77.61 percent of the population. However, rising global commodity prices, along with the uncertainty produced by the Russia Ukraine conflict, have created additional headwinds for the country’s growth.

Prime Minister Sheikh Hasina has taken many initiatives in the recent years to not only to create a better economy but also to create a better living quality for denizens of Bangladesh. The construction of a new third terminal at Hazrat Shahjalal Airport in Dhaka will make travel much easier. With comparisons to Heathrow airport and Thailand’s airport, it is expected to be a world class experience for travellers. It is scheduled to be completed as early as December 2023. Moreover, the project of 20 km elevated expressway in Dhaka is yet the most anticipated. It will reduce the much hated traffic congestion of Dhaka city. Along with the metro rail opening in December 2022, and the expressway under construction, people in Dhaka will be released from the pain they suffer off travelling.

The determination of our prime minister in applaudable. Even after being rejected by the world bank and many other countries for loan to start construction of the multipurpose Padma Bridge, and no one showing faith in the completion of this project, our PM has once again proved everyone wrong. Bangladesh’s first independently funded mega project will be inaugurated this month, 25th June 2022.

Since there was no railway connections in the southern part of Bangladesh, the government is constructing the Padma Bridge Rail Link Project. This 172 km railway line will be constructed from Kamalapur to Jashore across the Padma Bridge.

Furthermore, the Rooppur Nuclear Power Plant (Bangladesh’s largest mega project) with a whopping cost of 113000 crore BDT will be completed by 2024-25. Upon its completion, Bangladesh will join the elite group of 33 nuclear power generating countries globally.

These are only few of the commendable projects started by Honorable Prime Minister Sheikh Hasina has begun to develop our country. Soon enough this country will become a sought after nation with unimaginable amenities.

Bangladesh needs to develop jobs and employment prospects through a competitive business climate, enhanced human capital and skilled labor force, efficient infrastructure, and a policy environment that encourages private investment to fulfil its objective of being upper middle-income by 2031. Diversifying exports outside the RMG sector, developing the financial sector, making urbanization more sustainable, and improving public institutions are among the other development goals. Addressing infrastructural gaps will hasten growth and minimize inequities in opportunity across regions and cities. Addressing Bangladesh’s susceptibility to climate change and natural catastrophes can aid the country’s resilience to future shocks. Shifting to green growth would ensure the long-term viability of development outcomes for future generations.

Bangladesh currently proudly stands as a developing trade and investment destination, with an average annual economic growth rate of over 7% during the previous fourteen years (2008-2022). Bangladesh is moving toward global business competency thanks to consistent development in exports, a hardworking labor force, and dedicated entrepreneurs, all of which are aided by the government’s pro-business, pro-investment policies. The country’s unwavering commitment to peace and harmony, regional stability, cooperation, and economic development through international and regional trade with its trading partners, as well as an increasing flow of remittances from Bangladeshis living abroad, has helped the country achieve and maintain a strong economic position. The achievement of fast development was ascribed to strong local demand, significant export growth, and continuing construction of infrastructure facilities.

In its World Economic Outlook 2018, the International Monetary Fund (IMF) classified Bangladesh as the 44th largest economy in the world in terms of nominal GDP in 2017. In FY 2018-19, the country’s gross domestic output was US$ 302.6 billion, up from US$ 72 billion in 2005-2006. Ready Made Garment (RMG) is Bangladesh’s biggest export item, accounting for 84.21 percent of overall exports in 2018- 2019. RMG employs four million people, eighty percent of them are women. Bangladeshi expats’ remittances totaled US$15 billion in 2017-18, and they are an essential part of the country’s economy. In 2017-18, the Foreign Exchange Reserve was US$ 32.94 billion. In the previous five years, Bangladesh has seen a reasonable level of foreign direct investment (FDI). Bangladesh was rated 16th out of 74 FDI-receiving nations in the World Investment Report 2017, with a record FDI influx of US$ 2.65 billion in 2019. This is the sixth year in a row that Bangladesh’s FDI has topped a billion dollars. Bangladesh has also attained satisfactory foreign currency reserves which stood at US$ 32.71 billion in the fiscal year 2018-2019 and its remittances grew by 9.8 percent in this time reaching a record of US $16.4 billion.

