Bangladesh

Bangladesh geographically is a blesse land with all natural resources like fertile soil, ample water,
forests, coal, petroleum reserves and much more. It was the trade hub during the regime of Mughals.
Bangladesh (ex-east Pakistan) came into form after the war of 1971. When Pakistan was amputated into
two parts. Zulfiqar Ali Bhutto taking on West Pakistan (Contemporary Pakistan) and Sheikh Mujibur
Rehman of Awami League formed the regulatory body of East Pakistan (Bangladesh). Previously (as
Pakistan since 1947) Bangladesh’s economy badly suffered and a West Pakistan’s politicians are accused
of undermining the Bangladesh’s economy by swallowing all the export earnings of Bangladesh. The 5
year plan for the ameliorating the economy barely focused on East Pakistan, as their main focus was on
Industry, perhaps the rural and agriculture were deprived of these supports. Secondly, the floods and
cyclones further ruined the economy. As it almost accounted for 250,000 deaths in the country with
eroding all the industrial efforts. Lastly, after the formation, Mujib ratified the socialist movement by
nationalizing the industries; this effort totally deteriorated the economy. However Indian government
assisted them in those phase of ferment by aiding them almost US$232million within a year.

Bangladesh soon realized the inefficiencies that prevailed due to the implementation of Nationalization,
perhaps in 1975 the government started to rotate it towards the private sector to reap greater
efficiencies and revenues. Many Industries like banking, telecommunication, aviation, media, and jute
were partially and completely privatized which resulted in enormous benefits. The positive signs were
witnessed and consequently in mid-1980’s the economic policies aimed at encouraging private
enterprise and investment, privatizing public industries, reinstating budgetary discipline, and liberalizing
the import regime were accelerated. However there were yet some political lags which hampered the
economic growth of Bangladesh. The economy was perplexed with the domestic troubles and it
constrained to follow the ESAF (enhanced structural adjustment facility) plan by IMF in 1990’s. In 1989,
it signed a bilateral investment treaty with the United States, it established a Board of Investment to
simplify approval and start-up procedures for foreign investors, although in practice the board has done
little to increase investment.

A bigger jolt was when Bangladesh witnessed a large decline in the foreign direct investment in 2000-01
and it was the consequence of the earlier economic policies. However the phase revolution started with
21st century as the table below delineates. Between 2003 and 2006 Bangladesh got almost $490 million
from IMF for Poverty Reduction and Growth Facility and $536 million interest free loan from World
Bank. This lead to an annual approximate GDP growth of almost 6.5%. Bangladesh simultaneously
pursued export-oriented industrialization, with its key export sectors include textiles, shipbuilding, fish
and seafood, jute and leather goods. They offer a range of incentives to potential investors including 10-
year tax holidays, duty-free import of capital goods, raw materials and building materials, exemptions on
income tax on salaries paid to foreign nationals for three years and dividend tax exemptions for the
period of the tax holiday. Many multinationals intended to set up in the Bangladesh as the government
endorsed foreign direct investment and the reforms were favoring the incomers. Especially in the period
of global recessions Bangladesh became a hub for all the investments as it was probably the highest
profit reaping destination in that recession period. The Dhaka Stock Exchange crossed $10 billion, $30
billion and $50 billion investment in 2007, 2008 and 2009 respectively. As a result the major business
ventures eyed towards Bangladesh in 2011 onwards due to such lucrative outcomes. Saudi Arabia
became interested in investment in oil, gas, power in both private and public sector, UAE was interested
in Shipbuilding sector, TATA industry of India wanted to land for automobile industry and Rwanda
Enterprises for Pharmaceuticals. Samsung also placed an investment of almost $1.25 billion after buying
500 industrial plots in EPZ with the aim of making it electronic hub. This was one of the major reason for
Bangladesh’s revolution. Industries like telecommunication, banking, petroleum and food have
witnessed a rapid growth mainly due to the multinational companies. In 2011, Japan Bank for
International Cooperation ranked Bangladesh as the 15th best investment destination for foreign
investors

Bangladesh has built strong links with Northeast India, Nepal, and Bhutan as their seaport provide
maritime access for these landlocked regions and countries. Apart from the fertile soil, ocean has
naturally played an integral part in boosting Bangladesh’s revenues. Even China, Tibet, Sichuan and
Greece are also interested in Bangladesh.

