Chapter-01

Introduction
1.1 Introduction
The ever-present element of risk and uncertainty means that the events and tasks leading to
completion can never be accurately foretold. Examples abound of projects that have exceeded
their costs by enormous amounts, finishing late or even being abandoned before completion.
Such failures are far too common and are seen in all kinds of projects in industry, commerce
and the public sector. The purpose of project management is to predict as many of the
dangers and problems as possible and to plan, organize and control activities so that projects
are completed successfully in spite of all the risks. This process should start before any
resource is committed and must continue until all work is finished. The primary aim of the
project manager is for the result to satisfy the project sponsor or purchaser and all the other
principal stakeholders within the promised timescale and without using more money and
other resources than those that were originally set aside or budgeted.

1.2 Background of the study:

Most projects are expected to complete it can satisfy the three primary objectives of time,
performance and cost. These are usually the most important factors that drive the project
contractor and they should align with the foremost expectations of the project owner. Most
project management procedures are directed towards achieving these goals which could be
summarized as delighting the customer while creating a commercial success for the
contractor. In this context the contracting organization and the customer are both primary
stakeholders in the project. However, most projects have to satisfy more than two primary
stakeholders. For example, a bank that has provided loan finance for a project will have a
keen interest in whether the project succeeds or fails. There will always be people and
organizations that, while not being principal stakeholders, nonetheless have an interest in how
the outcome of a project might affect them. Subcontractors and suppliers are an example.
Staffs working on a project have a stake in the outcome because project success or failure can
have implications for their future employment and careers.

1.3 Importance of project management in Bangladesh economy:

Bangladesh is a developing country. As a developing country project management
importance are follows:

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1. Project Management is indispensable for economic development of a developing country
like Bangladesh or an enterprise/organization.
2. It ensures effective and efficient resources utilization and it management.
3. It leads to GDP growth.
4. It leads to increase of per capita income and enhancement of standard of living.
5. It helps to overcome the problems of time and cost overruns.
6. It leads to optimum use of available resources.
7. It should commensurate with national development strategies.
8. It involves substantial outlay, hence very careful planning is needed.
9. Cost of prediction error is very high, which may lead to bankruptcy and threatens the
existence of project.
10. It increases international competitiveness of exportable items of a country.
11. It is the key to cost management of producing goods and services.
12. It is an essential condition for getting assistance and loan.
13. Its impacts have been long term and hence has a temporal spread.
14. It helps to achieve self-reliance in the economy.
15. It is a base of implementing national development strategies & achievement of
millennium development goals.
16. It is the precondition of a development & transfer of technology.
17. It may lead to a balanced growth of agriculture and industry.
18. It is helpful towards exploration of resources, innovations, researches and discoveries.
19. It brings not only economic prosperity but also honor and prestige to a nation, because
economic prosperity means economic power.
20. Economic prosperity of the country will lead to a capacity to render financial assistance to
other poor and least developed countries.

1.4 Objectives of the study:

It is occasionally necessary to identify one of the three primary objectives as being of special
importance. This emphasis can affect the priority given to the allocation of scarce resources
and the way in which management attention is concentrated. It can also influence the choice
of project organization structure. A management decision to place greater emphasis on
achieving one or two of these objectives must sometimes be made at the expense of the
remaining objectives. The outcome of such a trade-off decision can be indicated by placing a
spot or blob within a triangle which has one primary objective placed at each of its corners.

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For example, if cost is the greatest consideration, the blob will be placed in the cost corner. If
all the objectives are regarded as equal or balanced, the blob will be put in the middle of the
triangle. A project for a charitable organization with limited funds would have to be
controlled very much with budgets in mind so that costs must be the project manager’s chief
concern. Industries such as aerospace and nuclear power generation have to place high
emphasis on safety and reliability so performance should be the most important objective. A
project to set-up and stock a stand at a trade exhibition, for which the date has been
announced and the venue booked, is so dependent on meeting the time objective that it might
be necessary to overspend on budgets to avoid missing the date.

1.5 Limitations of the study:

 There are some limitations in every report, research or plan.
 This study also has some limitations.
 The executives did not give enough time to collect the sufficient information.
 For the internal secrecy, they were not interested to share most of their financial
information.

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 Chapter 2
Conceptual Issues

2.1 Economy of Bangladesh:

The Economy of Bangladesh is a market-based economy. The country is classified as a
next emerging market and one of the Frontier. According to a recent opinion poll, Bangladesh
has the second most pro-capitalist population in the developing world.

Between 2004 and 2014, Bangladesh averaged a GDP growth rate of 6%. The economy is
increasingly led by export-oriented industrialization. The Bangladesh textile industry is the
second-largest in the world. Other key sectors include pharmaceuticals, shipbuilding,
ceramics, leather goods and electronics. Being situated in one of the most fertile regions on
Earth, agriculture plays a crucial role, with the principal cash crops including rice, jute, tea,
wheat, cotton and sugarcane. Bangladesh ranks fifth in the global production of fish and
seafood. Remittances from the Bangladeshi diaspora provide vital foreign exchange.

The Bangladesh telecoms industry has witnessed rapid growth over the years and is
dominated by foreign investors. The government has emphasized the development of
software services and hi-tech industries under the Digital Bangladesh scheme. Bangladesh
has substantial reserves of natural and coal; and many international energy companies are
involved in production and exploration activities, including in the Bay of Bengal. Regional
neighbors are keen to use Bangladeshi ports and railways FORTRAN shipment. Located at
the crossroads of SAARC, BIMSTEC, the ASEAN+3 and the Indian, Bangladesh has the
potential to emerge as a regional logistics hub.

