Introduction:

An economy (from Greek οίκος – "household" and νέμoμαι – "manage") is an area of

the production, distribution and trade, as well as consumption of goods and services by different
agents. Understood in its broadest sense, 'The economy is defined as a social domain that
emphasize the practices, discourses, and material expressions associated with the production,
use, and management of resources'. A given economy is the result of a set of processes that
involves its culture, values, education, technological evolution, history, social organization,
political structure and legal systems, as well as its geography, natural resource endowment, and
ecology, as main factors.
The economy of Bangladesh is a developing market economy. It’s the 39th largest in the world
in nominal terms, and 30th largest by purchasing power parity; it is classified among the Next
Eleven emerging market middle income economies and a frontier market. In the first quarter
of 2019, Bangladesh's was the world's seventh fastest growing economy with a rate of 7.3%
real GDP annual growth. Dhaka and Chittagong are the principal financial centers of the
country, being home to the Dhaka Stock Exchange and the Chittagong Stock Exchange. The
financial sector of Bangladesh is the second largest in the Indian subcontinent. Bangladesh is
one of the world's fastest growing economy.

The Beginning:
Ancient Bengal
East Bengal—the eastern segment of Bengal—was a historically prosperous region. The
Ganges Delta provided advantages of a mild, almost tropical climate, fertile soil, ample water,
and an abundance of fish, wildlife, and fruit. The standard of living is believed to have been
higher compared with other parts of South Asia. As early as the thirteenth century, the region
was developing as an agrarian economy. Bengal was the junction of trade routes on the
Southeastern Silk Road.
Bengal Sultanate
The economy of the Bengal Sultanate inherited earlier aspects of the Delhi Sultanate,
including mint towns, a salaried bureaucracy and the Jagirdar system of land ownership. The
production of silver coins inscribed with the name of the Sultan of Bengal was a mark of
Bengali sovereignty. Bengal was more successful in perpetuating purely silver coinage than
Delhi and other contemporary Asian and European governments.
There were three sources of silver. The first source was the leftover silver reserve of previous
kingdoms. The apparent vibrancy of the Bengal economy in the beginning of the 15th-century
is attributed to the end of tribute payments to Delhi, which ceased after Bengali independence
and stopped the outflow of wealth.
All large business transactions were done in terms of silver taka. Smaller purchases involved
shell currency. One silver coin was worth 10,250 cowry shells. Bengal relied on shiploads of
cowry shell imports from the Maldives. Native crops included rice and sesame. Vegetables
included ginger, mustard, onions, and garlic among others. Europeans referred to Bengal as
"the richest country to trade with". Merchants from around the world traded in the Bay of
Bengal. Cotton textile exports were a unique aspect of the Bengali economy.
 British Bengal
The British East India Company, that took complete control of Bengal in 1793 by abolishing
Nizamat (local rule), chose to develop Calcutta, now the capital city of West Bengal, as their
commercial and administrative center for the Company-held territories in South Asia.The
development of East Bengal was thereafter limited to agriculture. The administrative
infrastructure of the late eighteenth and nineteenth centuries reinforced East Bengal's function
as the primary agricultural producer—chiefly of rice, tea, teak, cotton, sugar cane and jute —
for processors and traders from around Asia and beyond.

Economy of Bangladesh
 The market-based economy of Bangladesh is the 41th largest in the world.
 According to the IMF, Bangladesh's economy is the second fastest growing major
economy of 2016, with a rate of 7.1%.
 Dhaka and Chittagong are the principal financial centers of the country.
 It is now the 47th largest economy in terms of GDP size (World Bank, 2015)

Economic Overview
1. Bangladesh is a low-income country, and its gross national income per capita of $2,173
in fiscal year 2019 (FY2019; the fiscal year in Bangladesh ends on June 30) was
significantly below the South Asian average of $3,533. Annual economic growth
averaged 5.6% during FY2015 – FY2019, and real gross domestic product (GDP) per
capita grew at a rate of 4.0% a year during the same period. This growth was slower
than the rates in neighboring countries, but it nonetheless reduced the incidence of
poverty from 72.2% in the 2010 to 43.7% in 2019. Real GDP growth during FY2009 –
FY2019 averaged 6.2% per year. Manufacturing (9.1%) and services (5.9%) were the
fastest growing sectors.