Inflation Per Capita

Gross Domestic Product (Million US Dollar
Year Index Income
Taka) Exchange
(2000=100) (as % of USA)

1980 250,300 16.10 Taka 20 1.79

1985 597,318 31.00 Taka 36 1.19

1990 1,054,234 35.79 Taka 58 1.16

1995 1,594,210 40.27 Taka 78 1.12

2000 2,453,160 52.14 Taka 100 0.97

2005 3,913,334 63.92 Taka 126 0.95

2008 5,003,438 68.65 Taka 147

TRADE

Agriculture has been an integral part of Bangladesh’s revenues since it came into shape. The main crops
include rice, jute, tea, maize, vegetables and seafood. The climatic conditions of Bangladesh are ideal for
any crop. This is the reason that rice can be grown thrice a year. The availability of ample water and
fertile soil are the keys for these crops. Overtime the expansion of irrigational network has led to many
wheat producer switching to maize. These factors leaves a scarcity of wheat perhaps the imports are
used to fill this gap. Bangladesh has almost reached pinnacle of agriculture sector with employing almost
half of the rural population. However the lack of technological advancements and volatile seasons are
the main constraining factors in the growth. The seasonal hunger “monga” and the aggrandizing
population makes it to difficult for government to mitigate it. Lack of education and awareness is an
important factor, the peasants are oblivious of the lucre that could be reaped by investing in technology
and quality fertilizers. Other Bangladeshi food crops, however, are grown chiefly for the domestic
market. They include potatoes and sweet potatoes, with a combined record production of 1.9 million
tons in FY 1984; oilseeds, with an annual average production of 250,000 tons; and fruits such
as bananas, jackfruit, mangoes, and pineapples. Estimates of sugarcane production put annual
production at more than 7 million tons per year, most of it processed into a coarse, unrefined sugar
known as gur, and sold domestically.

Amongst the manufacturing the industry, the core competency is garments sector. The industry
employed almost employed 1.5 million workers with majority women. The start of 21 st century brought
high yielding prospects for the industry; during 2001-2002, 52% of Bangladesh’s exports accounted for
garments sector. The end of textile and clothing quotas, under the Multifibre Agreement, in early 2005
reaped greatest outcomes for Bangladesh. Bangladesh was able to overtake many superior countries
with it. There was almost 24% growth in the sector following the treaty. The quality of fabric (especially
knitwear) and there prices were the factors that took it too far. In 2009 Bangladesh had the revenues of
2.66 billion dollars whereas, India had 2.27 billion dollars. Further the garments got recognition when
the US cap restricts growth in imports of Chinese textiles to 12.5 per cent next year and between 15 and
16 per cent in 2008. The EU deal similarly manages import growth until 2008. This gave Bangladesh a
scope to expand exponentially. The construction of EPZs (Export Processing Zone) and provision of
business friendly by prohibiting labor unions in EPZs were main confidence booster for the domestic and
international producers. The agency currently manages EPZs in Adamjee,Chittagong, Comilla, Dhaka,
Ishwardi, Karnaphuli, Mongla, and Uttara. An EPZ has also been proposed for Sylhet However the
government also takes care of the labor rights. Under the memorandum signed with UNICEF there was
to be no child labor in garment sector and they almost eliminated it till 1999. The latest minimum wage
rate was set on 28 July 2010 would be increased to 3,000 taka, about $43. (2nd last para of apparel
sector) On 21 September 2006 then ex-Prime Minister Khaleda Zia called on textile firms to ensure the
safety of workers by complying with international labour law at a speech inaugurating the Bangladesh
Apparel & Textile Exposition (BATEXPO).

APPAREL SECTOR !!!!!!!!!!