In 2014, per-capita income stood at USD 1,190. While achieving significant macroeconomic
stability, Bangladesh continues to face challenges such as infrastructure deficits and energy
shortages.

2.2 Economy of Bangladesh at a glance:

GDP: $655 billion (PPP; 2014 EST.) and $175.5 billion (nominal)
GDP—real growth rate: 6.2% (2013-14 EST.) 
GDP—per capita: $3.385(PPP; 20014 EST.) And $1779(nominal; 20014)

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GDP—composition by sector: Agriculture: 19%; Industry: 30%; Services: 51% (2013
EST) 
Population below poverty line: 21.5% (2015 EST.) 
Inflation rate (consumer prices): 6.2% (2018) 
Labor force: 87.9 million (2013)
Labor force—by occupation: Agriculture 40%, Services 30%, Industry 3% (2013) 
Unemployment rate: 4.5% (2013) 
Main Industries: textiles, food processing, steel, rolling, pulp and paper, jute spinning,
shipbuilding, electronics, ceramics, cement, fertilizer, construction materials, solar panels,
pharmaceutical
Exports: $ 30.1 billion (FY2013-14)
Exports—Goods: textiles, leather goods, processed and frozen food, porcelain, bone china,
oceangoing ships, pharmaceuticals, software, consumer appliance, jute, jute goods, tea,
chemicals, construction materials, automotive components, agricultural product
Imports: $ 29.37 billion (FY2013-14)
Imports—goods: petroleum, machinery and equipment, foodstuffs, iron and steel, cars,
cotton, palm oil 
Debt—external: $36.21 billion (31 December 2018 EST)
Currency: 1 taka (Tk) = 100 poisha 
Revenues: $14.67 billion (2013)
Expenses: $22.15 billion (2013)
Foreign reserves: $22.327 billion (jul 2014)

2.3 Strength of Bangladesh Economy:

I will discuss the strength of Bangladesh Economy by discussing the vital Variables i.e. the
performances vital Economic Sectors. The variables are as follows.

Agriculture: Bangladesh is an agricultural country. With some three-fifths of the population

engaged in farming. Jute and tea are principal sources of foreign exchange. Major
impediments to growth include frequent cyclones and floods, inefficient state-owned
enterprises, inadequate port facilities, a rapidly growing labor force that cannot be absorbed
by agriculture, delays in exploiting energy resources (natural gas), insufficient power
supplies, and slow implementation of economic reforms. Economic reform is stalled in many
instances by political infighting and corruption at all levels of government.

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The quarterly report of Asian Development Bank (ADP) about Bangladesh Economy also has
provided information regarding Bangladesh Agriculture:

Despite the government's broad-based support for Agriculture, the growth rate of agriculture
in FY2015 is expected to be lower than in FY2016 because of the effects of weather, and
weak supply response by farmers to lower farm-gate prices after last year’s harvesting
season. Although the authorities channeled electricity from the cities to rural areas during the
boro season, supply wasn’t adequate to meet the full demand for irrigation. Production of
staple food grains, i.e., rice and wheat, is estimated to grow by 5.5% in FY2015 over the 32.2
million Tons of actual production in FY2016 (Figure 1). Production of rice is estimated to
rise by 5.1%, from 31.3 million tons in FY2016 to 32.9 million tons in FY2015. Wheat
Production is targeted to increase by 20.1%, from0.85 million tons in FY2016 to 1.02 million
tons in FY2015.Substitution of cultivated land to no rice crops is expected to increase
production of maize, potatoes, and other crops. Despite the unusually large production of
potatoes, the lack of storage facilities caused a huge loss for farmers. The outputs of fishery,
poultry, and livestock sectors, although growing, are unable to meet rising demand from the
growth in population and income.

RMG Industry: The economy of Bangladesh is largely dependent on agriculture. However,

in recent years, the Ready –Made Garments (RMG) sector has emerged as the biggest earner
of foreign currency. The RMG sector has experienced an exponential growth since the 1980s.
The sector contributes significantly to the GDP. It also provides employment to around 2
million Bangladeshis. An overwhelming number of workers in this sector are women. This
has affected the social status of many women coming from low income families.

The United States was the main export destination for Bangladeshi RMG products in the
early 1990s followed by the European Union, but the European Union has surpassed the
United States over time. These two destinations generate more than 90 per cent of the total
RMG export earnings of Bangladesh (BGMEA and the Export Promotion Bureau).
The shares of other importers, such as Australia, Canada, China, Japan and the Russian
Federation as well as countries in the Middle East.

The total RMG export earnings of Bangladesh are minimal. This section of the paper focuses

6
on surface-level competitive performance of the Bangladesh RMG industry in the United
States and the European Union markets only. In addition, the performance of China and India
along with Bangladesh as RMG suppliers to international markets is also considered for
comparative analysis.

According to Export Promotion Bureau (EPB), Bangladesh exported knitwear products to

China worth $3.071 million in fiscal 2007-08 against $0.76 million in the previous fiscal
year, posting a staggering 400 percent growth. In fiscal 2007-08 the country exported woven
garments to China worth $6.691 million against $6.323 million in fiscal 2006-07. The total
export to China from Bangladesh amounted to $106.946 million against the import of around
$3.0 billion in fiscal 2007-08.