2. The Bangladesh economy is dominated by the services sector. It accounted for 56.3%
of GDP in FY2019, followed by industry (28.1%) and agriculture (15.5%).
Manufacturing, a subset of the industry sector, accounted for 17.6% of GDP. Based on
a steady expansion in garment exports and rising private consumption, GDP growth is
expected to edge up and reach 6.7% in FY2018 and 6.9% in FY2017. Industry is
expected to be the driver and expand by 9.8% in FY2016 and 10.0% in FY2017. The
industry sector’s growth will be led primarily by the readymade garments (RMG)
industry, which will benefit from an improvement in its safety and compliance
standards and stronger external demand. Two-thirds of the country’s 161 million people
live in rural areas and are directly or indirectly dependent on the agriculture sector, and
2 million people join the labor force every year. This makes growth in manufacturing
critical to providing employment and moving workers away from informal economic
activities with low productivity.

3. As of October 2019, Bangladesh had a Ba3 (foreign currency) rating from Moody’s
Investor Service and ratings of BB– from both Standard and Poor’s and Fitch Ratings.
Major economic sectors
1. Agriculture
2. RMG
3. Foreign remittance
4. Ship building Industry
5. Pharmaceuticals

Different Major Government & Private economic sectors:

Government or Public Sectors Private Sectors
Agriculture RMG
Rural Development Telecommunication
Taxes on demerit goods Trade and Export
Gov’t provision of public goods Ship building industry
Forestry Pharmaceuticals
Tourism Foreign remittance
Jute Textile
Power generator Shrimp
Railway Shoe
Paper Leather
Steel Cosmetics
Fertilizer Plastic products etc.

GPD of different Economic sectors:

Sectoral Shares of Gross Domestic Product 2015-16 2016-17 2017-18 2018-19

(GDP) of Bangladesh
A) Agriculture 14.77 14.17 13.82 13.32

Agriculture and forestry 11.55 10.98 10.68 10.25

Crops & horticulture 8.15 7.69 7.48 7.12

Animal Farmings 2.01 1.93 1.86 1.79

Forest and related services 1.39 1.37 1.34 1.35

Fishing 3.22 3.19 3.14 3.07

B) Industry 28.77 29.32 30.17 31.15

Mining and quarrying 1.73 1.83 1.83 1.82

Natural gas and crude petroleum 0.65 0.64 0.62 0.58

Other mining & coal 1.08 1.18 1.2 1.24

Manufacturing 17.91 18.28 18.99 19.89

Electricity 1.12 1.09 1.07 1.04

Gas 0.26 0.24 0.24 0.22

Water 0.07 0.07 0.07 0.07

Construction 7.67 7.81 7.98 8.12

C) Service 56.46 56.5 56 55.53

Hotel and restaurants 1.04 1.03 1.04 1.04

Transport, storage & communication 10.27 10 9.61 9.34
Land transport 7.76 7.64 7.38 7.22
Water transport 0.62 0.59 0.55 0.51
Air transport 0.08 0.07 0.07 0.07
Support transport services, storage 0.49 0.47 0.46 0.44
Post and Tele communications 1.32 1.24 1.16 1.1
Financial intermediations 3.86 3.91 3.93 3.89
Monetary intermediation (banks) 3.27 3.34 3.37 3.35
Insurance 0.38 0.36 0.34 0.34
Other financial auxilliaries 0.21 0.21 0.22 0.21
Real estate, renting and business activities 7.51 7.73 7.82 7.87
Public administration and defence 4.05 4.19 4.24 4.09
Education 2.82 3.04 3.03 3.02
Health and social works 2.11 2.08 2.07 2.15
Community, social and personal services 11.79 11.46 11.11 10.78
Contribution to the development of socio-economic condition:
 At present the power boost of economic development comes from the private
companies. They are in fact playing a vital role to keep pace with global economy.
 Garments industry is one of the greatest business sectors of Bangladesh. These
industries reduced the unemployment problem of our country a lot.
 These development also reduced rapid birth rate problem of Bangladesh.
 By increasing of different economic sectors and job sector, it reduces the crime and
drug addiction of youth a lot.
 Our industries helps also uneducated labors to be self-reliant by doing works in these
industries.
 The financial sector is truly the backbone of the economy. Much of the financing for
many private or public enterprises is granted by the banks.
 The country needs 400 MW power each year to fulfill the demands. It is tough for the
government alone to provide That is why in 1996, GOB decided to let private sectors
build power plants and Since then the private sector has been providing the sponsorship
for the development of power generation of Bangladesh.
 Many private airlines are in regular service and flies to distant places. e.g: United
Airways made a profit of US$15 million in 2012-13.
 Pharmaceutical businesses established social welfare of the investors & employees
leading to enlargement of wealth.
 Garments industry is one of the greatest business sectors of Bangladesh. These
industries reduced the unemployment problem of our country a lot.
 These development also reduced rapid birth rate problem of Bangladesh.
 By increasing of different economic sectors and job sector, it reduces the crime and
drug addiction of youth a lot.
 Our industries helps also uneducated labors to be self-reliant by doing works in these
industries.
 The real estate has emerged as a significant sector of Bangladesh economy. This sector
has been contributing about 15% to Bangladesh's gross domestic product (GDP) along
with 2.5 million employment opportunities.
 Many private schools, colleges & universities have been developed in the cities which
provide students opportunities to complete their education. The big amount of money
which is collected from tuition fees is used in other sort of businesses.
 The strong private sector is the key to attract local and foreign investments,
Entrepreneurship and technological innovation for a rapid economic growth.
 Without private investments, jobs and economic opportunities for the thousands of
people cannot be ensured.
Opportunities for emerging or new sector:
i) IT Sector: The future of ICT in Bangladesh is exceptionally bright in the sense of
growth prospects, further enhanced by the government's initiative of creating a
Digital Bangladesh by 2021. In 2018, the fiscal budget for IT development alone
was $988m showing commitment to developing this sector.
ii) Handy craft: The possible most important industries in Bangladesh in early and
medieval times comprised handicrafts and cottage industries. Prominent amongst
them were textiles, metal works, jewelry, wood works, cane and bamboo works,
and clay and pottery. Later, jute and leather became the major raw materials for
handicrafts. The result is a fascinating variety of baskets, pottery, wall hangings,
handbags, travel kits, toys, ashtrays, carpets, embroidered quilts, and so on.
iii) Jute Goods: Shrimp farming has emerged one of the important liable economic
activities in Bangladesh. Shrimp aquaculture in coastal areas plays a major role
providing employment, income and food security to remote coastal people where
alternative livelihood options are limited.
iv) Online Business: The e-commerce industry in Bangladesh is an emerging industry.
This sector is steadily growing and attaining competitiveness. The local e-
commerce companies which have been in the market since inception of the e-
commerce industry should be given protection. Simultaneously, foreign
investments are required in this sector.
v) Freelancing: Now-a-days, Freelancing is a very much probable economic sector for
Bangladesh. About 500,000 active freelancers are working regularly, out of 650,000
registered freelancers in the country; between them they are generating $100 million
annually, according to the ICT Division of Bangladesh.

Negative impacts of modern economic sectors of Bangladesh:

i) Development of many modern sectors causes various types of pollution like water
pollution, soil pollution, air pollution, sound pollution etc
ii) Workers of many industrial sectors compete with other workers for low skills jobs.
As a result, it causes poverty.
iii) Massive wealth is created by sector’s elite personnel. Sometime occurs corruption.
Business owners use money to influence government officials.
iv) Also arises health issue of labors whom are working in different sectors. Some
sectors are very dangerous and hazardous like ship breaking industry, mining,
spinning factory etc.
v) Mass rural-urban migration occurs which means that lots of people are moving into
areas like cities where there may not be enough jobs leading to unemployment.
vi) Due to the increase in tertiary and secondary jobs a country may not have enough
primary workers to get raw materials so they have to import them from other
countries.
Conclusion:
Economic growth deals with an increase in the level of output, but economic development is
related to an increase in output coupled with improvement in the social and political welfare of
people within a country. Therefore, economic development encompasses both growth and
welfare values. Through this assignment I attained skill on different economic sectors and
economic development as well more accurately. This assignment work has significance in our
study life. This skills will be very helpful in my future.