The availability of low cost and good quality factor like labor and raw material has been an important
facet in Bangladesh’s industry, especially in shipbuilding. Bangladesh has allocated almost half of its
steel and almost 200,000 workers for this. With Chittagong Ship Breaking Yard being the second largest
in the world and Khulna Shipyard serving international customers and domestic (including Navy and
Army) makes Bangladesh the world’s largest ship breaking industry.
 Bangladesh's textile industry accounts for $21.5 billion in 2013 – 80% of Bangladesh's total exports of
$27 billion. Other industries which have shown very strong growth include the pharmaceutical industry,
shipbuilding industry, information technology, leather industry, steel, and light engineering industry.

EDUCATION:

The educational system in Bangladesh is three-tiered and highly subsidized. The government

of Bangladesh operates many schools in the primary, secondary, and higher secondary levels. It also
subsidizes parts of the funding for many private schools. As per the constitution of Bangladesh it is the
responsibility of state to provide free education for the students aging between 6 and 18. The
government is also giving stipends to female students to promote education attainment. The overall
responsibility of management of primary education lies with the Ministry of Primary and Mass Education
(MOPME), set up as a Ministry in 1992. The responsibility of school construction, repair and supply of
school furniture lies with the DPE executed through the Local Government Engineering Department
(LGED). The National Curriculum and Textbook Board (NCTB) is responsible for the development of
curriculum and production of textbooks.

The Directorate of Primary Education (DPE) is solely responsible for management and supervision of
primary education and secondary education is controlled by seven Education Boards covering various
regions. All these 8 regions are responsible for conducting the four public examinations, Primary School
Certificate (also Primary Education Completion Examination) (PSC), Junior School
Certificate (JSC), Secondary School Certificate (SSC) and Higher Secondary School Certificate (HSC), in
addition to granting recognition to non-government secondary schools. There are some NGOs who are
working for the welfare of society. These schools are endorsed by government to enhance the facilities.
As usually the NGOs lack resources and they are barely able to provide education till class 5 and
ultimately they either rotate towards government or private education sector or end their studies who
can’t afford. These NGO’s mainly target the vulnerable societies. The largest NGO program is the much
reputed BRAC program.

Bangladesh also have a substitute education system run by British Council providing O and A level
facilities in place of 9th,10th and 11th,12th respectively. This is a new but highly appreciated type of studies
since it’s becoming a universal education system. British council also provides subject of Bengali and
Bangladesh studies. These are usually provided by the private sector and are comparatively expensive
than the normal ones. Bangladesh government has showed a great concern over the education
attainment as previously they were facing issues regarding the literacy rate but in the latest time they
are providing even free books from class 5-12. They are even trying to provide internet classes. One of
the major containing factor is the poverty, some parents prefer jobs for the adolescents and lack of
quality resources in government sector also makes it difficult. The lack of human development sector
leads to inefficiency of teachers and ultimately this transfers into students.

Tertiary sector is also an important segment. As after the completion of intermediate or 12 th class the
students enroll themselves for undergraduate and then post-graduation courses. Bangladesh possesses
37 government, 80 private and 3 international universities. There are plenty of fields like CA
(accountants), doctors, engineers etc provided by universities like BUET (Bangladesh University of
Engineering and Technology), (IUT) Islamic University of Technology, Bangladesh National University,
University of Dhaka, University of Chittagong and many more. The colleges providing tertiary education
are under the National University. Each of the medical colleges is affiliated with a public university.
Universities in Bangladesh are autonomous bodies administered by statutory bodies such as Syndicate,
Senate, Academic Council, etc. Moreover there are some religious universities and education system too
known as Madrasah. It refers to the Islamic education system, taught in Arabic and Bengali mainly. This
is run by Deobandi system. After passing 'Alim' (12th Grade), student can enroll in for 3 years long study,
for obtaining a 'Fazil' level (14th Grade), they can further enroll into another 2 years long study system
to obtain a 'Kamil' level (16th Grade) degree. In Bangladesh, the population is very high. The number of
seats available in colleges is less than the number of students who want to enroll, and the number of
seats available in universities is also less than the number of students who passed higher secondary level
and want to join in a university. Besides, the cost of education is increasing day by day, as a result many
students are unable to afford it.