In 2007, Bangladesh exported cotton T-shirts, singlets and other vests worth $0.79 million
against $0.57 million in 2006. China imported such kind of apparel items worth $976.890
million in 2007 and $926.330 million in 2006 from the rest of the world. It clearly shows that
China itself imports apparel items of a significant amount. Aggressive marketing drive by
Bangladesh can grab a chunk of such import of China, experts say.

Currently Bangladesh enjoys duty concession on exports of 757 products to Chinese market
under Asia Pacific Trade Agreement. Of the 757 products, 22 knitwear items and almost the
same amount of woven items are included in the concession category. As a result, the export
of knitwear and woven products is getting a steady rise to China.

Textile Industry: While agriculture for domestic consumption is Bangladesh’s largest

employment sector, the money gained from exporting textiles is the single greatest source of
economic growth in Bangladesh. Exports of textiles, clothing, and ready-made garments
accounted for 77% of Bangladesh’s total merchandise exports in 2002.Only 5% of textile
factories are owned by foreign investors, with most of the production being controlled by
families or Bangladeshi companies.

Textile exports from Bangladesh displays a buoyant performance. Knitwear and woven
garment exports have increased by 41.8%, and 36.2 percent during December 2008
comparatively over the previous year's figures. Since Bangladesh exports low end textile
products, their sales are least affected by the economic crisis. Shoppers from the income

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declining countries, who prefer to restrict their shopping budget, prefer to buy low end
garments imported from Bangladesh.

Service Sector: The service sector in Bangladesh is now contributing more than 49 percent
to the gross domestic product (GDP) after reorganization of different sectors under the newly
adopted national accounting system, The Financial Express reported Saturday. The report
quoted sources of the finance and planning ministries as saying the relative contributions of
the service and industry sectors have increased over the years while those of agriculture have
declined. The contributions of the agriculture sector dropped from about 30 percent in the
early 1990s to 25.28 percent at present, but the industry sector commanded 25.69 percent in
the last financial year.

Asian Development Bank (ADP) has launched an analysis on Bangladesh Economy. They
described the service sector of Bangladesh in the following way:

Performance of the services sector largely depends on the outcomes of the agriculture and
industry sectors. The global economic crisis has impacted growth of the Services sector in a
variety of ways. Contraction in trade and investment activities affected performance of
transport and communication services. Subdued trade and investment activities affected
financial services. Moderation in remittance inflow also dampened demand for services
affecting wholesale and retail trade and Community, social, and personal services. Lack of
infrastructure and power supply has constrained new investment in health care and education
services. The Telecommunications sector is also affected by the slowdown in economic
activities, particularly trade.

Capital Market:
Asian Development Bank (ADP) in their quarterly analysis has described the capital market
as follows:

The major stock market indicators rose during FY2015, except for a brief period during mid-
February to mid-April, when the market experienced some instability. The index rose 178.2%
year-on-year in April 2015, reaching 5,654.9 points, because of the listing of Grameenphone
(the country's largest mobile phone company) on the stock exchange in November 2016, and
significant involvement of institutional participants in daily transactions. The active

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participation of a large number of retail investors along with the coincidence with bonus
share (cash, stock, right) declaration contributed to the recent rise in the index. Market
capitalization of the Dhaka Stock Exchange rose by 180.7%, from Tk1,062.4 billion in April
2016 to Tk2,345.0 billion by the end of April 2015, Reflecting the listing of a large number
of companies.

Remittances: Remittance inflows, a major source of foreign exchange income, accounted for
10.9% of GDP in FY2016. Although lower than export earnings (17.5% of GDP in FY2016),
they are much higher than FDI (1.1%) and official development assistance (1.2%). Being one
of the top 10 remittance recipient countries in the world. Bangladesh has been able to
maintain respectable foreign reserves and meet its international payments obligations because
of the robust flow of remittances. They are considered a more stable source of foreign
exchange. The joint World Bank-IMF low-income country debt sustainability framework
now takes into account remittances in evaluating the ability of countries to repay external
obligations and their ability to receive no concessional borrowing from private creditors. IMF
Article IV assessments include remittance as a variable alongside FDI and portfolio flows.

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 Chapter-03
Methodology of the Study

3.1 Methodology of the study:

This process consists of treatment in the scientific way of knowing the truth or to find partial
truths. The development of theories is the central activity of scientific research, traditional
authorities have developed theories combining observations from previous literature,
common sense and testing. In the research objectives are segmented into three main types:
descriptive, exploratory and explanatory. There are several ways to do a search, the case
study is only one, and it is a strategy where we can go further in search of a deeper analysis
on the issue of research, fundamental purpose of the strategy for employment in particular,
because the question of research is focused on how and why. Considering the above, this
work falls in the category of exploratory research, because it involves a literature search in
order to expand knowledge where they are correlated with the observation in the practical
field with data collected. It is important to emphasize that the company name will be omitted
in this work for reasons of market strategy practiced by the organization.