Bangladesh’s twin policy efforts, ‘Vision 2021’ and ‘Digital Bangladesh,’ aim to transform the nation into a middle-income country by 2021 and a developed country by 2041. Bangladesh was elevated to a Lower Middle-Income nation by the World Bank in 2015, and it is expected to be one of the world’s top 24 economies by 2030. Bangladesh was certified eligible for graduation from LDC to Developing Country by the UN Committee on Development Policy (CDP) in 2018.In 2019, the actual per capita income was $1,909 USD. In Bangladesh, the significant middle class accounts for over 18 percent of the population. Domestic demand is increasing as a result of the emergence of the middle class and the overall improvement in the standard of living of the general public, and this has become a significant driver of economic activity. Bangladesh is presently a major producer of textiles, medicines, completed leathers, jute and jute items, light and medium industries, information technology, light engineering products, and small ocean-going vessels. Bangladesh has risen to become the world’s second-largest garment exporter. Bangladesh earned US$ 40.54 billion in export profits (fob) in 2018-19, compared to US$ 56.06 billion in import bills (CIF) over the same time. Petroleum products, capital goods, industrial raw materials, and agricultural commodities make up the majority of the import list.

The increase in garment exports aided the country’s capacity to generate crucial foreign currency and preserve financial stability. However, because rural women made up the majority of the textile labor, this resulted in a massive injection of wealth into rural Bangladesh. Remittance inflows from migrant Bangladeshi workers also surged dramatically after the turn of the century, rising from $1.7 billion in 1997 to over $15 billion in 2014. Increased revenues in rural Bangladesh aided the expansion of rural nonfarm businesses, which grew in tandem with agricultural prosperity. In ensuing decades, the story of governmental initiatives leading to revolutionary change has persisted. For example, since the early 1990s, telecommunications liberalisation has resulted in mobile phone subscriptions exceeding population size; since 2010, a power sector program has helped increase power generation capacity from 3,700 megawatts in 2007 to 13,000 megawatts in 2019; and between early 2013 and the end of 2020, a regulatory reform allowing mobile financial services has resulted in a fifteen fold increase in the value of mobile monetary trans[1]actions. Bangladesh’s government does not do well on traditional measures of transparency and efficacy. Nonetheless, successive administrations have demonstrated an extraordinary capacity to respond to emerging economic trends with policy moves that have resulted in dramatic change. In many situations, an ad[1]ministration’s liberalizing policy moves undid what preceding administrations had done years, decades, or even centuries before. In pre[1]independence days, for example, it was the government that took on the obligation of procuring and distributing agricultural inputs, and it was the government that ended the monopoly in the 1980s. Nonetheless, successive governments’ willingness to depart from well-established policies that they had inherited is admirable.

Some of the Bangladesh government’s policy decisions were impacted by development partners through conditionalities and persuasion, although not always at the speed that the external players wished. This had irked the latter and given the impression that the government was sluggish to reform. Bangladesh’s successive governments, on the other hand, appeared to have altered their minds and resorted to making things work on their own. There have been no significant reforms in Bangladesh, but neither have there been any dramatic reversals. The strategy has been to implement reforms gradually but progressively. The government took certain steps, waited to see how the market reacted, and then took further steps. Although this method was not always well received, the effects are increasingly being acknowledged.

Bangladesh’s supply response to policy initiatives may set it aside from many other emerging countries. Such supply responses by a range of economic players, including farmers, industrial businesses, and dealers, sparked demand for more governmental initiatives, which were frequently forthcoming. In the previous few decades, we’ve seen this kind of synergy between government policy and economic players’ entrepreneurial activity. This is a crucial, yet underrated, aspect of Bangladesh’s incredible growth narrative

While running this country so smoothly, Sheikh Hasina has received many accolades along the way, including the Mother Teresa Award in 1998 and the Indira Gandhi Peace Award in 2009. In 2014, she was awarded the UNESCO ‘Peace Tree’ award, and in 2015, she was ranked 59th on Forbes’ list of the 100 Most Powerful Women. She’s also recognized for her humor and delicate diplomacy, although she, like any other leader, has had to deal with some controversy. Some claim that Bangladesh has regressed in terms of democracy while her presidency. She is the perfect person for the country sent in the perfect time.