Bangladesh Economy and Development

Dr. M. Abu Eusuf

Professor, Department of Development studies
Director, Centre on budget and policy
University of Dhaka, Bangladesh
 Bangladesh Economy
Steady and Positive Growth Achieved

8.13% HDI 30th

Largest
0.614 Economy
GDP
Growth in USD Medium Human 41st As per Purchasing
Largest Power Parity
2018-19 1,909 Development Country Economy

Rank As per GDP 2nd

Per Capita Income Largest
8.2% 135 Economy
after
USD India
GDP Human In South Asia
302.4
Growth Development Index To be graduated
Billion
targeted (HDI) from LDC to DC by
in 2019-20 GDP 2024
 9 $2,500
8.13 8.2
8 7.65
7.28 $2,173
7.11
$1,909 $2,000
7 6.56
6.46 6.52 $1,752
6.01 6.01 6.06
$1,610

Per Capita Income (USD)

Macroeconomic 6

GDP Growth Rate (%)

5.57
$1,466
Scenario (2009 to 5.05 $1,500
5 $1,314
2019): GDP $1,190
Growth and GNI $1,054
4
per capita $928 $955 $1,000
$843
3 $759
Note: Figures of 2019-20 are $686
projected
2
$500

0 $0
2006 2008 2010 2012 2014 2016 2018 2020
 Budget Revenue Revenue Budget
Outlay Collection Sources Deficit
Target

NBR:
BDT BDT 325,600 crore BDT
Budget 523,190 377,180
Non-NBR:
14,500 crore 145,380
2019-20 crore crore Non-tax:
crore
37, 710 crore

18.1% of 13.1% of 13.1% of 5.0% of

GDP GDP GDP GDP

GDP Growth is set at 8.2% in 2019-20

 Budget
2019-20
Budget
2019-20
 LDCs and IPOA
• Since 1971, the UN has classified LDCs
• The number of LDCs has grown to 47, (900 million people)
• from originally 24;
• 5 countries graduated (Botswana, Cabo Verde, Equatorial
Guinea, Maldives and Samoa)
• 3 did not want to be included
• To respond to LDC challenges the UN hosts once-a-decade
special conferences
• The fourth UN-LDC conference in 2011 in Istanbul (Istanbul
Programme of Action of LDCs for 2011-2020)
 What IPOA wants to achieve?
• It articulates a vision and strategy developing
LDCs’ productive capacities
• To halve the number of LDCs to 24 (only five have
been able to ‘graduate’)
•8 priority areas: productive capacity; agriculture, food
security and rural development; trade; commodities;
human development; multiple crises and other emerging
challenges; mobilising financial resources; and good
governance.
 Processes involved
• The Committee for Development Policy (CDP) of ECOSOC reviews the
LDC status
• Triennial reviews of CDP since 1991
• The UNGA needs to confirm
• 2 successive positive reviews
• Additional 3 years of transition period
 A country classified as DC if:
• GNI per capita: $1,230 or above
Income-only: $2,460 or above
• Human Asset Index: resource weakness (based on indicators
of nutrition, health, education and literacy, 66 or above
• Economic vulnerability(based on various indicators)

The graduation threshold has been set at 32 or below

Identifying LDCs: Criterial
 Graduation thresholds
• Two routes to graduation:

• ‘income-only’ criterion, which is met if GNI per capita is twice the

graduation threshold, set currently at US$1,230
• The other pathway requires meeting at least two out of three
thresholds: for (i) GNI per capita (ii) economic vulnerability (iii) Human Asset
Index (HAI)

• BGD is a unique country – it met all the three criteria by March 2018
“Bangladesh, Lao People’s Democratic Republic and Myanmar met the
graduation criteria for the first time but would need to do so for a second time
to be eligible for consideration” - José Antonio Ocampo , Chair of the
Committee for Development Policy (CDP), 15 March 2018
 Graduation thresholds

Economic
Gross National Income Human Assets Index Vulnerability Index
(GNI) per capita (HAI) (EVI)

GNI per capita: $1,230 or above

Income-only: $2,460 or above 66 or above 32 or below
BGD: $1271 BGD: 72.9 BGD: 24.8