3.2 Challenges of project management in Bangladesh economy:

Bangladesh is third world country which stands for reach from the developing countries as
compare to infrastructure, economy, and living standard and so on. As a country like
Bangladesh project management will continue to reveal itself as part art, part science, and
part major headache whether you are a new project manager, or an experienced leader. The
list below highlights some of the top project management challenges, along with suggested
solution ideas to help overcome those challenges:

Moreover, the present legal system of our country is vulnerable. No one can trust on them.
Anywhere anyone can be murdered by RAB, POLICE or terrorist. There are no congenial
legal systems. But one behalf of governments, they always says that the present condition is
more or less better than others time. So, foreign investors are not interested to do their
business in this uncertain legal frame work.

1. Unrealistic deadlines
Some would argue that the majority of projects have schedule slippage as a standard feature
rather than an anomaly. The challenge of many managers becomes to find alternate
approaches to the tasks and schedules in order to complete a project on time, or to get

10
approval for slipping dates out. An absolute time-based deadline such as a government
election, externally-scheduled event, or public holiday forces an on-time completion (though
perhaps not with 100% of desired deliverables). But, most project timelines do eventually slip
due to faulty initial deadlines (and the assumptions that created them).

Source: The Daily Star (Date: 04/01/2018, Page # 2 & 19)

It is a very important project for Dhaka city, if the project done it may be reduces the jam, but
fact is that this project works very slow, because of ineffective manpower as well as
management, and unrealistic deadline of project competition, for this reason this project not
success in the time period.

2. Lack of Clarity in the Scope of the Project

The Scope Statement, once completed, becomes the basis for future project decisions
including, in particular, the criteria used to determine if the project (or phase of the
project) has been completed successfully. Essentially, this document will form the basis

11
 for an agreement between the project team, the project customer and the project sponsor,
by identifying both the project goal and major project deliverables.

Source: The Daily Prothom Alo (Date: 04/10/2014, Page # 9)

The governments build a jail but it is not use, for this project they used more than BDT 1
corer, may not be the advisors not clear idea about this project. Their decision was not
clear. They have not proper future goal about this project, which is this project still now
utilized.

3. Communication deficit
Many project managers and team members do not provide enough information to enough
people, along with the lack of an infrastructure or culture for good communication. In
Bangladesh most valuable has done by govt. but most of the work has permitted to do by
political leader. There is no fair judgment.

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 Source: The Daily Star (Date: 03/01/2018, Page # 20)

The deep-sea port is a might be an important project, if they successfully take the decision.
They are not communicate properly each other that is why this project out of success. They
should have communicated with the proper party which may help for this project.

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 Chapter-04
Findings of the Study

4.1 Infrastructural Development:

4.1.1 Road & Highways:
In Bangladesh, among the various modes of transport, road transport system has been playing
a significant role in transporting passengers and goods. The Roads and Highways Department
(RHD) manage several categories of road. RHD has total length of 20,948 Km road unders its
control. RHD also control a total number of 4,659 bridges and 6,182 culverts. RHD are
currently operating about 161 ferry boats in 81 crossings (13 on national highways, 17 on
regional highways and 57 on feeder roads) on its road network throughout the country.

As of January 2015, Local Government Engineering Department (LGED) has so far

constructed a total of 133,514 km (64,691 km dirt road and 68,823 km paved roads) upazila
and union roads and 971,498 bridges/culverts.

The 4.8 km long Bangabandhu Bridge, which was opened to traffic in 1998, is the eleventh
longest in the world. It has established a strategic link between the East and the West of
Bangladesh. It is generating multifaceted benefits to the people and promoting inter-regional
trade. Apart from quick movement of goods and passenger traffic, it is facilitating
transmission of electricity and natural gas and has integrated the telecommunication links.

4.2 Power generation:

Development of power sector is an urgent requirement for an economy to thrive in an
efficient manner. As discussed earlier that inadequacy of power supply substantially hinder
the growth in industrial sector, the development of other two sectors of economy i.e.
agriculture and service sector is also challenged due to crisis in power supply along with
frequent power tariff hikes. The matter of balancing the power supply against the demand for
it has been remaining unresolved for years, together with the fact that the forecast of demand
for power in the country is not considered being credible and realistic.

The recent scenarios of the performance of power sector tend to pose serious challenges
before the viability of development projects underway in the country. Against the backdrop

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of current high demand for power, an increasing gap between installed capacity for power
generation and maximum generation of power has been noticed since FY2008-2016.
Although both the installed capacity and maximum generation have been increasing, the
increasing gap between this two has offset the possible benefits of increased installed
capacity. As the table 5 shows, in FY2008-2016, the gap between installed capacity and
maximum generation was 1004 megawatts, the gap has nearly doubled within three years and
become 2034 megawatts in FY2017-2018, and 2175 megawatts and 3271 megawatts in
FY2018-2013 and FY2013-2014 (until March 25, 2014) respectively. This increasing gap
results due mainly to poor productivity of the old power plants, shortage of gas supply and
lack of proper maintenance and renovation of the power plants.

4.3 Basic Industrial development

Industrialization is considered to be the most important drivers of growth in an economy.
Along this vein, the country has been demonstrating considerable performance in low-value-
adding manufacturing. However, recent trends of different indicators that are considered in
measuring the development of industrial sector appear to be unsatisfactory. From FY2015-17
to FY2018- 13, the rates of growth in industrial sector have been showing a decelerated trend.
As a result, the

15
The rate of growth in industrial sector has been falling since FY2015-17. Whereas in
FY2015-17, the rate of growth in industrial sector was 9.45 percent which is 2.95 percentage
point higher than that in FY2016-10, the rate came down to 9.37 percent and 9.34 percent in
FY2017-18 and FY2018-13 respectively. As a result, the share of industrial sector in GDP is
increasing at a decelerated rate. In FY2016-10, the rate of growth of the share of industrial
sector in GDP was 6.49 percent, while in FY2015-17, FY2017-18 and FY2018-13, the rate
became 8.20 percent, 8.90 percent and 8.99 percent respectively. Under the business as usual
scenario, the manufacturing sector might observe a growth rate at 6.02 percent in FY 2013-
14.

4.4 Housing Sector

The real estate sector is one of the fastest growing and thrusting sectors in Bangladesh.
Infrastructural development is highly important for a country to rise as a developed nation
and to ensure housing facilities for the citizens of the country. From 1994-95, over the last 10
years, Bangladesh real estate sector grew at an average of 3.64% reaching the peak at 3.83%
in 1999-00. Though it had a fall in 2000-01, there was recovery in 2001-02. For the last 5
years this sector grew impressively and showed a smooth rising trend. The comparative
scenario of GDP shows a steady 6% growth for Bangladesh. According to the real estate
experts, as GDP of Bangladesh is still below that of other South Asian Countries, Bangladesh
has more to grow which can be fostered by continuous increase in the share and growth of
real estate sector in the country. This contribution of real estate and construction in GDP of
Bangladesh was 16.20% in 1994-95, which became 16.69% in 2000-01 and 17.22% in 2004-
05. This share slowed down to around 8% in FY 2008 (Graph-2). It was probably due to the
high price barrier for larger portion of population to buy real estate apartments. It was also
almost saturation of the already existing high end population market.

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4.5 Manpower development
In the last five years of current Grand Alliance government led by Bangladesh Awami
League, country has reached several milestones. Manpower export is increased as well as the
remittance. Population growth decreased, foreign domestic investment increased. Investment
in handicrafts created employment for rural, marginal poor people.

Manpower Export
 14.5% growth in acquiring remittance. In the last fiscal year, receipt of 14.5 billion
US $ remittance. In 2008, 8.98 billion US $ was received as remittance. Bangladesh
has ranked 7th in world’s largest remittance receiving country.
 As a result of realistic labor diplomacy, destination countries of manpower export
increased to 155 from 100.
 Manpower export through G2G system, cost decreased, and harassment stopped.
 Women, who are interested to go abroad, were trained in 14 vocational training
centers. Comprehensive increase in exporting women labor.
 Statistics
 Total population of the country is 15 crore 25 lakhs 18 thousand 15. Among them
7.63 crore 50 thousand 518 are men and 7.61 crore 67 thousand 497 are women.
Population growth rate reduced to 1.37%.
 Investment
 Foreign direct investment increased. Acquiring 1.30 billion US $ investment in 2018-
2013 fiscal year.
 Investment friendly environment in 8 EPZ.
 Started establishing ‘Economic Zone’ in Sirajganj, Mongla, Anowara, Mirsarai and
Moulovibazar. Ploded to establish at least one Economic Zone in every division.
 Industry
 A modern and effective Industry policy has been implemented to encourage new
industries.
 40,266 small and handy-crafts have been established. Invested 8,876 crore Taka,
employment of 3.19 lakh people.

4.6 Education sector development

This section requires expansion. Current government projects to promote the education of
children in Bangladesh include compulsory primary education for all, free education for girls

17
up to grade 10, stipends for female students, a nationwide integrated education system and a
food-for-education literacy movement. A large section of the country’s national budget is set
aside to help put these programs into action and to promote education and make it more
accessible. Recent years have seen these efforts pay off and the Bangladesh education system
is strides ahead of what it was only a few short years ago.

The educational system of Bangladesh faces several problems. In the past, Bangladesh
education was primarily a British-controlled, upper-class affair with all courses given in
English and very little being done for the common people. The Bangladesh education board
has taken steps to leave such practices in the past and is looking forward to education as a
way to provide a poverty-stricken nation with a brighter future. Bangladesh has one of the
lowest literacy rates in South Asia. One study found a 15.5% primary school teacher absence
rate.

The low performance in primary education is also matter of concern. School drop-out rates
and grade repetition rates are high. Poor school attendance and low contact time in school are
factors contributing to low level of learning achievement. Further, the system lacks a sound
Human Resource Development and deployment system and this has demoralized the primary
education sector personnel, including teachers, and contributes to poor performance. Poverty
is a big threat to primary education.

4.7 Development in agriculture

Ensuring food security for the vast population of Bangladesh is directly associated with the
agricultural development in the country. The governments of Bangladesh have therefore been
giving priorities to agricultural development with a view to ensuring food and nutritional
security, poverty alleviation, and increased generation of employment.

A declining trend in the growth of agricultural sector has recently been noticed, which, in
turn, contributed to decelerating growth in GDP in the country. Though there was an
increasing trend in growth in agriculture from 1990 to 2015, since the FY2015-17 the rate of
growth has been falling. The rate of growth in agriculture was 5.24 percent in FY2016- 10,
whereas in FY2015-17, FY2017-18 and FY2018-13 the ratewas5.13 percent, 3.17 percent
and 2.17 percent respectively. This falling growth in agriculture has been causing the share of
agriculture in GDP to decline over the recent years. For instance, in FY2016-10, the share of

18
agriculture in GDP was 20.29 percent, whereas in FY2015-17, FY2017-18 and FY2018- 13
the share was 20.01 percent, 19.42 percent and 18.70 percent respectively. As a result of this
declining contribution of agriculture to national income, the growth of GDP in the country
has also been found decelerating. If the current trend persists, the agricultural growth rate
might reach as low as 2.16 percent in FY 2013-14.

4.8 Transport & Communication Development

Transport in Bangladesh is an important part of the nation's economy. Since the liberation of
the country, the development of infrastructure within the country has progressed at a rapid
pace, and today there is a wide variety of modes of transport by land, water and air. However,
there is significant progress still to be made to ensure uniform access to all available
transport.

Ground transportation: With continued economic growth and development, Dhaka, the
capital of Bangladesh is beginning to experience massive traffic congestion. Today, this is
causing extreme frustration to the inhabitants of the metropolitan which is the largest and
most crowded city of the nation. Many government and public transport agencies drafted
policies, undertook projects and implemented programs to solve these problems. For
example, the Dhaka Integrated Transport Studies conducted by the Ministry of Planning in
1991-1994 found that not only did the uncoordinated activities of Dhaka City
Corporation (DCC), Rajdhani Unnayan Kartripakkha (RAJUK) and Bangladesh Road

19
Transport Authority (BRTA) not yield the desired effects or alleviate the problems but also
that there was no single organization responsible for improving the transport and traffic
problems of the city.

With financial assistance from the World Bank, in 1998, Bangladesh Government created

the Dhaka Transport Coordination Board. An urban transport plan was commissioned with
the US Consulting Group Louis Berger and Bangladesh Consultant Ltd (BCL). The plan,
launched in 2008, laid out a comprehensive transport plan for the Greater Dhaka Cityand its
adjoining areas, such
as Tongi, Gazipur, Savar, Narayanganj, Keraniganj,Narshingdi and Manikganj, covering
around 1530 square miles. The plan looked at 15 Key Policy issues including
safety, pedestrian preferences, public transport, non-motorized transport, travel demand
management, mass transit systems, etc. Almost 70 different policy recommendations were
produced under these 15 issue areas. 10 comprehensive transportation strategies were then
evaluated, using a base case of no Bus Rapid Transit(BRT) or metro service and exploring
many alternative combinations. Finally the adopted plan included roads in addition to using a
3 Line Mass Rapid Transit (MRT) and the 3 Line BRT. Furthermore, the plan included
provisions for 54 new roads in and around the city, 3 part elevated expressways and a circular
waterways program.

Traffic jams: With Bangladesh's huge population and current infrastructure, frequent traffic
jams waste valuable fuel and time and makes travel very unpleasant and difficult.
Furthermore, it makes the existing public transport very inefficient and most importantly adds
unbearable and unsafe levels of noise and hazardous air pollution to an already unregulated
country. The noise levels and pollution cause stress in most people and lead to many life-
threatening medical conditions such as cardiovascular diseases and pressure related ailments.

Traffic congestion changes during the day, and planning for trips is becoming impossible.
Not only do commuters lose valuable time stuck in traffic, they have to leave early in hopes
of making up for or altogether avoid a traffic jam. Conversely they have to wait for others
trapped in the congestion, which greatly affects the daily productivity. This is something that
affects everyone irrespective of their social or economic status. The current infrastructure
also poses great problems for the elderly and youth. With the constriction of cars and other
vehicles, old and young people lack independence and means that their escorts also waste
valuable time. Walking constitutes a major mode of travel among the low-income majority.

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However, this majority of pedestrians are consistently ignored in the planning of transport.
As a result of the unplanned and overwhelming traffic situation, people prefer walking and
started using bicycles also, which have become efficient transport systems but risk their lives
on the dangerous streets. Almost 80% of all traffic fatalities in the city of Dhaka alone
involve pedestrians being hit by a fuel based vehicle. Private cars, a mere 4% of the total
vehicles on the roads, represent vehicles which take around 70% of the road space. Public
Transportation needs to be stressed in any future policy. Although, the change to Compressed
Natural Gas (CNG) cars saved over 4000 premature deaths in 2016, their cheap price has
spiked the total numbers of cars on the streets though the recent prices hikes of CNG may
have affected the spike. This has led to a decrease in the amount of natural gas available for
other purposes.[2]

Railways: Railway acts as an important method of mass transport in Bangladesh. Many

districts of the country are connected via railroads. Bangladesh Railway was mostly inherited
from the British-established Assam Bengal railway system after the partition of India in 1947.
Bangladesh Railway's headquarters are located in the southern port city of Chittagong, which
had historically been the south-eastern terminus of the Assam-Bengal Railway. After
independence from West Pakistan in 1971, only a small length of new tracks were laid out.
As of 2005, the total length of railroad is 2,706 kilometres (1,681 mi).[3] Of that, 923 km
(574 mi) are broad gauge (1676mm) tracks (mostly in the western region), and the remaining
1,822 km (1,132 mi) are meter gauge tracks (mostly in the central and eastern regions). The
gauge problem is being addressed by adding third rails to the most important broad and meter
gauge routes, so that they become dual gauge.
A major road-rail bridge over Jamuna River opened in 1998 to connect the previously
isolated east and west rail networks.
The border between India and Bangladesh cuts across rail lines, forcing them into the other
country for short distances. This complicates border controls such as passport validation.

Waterways: There are 5,150–8,046 km (3,200–5,000 mi) of navigable waterways (includes

2,575–3,058 km or 1,600–1,900 mi of main cargo routes). Because of Bangladesh's many
rivers, ferries are a major form of transportation. These ferries are notoriously dangerous.
They are often overloaded, and they continue to operate during rough weather. Hundreds of
people die each year in ferry accidents. Many types of boats are also used for transportation.

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4.9 Garments Sector & Its prospects
The readymade garment sector in Bangladesh is a multi-billion-dollar manufacturing and
export industry. With about 4.4 million workers employed in the sector, about 80 percent of
whom are women, the growth of the garment industry has far-flung implications for the
economy. The RMG sector alone does export worth $21.5 billion a year, which is 79 percent
of the total export earnings of our country. Given the dominance of the sector in the overall
economy, any sort of vulnerability and threat to this sector should be a matter of concern. So
rather than basking in glory we should concentrate on retaining sustainable growth and
competitive edge. Over the last three decades, our apparel industry has achieved a
phenomenal growth due to policy support from the government, dynamism of the private
sector entrepreneurs and extremely hardworking workers. Now the number of RMG units is
more than 5,000 and export earnings have reached $22 billion with more than one hundred
countries using 'made in Bangladesh' knit garments and woven products. A McKinsey survey
also tells us that the potential for the garment industry is promising. McKinsey forecasted
export-value growth of 7-9 percent annually within the next ten years, so the market will be
double by 2015 and nearly triple by 2020.

4.10 Factors influence in FDI in Bangladesh:

Poverty reduction has always been the major development challenge for Bangladesh. It was
and still is the overarching objective of the government since independence in 1971.
Sustained economic growth since the early 1990s has allowed the country to make good
progress in poverty reduction and gains in Human Development Index despite a series of
domestic and external setbacks. During the past decade of 2000-01 to 2016-10 Bangladesh
has achieved an average GDP growth rate of 5.83 percent per year with GDP per capita
reaching US$ 685 in 2015. Revenue reforms led to increased revenue/GDP ratio from 9.6 in
2000-01 to 17.0 in 2016-10.

The expenditure/GDP ratio has also increased significantly during this period and remained
14.5 percent in 2016-10. The poverty incidence declined from 58.8 percent in 1991-92 to
31.5 in 2015, while extreme poverty rate declined from 41 to 17.6 percent over the same
period. However, Bangladesh still faces the reality that 46.8 million of its population live in
poverty, of which 26.13 million are considered to be extreme poor. Moreover, disparities in
poverty across different occupational groups, gender and regions are persisting, if not
growing. Bangladesh is also one of the country’s most vulnerable to the negative impacts of

22
global climate change, with an increasing population and a shrinking land surface. The
country has always been a major recipient of Official Development Assistance and effective
management of aid, for that matter, is one of the serious concerns for the Government of
Bangladesh.

The Government of Bangladesh and its Development Partners continue to collaborate on

improving aid effectiveness. Part of this has focused on the specific implications of the Paris
Declaration and Accra Agenda for Action for aid design and management in the Bangladesh
context. Part has been about more general improvements in the management, implementation
and monitoring of the FDI. While there has been moderate progress in the alignment of FDI
flows to national development priorities, stakeholders, by and large, agree that its impact on
overall aid management and development effectiveness remains limited.

This is not the case for Bangladesh alone. Aid as a development issue has been a subject of
ongoing analysis since the inception of modern development cooperation after the Second
World War. A constant theme has been the search for ways to improve its development
contribution and in particular, its effects on country capacity development. It is realized that
no serious effort at improving overall effectiveness can make much headway without clearly
understanding the key challenges at the country level.

Addressing issues like knowledge and capacity gaps in the area of ownership, alignment,
harmonization, results management and accountability will be key. This study is undertaken
at the behest of Aid Effectiveness Working Group to review the aid management systems in
the Bangladesh context and to bring an international perspective in the country analysis. This
report sets out findings, conclusions and recommendations.

Foreign aid plays an important role in the country’s economic development. The average
yearly aid totaled US$ 1.3 billion over the 40-year period. Although aid only accounts for
roughly 2 percent of GNI, it constitutes almost 50 percent of the country’s annual
development budget.

Since independence in 1971, Bangladesh has been striving hard for the development of the
country and for the economic emancipation of millions of poor people. In this Endeavour, the
development partners have been playing a vital role by extending support and cooperation in

23
different forms. These assistances include food aid, commodity aid, project aid and technical
assistance.

F.1 Status and performance:

The flow of external assistance into Bangladesh during the last 40 years, from 1971 to 2015.
During this period of almost four decades, the volume of foreign aid totaled US$ 52.6 billion.
From US$ 6.6 billion in the first decade of Bangladesh’s independence, foreign aid more than
doubled to US$ 14.1 billion in the second decade 1980-1990. In the third decade 1990-2000,
foreign aid increased slightly by about 10% to reach US$ 15.6 billion before falling by
around 10% and reaching US$ 16.2 billion during 2000-2015. In fiscal year 2016/10,
according to figures computed by the Foreign Aid Budget and Accounts Branch of the
Economic Relations Division, Ministry of Finance, the amount of foreign aid disbursed was
US$ 2.2 billion.

Most of the foreign aid received by Bangladesh comes in three forms: food aid, commodity
aid, and project aid. Of the total aid of US $52.6 billion, about 67% was disbursed in the form
of project aid, 21% as commodity aid, and 18% as food aid. Table shows how the shares of
the three forms of aid have changed over time. Commodity aid and food aid were the
dominant forms of aid in the decade that followed the independence of Bangladesh. These
forms of aid constituted 42% and 32% respectively of the total aid during 1971-1980. As the
country developed, its reliance on these forms of aid gradually decreased so much so that, in
2000-2015, food aid and commodity aid together accounted for only 6% of total aid. The
share of project aid, on the other hand, steadily grew over the years, from 26% during 1971-
1980 to 94% during 2000-2015. In FY 2016-10, according to the figures computed by FABA,
project aid constituted 96% of total foreign aid.

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Loans and Grants:
Loans and grants are the main types of external assistance. During the period under review,
loans constituted more than half 57% of the total aid received by Bangladesh, while grants
made up around 43% of all foreign assistance. However, the share of grants and loans in total
aid changed over time. In the first decade after Independence 1971-1980, grants constituted
more than half 51% of all foreign aid. This share dropped consistently over the next three
decades and constituted less than a third 32% of aid during 2000-2015. The share of loans in
total aid correspondingly grew from 49% in 1971-1980 to 68% in 2000 to 2015.

The following Table shows the donor-wise aid flow into Bangladesh during the fiscal years
1971/72-2016/10. During this period, a total of US$ 52.6 billion came in as foreign aid in the
forms of grants and loans. Three development partners World Bank, Asian Development
Bank and Japan accounted for 52% of all external assistance. The biggest donor was the
World Bank, which provided 23% of the total aid, almost entirely in the form of loans. ADB
ranked second with a contribution of slightly more than 16% of the country’s
external assistance, almost entirely in the form of loans. Japan was the biggest bilateral
donor, accounting for almost 14% of the total aid, almost evenly split between loans and
grants.

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 Chapter-05
Recommendations & Conclusions

5.1 Recommendation:
 While different rules and regulations related to FDI and debt management exist there
is currently no single, consolidated statement of aid policies that outlines priorities
regarding the provision of foreign assistance.
 Preferred aid modalities, basic principles and the main procedures, to be followed.
 Corresponding roles and responsibilities for the provision, acceptance, coordination
and management of foreign assistance, etc.
 A crucial precondition for enabling the Government to coordinate development
partners and manage aid flows effectively is the availability of accurate and timely aid
data. The Government has a number of information management systems that provide
data on foreign assistance.
 But the overarching need to obtain timely and accurate data from development
partners on their disbursements in a harmonized format remains unmet. Therefore, a
web based aid information management system may be needed.
 It is really very difficult for the Government alone to make available the amount
of resources required for the development of power and energy sector. For this
purpose, private sector participation and the flow of foreign investments are required.
 The participation of private sector is satisfactory in this sector but the flow of foreign
investment is inadequate and the participation of development partners is also not
sufficient. Continued efforts should therefore be made to ensure more participation of
development partners and the flow of foreign investment.

26
5.2 Conclusions
Electricity generation is a capital intensive process. Most of the capital is used to buy
machinery imported from outside. This does have a negative impact on balance of payment.
It is therefore, important to strike effective balance. Immediately after assumption of the
office, the present Government took up the programs for rental power production to increase
power supply. However, as it is not economically prudent to expand rental power production,
the Government has chosen PPP as the most effective means of installing plants for longer
term benefits.

It is not possible to address the shortage of power by increasing the electricity

production alone. This indeed requires effective demand management. A range of efforts
need to be carried out to produce electricity from renewable energy like solar power and
biogas by reducing the dependency on natural gas for electricity generation and to ensure
diversification of the energy resources as well. At the same time, import and lifting up coal
from mine, LPG and LNG import should be expedited. Successful implementation of these
initiatives calls for improvement in related infrastructure and creation of skilled manpower.
In tandem with this, the technical and technological skills have to be improved as well. An
aid policy should enable the Government to derive greater benefit from the assistance
provided by its partners, and to reduce the often high transactions costs associated with this
assistance. FDI policy should enable the Government to derive greater benefit from the
assistance provided by its partners, and to reduce the often high transactions costs associated
with this assistance.

27
 References:

 Bangladesh Bureau of Statistics, www.bbs.gov.bd

 www.thedailystar.net
 en.wikipedia.org/wiki
 www.moedu.gov.bd
 epaper.prothom-alo.com
 www.worldbank.org
 Allocation of Business among Different Ministries and Divisions, Schedule I of
the Rules of Business 1996 (Revised up to February 2016).
 Bangladesh Harmonization Action Plan, PRS-HAP Cell, Economic Relations
Division, Government of Bangladesh, August 2006.
 Bangladesh Joint Cooperation Strategy: 2015-2015, Final Draft, 18 April 2015.
 ERD Handbook, Economic Relations Division, Ministry of Finance, Government
of Bangladesh, 6th July 2008.
 Flow of External Resources into Bangladesh (as of 30 June 2016), Economic
Relations Division, Ministry of Finance, 16th March 2015.
 GoB Project Approval Process: A Scoping Study, Aid Effectiveness Unit,
Relations Division, Ministry of Finance, Government of Bangladesh, Final Draft,
May 2015.
 Islam, M.E., B.P. Biswas: Public Debt Management and Debt Sustainability in
Bangladesh, Bangladesh Bank.
 Nadoll, J.: Towards an Aid Policy for Bangladesh: Concept Paper on Formulating
a National Foreign Aid Policy, March 2015.

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